Bitcoin jumped to an all-time high Thursday as investors bet the digital currency will gain even greater acceptance globally as a store of value and an investment vehicle.
Bitcoin rose more than 4 percent to hit a record price of $1,553.18, according to CoinDesk. New interest in the currency out of Japan was the cause of the latest short-term upward move, traders said.
“Bitcoin can be thought of as digital gold,” said Brian Kelly, founder of BKCM LLC and manager of a digital assets hedge fund. “The upside for bitcoin is so much higher than upside for gold, in my view.”
Gold futures for June delivery traded more than 1 percent lower to near $1,232 an ounce on the New York Mercantile Exchange. The precious metal had topped $1,500 for about two years, even running above $1,800 at one point, but since early 2013 has not been able to recover back to the $1,500 level.
Bitcoin 12-month performance
Over the last two weeks, the cryptocurrency has climbed about 25 percent into record territory on increased investor interest. Bitcoin got a boost last week from news that the U.S. Securities and Exchange Commission said it plans to review its listing rejection for what would have been the first U.S. exchange-traded fund that tracks the digital currency.
Since the April 24 filing, bitcoin has only once traded lower on the day, according to CoinDesk.
“Right now it’s speculation over the ETF. That’s been the biggest thing,” said Kelly, a CNBC contributor who launched the digital assets fund for outside investors this year.
Gold 12-month performance
Increased interest from Japanese investors has also contributed to bitcoin’s gains. More than 10 Japanese companies are launching digital currency exchanges given increased legal recognition of the currencies and a scheduled elimination of a tax on digital currency purchases, the Nikkei Asian Review reported Tuesday.
Bitcoin plunged more than 25 percent from record levels last month after the SEC denied the listing of the Winklevoss Bitcoin ETF, and subsequently the SolidX Bitcoin Trust exchange-traded product. A heated debate among bitcoin users about the technological future of the currency also hit prices.