Investing.com - The price of the digital currency bitcoin soared to record high on Tuesday, closing in on the symbolic $10,000 threshold, amid growing fears over an asset bubble.
On the U.S.-based Bitfinex exchange, Bitcoin was at $9,856.50 by 04:30 AM ET (09:29 AM GMT), the highest level in its nine-year history.
Bitcoin, which started 2017 at about $1,000 and broke through $5,000 in October has risen almost 900% so far this year as investors in the digital currency shrug off warnings of a bubble.
At current prices bitcoin has a total market capitalization of around $166 billion, exceeding that of IBM, Disney and McDonald’s.
Trade this year has been volatile even amid the big rally, with five separate corrections of more than 20% all giving way to subsequent rallies.
Bitcoin, which is known for sharp swings, has tended to rebound quickly from pullbacks.
The latest decline came earlier this month, when bitcoin fell more than 25% over a four day period before quickly recovering.
The price has been boosted by last month’s decision by CME Group (NASDAQ:CME), the world's largest derivative exchange operator, to launch bitcoin futures by the end of the year in response to demand from some of its largest users.
The move has helped give the cryptocurrency legitimacy in the eyes of some traders, but analysts have warned that an asset bubble is building.
JPMorgan Chase CEO Jamie Dimon recently called bitcoin a "fraud" that would ultimately blow up and UBS branded bitcoin a "speculative bubble" in a recent note to investors.
A recent proliferation of initial coin offerings, in which start-ups create a new virtual coin or token and offer it for public sale have also fueled buying.
Elsewhere in cryptocurrency trading, Bitcoin Cash was last at $1,561.50, while Bitcoin Gold was at $354.97.
Ethereum, the second most valuable cryptocurrency by market cap after bitcoin, was at $473.26 after rising to a record high of $491.89 on Monday. It is up more than 5,200% for the year to date.