Bitcoin scales $51K for first time as crypto fever continues

Washington: Bitcoin's incredible rally shows little sign of abating yet after the token jumped past $51,000 for the first time.

The largest cryptocurrency rose almost 6% Wednesday to about $51,431 after a fivefold surge in the past year, according to a composite of prices compiled by Bloomberg. The Bloomberg Galaxy Crypto Index reached a record.

Bitcoin's rally for some is emblematic of speculative froth in financial markets awash with stimulus. The crypto faithful counter that the digital asset is grabbing more mainstream attention, especially after Tesla Inc.'s recent $1.5 billion purchase. MicroStrategy Inc. said Tuesday it would sell $600 million of convertible bonds and use the proceeds to buy more of the tokens.

MicroStrategy's step is "a warning sign if there ever was one that things are getting out of hand in the crypto world," Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, wrote in emailed comments.

Activity in Bitcoin futures suggests traders don't see a sudden end to the crypto rally, with spreads continuing to widen between the active contract and March futures, according to data compiled by Bloomberg.