The digital currency Ether reached a record on Monday a day after Bitcoin breached US$34,000 ($44,818.80) for the first time as the surge in cryptocurrencies continues.

Ether touched a high of about US$1,010, its first foray past US$1,000, following a 30% surge on Sunday. Bitcoin held onto most of its weekend gains, dipping about 1.5% as of 10:40 a.m. on Monday in Tokyo to US$33,069. The largest cryptocurrency eclipsed its 2017 record late last year and only hit US$20,000 for the first time in the middle of December.

Proponents of Bitcoin argue that it’s muscling in on gold as a hedge against US dollar weakness and inflation risk, citing evidence of growing interest among institutional investors. Skeptics view the digital asset’s more than 300% surge over the past year as a risky bubble fueled by investors chasing the momentum in cryptocurrency prices.

“The drivers of the crypto rally, if anything, are strengthening amid still low interest rates, political uncertainty” and the prospect of more government stimulus, Julian Emanuel, chief equity and derivatives strategist at BTIG LLC, said in an email. But he added that volatility can work both to the upside “as well as to the downside.”