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Bitcoin got the new year off to a scorching start as investors continued to pile on bets that the digital currencys price will keep rising.

The price of bitcoin rose as much as 19% over the weekend, trading as high as $34,452 on Sunday, according to CoinDesk. It finished 2020 at $28,966, more than quadrupling on the year.

Bitcoin has been on an extended rally since early September, part of the everything rally that has fueled gains in stocks, emerging markets and other assets.

In many respects, what has happened in the first few days of 2021 resembled a stock market short squeeze, said AvaTrade analyst Naeem Aslam. He was referring to the cascade of buying that can happen when investors respond to a price jump by buying back stock they have sold in an effort to keep their losses from mounting.

It wasnt just bitcoin that took a wild ride. The price of ether, the second-largest cryptocurrency, rose as much as 35% over the three-day weekend, trading above $1,000 for the first time since early 2018. Ether eased by 1% on Monday, closing at $998.

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Bitcoin Surges Into 2021, Rose Nearly 20% Over Weekend - The Wall Street Journal