Bitcoin is well on its way to its longest monthly winning streak in more than a year after hitting a record high of $ 28,000 over the weekend.
The largest cryptocurrency hit a record high of $ 28,365 on Sunday before matching part of the advance, according to a price set compiled by Bloomberg. The oversized yield period of October, November and December so far is the longest stretch since mid-2019.
“I get the feeling that we are very close to a higher level, even though we could reach $ 30,000,” said Vijay Ayyar, head of business development with cryptocurrency exchange Luno in Singapore. “We should definitely see a setback, but the magnitude is likely to be smaller. We may only see a 10% to 15% drop. “
Bitcoin has divided opinion, as its price tripled in 2020 amid a worsening pandemic. Believers see it as a protection against the weakness of the dollar and the risk of faster inflation amid large stimulus injections and cite the growing interest of institutional buyers. Others question the validity of Bitcoin as an investment and point to the history of wild concentrations of digital currency followed by blockades.
Read more: Bitcoin crushes doubts, as 224% of the rally proves it is here to stay
The still incipient regulatory exploration of the cryptocurrency industry remains a variable that investors need to keep in mind.
The Securities and Exchange Commission charged last week Ripple Labs Inc. and its top executives Misleading investors in affiliate witness XRP. While Ripple plans to challenge the prosecution in court, the development underscores the prospect of tighter oversight of digital assets.
Ayyar said investors are shifting to Bitcoin and other digital currencies as a result of the development of XRP.
Bitcoin rose to 3.6% on Monday and was trading at about $ 27,100 as of 7:07 a.m. in London. The cryptocurrency has advanced about 279% this year, while the broader Bloomberg Galaxy Crypto index is up 266%.
(Update prices in the final paragraph.)