Bitcoin, the world’s largest cryptocurrency, is on track to close one year with another.
The digital resource surpassed $ 28,000 on Wednesday to a record high. In December alone, Bitcoin has risen more than 40%, positioning itself on the path to its biggest monthly gain since 2019.
Prices rose 2.9% to $ 27,667.07 at 7:06 a.m. in New York.
Bitcoin has nearly quadrupled in value this year amid the global coronavirus pandemic, while Bloomberg Galaxy Crypto’s broader index, which tracks the largest digital currencies, is up around 270% as it also rival coins such as Ether have been gathered.
The latest rise in prices continues to divide opinion among those who view cryptocurrencies as a hedge against the weakness of the dollar and the risk of inflation, and others who question the validity of Bitcoin as an asset class given the its speculative nature and the boom and bust cycles.
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“While the growing institutional presence has been part of the current bullfighting narrative, we may see an increase in retail interest in Bitcoin as a form of digital gold,” Paolo Ardoino said in an email. Bitfinex cryptographic exchange technology director.
Regulatory concerns also remain a broader factor for investors in cryptography. The Securities and Exchange Commission charged this month 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.
XRP has fell nearly 70% this month and faces additional pressures with Coinbase, the latest exchange to announce plans to suspend witness trading.