Bitcoin, the world’s largest cryptocurrency, is on track to end a banner year with another bang.
The digital asset soared above $ 28,000 on Wednesday to a record high. In December alone, Bitcoin is up more than 40%, putting it on track for its largest monthly profit since 2019.
Prices were up 2.9% to $ 27,667.07 from 7:06 a.m. in New York.
Bitcoin has nearly quadrupled in value this year amid the global coronavirus pandemic, while the broader Bloomberg Galaxy Crypto Index that tracks the largest digital currencies is up about 270% as rival coins like Ether have also risen.
The latest price hike continues to divide opinion between those who view cryptocurrencies as a hedge against dollar weakness and inflation risk, and others who question Bitcoin’s validity as an asset class, given its speculative nature and boom-and-bust cycles.
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“While a growing institutional presence is part of the story of the current bull run, we may see increased retail interest in Bitcoin as a form of digital gold,” said Paolo Ardoino, chief technology officer of crypto exchange Bitfinex. an e-mail.
Regulatory issues also remain a broader factor for crypto investors. The Securities and Exchange Commission has impeached this month Ripple Labs Inc. and are top managers of it misleading investors in affiliated token XRP. While Ripple plans to take the charge in court, the development underscores the prospect of tighter controls on digital assets.
XRP has This month plunged nearly 70% and is under further pressure with Coinbase, the latest exchange, announcing plans to suspend trading in the token.