Bitcoin is on track for its longest monthly winning streak in more than a year after hitting a record high of more than $ 28,000 over the weekend.
The largest cryptocurrency hit an all-time high of $ 28,365 on Sunday, before settling some of the advance, according to a Bloomberg-compiled price. The series of outsized returns in October, November and December is the longest period so far since mid-2019.
“I feel like we’re very close to a top – we could hit $ 30,000, though,” said Vijay Ayyar, head of business development at crypto exchange Luno in Singapore. “We should definitely see a decline, but the size is probably smaller. We may only see 10% to 15% declines. “
Bitcoin has divided opinions as its price more than tripled in 2020 amid an increasingly worsening pandemic. Believers see it as a hedge against dollar weakness and the risk of accelerating inflation amid massive stimulus injections, citing growing interest from institutional buyers. Others question Bitcoin’s validity as an investment, pointing to the history of wild rallies followed by crashes in the digital currency.
Read more: Bitcoin is crushing doubters as 224% of the rally proves it’s here to stay
Regulatory oversight of the burgeoning cryptocurrency industry remains a variable for investors to consider.
The Securities and Exchange Commission charged last week 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.
Ayyar said investors are switching to Bitcoin and other digital currencies in the wake of XRP development.
Bitcoin climbed a whopping 3.6% on Monday, trading at around $ 27,100 as of 7:07 a.m. in London. The cryptocurrency is up about 279% this year, while the broader Bloomberg Galaxy Crypto Index is up 266%.
(Updates prices in the last paragraph.)