Bitcoin is on its way to the longest series of monthly earnings in more than a year after reaching a record high of $ 28,000 over the weekend.
The largest cryptocurrency reached a record high of $ 28,365 on Sunday, before assessing part of the advance, according to a composite price compiled by Bloomberg. So far, the oversized yield of October, November and December is the longest period from mid-2019.
“I feel like we’re very close to a top – we could still reach $ 30,000,” said Vijay Ayyar, head of business development at Singapore’s Luno cryptocurrency exchange. “We should definitely see a retreat, but the magnitude is probably smaller. We may see only 10% to 15% decreases. “
Bitcoin has divided opinion, as its price tripled in 2020 amid a worsening pandemic. Believers see it as a hedge against the weakness of the dollar and the risk of faster inflation amid huge 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 digital currencies of wild rallies followed by blockades.
Read more: Bitcoin crushes doubts, as 224% rally proves it is here to stay
Regulatory review of the emerging cryptocurrency industry continues to be a variable for investors to consider.
The Securities and Exchange Commission charged last week Ripple Labs Inc. and its top executives deceptive investors in the affiliate XRP symbol. While Ripple intends to challenge the indictment in court, the development underscores the prospect of tighter oversight of digital assets.
Ayyar said investors are moving to Bitcoin and other digital currencies following the development of XRP.
Bitcoin rose to 3.6% on Monday and traded at around $ 27,100 starting at 7:07 in London. The cryptocurrency has advanced about 279% this year, while the broader Bloomberg Galaxy Crypto index has risen 266%.
(Update prices in the last paragraph.)