Bitcoin, the largest cryptocurrency in the world, is about to close a banner year with another bang.
Digital assets rose more than $ 28,000 on Wednesday to a record high. In December alone, Bitcoin grew by more than 40%, putting it on the road to the biggest monthly gain of 2019.
Prices rose 2.9% to $ 27,667.07 as of 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 currencies like Ether have also gathered.
The most recent rise in prices continues to divide opinion among those who view cryptocurrencies as a hedge against dollar weakness and inflation risk and others who question the validity of Bitcoin as an asset class, given its speculative nature and growth cycles. and growth.
Read more: Bitcoin crushes doubts, as 224% rally proves it is here to stay
“While a growing institutional presence has been part of the narrative of the current race, we can see the growing retail interest in Bitcoin as a form of digital gold,” said Paolo Ardoino, chief technology officer of the crypto exchange, in an email. Bitfinex.
Regulatory concerns also remain a broader factor for crypto investors. This month, the Securities and Exchange Commission charged 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.
XRP has this month it has fallen by almost 70% and is facing additional pressure from Coinbase, the latest stock exchange to announce plans to suspend token trading.