Bitcoin is on its way to its longest monthly winning streak in over a year, after reaching a record high above $ 28,000 over the weekend.
The largest cryptocurrency hit a record high of $ 28,365 on Sunday, before cutting back part of the advance, according to a price composition compiled by Bloomberg. The series of huge returns in October, November and December so far is the longest period since mid-2019.
“My feeling is that we are very close to the top – we could reach $ 30,000,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “We should definitely see a downturn, but the magnitude is probably less. We can only see drops of 10% to 15%. “
Bitcoin divided opinions, as its price more than tripled in 2020 amid the worsening pandemic. Believers see this as protection against the dollar’s weakness 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 the digital currency of violent highs followed by falls.
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The regulatory scrutiny of the still emerging cryptocurrency industry remains a variable to be considered by investors.
The Securities and Exchange Commission accused last week Ripple Labs Inc. and its top executives at mislead investors in XRP affiliate token While Ripple plans to challenge the prosecution in the courts, the development underscores the prospect of tighter supervision of digital assets.
Ayyar said investors are switching to Bitcoin and other digital currencies in the wake of XRP development.
Bitcoin was up 3.6% on Monday and traded at around $ 27,100 at 7:07 am in London. The cryptocurrency has advanced about 279% this year, while the broader Bloomberg Galaxy Crypto index has risen 266%.
(Updates prices in the final paragraph.)