Bitcoin, the world’s largest cryptocurrency, is on track to end an exceptional year with another bang.
The digital asset rose above $ 28,000 on Wednesday, to a record high. In December alone, Bitcoin rose more than 40%, putting it on the road to its biggest monthly gain since 2019.
Prices rose 2.9% to $ 27,667.07 as of 7:06 am in New York.
Bitcoin’s value has almost quadrupled this year amid the global coronavirus pandemic, while the broader Bloomberg Galaxy Crypto Index that tracks the largest digital currencies has risen about 270%, as rival currencies like Ether have also recovered.
The latest price hike continues to divide opinion between those who see cryptocurrencies as protection against dollar weakness and the risk of inflation, and others who question the validity of Bitcoin as an asset class given its speculative nature and cycles of expansion and fall.
Read More: Bitcoin Crushes Doubtful While 224% of Rally Proves It’s Here to Stay
“Although a growing institutional presence was part of the narrative of the current bull run, we can see an increase in retail interest in Bitcoin as a form of digital gold,” said Paolo Ardoino, chief technology officer at crypto exchange Bitfinex, by e- mail.
Regulatory concerns also remain a broader factor for crypto investors. The Securities and Exchange Commission accused this month Ripple Labs Inc. and its top executives at deceive investors in affiliate token XRP. While Ripple plans to challenge the prosecution in court, the development underscores the prospect of stricter supervision of digital assets.
XRP has has plunged nearly 70% this month and faces more pressure with Coinbase, the latest exchange to announce plans to suspend trading in the token.