Bitcoin, the world’s largest cryptocurrency, is on track to end a banner year with another bang.
The digital asset rose above $ 28,000 to a record high on Wednesday. In December alone, Bitcoin rose by more than 40%, putting it on track for its biggest monthly profit since 2019.
Prices rose 2.9% to $ 27,667.07 from 7:06 a.m. in New York.
Bitcoin nearly tripled this year amid the global coronavirus pandemic, while the broader Bloomberg Galaxy Crypto index that tracks the largest digital currencies is about 270% higher as competing currencies like Ether also rise.
The latest price increases continue to spread opinion among those who view cryptocurrencies as a hedge against dollar weakening and inflation risk, and others who question the validity of Bitcoin as an asset class, given its speculative nature and boom.
Read more: Bitcoin crushes doubts as 224% rally proves it’s here to stay
“Although a growing institutional presence has been part of the story of the current bull run, we can see a greater interest in retailing Bitcoin as a form of digital gold,” said Paolo Ardoino, chief technology officer of the crypto exchange Bitfinex, said in an email.
Regulatory concerns also remain a major factor for crypto investors. The Securities and Exchange Commission accused this month Ripple Labs Inc. and its top executives from misleading investors in affiliate sign XRP. While Ripple plans to take the accusation to court, the development highlights the prospect of stricter oversight of digital assets.
XRP het this month it dropped almost 70% and Coinbase is facing the latest stock market to suppress plans to suspend token trading.