Bitcoin is on course for its longest monthly winning streak in more than a year after hitting a record high of more than $ 28,000 over the weekend.
The largest cryptocurrency reached an all-time high of $ 28,365 on Sunday before comparing part of the advance, according to a compilation of prices compiled by Bloomberg. The yield of extraordinary returns so far in October, November and December is the longest stretch since mid-2019.
“I think we are very close to a top – we can earn $ 30,000,” said Vijay Ayyar, head of business development at crypto exchange Luno in Singapore. ‘We should definitely get a setback, but the scale is probably less. We may only drop 10% to 15%. ‘
Bitcoin has split opinion as the price has more than tripled in 2020 amid a worsening pandemic. Believers see this as a hedge against dollar weakening and the risk of faster inflation amid major stimulus injections, citing increasing interest from institutional buyers. Others doubt the validity of Bitcoin as an investment and point to the history of the digital currency of wild rallies, followed by crashes.
Read more: Bitcoin crushes doubts as 224% rally proves it’s here to stay
The regulatory scrutiny of the ever-emerging cryptocurrency industry is still a variable for investors to consider.
The Securities and Exchange Commission accused last week Ripple Labs Inc. and its top executives from misleading investors in affiliate sign XRP. While Ripple intends to challenge the accusation in the courts, the development highlights the prospect of stricter oversight of digital assets.
Ayyar said investors are moving to Bitcoin and other digital currencies in the wake of the XRP development.
Bitcoin climbed to 3.6% on Monday and was in London at around $ 27,100 from 07:07. The cryptocurrency has risen about 279% this year, while the broader Bloomberg Galaxy Crypto Index has risen 266%.
(Prices are updated in the last paragraph.)