This month alone, Bitcoin has jumped nearly 50%, putting it on track to make December its biggest month since 2019.
Bitcoin brings in $ 29,000 as the world’s largest cryptocurrency pushes its mind-blowing rally in 2020 beyond 300%.
Digital assets topped $ 29,700 by 3 p.m. Wednesday to hit a record high. In December alone, Bitcoin jumped almost 50%, putting it on track for its biggest monthly gain since 2019.
Bitcoin’s value has now quadrupled this year amid the global coronavirus pandemic, while the larger Bloomberg Galaxy Crypto Index that tracks the biggest digital currencies has risen by around 270% as rival coins such as Ether also gathered.
The latest price spike continues to divide opinion between those who see cryptocurrencies as a hedge against a weak dollar and inflation risk, and others who question the validity of Bitcoin as a class. asset given its speculative nature and boom and bust cycles.
“While a growing institutional presence has been part of the current bull run narrative, we can see increased retail interest in Bitcoin as a form of digital gold,” said Paolo Ardoino, chief technology officer of the crypto exchange Bitfinex in an email.
Regulatory concerns also remain a larger factor for crypto investors. The Securities and Exchange Commission this month accused Ripple Labs Inc. and its senior executives of misleading investors in the XRP affiliate token. As Ripple plans to challenge the charge in court, the development highlights the prospect of tighter oversight of digital assets.
XRP has fallen nearly 70% this month and faces additional pressure with Coinbase, the latest exchange to announce its intention to suspend trading in the token.