Bitcoin rose to a record high on December 17, just a day after passing the $20,000 milestone for the first time, amid surging interest from larger investors.
The world’s highest-profile cryptocurrency jumped 10.5 percent to $23,655, taking its gains this year past 220 percent, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities.
Smaller coin ethereum, which often moves in tandem with bitcoin, was trading 1.75 percent higher.
With bitcoin’s supply capped at 21 million, investors see in the cryptocurrency a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the COVID-19 pandemic.
“There will be a search for alternative currencies due to constant fiat money debasement,” Deutsche Bank analysts wrote in a note. “It does feel that bitcoin will continue to be in high demand.”
Yang Li of digital foreign exchange platform Ziglu said modern personal money apps were at the forefront of ensuring easy, safe and fast access to cryptocurrency.
“Wider adoption will grow the value of bitcoin even more — this is just the start,” Li said.
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