Bitcoin continued its rally at the end of the year, jumping to a new high of over $ 28,500.
And gained Cryptocurrency More than 5 percent to reach $ 27,835 today, Wednesday, which is a 47 percent increase since the beginning of December, and is on track to achieve its biggest monthly gain since May 2019.
Bitcoin’s value has nearly quadrupled this year as interest from institutional investors has grown.
And with the decline in the US dollar, Bitcoin has become a more attractive investment amid concerns that massive government stimulus packages caused by the coronavirus pandemic are fueling inflation.
The dollar fell to its lowest level since April 2018 on Wednesday, when measured against a basket of currencies.
The US currency is under pressure as investors move to riskier assets, and betting on a strong economic recovery next year with the rollout of coronavirus vaccines.
Bitcoin has also been boosted by expectations that it will become the most popular payment method, and PayPal has launched a cryptocurrency trading service through its platform.
It has reportedly bought nearly 70 percent of all new Bitcoin in circulation, A number of hedge fund managers this year revealed that they had invested in cryptocurrency.
Bitcoin has been touted as an alternative to gold, it is traditional investment as a safe haven, and gold has declined After reaching a record high of more than $ 2000 an ounce in August, it is now stable at $ 1879 an ounce.
Some analysts expect Bitcoin to compete with gold for dominance next year.
Said (Paulo Arduino) Paolo ArdoinoBitfinex, chief technology officer, cryptocurrency exchange: Bitcoin could attract more interest from a wider audience, not just fund managers.
He added: Although the increased institutional presence has been part of the current upside, we may see increased retail interest in Bitcoin as a form of digital gold.
Other cryptocurrencies, such as Ether, have also risen, however, concerns remain about the speculative nature of cryptocurrencies, and there are regulatory issues.
And theThe US Securities and Exchange Commission last week accused Ripple and its chief executives of misleading investors. Regarding XRP, the third cryptocurrency in the world by volume, by selling one billion dollars in virtual tokens without registering with the commission.