According to a composite of prices compiled by Bloomberg, the leading cryptocurrency bitcoin reached an all-time high of $28,365 on Sunday before paring some of the advances. The winning run of outsized returns over October, November, and December so far is the longest such stretch since mid-2019. Bitcoin topped $25,000 on Christmas night, but the leading cryptocurrency went on to touch $28,000 on Sunday. The price of bitcoin is expected to follow the positive rally in the short term.
Bitcoin’s price more than tripled in 2020.
Bitcoin has divided opinion as its price more than tripled this year amid a worsening global pandemic. Believers see it as a hedge against dollar weakness and the risk of faster inflation amid huge stimulus injections and cite growing interest from institutional buyers. However, cynics are questioning Bitcoin’s validity as an investment and point to the digital currency’s history of wild rallies followed by crashes. Regulatory scrutiny of the still-nascent cryptocurrency industry continues to be a variable for investors to consider. Many institutions are now increasingly investing in bitcoin.
Bitcoin retraces back to $27,000.
At the time of writing, the leading cryptocurrency bitcoin’s price is trading at just below $27,000. Several factors played a role in boosting the price of bitcoin to new all-time highs. Recently, there has been an increasing interest in bitcoin from institutional investors. MicroStrategy purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash this month. It is one of the largest independent publicly-traded business intelligence companies. The CEO of Nasdaq-listed MicroStrategy, Michael Saylor, tweeted that the flow of money from real-world conventional assets into Bitcoin (BTC) is neither a bubble nor a rally but a chain reaction.