Bitcoin is on track for its longest monthly winning streak in over a year after touching a record of over $ 28,000 over the weekend.
The largest cryptocurrency hit an all-time high of $ 28,365 on Sunday, according to a composite of prices compiled by Bloomberg. The increase in the number of returns so far in October, November and December is the longest stretch since mid-2019.
“I believe we are very close to a top – however, we can hit $ 30,000,” said Vijay Iyer, head of business development with the crypto exchange Luno in Singapore. “We should definitely see a stretch, but the magnitude is probably less. We can only see a drop of 10% to 15%. “
Bitcoin has split its price by more than threefold in 2020 amid a worsening epidemic. Believers see this as a risk of rapid inflation amid dollar weakness and heavy stimulus injections, and cite increased interest from institutional buyers. Others question the legitimacy of bitcoin as an investment and point to the history of digital rallies as wild rallies.
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The regulatory scrutiny of the still-nascent cryptocurrency industry is a variable for investors to consider.
The Securities and Exchange Commission alleged last week Ripple Labs Inc. and its top executives Misleading investors in affiliate token XRP. While Ripple plans to challenge the charges in the courts, the development reduces the possibility of stricter surveillance of digital assets.
Iyer said that investors are transferring bitcoin and other digital coins in view of XRP development.
Bitcoin climbed 3.6% on Monday and was trading at around $ 27,100 as of 7:07 am in London. The cryptocurrency has advanced about 279% this year, while the broader Bloomberg Galaxy Crypto Index stands at 266%.
(Updates prices in the last paragraph.)