Surging investor interest sends bitcoin to peak past $23,000

By Sinead Cruise and Tom Wilson LONDON (Reuters) - Bitcoin rose to a record high on Thursday, 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% to $23,655, taking its gains this year past 220%, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities

Reuters December 18, 2020 00:06:41 IST
Surging investor interest sends bitcoin to peak past $23,000

Surging investor interest sends bitcoin to peak past 23000

By Sinead Cruise and Tom Wilson

LONDON (Reuters) - Bitcoin rose to a record high on Thursday, 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% to $23,655, taking its gains this year past 220%, 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% 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."

Cryptocurrencies emerged over a decade ago but quickly became associated with crime, trading glitches, hacks and wild price swings. It is only in the past few years that they have started attracting more mainstream interest.

Bitcoin remains less regulated than most traditional assets, but institutional investors have begun to shed scepticism towards cryptocurrencies as better market infrastructure make crypto markets more accessible.

The 2020 rally has also been driven by increasing expectations it will become a mainstream payment method, with PayPal opening its network to cryptocurrencies.

Still, few people or businesses use bitcoin for commerce.

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.

(Reporting By Sinead Cruisel editing by Rachel Armstrong, Larry King)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Snow-struck Madrid struggles with cleanup as severe frost grips Spain
World

Snow-struck Madrid struggles with cleanup as severe frost grips Spain

By Elena Rodriguez and Belén Carreño MADRID (Reuters) - Authorities struggled to clear ice and fallen trees from the streets of Madrid on Tuesday and temperatures in parts of Spain hit record lows after a snowstorm wrought havoc across the country at the weekend. Early jubilation at the historic snowfall, which saw skiers gliding through the streets and mass snowball fights, gave way to frustration as most public transport remained stalled and pedestrians avoided the icy streets. "You in Madrid are not ready for this," said Demetrio, a Ukrainian living in Madrid, who did not give his last name.

Trump disavows any responsibility for his supporters' Jan. 6 attack
World

Trump disavows any responsibility for his supporters' Jan. 6 attack

By Steve Holland and Andrea Shalal JOINT BASE ANDREWS, Md./WASHINGTON (Reuters) - U.S. President Donald Trump, facing impeachment on a charge of "incitement of insurrection" on Tuesday disavowed responsibility for his supporters' violent invasion of the U.S. Capitol last week and said his remarks before the siege were appropriate.

Renault and Plug Power to develop fuel-cell commerical vehicles
News & Analysis

Renault and Plug Power to develop fuel-cell commerical vehicles

PARIS (Reuters) - French carmaker Renault and U.S. hydrogen specialist Plug Power have joined forces to develop hydrogen-powered light commercial vehicles, they said on Tuesday. The companies have signed a memorandum of understanding to launch a France-based 50-50 joint venture by the end of the first half of 2021, targeting more than 30% share of the fuel cell-powered light commercial vehicle market in Europe, their joint statement said