Bitcoin Soars to All Time High, Breaking Its Prior Record

Bitcoin Soars to All Time High, Breaking Its Prior Record

Bitcoin soared to a record high against the dollar on Monday, as its 2020 rally steamed ahead, boosted by increased demand from both institutional and retail investors that saw the virtual currency as a safe-haven and a hedge against inflation.

The digital unit touched an all-time peak of $19,864.15, breaking its prior record set nearly three years ago. It was trading at $19,410.74 on Tuesday morning at 9.25am UAE time.

Last Friday, however, bitcoin dropped more than 8 per cent, below $17,000, before rebounding on Monday.

Bitcoin overall has gained more than 170 per cent this year, fuelled by a demand for riskier assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance.

“Bitcoin is a natural safe haven for those seeking shelter from rapidly increasing central bank money printing and the inflation that everyone agrees is already increasing,” said Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain.

Smaller coins ethereum and XRP, which often move in tandem with bitcoin, gained 5.6 per cent and 6.6 per cent, respectively.

Christopher Bendiksen, head of research at CoinShares, also cited continued corporate and institutional interest as