Bitcoin touches $29,000 for another high in banner year

The latest price surge continues to divide opinion between those who view cryptocurrencies as a hedge against dollar weakness and inflation risk, and others who question Bitcoin’s validity as an asset class given its speculative nature and boom-and-bust cycles.

Bitcoin has now quadrupled in value this year amid the global coronavirus pandemic (REUTERS)

Bitcoin vaulted above $29,000 to reach yet another record level on the last day of 2020, showing no signs of slowing down its torrid December rally.

The largest cryptocurrency climbed to as high as $29,292 before pulling back slightly to trade at $28,520 as of 9:12 a.m. in Hong Kong Thursday. It has advanced almost 50% in December, on track for its biggest monthly gain since May 2019.

Bitcoin has now quadrupled in value this year amid the global coronavirus pandemic, while the wider Bloomberg Galaxy Crypto Index tracking the largest digital currencies is up about 280% as rival coins such as Ether have also rallied.

Regulatory concerns also remain a wider factor for crypto investors. The Securities and Exchange Commission this month accused Ripple Labs Inc. and its top executives of misleading investors in affiliated token XRP. 

While Ripple plans to challenge the accusation in the courts, the development underscores the prospect of stricter oversight of digital assets.

XRP has plummeted almost 70% this month and faces further pressure with Coinbase the latest exchange to announce plans to suspend trading in the token. 

Coinbase also faces a proposed class-action lawsuit over the commissions the exchange collected for selling the token.

By Eric Lam