Bitcoin hits 13-month high
Bitcoin hit $ 12,000 high on Monday, a 13-month high
Bitcoin climbed to the highest level in more than a year, amidst risk appetite buying in the stock markets, and continued its rally, which has nearly tripled its value since March.
The largest cryptocurrency, Bitcoin, rose 5.3 percent, climbing to $ 12,473 and hitting its highest level since July 2019. Bitcoin has surged over 70% this year, making it one of the strongest performing assets.
Declining interest rates and massive bond purchase programs implemented by central banks around the world have increased demand for the cryptocurrency, which is seen by some investors as a protection against inflation due to limited supply.
The Bloomberg Galaxy Crypto Index, which includes other cryptocurrencies such as Bitcoin Cash, Litecoin, and Monero, reached its highest level since June 2019.
“Inflation is low in the current period, but real interest rates are generally low. Negative real interest rates and monetary incentives and spending have led investors to invest in investment instruments such as gold to hedge inflation,” said Seamus Donoghue, METACO’s vice president of sales and business development. ”And given increased institutional acceptance, Bitcoin will likely benefit from demand from those who want to hedge inflation, ” he said.