The world’s most popular crypto, bitcoin, hit a new high of $28,579 during trading on Wednesday, inching closer to a psychological level of $30,000. The price of the digital asset has nearly tripled year-to-date.
The cryptocurrency, which later dropped back to trade below $28,000, is set for its biggest monthly gain since May 2019.
Analysts say that institutional investors, such as Paul Tudor Jones and Stanley Druckenmiller, have been driving bitcoin’s record run. Big investors added $11.5 billion in bitcoins over the previous three months.
“While a growing institutional presence has been part of the narrative of the current bull run, we may see increased retail interest in bitcoin as a form of digital gold,” Paolo Ardoino, chief technology officer of crypto exchange Bitfinex, told Bloomberg.
Meanwhile, regulatory concerns remain a wider factor for crypto investors. The Securities and Exchange Commission this month accused Ripple Labs 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 over 70 percent this month and faces further pressure, with Coinbase becoming the latest exchange to announce suspension of trading in the token.
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