REUTERSBitcoin yesterday extended a record-breaking rally, taking the world's largest cryptocurrency past US$23,000 (HK$179,400), amid surging interest from larger investors. The world's highest-profile cryptocurrency jumped 10.5 percent to US$23,655, taking its gains this year past 220 percent, 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 percent 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. 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.

Source: The Standard December 17, 2020 19:07 UTC