Bitcoin breaks above $35,000 to touch new high

Representations of virtual currency Bitcoin are seen in this picture illustration taken taken March 13, 2020. (PHOTO: Reuters)

By Reuters

Bitcoin traded above $35,000 for the first time in Asia on Wednesday, rising to a high of $35,879 and

extending a rally that has seen the digital currency rise more than 800 per cent since mid-March.

The world’s most popular cryptocurrency crossed $20,000 for the first time ever on December 16.

Fuelling bitcoin’s rally has been the perception it can act as a hedge against the risk of inflation as governments and central banks turn on the stimulus taps to counter the economic impact of the COVID-19 pandemic.

“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore currency analyst Moh Siong Sim said of its most recent rally.

Bitcoin’s advance has also reflected expectations it will become a mainstream payment method. Its potential for quick gains has also attracted demand from larger U.S. investors.