On the back of increasing interest from both retail and institutional investors, bitcoin in Monday's trade again scaled to a fresh high of $24000 mark, before paring some gains. Earlier on December 17, the digital token moved past levels of $23000 for the first time.
So far this year, the largest cryptocurrency has gained over 233%, primarily driven by surge in demand from large investors who are lured to its potential for quick gains. Also, another factor fuelling the rally in the crypto has been increasing expectations that it will become a mainstream payment method.
"Bitcoin has become investible for institutions with custodian arrangements available and with prominent investors and indeed institutional investors declaring that they have bought it. In this respect, Bitcoin has now become part of the system with opportunities also for retail investors to buy into it", Jefferies said in its Greed and Fear report dated December 18.
"There will be a search for alternative currencies due to constant fiat money debasement," Deutsche Bank analysts wrote in a note. "It does feel that bitcoin will continue to be in high demand."
Amid stimulus measures by global central banks to tackle Covid-19 led economic fall-out, investors see cryptocurrency as a hedge against the risk of inflation.