For the first time in Asia, on Wednesday, Bitcoin traded above $35,000, rising to a high of $35,879 and extending a rally that has seen the digital currency increase more than 800 percent since mid-March 2020.
The world’s most famous cryptocurrency had reached $20,000 for the first time ever almost three weeks ago on Dec 16, 2020.
It reached an all-time high of $20,800 at the time, rising more than 170pc over the previous year, fuelled by demand from larger investors drawn to its accelerated profit potential, suspected inflation tolerance, and hopes that it will become a popular payment form.
The blistering Bitcoin rally saw a huge influx of coins from East Asia to North America, sparked by bitcoin appetite for larger and compliance-wary US investors.
A spokesperson for the firm told Reuters that British fund manager Ruffer Investment Management, which oversaw $27.3 billion in assets at the end of November 2020, made a bet on bitcoin currently worth around $745 million.
The bitcoin boom, which has been seen by some buyers as a possible safe haven, coincided with the collapse of spot gold in recent months.
The opaque aspect of the crypto industry has in the past deterred certain buyers, such as hedge funds and family offices. Any of those worries have been soothed by tightening oversight of the American crypto industry.
In late November, after touching a record high of just under $20,000, bitcoin stalled and even went below $17,000, causing fears that it would be a repeat of the collapse of the asset in 2018.
Glassnode, which offers insight into blockchain data, said that after it hit the November record mark, long-term buyers of bitcoin were selling the virtual currency. However, it acknowledged that, overall, this was a long-term bullish indicator embedded in past market patterns.