LONDON/NEW YORK (Reuters) – Bitcoin on Tuesday soared to its highest level since December 2017 as the asset’s perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand.
The largest cryptocurrency BTC=BTSP in terms of market capitalization climbed to $17,868, its highest level since Dec. 20, 2017, and was last up 6.1% at $17,760. It hit just shy of $20,000 in mid-December, 2017, during a buying frenzy driven by retail investors.
Bitcoin has climbed roughly 150% this year and rallied about 360% from its March lows.
“Driven by a mix of market structure and strong fundamentals, bitcoin could now be within days of reaching its all-time high,” Nicholas Pelecanos, head of trading at NEM, said.
“Underlying this bullish price action is the inflation hedge narrative that has captured Wall Street since the immense money printing campaigns undertaken by the Fed earlier this year,” he added.
Citi’s technical analyst Tom Fitzpatrick said in a note that bitcoin could climb as high $318,000, based on his charts.Reuters News
