Bitcoin continued its end-of-year advance, climbing to a record $28,897.40 at the end of trade on Coindesk Thursday in New York on increasing interest from institutional investors. It was at $29,108.78 in afterhours trade.
It has rallied by almost 50% since breaking the $20,000 level Dec. 16 and is on course for its largest monthly increase since May 2019.
As the U.S. dollar weakened, the virtual currency has become more attractive as a result of jitters that government financial bailouts prompted by the world health crisis will spark inflation.
The U.S. dollar is under pressure as investors bet on a robust economic recovery in 2021 as pandemic vaccines are distributed.
Bitcoin has seen increasing demand from bigger American investors in particular, drawn by its perceived safe-haven characteristics and potential for gains and projections it will become a mainstream method of payment.
According to analysts, the limited supply of bitcoin - generated by "mining rigs" that validate transactions by competing to solve complex mathematical puzzles - has helped boost its ascent in recent days.
Investors turn to Bitcoin as it is being touted as an alternative to gold. The price of gold, the traditional safe-haven investment, has dropped since registering a record peak of over $2,000 per ounce in August.
Software programmer Satoshi Nakamoto developed bitcoin 11 years ago based on Blockchain technology that supports a peer-to-peer virtual payments system - autonomous and not controlled by any single person, private company or government.
