Bitcoin hits fresh record high, last up 3.5 percent to $38,133

Bitcoin has hit a new high of $38,133 on Thursday after its January 4 dip threatened an end to a staggering rally.

The world’s largest cryptocurrency was up 3.5 percent to reach an all-time high as investors turn to the asset in the face of economic uncertainty linked to the coronavirus pandemic.

Monday’s dip was attributed to highly-leveraged trading, Richard Galvin of crypto fund Digital Asset Capital Management told Reuters.

Bitcoin’s record high comes less than three weeks after it crossed $20,000 for the first time, on December 16. The world’s biggest cryptocurrency more than quadrupled in price last year after an early fall of 25 percent in March.

Considered a strong long-term asset by some, critics point to Bitcoin’s volatility which often sees wild swings in value.

Prominent investors such as Nigel Green, chief executive of deVere group, tip Bitcoin as a bastion against inflation caused by widespread government stimulus packages worldwide.

Finance leaders and central bankers from G7 countries discussed the ever-growing cryptocurrency market in December, with the German finance minister stressing the need for governments to maintain a monopoly on currencies.