Bitcoin breaks above $35,000 to touch new high

Bitcoin traded above $35,000 for the first time in Asia on Wednesday, rising to a high of $35,879 and extending a rally that has seen the digital currency rise more than 800 per cent since mid-March.

The world’s most popular cryptocurrency crossed $20,000 for the first time ever on December 16.

Fuelling bitcoin’s rally has been the perception it can act as a hedge against the risk of inflation as governments and central banks turn on the stimulus taps to counter the economic impact of the COVID-19 pandemic.

“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore currency analyst Moh Siong Sim said of its most recent rally.

Bitcoin’s advance has also reflected expectations it will become a mainstream payment method. Its potential for quick gains has also attracted demand from larger U.S. investors.

Representations of virtual currency Bitcoin are seen in this picture illustration taken taken March 13, 2020. (PHOTO: Reuters)