Bitcoin price rises to highest level in 4 months. What’s behind the rally?
Global News
Bitcoin has gained almost 30 per cent this year, buoyed in part by optimism that inflation has peaked
Bitcoin on Tuesday rose to its highest in more than four months, extending a new year rally fuelled by hopes that a potential end to central bank policy tightening will benefit the volatile asset.
The world’s biggest cryptocurrency touched US$21,594, a level not seen since Sept. 13. It was last flat at US$21,174.
Bitcoin has gained almost 30 per cent this year, buoyed in part by optimism that inflation has peaked, potentially reducing the need for tighter central bank policy.
Bitcoin and other crypto coins soared during the COVID-19 pandemic as central banks and governments unleashed massive fiscal and monetary stimulus packages. However, a tightening of central bank credit hammered prices, triggering a string ofcorporate failures.
(Reporting by Tom Wilson; editing by Alun John and Jason Neely)
