By Kevin Buckland
Bitcoin has rallied more than 700% since a low in March. It topped $30,000 for the first time on Jan. 2, after surpassing $20,000 on Dec. 16.
Market participants had warned of a correction after the $40,000 milestone was reached.
Increased demand from institutional, corporate, and more recently retail investors has powered bitcoin’s surge, attracted by the prospect of quick gains in a world of ultra-low yields and negative interest rates.
JPMorgan strategists wrote on Jan. 5 that the digital currency has emerged as a rival to gold and could trade as high as $146,000 if it becomes established as a safe-haven asset.
(Reporting by Kevin Buckland; Editing by Himani Sarkar)