Bitcoin breaks above $20,000 for first time

Bitcoin smashed through $20,000 for the first time on Wednesday, its highest ever.

The cryptocurrency jumped 4.5% to move as high as $20,440. It has gained more than 170% this year, buoyed by demand from larger investors attracted to its potential for quick gains, purported resistance to inflation and expectations it will become a mainstream payment method.

Bitcoin’s blistering rally has seen a massive flow of coin to North America from East Asia, fuelled by hunger for bitcoin among bigger and compliance-wary U.S. investors.

The rally in bitcoin, which some investors have seen as a potential safe-haven, has coincided with spot gold’s drop in recent months.