Bitcoin tops $23,000 and the rally has further to go

Bitcoin rose to a record high on Thursday, just a day after passing the $20,000 milestone for the first time, amid surging interest from larger investors.

The world’s highest-profile cryptocurrency jumped 10.5% to $23,655, taking its gains this year past 220%, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities.

Smaller coin ethereum, which often moves in tandem with bitcoin, was trading 1.75% higher.

With bitcoin’s supply capped at 21 million, investors see in the cryptocurrency a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the Covid-19 pandemic.