Bitcoin rises to highest in four months

BITCOIN on Tuesday (Jan 17) 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 of corporate failures. REUTERS