Bitcoin Hits Fresh High As 2020 Gains Blow Away Gold, Stocks

Bitcoin prices surged to a fresh record high on the back of accelerating mainstream acceptance. Bitcoin stocks Riot Blockchain (RIOT) and Marathon Patent Group (MARA) rallied, along with Grayscale Bitcoin Trust (GBTC).

The price of Bitcoin briefly hit $28,579 early Wednesday morning, roughly quadrupling in value this year. For December, Bitcoin has jumped more than 40%, setting up the world’s largest cryptocurrency for its biggest monthly gain since 2019. As of 9:55 a.m. ET, Bitcoin traded at $28,126.

Bitcoin topped the prior high of $28,352 set as recently as Sunday, which came after it gained more than $4,700 over the holiday weekend. The cryptocurrency is up about 460% from the March coronavirus low below $5,000.

Meanwhile, the 299% surge in Bitcoin prices at their high vs. the start of 2020 far outstrips the Nasdaq’s 42% run, the S&P 500’s 15% advance, and gold’s 24% gain.

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GBTC stock rose 4.4% to 31.39 Wednesday and is on track for a 35% monthly gain. That compared to gains of 9% for crypto stock Marathon Patent on the stock market today, 7% for Riot Blockchain, 1.5% for Square (SQ) and 0.8% for PayPal (PYPL).

Growing mainstream acceptance has lifted cryptocurrencies. Institutional investors driving this year’s record run include Anthony Scaramucci’s Skybridge Capital ($25 million in Bitcoin added December); MassMutual ($100 million in December); and Guggenheim (up to 10% of its $5 billion macro fund), according to Coindesk.com.

Also, PayPal is said to be absorbing all newly minted Bitcoin supply. American Express (AXP) invested in crypto trading platform FalconX. And database software developer MicroStrategy (MSTR) sharply hiked its Bitcoin investment to $1.125 billion.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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