On Monday, Bitcoin continued its impressive rally, reaching a two-month high of $19,120. The digital currency has been on a tear since the start of November, with prices rising more than 40% in the past two months.
The surge in Bitcoin is being fueled by a combination of factors, including a weakening US dollar, rising institutional interest, and moderating inflation. The US dollar has been weakening since the beginning of the year, leading investors to seek alternative assets such as Bitcoin. Meanwhile, institutional investors have been pouring money into Bitcoin, driving up demand for the currency.
Meanwhile, the US Federal Reserve has been pumping out trillions of dollars in stimulus measures, leading to concerns about rising inflation. However, recent data has shown that inflation is moderating, easing some of the worries about the currency.
As a result, Bitcoin’s rally is likely to continue, as investors look for alternative assets to hedge against inflation.