Bitcoin reached US$17,000 for the first time since just after the burst of the cryptocurrency bubble almost three years ago.
The largest digital coin, which has more than doubled this year, rose as much as 2.4 per cent to US$17,099 on Tuesday in New York trading. From an all-time high in December 2017 of nearly US$20,000, Bitcoin tumbled to as low as US$3,136 within a year.
“Bitcoin mania is back,” said Edward Moya, senior market analyst at Oanda. “Bitcoin easily broke past US$17,000 and everyone now has their eyes on the US$20,000 level, which could trigger some selling.”
Its gains this year follow a wider embrace from Wall Street linchpins, including Fidelity Investments, which launched a Bitcoin fund over the summer. Some prominent money managers also became crypto converts, with macro investor Paul Tudor Jones buying the coin as a hedge against potential inflation. And PayPal Holding Inc. said in October it would allow customers to access cryptocurrencies, which spurred bets more people could start to use digital tokens.