Aug. 18, 2020, 09:03 AM
Reuters
Bitcoin rose above $12,000 on Monday as investors continued to hunt for inflation hedges amid near-zero rates.
The world's most popular cryptocurrency has rallied more than 200% from its March low as industry giants and retail investors alike scoop up the token.
Much of the rally has been fueled by tanking real yields. With Treasurys offering little return, investors have turned to hedges including gold and bitcoin to protect against rising inflation.
Bitcoin surged above $12,000 on Monday and held the level in early Tuesday as investors continued to seek yield in unorthodox assets.
The world's most popular cryptocurrency traded as high as $12,476.7o over the past 24 hours, hitting its highest level since July 2019. Bitcoin has rallied past several key psychological thresholds in August after choppy trading throughout the summer. The upswing comes as the stock market closes in on record highs and investors brace for a potential rotation into safe-haven assets.
The digital currency is also boosted by tumbling real yields. The Fed's plan to hold rates near zero for the foreseeable future is driving real Treasury yields below zero and forcing investors to find healthy returns elsewhere. Some have piled into gold, as low yields erase the opportunity cost of holding the non-yielding meta
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