An illustration of bitcoin on Euro banknotes.<\/p>\n
Nicolas Economou | NurPhoto via Getty Images<\/p>\n
Bitcoin on Wednesday jumped to a record $28,599.99, after the digital currency almost quadrupled in value this year amid heightened interest from bigger investors.<\/p>\n
The world's most popular cryptocurrency was last up 2.3% at $28,012. It has surged by nearly half since breaking $20,000 for the first time on Dec. 16.<\/p>\n
Bitcoin has increasingly seen demand from larger U.S. investors in particular, attracted by its perceived inflation-hedging qualities and potential for quick gains, as well as expectations it would become a mainstream payments method.<\/p>\n
Investors said limited supply of bitcoin - produced by so-called \"mining\" computers that validate blocks of transactions by competing to solve mathematical puzzles - has helped power upward moves over recent days.<\/p>\n
Many recent entrants to the market are holding onto positions, they said.<\/p>\n
\"The supply side to the bitcoin market will remain tight,\" said Jacob Skaaning of crypto hedge fund ARK36.<\/p>\n
The latest gains took bitcoin's market capitalization past $518 billion, according to industry website CoinMarketCap.<\/p>\n
Other major cryptocurrencies, which tend to move in tandem with bitcoin, were flat. Ethereum, the second biggest, was down 0.4%, on track for a 2020 gain of around 465%.<\/p>\n
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