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 metal.