Bitcoin continues its rally in the new year, surging to a new high of more than $31,500.

The cryptocurrency gained more than 5% to hit $28,572 on Wednesday. It is up 47% since the start of December and is on track for its biggest monthly gain since May 2019.

Bitcoin has almost quadrupled in value this year as interest from institutional investors has grown.

As the US dollar has declined, bitcoin has become a more attractive investment amid concerns that huge government stimulus packages prompted by the coronavirus pandemic will fuel inflation. In the US, a bigger package could be passed once Joe Biden has replaced Donald Trump as president.

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