The value of Bitcoin has soared to over $2,100 (£1,615) per coin, representing a new record high for the cryptocurrency.
The most recent valuation tops off an impressive month for Bitcoin, as its value has risen by over 65 per cent.
It is believed that the rise in value is linked to changes in Japanese and Chinese policy, which have made trading in bitcoin easier.
However, Bitcoin is not the only virtual currency to have seen a rise in value recently, as rivals such as Ethereum and Ripple have been growing at a rate far higher than that seen by Bitcoin.
In November 2013, Bitcoin first broke the $1,000 but has seen massive fluctuations in its value since, with one bitcoin being worth only $280 at the beginning of 2014.
Bitcoin is a digital currency based around cryptography and emerged in 2008. Coins are split into smaller denominations and many people who use the currency also use computers to verify who spent what and where.
The verification of transactions usually involves the solving of complicated mathematical equations, with the correct answer rewarded with bitcoins.
The increased interest in Bitcoin has seen the formation of multiple other forms of cryptocurrency, with many of these gaining popularity after Bitcoin’s underlying technology struggling to keep up with growth.
One estimate suggests bitcoins now make up only 47% of all traded cryptocurrencies.
The surging valuations has led some commentators to suggest that an unsustainable cryptocurrency bubble is developing.
“The question is not if but when the market will turn,” said an editorial in The Economist.