Bitcoin broke through the $1,900 mark for the first time on Friday, hitting an all-time high, driven by global political uncertainty and key developments within the cryptocurrency world.
The digital currency was trading at around $1922.54 in the early hours of Friday and had moved as high as $1934.24, according to Coindesk's bitcoin price index. The current level marks around a 6.8 percent rise from a week ago.
Bitcoin's market capitalization is now $31.41 billion, up $3.69 billion from Monday.
A number of factors are responsible for bitcoin's rise from increased trading in Japan to debates over the future the bitcoin's underlying technology.
Trading volumes in Japanese yen and Korean won have risen and combined account for around 48.6 percent of trading, according to data website CryptoCompare. That's thanks to recently passed legislation that allowed retailers in Japan to begin accepting bitcoin as a legal currency.
Since then, Japan has been a big driver of bitcoin trade.
Japanese yen bitcoin markets are also trading higher than U.S. dollar markets, with the yen-bitcoin cross trading at 228,783.29 yen or $2058. This is higher than Coindesk's bitcoin price index. Given that the Japanese yen has the highest share of bitcoin trading at the moment, this is helping push prices higher.
"Arbitrage between the fiat pairs drags markets up or down in line with leading markets. At present, volumes on the KRW and JPY pairs dominate trading with a combined 48 percent market share," Charles Hayter, CEO of CryptoCompare, told CNBC by email on Friday.
In the past, bitcoin has acted as a safe haven for investors worried about the political instability and the performance of other asset classes.
U.S. equities saw a sell-off this week before rebounding earlier this week while the political establishments in America and Brazil are facing potential scandals.
Investors are concerned that President Donald Trump might not be able to deliver on his promise on tax reform, deregulation, and infrastructure spending. At the same time, a report on Tuesday said that Trump allegedly asked ousted FBI Director James Comey to "let go" of the investigation into former national security advisor Michael Flynn.
Elsewhere, Brazilian President Michel Temer allegedly authorized bribes to silence a witness in a corruption scandal.
Political turmoil in the world could be supporting bitcoin, analysts said.
Behind the scenes, there is a debate in the cryptocurrency world about the underlying technology behind bitcoin known as the blockchain. At the moment, bitcoin transactions are taking an unusually long time to process and come with high transaction fees.
Many in the community wanted to initiate what is known as a "hard fork". This would have led to the creation of two separate digital currencies. For the full explanation of the debate, click here.
But an experiment with another cryptocurrency called Litecoin showed that a "hard fork" might not be needed and this has buoyed investors. The idea shown with Litecoin â the full explanation of which can be found here â showed the bitcoin community that there is a chance to speed up transactions and the backlog that has ensued.
"The new developments on Litecoin, which is experimenting with alternative scaling solutions may offer a brighter future for bitcoin, and a longer-term price increase, if those similar solutions can be applied to its network," AurÃ©lien Menant, founder and CEO of Gatecoin, a regulated bitcoin and ethereum token exchange based in Hong Kong, told CNBC by email.
In the annual "Outrageous Predictions" produced by Steen Jakobsen, chief economist at Saxo Bank in December, it was noted that bitcoin could hit $2,000 in 2017. This now looks very likely and others have put a higher price target on it.
Gatecoin's Menant previously told CNBC that bitcoin prices should climb beyond $3,000 this year.
Korean Government to Lead 6 Blockchain Pilots With $9 Million Fund
The South Korean government will invest 10 billion Korean won (or $9 million) to support blockchain development in the country, with plans to carry out six pilots using blockchain technology.
Tencent, Chinese Officials Partner on Fighting Blockchain Security Risks
Technology giant Tencent is teaming up with the Chinese government to fight blockchain-related security issues.
The firm's vice president, Bin Ma, announced the formation of the China Blockchain Se
ICON Token Swap Underway With 'No Issues,' Foundation Says
Millions of dollars worth of ICON tokens are now on the move - as the cryptocurrency project begins its token migration.
Designed to connect independent blockchain communities with a variety of gov
21e800: Bitcoin, Satoshi and the Mystery Twitter Is Obsessing Over
This is a hashtag, but not just any hashtag. In all likelihood, it's the longest and most confusing one you'll ever come across tre
Ex-FDIC Chair Bair: 'I Welcome' New Rules for Crypto
Sheila Bair, a former chairperson of the Federal Deposit Insurance Corporation (FDIC), believes the U.S. should create a wholly new regulatory framework for cryptocurrencies.
Speaking at CB Insight
$3 Billion Blockchain Tron Kicks Off Token Migration Today
The 10th most valuable cryptocurrency in the world is set to commence its token migration process on Thursday.
Created by former Ripple representative Justin Sun, Tron aims to build infrastructure
Ripple CEO Defends XRP's Utility at Fintech Conference
"Let's be clear: Ripple is different than XRP," Brad Garlinghouse, CEO of distributed ledger startup Ripple, argued during CB Insights' Future of Fintech conference on Thursday.
Bitcoin Just Got a Shoutout in a New US Supreme Court Opinion
That's not something you see every day: an opinion from the U.S. Supreme Court that makes a reference to cryptocurrencies.
On June 21, the Supreme Court issued a ruling on Wisconsin Central Ltd. v.