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.
GoldMint to Launch ICO with Early Bird Bonuses
The GoldMint company (the innovator behind the stable GOLD token and Custody Bot) has published its plans for its greatly anticipated ICO. The ICO will launch on September 20, beginning with the sale
The Newest Version of the Opendime Bitcoin Wallet Is Out
Coinkite is launching a new version of its Opendime bitcoin hardware wallet.
The third iteration of the popular USB stick wallet, the latest model will feature a range of changes on the hardware fr
Crypto Bloodbath: Bitcoin Back to $3,950 After Dipping Below $3,800
Since achieving a new all-time high above $4,500, bitcoin price has recorded four minor corrections. Earlier today, on August 22, bitcoin price fell to $3,800 as the market and investors started to fe
Bitcoin Cash: Chinese ‘Big 3’ Exchanges Huobi & OKCoin Launch Trading
Two of China’s ‘big three’ cryptocurrency trading platforms are now officially supporting Bitcoin Cash (BCC) after launching trading today.
In official announcements today, Huobi and OKCoin began s
US Telcos Targeted by Hackers in an Attempt to Empty Cryptocurrency Wallets
Cryptocurrency users have always been a tempting target for cybercriminals. Since none of these currencies have reversible transactions, stealing money is a guarantee for success. It now appears
Boldstart Founder Launches Hyperledger Fabric's First Blockchain Accelerator
The founder of VC firm Boldstart Ventures is launching the first accelerator dedicated exclusively to startups building on the Hyperledger Fabric blockchain.
With previous exits that include a $120
Blockchain ID Startup ShoCard Raises $4 Million in New Funding
Blockchain startup ShoCard has raised $4 million in new funding from a range of investors.
Co-led by AME Cloud Ventures and Morado Venture Partners, two of the company's existing stakeholders, the
Walmart, Kroger & Nestle Team with IBM Blockchain to Fight Food Poisoning
Several of the world's largest food suppliers are collaborating on a blockchain solution that could one day save both money and lives.
In partnership with IBM, the consortium – which includes Dole,