At the same time, there are rumors that China could reverse its ban on cryptocurrency exchanges which is also giving bitcoin a boost.
Bullishness around bitcoin continues despite big business figures like JPMorgan Chase CEO Jamie Dimon calling it a “fraud” and saying that people who invest in it are “stupid”.
In an unscientific survey carried out by CNBC this week, nearly half of the more than 23,000 people who voted said bitcoin is heading to over $10,000. Former hedge fund manager Michael Novogratz told CNBC in a recent interview that he sees bitcoin heading to $10,000 in the next six to 10 months.
Bitcoin has also been helped by favorable regulation in Japan which recently allowed companies to accept the digital currency as payment. Around 57 percent of the trade in bitcoin was executed in Japanese yen on Saturday, according to industry website CryptoCompare.
But the virtual currency has also suffered regulatory setbacks including China banning cryptocurrency exchanges.
Still, the price of bitcoin has risen over 500 percent year-to-date.