Neil Wilson, senior market analyst at ETX Capital, said investors in bitcoin are also buoyed by news that United States banking giant Goldman Sachs plans to trade the cryptocurrency.
The price of the controversial crytpo-currency soared by more than $500 on Thursday to more than $5,330, bringing it to a new all-time high.
But the main factor could simply be demand from investors wanting "in" on a market that has provided gains exceeding those of any other currency in every year bar one since 2010.
Bitcoin mania just crossed the $5,000 mark. High Bitcoin transactions show the high levels of interests the public has on Bitcoin. But he also warned against imposing "too many barriers", which appears to have given bitcoin a boost. "I'm not going to talk about bitcoin any more", he said.
Reports have recently emerged stating that trading in the currency could resume but with increased regulation. Meanwhile, Citi's CFO said his bank is taking an "intense" look at cryptocurrencies and blockchain.
"For most currencies there are several accepted methodologies for estimating relative value, normally based on macroeconomic fundamentals", said EFG Asset Management's Global Head of Research, Daniel Murray.
According to data from SEMrush, a search engine data analytics company found the price had a 91% correlation with Google searches surrounding bitcoin, suggesting news surrounding the cryptocurrency increases the valuation of Bitcoin. Its gradual price rise over the years has also made it a favorite among cryptocurrency speculators.