Investing.com - Web-based digital currency Bitcoin extended its record-setting rally on Wednesday, hitting its highest levels since November 2013 amid increased demand from buyers in China.
Bitcoin was trading as high as $1,088.09 on the New York-based itBit exchange, before falling back to $1,080.50 by 6:45AM ET (11:45GMT), up around 5% on the day.
Other big exchanges such as Bitfinex, Kraken and BitStamp also showed the cryptocurrency topping $1,080 early Wednesday.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency rose 4.7%, to $1,079.41.
Elsewhere, yuan-denominated Bitcoin prices on Shanghai-based BTC China rose 4.7% to ¥7,780.00 (approximately $1,120).
The fresh high for Bitcoin has also pushed market capitalization records above $16 billion.
The digital currency rose nearly 125% in 2016 amid heavy buying from China and India, as investors look to shield themselves from currency depreciations, capital controls and cash crunches.
U.S. and European buyers also accounted for the bulk of trading volume, as traders look for safe havens following dramatic political shifts in the world economy.
Analysts say prices of the digital currency look set to test all-time highs of $1,216 in the near-term. Some even expect it to reach price parity with gold later this year amid increasing demand for alternative assets.
Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.