Bitcoin hit a record of $28,599.99 on Wednesday, showing an annual increase of more than 295%.
The currency saw several sharp drops during July and September, when it fell below $10,000 but then recovered and reached the psychological threshold of $20,000 on 16 December.
Earlier this month, The Sunday Telegraph reported that amid Brexit uncertainty UK investors had started taking a growing interest in Bitcoin, with 38 times more money in pounds sterling being exchanged for the cryptocurrency than this time last year.
Bitcoin accounts for approximately 65.6 percent of the world's cryptocurrency market. Launched in 2009, Bitcoin was the first cryptocurrency to use a decentralised blockchain-based network.
Its popularity has skyrocketed in recent years and some analysts suggest that in the future bitcoin could replace the dollar and deprive the latter of its status as a reserve currency.