That said, Goldman Sachs is reportedly considering offering bitcoin trading and even China is considering easing restrictions of the cryptocurrency. It's price also reached a historical value of $5,226; this is not the first time Bitcoin's price has soared. Banks and other financial institutions have been concerned about bitcoin's associations with money laundering and online crime because transactions take place anonymously.
Bitcoin mania just crossed the $5,000 mark.
"The interest really stems from the media hype", he added.
This week, Russian Federation has announced the regulation of digital currencies, as President Vladimir Putin said the instrument has significant financial risks.
Data released last week from SEMrush, a search engine data analytics firm, found the price had a 91 per cent correlation with Google searches on bitcoin, suggesting that all news - whether negative or positive - drives up demand, even if bad news can have a temporary negative effect.
Bitcoin is the biggest and most popular cryptocurrency. "So we expect some investors to be surprised by bitcoin bouncing back", said Iqbal Gandham, managing director at broker eToro UK, in a note on Thursday. Meanwhile, Citi's CFO said his bank is taking an "intense" look at cryptocurrencies and blockchain.
Reports have recently emerged stating that trading in the currency could resume but with increased regulation.
Other cryptocurrencies - whose prices tend to be highly correlated to bitcoin - also rallied.
Kenneth Rogoff, a professor of economics and public policy at Harvard University and a former International Monetary Fund chief economist, has predicted that the technology behind cryptocurrencies will thrive, but the price of bitcoin will collapse.