Bitcoin has reached an all-time high, hitting $1,186 per bitcoin last night - sailing past the previous highest value of $1,165 recorded in late 2013.

After the 2013 boom, the failure of the Mt. Gox Bitcoin exchange resulted in the cryptocurrancy losing half of its value.

Since early 2015 its value has been steadily rising.

It has retreated slightly this morning, falling to $1,169 (€1,103).

Why is this happening?

As with most things Bitcoin, it's all a bit unclear.

This could be an offshoot of a broader trend which has seen global markets hit record highs since Donald Trump's election victory. The bounce comes as investors expect a wave of deregulation and tax cuts in the US.

However, this explanation counters the theory that investors use Bitcoin in the same way that they use commodities like gold, as a haven asset during times of increased market volatility.

The US is also moving towards its first regulated exchange traded fund - the Winklevoss Bitcoin ETF (as in the Facebook / The Social Network / rowing twin Winklevoss brother's Bitcoin venture). An EFT would make it easier for US investors to invest in and trade with the currency. 

US regulators will announce on March 11th whether it has got a green light.

The majority of Bitcoin transactions take place in China - so this spike could mean investors are hedging there.

Bitcoins are mined by computers who unlock them by solving codes - they are being released at a rate close to 12.5 every 10 minutes.