Price index CoinDesk shows the digital currency hit a high of $14,558.22 in the past 24 hours at the time of writing. Bitcoin is now changing hands at about $14,432.52 – a 5.52 percent rise in the last 24 hours – as the 2020 Presidential election count enters the final stretch.
Bitcoin’s recent gains, the highest price seen since January 2018, appear to have been driven by leverage-fuelled speculation.
Online cryptocurrency database Messari said: “Rising prices during an uptrend while open interest is also on the rise could mean that new money is coming into the market.”
It warned the heightened short-term price would create volatility in the markets amid concerns the election could be contested by US President Donald Trump if his rival Joe Biden is named victorious.
Matthew Dibb, co-founder of Stack Funds, told CoinDesk: “Bitcoin’s price will be sensitive to the outcome of US elections.
“We expect the cryptocurrency to trade volatile in the coming days, and that is being reflected in near-dated implied volatility in the options market.”
Jason Deane, market advisory firm Quantum Economics analyst, told Forbes: “We seem to be well in the green across the board right now both in terms of markets and crypto and it’s hard to tell where this is coming from exactly, but it seems logical that the election must be playing a part.
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There are around 18.4 million Bitcoins currently in circulation.
Pricing graphs show Bitcoin has more than recovered after prices plummeted in March this year.
The impact of the coronavirus pandemic on the US and many other countries that month saw the virtual currency lose 50 percent of its value in a single day at one point.
Prices even dipped below $4,000 according to analysts.
Democrat challenger Mr Biden is predicted a US election win over Mr Trump after pivotal victories in Michigan and Wisconsin but his party is falling short of expectations in Congressional elections, with the Senate looking increasingly likely to stay in Republican hands, making it hard to implement long term change.
But financial markets were braced for days or even weeks of uncertainty as Mr Trump has opened a multi-pronged attack on vote counts in several states by pursuing lawsuits and a recount.