Bitcoin has climbed almost 80 percent so far in December alone, putting it on track for its best month in percentage terms since December 2013.
On Friday it reached as high as $17,900 n the Bitstamp exchange.
While a survey of Wall Street experts and market strategists by CNBC also claimed they saw bitcoin’s rise as a bubble - with many warning it will inevitably burst.
This week, US investor Grant Sabatier - who made almost a million dollars after investing just £3,000 into Bitcoin, warned the currency may be worthless.
“Sure, I wanted to make money on it, but if I lost everything, it wasn't going to change the course of my life.
"Bitcoin is trading at $16,600 (£12,414.48), which makes my bitcoins now worth $1,148,720 (£859,081.74).
“It took me five years working 80-hour weeks to make over $1million (£747,860) saving and investing in the stock market.
“It's by far, without a doubt, the easiest money I have ever made. But I don't recommend you invest in Bitcoin today."
“Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble,” said Larisa Yarovaya, one of the report’s authors and a lecturer at Anglia Ruskin University.
“Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets.”