Analysts think renewed enthusiasm in the digital currency is due to Facebook announcing its plans to launch a new digital currency called Libra in 2020.

However James Bevan, chief investment officer at CCLA Investment Management, says that the two currencies couldn't be more different.

"Bitcoin was invented to support the blockchain, a new technology. Blockchain is deeply important to the modern economy and Bitcoin is a means to pay for it. It's not actually linked to anything, so its price floats around simply according to supply and demand," he told Today.

"[On the other hand], the Facebook currency Libra is going to be linked to a basket of underlying currencies, and critically, the people who run Libra are going to try and make a profit out of running it, which is completely hostile to the people describing Bitcoin as being a free spirit."