The price of bitcoin has passed $40,000, just days after breaking above $30,000 for the first time.

The record-breaking run comes amid renewed interest in the cryptocurrency, which has seen significant institutional investment in the space in recent months.

Follow the latest bitcoin news as it reaches a new record high price

It is the third great price rally in bitcoin’s history, having seen similarly impressive percentage gains in 2013 and 2017. 

During the 2017 bull run, bitcoin rose from below $1,000 to around $20,000, however this was followed by a painful correction that took its price back down to below $4,000.

Market analysts, including strategists at Wall Street giants JPMorgan and Citibank, suggest the latest price surge could continue past $100,000 before retreating severely. 

Bitcoin's volatile history in pictures

“What’s different this time around is that more people than ever before are using Bitcoin as an exit from the traditional financial system as opposed to a purely speculative investment,” Sergey Nazarov, co-founder of blockchain firm Chainlink, told The Independent.

“With the asset at $40,000 a coin, I believe we’re reaching an inflection point where bitcoin is essentially becoming the reserve currency of the internet, a shift in thinking about currencies that economist Milton Friedman predicted could happen as far back in the 90s, when the internet and the concepts of digital currencies first appeared. 

"As both retail and institutional investors alike continue to realize that Bitcoin can serve as a hedge against inflation, as well as a yield-bearing asset through the use of decentralized finance applications, it’s entirely possible that bitcoin eventually breaks $100,000 per coin.”