The Bitcoin price has been hit by a strong rise in the Chinese wet market and an increase in the number of people who are using it to buy illegal drugs.
The Bitcoin price hit a new all-time high of $11,818.45 on Thursday, according to CoinMarketCap.
At the time of writing, the price is trading at a value of $13,624.23.
China has a reputation for cracking down on cybercrime.
Last month, authorities in the country arrested a Hong Kong man for selling drugs and using the currency to buy goods on the black market.
While many of the drugs being used are illegal, the use of Bitcoin has attracted a large amount of people from overseas, said Mark Karpeles, chief executive of cryptocurrency trading platform CryptoCompare.
“We’ve seen a lot of Bitcoin being used to buy drugs,” Mr Karpels said.
Mr Karpelman said that, while the Bitcoin price is on the rise, there are still some concerns.
Bitcoin has been seen as a way to evade taxes and protect buyers from being charged a tax, which is usually due on a product’s value.
This week, the Federal Reserve said it would introduce a new virtual currency, Bitcoin Cash, which it said was being developed to allow consumers to withdraw money from the Federal Funds Transfer (FMT) system.
A number of US state and local governments have already taken the move, including San Francisco, New York, California and Washington state.
But others, such as Minnesota, are trying to protect their residents from the risks associated with Bitcoin, according the Wall Street Journal.
State Treasurer Michael DeWine said in a statement that Minnesota’s “unlimited” Bitcoin cash “is being tested by the Minnesota Department of Financial Services, the Minnesota Health Authority and the Department of Commerce.”
“Bitcoin Cash is intended to provide an alternative to traditional cash, and provides greater security and privacy, by removing the need for third parties to maintain an account,” he said.