Bitcoin broke the $7,500 (£5724) barrier on Sunday November 5, peaking at an astounding $7,583.04 (£5787.38), according to CoinDesk.
The surge comes less than a week after Chicago-based CME approved the cryptocurrency for its futures market, boosting confidence in the token.
But not everyone is confident that bitcoin has any long-term viability and experts are concerned it is headed for imminent collapse.
Joe Pindar, director of product strategy at digital security firm Gemalto, thinks that the cryptocurrency market could be a ticking time bomb.
He told Express.co.uk: “With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the cryptocurrency bubble is going to burst.
“But like all bubbles calling the exact time it will go pop is extremely hard.
“It reminds me a lot of the DotCom bubble in 1999, which companies like Amazon and Google survived and became essential to our daily lives.
“Similarly the convenience and international nature of cryptocurrencies provide so many benefits, once the hype has been removed, we will be left with the serious players, and the true value will be established.
“My advice is not to jump in head first, but don’t expect cryptocurrencies just to be an overnight sensation.”
The cryptocurrency market is also being approached with a great dose of apprehension by the world’s leading bankers.
Bitcoin bubble: Bitcoin saw a surge in its price after being approved for futures trading by CME
JP Morgan chief executive Jamie Dimon, laid into digital currencies earlier in September, calling them a concerning “novelty”.
With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the cryptocurrency bubble is going to burst
Severin Cabannes, CEO of French banking giant Société Générale, also said that his bank will be steering clear of the bitcoin craze.
Speaking to Bloomberg, he said: “We are very interested not in bitcoin, but in blockchain, and the underlying technology.
“It is fair to say that today bitcoin is, in my view, clearly in a bubble – very clearly. But we don’t know very well what are the market drivers behind this price evolution.
“We are not very keen to invest in bitcoin. But we are very keen to invest in the blockchain technology.”
Some analysts however are not swayed by the gloom outlook shared by the moguls of the financial world.The Fintech group at law firm Gowling WLG thinks that bitcoin’s growing mainstream appeal could see a “bright future” for the token.
Penny Sanders, director of Gowling WLG’s Fintech team, said: “The value of Bitcoin has been on a rollercoaster ride of late.
“We saw a decline in its value after China and South Korea announced bans for all initial coin offerings – notionally to enhance security against money laundering and other legal risks.
“These steps and others, from the likes of Israel and Australia, to deter users by making the cost and operation of exchanges onerous are part of a trend that risks devaluing mainstream cryptocurrencies.
READ MORE: WHY IS BITCOIN RISING?
Bitcoin bubble: Some analysts believe that bitcoin will strive with mainstream appeal
“Nevertheless, the value of bitcoin has risen of late to hit record highs. It has even been reported that some countries, like Russia and China, plan to cash in on the growth of digital payment systems with their own, state-issued cryptocurrencies.
“While crypto users, who prize anonymity and independence from governments and corporations, could reject ‘CryptoRubles’, the fact that states see value here suggests that cryptocurrencies could have a bright future.”
But the expert is concerned that governments and banks trying to impose control over the crypto token could cause irreparable damage.
Bitcoin after all, was created as a decentralised alternative and reaction to the world of centralised banking and Wall Street.
Ms Sanders said: “Attempts by national governments to control bitcoin and other mainstream cryptocurrencies, like ripple and litecoin, must be approached with caution.
“Over regulation or taxation of these cryptocurrencies may see their benefits stripped away, risking their abandonment by users in favour of newer cryptocurrencies which are truer to the original concept.
“In this way, cutting the head of this hydra may create more rather than less problems.”