The price of one bitcoin is set to rise to a record high of $25,000, as the market for digital currencies continues to grow.
Bitcoin reached a record $26,879 on Tuesday after an initial price of $20,000 earlier in the day.
The surge comes amid rising interest in cryptocurrencies and fears about a potential crackdown by the US government.
In a note on Tuesday, U.S. financial regulators said they are “actively considering” additional regulations that could make it harder for companies to operate in the virtual currency space.
While the bitcoin price surged by more than a third, analysts have warned it will fall sharply again before the year is out.
In its note, the CFTC said it is considering additional regulations designed to prevent the manipulation of bitcoin by individuals and companies that could have a negative impact on the price of cryptocurrencies.
“In the event that we deem the CFTER guidance to be insufficient to prevent this outcome, we could initiate a further adjustment to the rule,” the CFTR wrote.
The price of bitcoin is currently valued at $26.4 billion, according to CoinMarketCap.
The cryptocurrency is widely regarded as the safest currency in the world, but has recently become a target for hackers, with the number of bitcoin thefts reaching record highs.
In November, the Federal Reserve said it will consider “significant” new regulations to control the cryptocurrency market.
In December, the United Kingdom also introduced new regulations on cryptocurrencies, and the UK’s parliament recently approved a motion that would require companies to list bitcoin on their websites.
Bitcoin was also named as the most traded cryptocurrency in the United States on Monday.
It was worth about $2.4 trillion at the time of the trade.