Bitcoin has reached its highest level so far this year, and a five-month high, soaring to $10,489.78 on Wednesday morning.

This is the highest price the world’s largest cryptocurrency has reached since September, as per a Coindesk report, and over a 44% rise since the start of the year.

A number of factors have led to the rise in Bitcoin’s price, as the cryptocurrency is being increasingly viewed as a safe-haven asset in times of uncertainty.

Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC: “External factors contributing to the rise above $10K include global uncertainty around the Coronavirus outbreak.”

The coronavirus death toll is now over 1,100, with the number of cases reported more than 44,000. Businesses were closed for longer than usual over the Lunar New year holidays, and economists have warned of the possible negative impact on the global economy.

Ayyar also highlighted recent comments by Chair of the Federal Reserve, Jerome Powell, who recognised the potential power of cryptocurrencies, were another reason behind the Bitcoin price rally over the past 24 hours, reports CBNC.

This was echoed by deVere founder and CEO Nigel Green, who told the media on Wednesday: “This is further evidence that not only all major banks, government agencies, plus most sectors including tech, entertainment and real estate, are piling into cryptocurrencies – but that central banks are too.

“The previously sceptical Fed has not, until now, admitted how rapidly digital currencies could become a systemic risk to the U.S. dollar’s status as global reserve currency.”

Mr Green went on to add: “The development from the Fed comes following news that China – a communist state and the U.S.’s main economic rival – is currently developing what has been described as an all-powerful cryptocurrency. It could be ready this year and be the world’s sovereign digital currency.

“Whilst there will be minor peaks and troughs – as in all markets - I predict the overall trajectory of Bitcoin to remain upward for the next few months.”