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Investing.com - Web-based digital currency bitcoin hit its highest levels since January 2014 in post-Christmas trade on Monday, extending its recent rally.

Bitcoin (BTC/USD) was trading as high as $914.72 on the New York-based itBit exchange, before falling back to $906.72 by 9:20AM ET (14:20GMT), up around 1% on the day.

The digital currency is up almost 23% so far this month amid heavy buying from China and India, as investors look to shield themselves from currency devaluations and cash shortages.

U.S. and European buyers also accounted for the bulk of trading volume, as traders look for safe havens following dramatic political shifts in the world economy.

For the year, Bitcoin is up a whopping 87%, making it one of the best performing assets of 2016.

Analysts say prices of the digital currency look set to test all-time highs of $1,216 in 2017 amid rising demand for alternative assets.

Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.