In this photo illustration, a visual representation of the digital cryptocurrency, Bitcoin can be seen in Paris, France, on February 9, 2021, ahead of the Bitcoin rate graph.

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Bitcoin’s value surpassed $ 1 trillion on Tuesday as the price of the cryptocurrency jumped.

The price of the digital coin spiked Tuesday and its market cap was over $ 1 trillion in Singapore morning trading, according to CoinDesk.

Bitcoin extended those gains, hitting a 24-hour high of $ 54,029.85 around 11:35 a.m. Singapore time, around 7% more than at the same time the day before. Bitcoin has since reduced some of those gains.

It’s only the second time Bitcoin’s value has exceeded $ 1 trillion after first hitting that milestone on February 19th. Bitcoin’s market cap was over $ 1 trillion for a few days before falling below this mark.

Although Bitcoin is deviating from its all-time high of $ 58,332.36, it has seen a huge rally. The digital currency is up over 80% this year and up 570% in the last 12 months.

Bitcoin’s rally has been attributed to a number of factors, including participation from larger institutional investors and some notable corporate purchases. Tesla, Square, and Microstrategy are among the companies that bought Bitcoin.

On Sunday, a Chinese appmaker named Meitu said he had not only bought bitcoin, but also bought another cryptocurrency called ether. According to CoinDesk, Ether, a cryptocurrency that runs on the Ethereum network, traded at $ 1,836.73 around 10:41 a.m. Singapore time, up nearly 7% from the previous day.

Companies are also making acquisitions in the cryptocurrency space. PayPal announced on Monday that it would buy the cryptocurrency security firm Curv.

Proponents of Bitcoin often compare it to “digital gold”, a hedge against inflation and a potential “safe haven” where investors can park their money in times of political or economic turmoil.

Some argue that loose monetary policies like low interest rates and asset purchases by central banks around the world undermine the value of fiat currencies like the US dollar and bitcoin and are a better alternative for investment.