Bitcoin is on a path to prove its doubters wrong.

And being associated with criminal activity has not stopped the popular digital currency from seeing a stunning rally this year. After powering through the $2,000 barrier over the weekend, bitcoin traded as high as $2,134.86 in the early trading hours of Monday, according to Bitstamp data.

Analysts chalked up the recent bitcoin price climb to several factors, most notably the increased demand from investors in Japan and China.

Japan, in particular, saw a burst in digital currency trading activity after regulators introduced new rules that treat bitcoin as part of the banking system. Japan currently accounted for nearly 55 percent of trade volume, up from near 40 percent last week, according to CryptoCompare.com.