The Bitcoin price has risen sharply in recent days amid concerns about a crackdown on the digital currency by the country’s central bank.
The cryptocurrency, which has surged in popularity in recent weeks, hit a record $13,300 last week.
Its latest price jump comes as the central bank has said it will limit the use of bitcoin in the country to make it harder for hackers to steal the virtual currency.
Its decision follows a similar move by the central banking agency in China, which in April banned its use for overseas purchases of the digital money.
Bitcoin has surged by more than $3,200 since Friday.
Its value has soared to as high as $17,900 on Wednesday.
In a tweet, Japanese Prime Minister Shinzo Abe said bitcoin was “not a currency but a medium of exchange.”
Bitcoin prices have risen rapidly since April, when the central financial agency started to clamp down on bitcoin transactions.
The U.S. Federal Reserve raised its benchmark interest rate for a second time on Wednesday, signaling the Fed is likely to increase interest rates again soon.
Bitcoin is not a currency, but a means of exchange.
Its volatility is controlled by a complex system of rules and regulation.
The currency has risen because of speculation and speculation fueled by governments in China and elsewhere.