Bitcoin hits new record high above $111,000 as rally marches on

Bitcoin continued its rally on Thursday, hitting a brand new record high above $111,000.

Bitcoin hit $111,886.41 in early trading hours in London, according to Coin Metrics, before paring some of those gains to trade at around $111,012.00 at 07:03 a.m. London.

Bitcoin's move has been "driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers," James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC by email.

The price rise in world's largest cryptocurrency is taking place despite a drop in U.S. stock markets on Wednesday.

Bitcoin has typically correlated with equity markets, particularly the tech-heavy Nasdaq.

The diverging movements of bitcoin and stocks could be the result of investors looking for alternative stores of value.

"The rally was also helped along by broader macro concerns, including Moody's recent downgrade of U.S. sovereign debt, which added to the narrative of Bitcoin as a hedge against fiat instability," Butterfill noted.

This is a breaking news story. Please check back for more.