The peak was $1145 on 30 November 2013.
What was the reason for the peak? I found a neat chart that answers this question and many others.
Source:
Bitcoin Price Chart with Historic Events
(bitcoinhelp.net)
The site's explanation is
2013-11-29 - Exchange Rate Peaks at $1,242 on Mt. Gox • Rapidly growing Bitcoin investment from China steadily drives prices higher and higher, reaching a peak on November 29th. Subject to strict controls concerning the movement of money across the country's borders, Chinese citizens embrace the freedom provided by Bitcoin with open arms, seeking an alternative to the state's inflating official currency, the Renminbi. [...]
and
2013-12-05 - Chinese Government Bans Financial Institutions From Using Bitcoin • Putting its first restraints on Bitcoin's surging popularity, the People's Bank of China declares Satoshi Nakamoto's novel invention not to be a currency. The policy change prohibits any financial institution to trade, insure, or otherwise offer services related to Bitcoin. [...]
This was confirmed in a report from The Motley Fool, Making Sense of Bitcoin Since the Latest Crash:-
On Dec. 5, China's central bank issued a warning about the usage of Bitcoin as a currency against the country's own yuan. As part of this warning, Chinese Bitcoin exchanges such as BTCChina were required to stop all deposits in yuan to their exchanges, making it nearly impossible for newcomers to Bitcoin to be able to invest their yuan into the cryptocurrency. This statement by China's central bank was seen as a major blow to the confidence of Bitcoin and comes with continuing skepticism for the coins.
From this and other stories, I'm starting to understand that the success of bitcoin depends heavily its success in China.
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