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Bitcoin (BTC-USD) rallied at the start of the week, after US president Donald Trump revealed that the digital token and four other cryptocurrencies would form part of a US strategic reserve.
The price of bitcoin (BTC-USD) surged to $93,658 on Monday, with ether (ETH-USD), solana (SOL-USD), XRP (XRP-USD) and cardano (ADA-USD) also rising, after Trump said in a social media post on Sunday that these five cryptocurrencies would be included in the stockpile.
Trump said he had signed an order that "directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA".
On Thursday night, Trump then authorised the creation of a strategic bitcoin reserve and a separate US stockpile of other digital assets.
This came ahead of the White House Crypto Summit on Friday, where the US government is expected to unveil new cryptocurrency policy initiatives.
Trump and key administration officials are set to meet with cryptocurrency industry leaders to discuss the future of digital assets and potential regulatory frameworks.
Since Monday's rally, the bitcoin (BTC-USD) price has fluctuated and was trading at $91,070 on Friday afternoon.
Russ Mould, investment director at AJ Bell, said that "sceptics will argue that holders’ desire for regulatory recognition and government approbation runs strongly counter to the initial ethos of bitcoin (BTC-USD) and crypto, namely that it was outside 'the system'. As a result, no-coiners will also continue to ask what purpose crypto can serve and problems it can solve, if it is simply another tool for government or financial market speculation."
He said that one challenge for those bullish on bitcoin (BTC-USD) was news flow. "Everything they could have hoped for upon Trump’s victory has happened and even rampant buying by Michael Saylor’s MicroStrategy (MSTR) is not proving enough to fend off the latest price swoon, at least as yet," Mould added.
We asked Yahoo Finance UK readers in a poll if they thought that bitcoin (BTC-USD) could hit $125,000 this year. We received 523 votes, with 42% of respondents believing it could reach this level, though 48% disagreed and 10% were undecided on the matter.
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