Bitcoin Price Flirts With $90K in a Historic Week for Crypto Markets: Your Weekly Recap

US President Donald J. Trump has taken a significant step in the cryptocurrency landscape by signing an executive order focused on the nation’s Bitcoin holdings. This decision mandates the preservation of the US government’s current Bitcoin stash, which consists of approximately 190,000 BTC valued at over $17 billion. Despite the potential implications of this move, the immediate effect on Bitcoin prices has been surprisingly muted.

Last weekend saw a dramatic shift in Bitcoin’s value following Trump’s announcement. After stabilizing around $85,000, Bitcoin surged dramatically, hitting a peak of $95,000. This spike was triggered by Trump’s social media post indicating plans to create a US-backed crypto reserve comprising Bitcoin and several altcoins. However, analysts quickly cautioned that this rally might be a false breakout, and their predictions came to fruition as Bitcoin subsequently dropped by $13,000 within 36 hours.

The downward trend continued, with Bitcoin momentarily testing the $90,000 range only to face sharp rejections on two occasions. The first occurred shortly after Trump signed the executive order aimed at preventing the sale of Bitcoin from government reserves. This “sell-the-news” reaction led to another decline, pushing Bitcoin back to around $85,000. Just a few hours after a brief recovery to $91,000, it faced yet another rejection, demonstrating the volatile nature of the current market environment.

Looking at the broader market, Bitcoin’s weekly performance has shown some positive signs, with a market cap of approximately $3 trillion and a dominance rate of 58.3%. Currently, Bitcoin is priced at $88,090, reflecting a 7.4% increase, alongside Ethereum at $2,194 (+1.1%), and XRP leading the charge with an 18.4% jump to $2.49.

As the crypto market navigates these turbulent waters, the sentiment around Ethereum has notably dipped, reaching yearly lows. This could present a contrarian opportunity for investors if the crypto landscape turns favorable once more. Analysts are also considering the effects of a declining dollar index, which may provide a buoy for crypto values as Trump’s administration considers further devaluation of the greenback.

Internationally, El Salvador’s President Nayib Bukele continues to stand firm on Bitcoin adoption despite pressures from the International Monetary Fund to scale back on crypto investments. His commitment adds to the global dialogue surrounding Bitcoin’s viability on national levels.

Moreover, the potential inclusion of other cryptocurrencies such as XRP, Solana (SOL), and Cardano (ADA) in the proposed US strategic crypto reserve has aroused interest among traders, leading to fluctuations in their market values.

With discussions about a significant crypto summit at the White House in the coming days, market watchers can expect continued volatility as the sector grapples with regulatory developments, global currency fluctuations, and evolving investor sentiments.