How can we know when a boom becomes a bubble, and, if so, how can we guess when it might pop?

It has been one of those extraordinary weeks, with the world's financial markets mesmerised by the mixture of menace and bombast from Donald Trump.

Bitcoin hit a record high on Thursday after Donald Trump included crypto in a presidential executive order.

The world's biggest crypto-currency climbed as high as $106,333 on the Bitstamp exchange after the order directed government agencies to study digital assets and consider a US central bank digital currency.

Bitcoin was last up 1.2 per cent over the last 24 hours at around $105,642 after rising by as much as 41 per cent since the start of 2023.

It comes after a torrid 2022 saw bitcoin lose three-quarters of its value, and crypto markets were hit by a wave of bankruptcies and fraud.

But a strong start to the year for equities and other riskier assets has helped propel bitcoin and other digital tokens higher once more.

Bitcoin's latest record comes despite the crypto-currency having no physical presence or ability to generate an income, and largely relying on demand from buyers on secondary markets to drive its value.

Anyone is also able to launch their own crypto-currency, with Trump and his wife Melania having filed trademarks for their own digital assets in recent months.

The crypto market has also seen a wave of new launches in 2023, many of which have soared in value within days.

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Bitcoin's latest record high also comes as officials prepare to ramp up their scrutiny of the crypto markets.

The US Securities and Exchange Commission has already proposed new rules for crypto exchanges, while officials are also considering whether stablecoins should be regulated by banking authorities.

Bitcoin's latest record also comes after a string of bullish price targets for the world's biggest crypto-currency.

One crypto influencer has predicted that bitcoin will hit $1 billion each by 2040 in an 'unstoppable' rally, while another Wall Street veteran has said that the digital asset will reach $500,000 within the next two years.

However, other experts have warned that bitcoin could fall to zero if it fails to gain mainstream adoption and use.