Bitcoin’s rally was fueled by Donald Trump’s victory in the 2024 U.S. presidential election, but that momentum is slowing as the year winds down.
According to a recent Bloomberg report, Bitcoin traded at $93,085 early Monday in London. It’s down about $15,000 from its mid-December high.
The leading cryptocurrency faces challenges after riding high on optimism around Trump’s crypto-friendly stance. Meanwhile, other digital currencies, including Ethereum and the meme coin Dogecoin, have failed to keep up the gains.
Trump’s promise of a national Bitcoin reserve and lenient regulations created a positive outlook in the digital assets market. Bitcoin’s strong performance was assisted by speculative buying, which was matched by optimism.
However, the Fed’s scaled-back projections have cooled investors’ hopes for significant interest rate cuts.
Trump’s pro-crypto attitude hasn’t been enough to sustain Bitcoin’s rally
With Trump officially taking office on January 20, the future of crypto policy in the U.S. should be more transparent. This stance contrasts sharply with the work of President Joe Biden’s administration, which was tough on the crypto market, especially because they felt it was an easy way to fall into scandals and fraud.
Chris Weston, head of research at Pepperstone Group, said Bitcoin’s post-election rally has faded. He also pointed to reduced activity in exchange-traded funds tied to the cryptocurrency.
At the same time, software company MicroStrategy Inc. has made headlines for its aggressive buying strategy as it takes a position among Bitcoin’s most prominent corporate holders. The company has recently added BTC to its reserves, which now totals more than $40 billion.
Traders are also keenly watching to see if MicroStrategy sticks with the usual Monday habit of making BTC purchases.
As we saw in the latest slowdown, Bitcoin’s 2024 performance has been impressive overall. The cryptocurrency has surged more than 120% this year, doubling global stocks and easily beating gold. The news comes after a remarkable 2023 rebound when the top cryptocurrency more than doubled in value after a brutal bear market.
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