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Bitcoin Rally Fueled By Trump Loses Steam As Year Draws To Close

Image: Jon Cherry/Getty Images
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Bitcoin’s remarkable rally, driven by President-elect Donald Trump’s crypto-friendly policies, is faltering as 2024 comes to an end.

The cryptocurrency traded at $93,670 on Monday, down from its record high of $108,670 set in mid-December. Smaller tokens, including Ether and Dogecoin, also struggled.

Trump’s advocacy for crypto-friendly regulations and a potential national Bitcoin reserve had initially fueled market enthusiasm. However, tempered expectations for Federal Reserve rate cuts have dampened speculative momentum.

“The momentum has come out of the post-election move, partly due to outflows from Bitcoin ETFs,” Chris Weston, Head of Research at Pepperstone Group, noted

Despite the recent pullback, Bitcoin has surged 120% in 2024, outpacing traditional investments like stocks and gold. Traders are now watching MicroStrategy, which has been actively acquiring Bitcoin and may announce further purchases in the coming weeks.

As Trump prepares to take office in January, the crypto market awaits more clarity on the U.S. regulatory framework.