Bitcoin’s rally was fueled by Donald Trump’s victory in the 2024 US presidential election, but that momentum is slowing as the year draws to a close.
Bitcoin was trading at $93,085 early Monday in London, down about $15,000 from its mid-December high, according to a recent Bloomberg report.
Leading Cryptocurrency facing problems after on the optimism surrounding Trump’s crypto-friendly stance. Meanwhile, other digital currencies, including Ethereum and meme coin Dogecoin, failed to maintain gains.
Trump’s promise to create a national Bitcoin reserve and lenient regulations have created a positive outlook for the digital asset market. Bitcoin’s strong performance was fueled by speculative buying accompanied by optimism.
However, the Fed’s softened forecasts dampened investors’ hopes for a significant reduction in interest rates.
Trump’s Pro-Cryptocurrency Position Was Not Enough to Maintain Bitcoin’s Rally
As Trump officially takes office on January 20, the future of crypto policy in the US should become more transparent. The stance stands in stark contrast to President Joe Biden’s administration, which has been tough on the cryptocurrency market, especially because it believed it was an easy way to fall into scandal and fraud.
Chris Weston, head of research at Pepperstone Group, said Bitcoin’s rally has died down since the election. He also pointed to a decline in activity in cryptocurrency-linked exchange-traded funds.
At the same time, software developer MicroStrategy Inc. has made headlines for its aggressive buying strategy as it ranks among the most prominent corporate holders of Bitcoin. The company recently added BTC to its reserves, which now stand at over $40 billion.
Traders are also keeping a close eye on whether MicroStrategy sticks to its usual Monday habit of buying BTC.
As we saw during the last slowdown, Bitcoin’s performance in 2024 has been impressive overall. The cryptocurrency has surged more than 120% this year, doubling global equities and easily beating gold. The news comes on the heels of a remarkable recovery in 2023 that saw the leading cryptocurrency more than double in value following a brutal bear market.
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