As 2024 draws to a close, a wave of Bitcoin gains driven by Trump’s victory in the U.S. election in November has stalled. At 05:25 London time on Monday, Bitcoin was hovering around $93,085, about $15,000 below its record high set in mid-December. Smaller coins such as Ethereum and Dogecoin also lack momentum.
Trump's preference for cryptocurrency-friendly regulations and support for the idea of establishing a national Bitcoin reserve have boosted digital assets. However, the weakening of expectations for the Federal Reserve to cut interest rates has cooled down the speculative frenzy in the currency circle.
There may be more clarity on the U.S. cryptocurrency regime after Trump takes office on January 20. The Republican's stance contrasts with Biden, who has cracked down on the scandal-plagued industry.
Chris Weston, director of research at Pepperstone Group, said that Bitcoin’s strong momentum since the election has dissipated, partly due to capital outflows from Bitcoin exchange-traded funds (ETFs).
However, Bitcoin is up about 120% so far this year, outperforming traditional investments such as global stocks and gold. The price of Bitcoin also more than doubled in 2023, returning as the king from the deep bear market.