(Bloomberg) — As the year 2024 winds down, the Bitcoin surge, set off after US President-elect Donald Trump claimed victory in early November, is losing momentum.
Among the most popular pieces on Bloomberg, the story follows the digital currency sitting near $94,000 at 2:55 p.m. Tuesday in New York, which is about $14,000 shy of its peak last seen in mid-December. Similarly, other cryptocurrencies like Ether and the fan-favorite Dogecoin are also experiencing difficulty gaining ground.
Trump’s advocacy for crypto-friendly policies and his enthusiasm for establishing a national Bitcoin reserve initially bolstered digital currencies. However, diminishing expectations regarding potential interest-rate reductions by the Federal Reserve have eased the speculative excitement.
With Trump scheduled to take office on January 20, there is likely to be greater clarity on the US’s approach to cryptocurrency regulation. This marks a distinct shift from President Joe Biden’s administration, which was known for its stringent measures on the volatile sector.
According to Chris Weston, the head of research at Pepperstone Group, “the momentum has come out of the post-election move” in Bitcoin. This has been influenced partly by withdrawals from Bitcoin-focused exchange-traded funds (ETFs). Data from Bloomberg highlights that US-based ETFs have experienced a net withdrawal of around $1.8 billion since December 19.
In the meantime, MicroStrategy Inc., once a software company and now a major Bitcoin investor, has been purchasing more of the cryptocurrency over the last few weeks. Market watchers are curious if the company, which holds over $40 billion in Bitcoin, will maintain its trend of announcing new Bitcoin acquisitions on Mondays.
Bitcoin, the original player in the crypto market, has risen by about 120% this year, significantly surpassing traditional investments such as global equities and gold. This follows a year in which Bitcoin doubled in value during 2023, bouncing back from a severe bear market.
(Price update)
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