(Bloomberg) — Bitcoin’s rally sparked by U.S. President-elect Donald Trump’s election victory in early November has stalled as 2024 draws to a close.
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The digital asset was hovering around $94,000 as of 2:55 p.m. Tuesday in New York, about $14,000 below the record set in mid-December. Smaller tokens like Ether and meme-favorite Dogecoin have also struggled to gain traction.
Trump’s preference for crypto-friendly regulations and his support for the idea of a national Bitcoin reserve have boosted digital assets. But reduced expectations for interest rate cuts by the Federal Reserve have cooled the speculative frenzy.
More clarity on the US crypto regime is likely to emerge after Trump takes office on January 20. The Republican’s stance contrasts with President Joe Biden’s administration, which has cracked down on the scandal-prone sector.
Chris Weston, head of research at Pepperstone Group, said the “momentum came from the post-election movement” in Bitcoin, in part due to exchange-traded fund outflows for the token. The group of a dozen U.S. ETFs has seen a net outflow of nearly $1.8 billion since Dec. 19, according to data compiled by Bloomberg.
Meanwhile, software maker turned Bitcoin hoarder MicroStrategy Inc. has gone on a buying spree in recent weeks. Traders are waiting to see if the company – which owns more than $40 billion in digital assets – will continue its trend of announcing Bitcoin purchases on Mondays.
The original cryptocurrency has soared around 120% this year, outpacing traditional investments such as global stocks and gold. Bitcoin has also more than doubled in 2023, after a deep bear market.
(Price of updates)
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