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(Bloomberg) — The Bitcoin rally sparked by US President-elect Donald Trump’s election victory in early November is stalling as 2024 draws to a close.
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The digital asset wavered around $94,000 as of 2:55 p.m. on Tuesday in New York, about $14,000 below the record high set in mid-December. Smaller tokens like Ether and meme-crowd favorite Dogecoin also struggled for traction.
Trump’s preference for crypto friendly regulations and support for the idea of a national Bitcoin reserve lifted digital assets. But scaled back 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 assumes power on Jan. 20. The Republican’s stance contrasts with President Joe Biden’s administration, which cracked down on the scandal-prone sector.
Chris Weston, head of research at Pepperstone Group, said “the momentum has come out of the post-election move” in Bitcoin, partly due to outflows from exchange-traded funds for the token. The group of a dozen ETFs in the US have seen a net outflow of nearly $1.8 billion since Dec. 19, according to data compiled by Bloomberg.
Meanwhile, software maker turned Bitcoin accumulator MicroStrategy Inc. has been on a buying spree in the past few weeks. Traders are waiting to see if the company — which owns more than $40 billion of the digital asset — will continue a pattern of announcing Bitcoin purchases on Mondays.
The original cryptocurrency has climbed roughly 120% this year, outstripping traditional investments such as global stocks and gold. Bitcoin also more than doubled in 2023 in a comeback from a deep bear market.
(Updates price)
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