(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.
Bloomberg’s Most Read
The digital asset was around $94,000 at 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 also struggled to gain traction.
Trump’s preference for cryptocurrency-friendly regulations and support for the idea of a national Bitcoin reserve boosted digital assets. But lower expectations of interest rate cuts from 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 “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 ETFs in the United States 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 been on a buying spree in recent weeks. Traders are waiting to see if the company, which holds more than $40 billion in digital assets, will continue its pattern of announcing Bitcoin purchases on Mondays.
The original cryptocurrency is up roughly 120% this year, outperforming traditional investments like global stocks and gold. Bitcoin also more than doubled in 2023, in a recovery from a deep bear market.
(Update price)
Most Read Bloomberg Businessweek
©2025 Bloomberg LP