The momentum in the cryptocurrency market continues to weaken towards the end of the year, with Bitcoin sliding to $93,000
The Bitcoin market has weakened its momentum at the end of the year, with prices sliding to $93,182, down about $15,000 from the historical high in mid-December. The market was boosted after Trump's election, but the weakening expectations of interest rate cuts by the Federal Reserve have cooled speculative enthusiasm. It is expected that Trump will clarify cryptocurrency regulatory policies after taking office. Nevertheless, Bitcoin has risen about 120% this year, surpassing traditional investments
According to Zhitong Finance APP, as 2024 comes to an end, the surge in Bitcoin following the victory of U.S. President Donald Trump in early November seems to be slowing down. As of the time of writing, the price of Bitcoin is approximately $93,182, down about $15,000 from its historical high in mid-December. Other smaller tokens, such as Ethereum and Dogecoin, have also failed to attract more attention.
Trump's crypto-friendly stance, including support for the idea of establishing a national Bitcoin reserve, had once boosted the digital asset market. However, as expectations for interest rate cuts by the Federal Reserve have diminished, market speculation has also cooled. It is expected that after Trump takes office on January 20, the regulatory policies regarding cryptocurrencies in the U.S. will become clearer, contrasting with the Biden administration's strict crackdown on the industry.
Chris Weston, head of research at Pepperstone Group, pointed out that part of the reason for Bitcoin's rise after the election is the significant outflow from exchange-traded funds (ETFs).
Additionally, the software manufacturer MicroStrategy Inc., which has transformed into a Bitcoin accumulator, has been actively purchasing Bitcoin in recent weeks, and the market is watching to see if the company will announce further purchases on Monday.
This year, Bitcoin has risen by about 120%, surpassing traditional investments such as global stocks and gold, and continues to maintain strong momentum after recovering from a bear market and doubling in 2023