(Bloomberg) — The Bitcoin rally, sparked by U.S. President Donald Trump’s election victory in early November, is stalling 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 high seen in mid-December. Smaller tokens like Ether and meme crowd favorite Dogecoin also struggled to gain traction.
Trump’s preference for crypto-friendly regulations and support for the idea of a national Bitcoin reserve fueled a surge in digital assets. But scaled back expectations for interest rate cuts by the Federal Reserve have cooled the speculative frenzy.
There will likely be more clarity about the US crypto regime after Trump takes power on January 20. The Republican’s stance contrasts with President Joe Biden’s administration, which has been cracking down on the scandal-prone industry.
Chris Weston, head of research at Pepperstone Group, said “momentum has come from the post-election movement” in Bitcoin, partly due to outflows of exchange-traded funds for the token. The group of a dozen U.S. ETFs has seen net outflows of nearly $1.8 billion since Dec. 19, according to data compiled by Bloomberg.
Meanwhile, the software maker that Bitcoin accumulator MicroStrategy Inc. has become, have been busy buying in recent weeks. Traders are waiting to see if the company – which owns more than $40 billion in digital assets – will continue a pattern of announcing Bitcoin purchases on Monday.
The native cryptocurrency is up about 120% this year, surpassing traditional investments like global stocks and gold. Bitcoin has also more than doubled in 2023 due to a deep bear market.
(Price updated)
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