Bitcoin Rally Slows Down as Trump’s Election Boost Fades in 2024

Key Points:

• Bitcoin drops to $93,678, $15K below December’s peak as 2024 approaches.
• The US President-elect’s pro-crypto stance initially fueled the rally, but expectations for interest-rate cuts fade.
• Despite cooling, Bitcoin up 120% in 2024, outperforming stocks and gold.

The Bitcoin rally sparked by US President-elect Donald Trump’s election victory in early November is stalling as 2024 draws close.

Bitcoin Rally Stalls as 2024 Approaches:

The digital asset was trading at $93,678, about $15,000 below the record high in mid-December. Smaller tokens like Ether and meme-crowd favourite Dogecoin are also struggling to gain momentum.

Trump’s pro-crypto stance, favouring crypto-friendly regulations and supporting the idea of a national Bitcoin reserve, initially boosted the Bitcoin rally. However, Bitcoin’s enthusiasm has waned due to scaled-back expectations for interest-rate cuts by the Federal Reserve, dampening the speculative frenzy.

Read more: Bitcoin Price Is Leveling Off As The Late 2024 Bull Run Cools

Trump’s Crypto-Friendly Policies Affect Bitcoin

As Trump prepares to assume office on January 20, more clarity on the US crypto regulatory landscape is expected. His approach contrasts sharply with President Joe Biden’s administration, which has imposed stricter regulations on the crypto sector. Experts believe that Trump’s policies could reignite investor confidence in the space.

Chris Weston, head of research at Pepperstone Group, noted that “the momentum has come out of the post-election move” in Bitcoin, partly due to outflows from exchange-traded funds (ETFs) tied to the token. This has contributed to a more cautious market outlook.

MicroStrategy Inc. has continued its buying spree, accumulating even more digital assets recently. Traders are watching to see if the company — which holds more than $40 billion worth of Bitcoin — will maintain its habit of announcing purchases on Mondays. The Bitcoin rally has surged roughly 120% this year, far outperforming traditional investments like global stocks and gold. Its recovery from a deep bear market in 2023 has proven resilient, but the future direction remains uncertain as 2024 unfolds.