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News

Bitcoin Struggles in Final Stretch of Record-Breaking Year for Digital Asset

December 24, 2024 - Around 2 mins mins to read

Key Points:

  • Bitcoin falls to $94,500, $14K below the December peak.
  • Software company buys $561M more Bitcoin, continuing its purchasing streak.
  • Bitcoin ETFs see $12B inflows, but recent subscriptions slow down.
Bitcoin struggles in the final stages of a record-breaking year for the cryptocurrency. As of early Tuesday, the digital asset was trading around $94,500, approximately $14,000 below its all-time peak set on December 17.
Bitcoin Struggles in Final Stretch of Record-Breaking Year for Digital Asset

Bitcoin Struggles as It Faces Key Technical Levels

Katie Stockton, a technical analyst at Fairlead Strategies LLC, noted that the test of this moving average suggests a shift towards a neutral bias, signaling that Bitcoin struggles may lead it into a “consolidation phase.” This cautious outlook follows the cryptocurrency’s meteoric rise throughout the year, driven by strong interest from both retail and institutional investors.

The pullback is partially attributed to expectations that the Federal Reserve may slow its interest rate cuts in 2025, which has tempered speculative enthusiasm. Additionally, President-elect Donald Trump’s push for relaxed US crypto regulations, including the potential creation of a national Bitcoin stockpile, has not been enough to reignite the bullish sentiment seen earlier in the year.

Read more: MicroStrategy Bitcoin Investment Continues As 2024 Draws to a Close

MicroStrategy’s Continued Bitcoin Purchases Amid Bitcoin Struggles

MicroStrategy Inc. continued its Bitcoin purchasing spree, acquiring an additional $561 million worth of Bitcoin at an average price near last week’s record high. This marks the seventh consecutive week of Bitcoin purchases by the software company, which has increasingly positioned itself as a Bitcoin proxy.

While Bitcoin struggles with its recent pullback, it has still rallied 125% in 2024, outpacing traditional investments like global stocks and gold. The recent slowdown in exchange-traded funds (ETFs) linked to Bitcoin is a reminder that the market is entering a period of adjustment. Despite the current pullback, Bitcoin struggles remain an essential part of the digital asset narrative as the cryptocurrency continues to shape the future of finance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.