Bitcoin Rally Fueled by Trump Loses Momentum as Year Wraps Up -

The Bitcoin rally prompted by US President-elect Donald Trump’s victory in early November is losing steam as 2024 nears its conclusion.

The cryptocurrency was trading around $93,670 at 6:34 a.m. on Monday in New York, roughly $15,000 below the historical peak achieved in mid-December. Other cryptocurrencies such as Ether and the well-known Dogecoin are also struggling to maintain momentum.

Read: Bitcoin’s pullback intensifies after the token’s record-breaking surge

Trump’s support for crypto-friendly regulations and his proposal for a national Bitcoin reserve have bolstered digital asset prices.

Nonetheless, lowered expectations for Federal Reserve interest rate cuts have dampened speculative enthusiasm.

Additional insights into US cryptocurrency regulations are expected once Trump assumes office on January 20. His stance contrasts sharply with that of President Joe Biden’s administration, which has enforced tighter regulations within the contentious sector.

Chris Weston, head of research at Pepperstone Group, noted that “the momentum has fizzled out from the post-election shift” in Bitcoin, partly due to capital outflows from cryptocurrency-related exchange-traded funds.

Meanwhile, the software firm turned Bitcoin investor MicroStrategy Inc. has been on a buying spree in recent weeks. Market watchers are eager to see if the company, which holds over $40 billion in Bitcoin, will maintain its pattern of announcing acquisitions on Mondays.

The original cryptocurrency has surged nearly 120% this year, outperforming traditional investments such as global equities and gold.

Bitcoin has also more than doubled in 2023, making a significant rebound from a severe bear market.

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