Bitcoin, which recorded a strong rally after Donald Trump’s election victory in early November, is now facing a slowdown as the year 2024 draws to a close. On Monday morning, the cryptocurrency was quoted at 93,678 dollars in Singapore, a drop of around 15,000 dollars from the record reached in mid-December. Other digital assets, such as Ether and the popular Dogecoin, have also struggled to keep pace.
Initial expectations were boosted by Trump’s promises to adopt regulations favourable to cryptocurrencies, as well as his support for the creation of a national Bitcoin reserve. However, the reduced likelihood of interest rate cuts by the Federal Reserve has cooled market enthusiasm.
Experts believe that greater clarity about the future of the cryptocurrency sector in the United States will emerge after Trump’s inauguration on 20 January. This more open approach contrasts with Joe Biden’s administration, known for the severe restrictions it imposed on the sector.
Chris Weston, head of research at Pepperstone Group, said that the ‘initial momentum was driven by the post-election movement’ in Bitcoin, in particular due to the flow of outflows from exchange-traded funds into this asset.
Meanwhile, companies such as MicroStrategy Inc., known for being a major Bitcoin accumulator, have stepped up their acquisitions in recent weeks. The company, which holds more than 40 billion dollars in Bitcoin, continues to capture the market’s attention, with investors waiting for possible announcements of new purchases on Mondays.
Despite the recent loss of strength, Bitcoin has appreciated by around 120 per cent over the course of 2024, outperforming traditional assets such as global shares and gold. This solid performance follows a doubling of the asset’s value in 2023, marking the recovery after a deep bear market.
Semanário Económico
