Bitcoin stalls at $93,085 as Fed rate-cut hopes fade, $15K below December’s high.
MicroStrategy holds 442,262 BTC worth $41.4B, hints at new purchases for 2024.
El Salvador surpasses 6,000 BTC holdings, valued at $561M, with 105% unrealized gains.
Bitcoin, which surged in value after Donald Trump was elected president, is building a reversal pattern towards the end of the year. The cryptocurrency hit an all-time high of $108,268 in mid-December but is trading at $93,085 at press time, showing a retracement from its peak. This cooling phase is also observable in other cryptocurrencies, including Ether and Dogecoin, which similarly struggled with their previous rise.
Trump’s impact on the crypto market is positive, especially his endorsement of a national Bitcoin reserve. Bitcoin has dropped to around $93,000 after surging to new highs, roughly about $15,000 below the highs recorded mid-December. This deceleration occurred as the anticipation of rate cuts by the Federal Reserve was trimmed, which removed the excitement of speculation that lifted the prices.
Nevertheless, Bitcoin posted strong gains throughout the year, up 120%, outperforming stocks and gold. Traders are still waiting for more specific signals on further crypto regulation once Trump takes office in January; this should lead to renewed activity in 2025.
MicroStrategy Maintains Bitcoin Buying Momentum
Amidst fluctuating market conditions, MicroStrategy Inc has continued establishing itself as a large figure in the crypto market. The software giant that decided to become a Bitcoin holder has continued its buying streak, now holding 444,262 Bitcoin, valued at roughly $41.4 billion.
Chris Weston, head of research at Pepperstone Group, commented the momentum that followed the election is no longer as robust, partly because of fund outflows from Bitcoin exchange-traded funds. This change may be due to a shift in the broader sentiment of the market in which MicroStrategy operates, which could impact its future direction. The company’s recent action of asking shareholders for permission to issue more shares suggests further possible enlargement of its Bitcoin investments in the future, reinforcing its significance in the crypto industry.
MicroStrategy CEO Michael Saylor recently prompted the cryptocurrency market by sharing a chart from SaylorTracker, a platform created to track the company’s purchases of Bitcoin. This move attracted much attention and speculation regarding MicroStrategy‘s further Bitcoin purchases. Saylor’s post using ‘disconcerting blue lines’ on the tracker’s website attracted the attention of many investors and traders.
El Salvador Surpasses 6,000 Bitcoin Milestone
El Salvador has increased its BTC purchases to over 6,000, worth over $561.3 million. The last addition has come due to the country’s unchanging accumulation plan, which has led to an unrealized gain of 105%. The government, led by President Nayib Bukele, currently implements cryptocurrency projects even though many global financial institutions doubt them. This move has seen the country’s Bitcoin investment returns more than double since its initial purchase.
Consequently, El Salvador’s portfolio has been consistently growing after the country made Bitcoin legal tender in 2021. Initially, the country’s Bitcoin plan received some backlash from global monetary institutions, including the IMF; however, the country’s enduring Bitcoin policy has been economically beneficial as the market begins to stabilize.
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