On the last day of the year, XRP leads the decline in the cryptocurrency market, dropping over 5% as a strong dollar negatively impacts currencies and global assets like Bitcoin. Other cryptocurrencies including Dogecoin, Solana, Ether, and BNB also fell by up to 2%, reducing the total market capitalization by about 3%. The CoinDesk 20 index, which tracks major tokens, dropped by 3.5%.
U.S. stocks also fell as investors were cautious ahead of year-end. The dollar strengthened, and is expected to strengthen further with the economic policies of President-elect Donald Trump, making dollar-denominated assets more attractive compared to cryptocurrencies, diminishing expectations for a continued crypto rally.
December saw Bitcoin prices drop nearly 4% despite a 47% increase in the final quarter. Expectations of lower interest rates from the Federal Reserve have also negatively impacted cryptocurrency prices. However, some experts like Maksym Sakharov from WeFi remain optimistic that favorable regulatory changes under Trump could stabilize and improve the market over time, suggesting that the cryptocurrency market may not have reached its price peak yet.
MicroStrategy, a business intelligence company and Bitcoin investor, purchased 2,138 Bitcoin for $209 million, increasing its total holdings. The purchase occurred from December 23 to December 29, at an average price of about $97,837 per Bitcoin. To finance this purchase, the company sold 592,987 of its shares. As of December 30, MicroStrategy reported a Bitcoin profit of 74.1% year-to-date.
The recent purchase marks the eighth consecutive week of Bitcoin buying, totaling 194,180 BTC since October 31, although the buying volume has decreased since November. Additionally, MicroStrategy is seeking to significantly increase its authorized shares to invest more in Bitcoin.
