As 2024 approaches, the Bitcoin rally triggered by the election victory of newly elected President Donald Trump in early November has stalled after a rebound.
As of Tuesday morning, the Bitcoin price is about $15,700 lower than the record high set in mid-December. Smaller tokens like Ethereum and the meme favorite Dogecoin are also struggling to gain upward momentum.
Trump tends to favor cryptocurrency-friendly regulation and supports the idea of a national Bitcoin reserve, which enhances the valuation of digital assets. However, expectations of interest rate cuts from the Federal Reserve have cooled the speculative fervor.
After Donald Trump took office on January 20, the U.S. cryptocurrency framework may become clearer.
Chris Weston, research director at Pepperstone Group, said that Bitcoin's 'momentum has flowed out of the post-election actions,' partly due to outflows from exchange-traded tokens. According to data compiled by Bloomberg, net outflows from a dozen U.S. ETFs since December 19 have approached $1.8 billion.
Meanwhile, MicroStrategy Inc. has been on a buying spree over the past few weeks. Traders are waiting to see if the company, which holds over $40 billion in digital assets, will continue its pattern of announcing Bitcoin purchases.
The original cryptocurrency has risen about 120% this year, outpacing traditional investments like global stocks and gold. Bitcoin also rebounded more than doubling from a deep bear market in 2023.
