As 2024 draws to a close, the Bitcoin rally spurred by Donald Trump's November election victory has stalled. Bitcoin is hovering around $93,085, approximately $15,000 below its mid-December record high. Other cryptocurrencies like Ethereum and Dogecoin also lack momentum.
Trump's inclination towards crypto-friendly regulations and the idea of establishing a national Bitcoin reserve initially boosted digital assets. However, diminishing expectations for Federal Reserve rate cuts have cooled speculative fervor in the crypto market.
With Trump's inauguration, the U.S. cryptocurrency landscape could become clearer. His stance contrasts sharply with Biden's, who has been tough on the scandal-prone industry. According to Chris Weston from Pepperstone Group, Bitcoin's post-election momentum has faded partly due to capital outflows from Bitcoin ETFs.
Despite this, Bitcoin has risen about 120% this year, outperforming global stocks and traditional investments like gold. In 2023, Bitcoin's price more than doubled, marking a strong recovery from a deep bear market.
