Bitcoin slips from December peak as investors cash in on record run

Bitcoin fell 3.2% after US investors started cashing their profits after Donald Trump's US elections victory pushed it to its all-time high of $108,315

Published on: Jan 1, 2025, 16:28:01 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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Bitcoin's record rally fizzled out towards the end of 2024, dropping for the first time since August of that year, Bloomberg reported.

The cryptocurrency's price dropped 0.55% or by $513.65, reaching $93,200.38, according to Bloomberg data.

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Over the December month, it fell 3.2% after US investors started cashing their profits after Republican candidate Donald Trump's victory in the US elections pushed it to its all-time high of $108,315 by mid-December.

This is because Trump is a huge supporter of cryptocurrencies.

However, the rally has now cooled after expectations of an interest-rate cut from the Federal Reserve waned, which reduced investor appetite for riskier assets like cryptocurrency.

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After December 19, a group of Bitcoin exchange-traded funds in the US saw a net outflow of around $1.8 billion, according to the report.

Open interest or outstanding contracts for Bitcoin futures hosted by Chicago-based CME Group Inc, also fell nearly 20% from its December peak.

Despite this current setback, Bitcoin did gain a total of 120% in 2024, completely outperforming gold and global equities.

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“While optimism surrounds crypto-friendly regulations post-Trump inauguration, we think the key catalyst may come in January as institutions readjust asset allocations,” the report quoted QCP Capital as saying in a note to clients. “With Bitcoin now broadly adopted by a broad spectrum of institutions — adding university endowment funds to the list this year — allocations are likely to increase, strengthening Bitcoin dominance, stabilizing spot movements, and shifting volatility dynamics closer to equities.”

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HT News Desk
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