the Donald Trump-fueled bitcoin rise waned.

As the year comes to an end, the Donald Trump-fueled bitcoin rise waned.

As of 7:53 a.m. on Monday in Singapore, the digital asset was trading at $93,678, roughly $15,000 less than the mid-December peak. The meme-crowd favorite Dogecoin and smaller tokens like Ether also had trouble gaining popularity.

As 2024 comes to an end, the Bitcoin boom that was triggered by US President-elect Donald Trump’s election triumph in early November is stalling.

Digital assets increased as a result of Trump’s support for a national Bitcoin reserve and preference for crypto-friendly laws. However, the speculative frenzy has subsided as expectations of a Federal Reserve interest rate cut have been lowered.

After Trump takes office on January 20, more information about the US crypto system is probably going to become clear. The Republican position is in opposition to that of President Joe Biden’s administration, which imposed strict measures on the scandal-prone industry.

“The momentum has come out of the post-election move” in Bitcoin, according to Chris Weston, head of research at Pepperstone Group, in part because of withdrawals from exchange-traded funds for the cryptocurrency.

In the meantime, MicroStrategy Inc., a software company that has converted to a Bitcoin accumulator, has been buying in large quantities over the last several weeks. The corporation has about $40 billion worth of Bitcoin, and traders are waiting to see if it will continue to announce acquisitions on Mondays.

This year, the original cryptocurrency has increased by about 120%, surpassing more conventional investments like gold and international stocks. In 2023, Bitcoin more than doubled as it recovered from a severe bear market.

Frequently Asked Questions

Why did Bitcoin's price drop from its mid-December peak?

Bitcoin’s price decline can be attributed to fading speculative interest and reduced expectations of a Federal Reserve interest rate cut, despite the initial momentum triggered by Donald Trump’s election triumph and crypto-friendly policies.

How has Donald Trump's stance influenced the cryptocurrency market?

Trump’s support for a national Bitcoin reserve and his preference for crypto-friendly laws initially fueled optimism in the market, leading to a surge in Bitcoin and other digital assets like Dogecoin and Ether. However, this enthusiasm has started to wane as 2024 ends.

What is the significance of MicroStrategy's Bitcoin purchases?

MicroStrategy Inc., known for accumulating Bitcoin, has been making substantial purchases, holding approximately $40 billion worth of the cryptocurrency. Traders are closely monitoring whether the company will continue its buying spree, particularly with announcements typically made on Mondays.

How has Bitcoin performed compared to other investments in 2024?

Bitcoin has risen about 120% in 2024, outperforming traditional assets like gold and international stocks. This follows a strong recovery from the bear market in 2023.

What can we expect from the US crypto landscape under Trump’s administration?

After Donald Trump assumes office on January 20, 2025, more details about the US cryptocurrency framework are expected to emerge. This will likely differ from President Joe Biden’s administration, which implemented stricter regulations on the crypto industry.