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.
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.
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.