Brilliant performance comes to an end, Bitcoin's year-end rally loses momentum.
27/12/2024
GMT Eight
In the last few days of a year where digital assets broke records, the upward momentum of Bitcoin is becoming increasingly weak, as investors assess the remaining momentum that President-elect Donald Trump's support for the cryptocurrency industry may bring.
At the time of writing, Bitcoin is trading at $95,914, down 0.12% from the previous day. Smaller tokens including Ether and Dogecoin are also striving to attract market attention.
Trump is advancing a promise to create a more cryptocurrency-friendly environment in the United States and support the idea of establishing a national Bitcoin reserve. Traders are watching to see if such a reserve is feasible.
Major broker FalconX has stated that a large number of Bitcoin and Ether options contracts in the crypto market are set to expire on Friday, marking one of the largest events of its kind in digital asset history. Sean McNulty, Head of Trading at liquidity provider Arbelos Markets, has noted that there may be "volatility" in the market as these derivative positions expire.
Despite hints from MicroStrategy that they may expand their Bitcoin purchase plans, the performance of Bitcoin remains volatile. The company has transitioned from a software manufacturer to a Bitcoin accumulator, currently holding over $40 billion in digital assets.
According to data compiled by Bloomberg, Bitcoin is expected to see a decline in December, marking its first monthly decline in four months. Bitcoin reached a historic high of $108,316 on December 17th, before falling back down.