Analysis: The Bitcoin frenzy triggered by Trump loses momentum at the end of the year

According to reports, as 2024 is coming to an end, the Bitcoin surge triggered by the victory of Donald Trump in the early November election has stalled. Trump's preference for crypto-friendly regulation and support for national Bitcoin reserves have boosted digital assets. However, reduced expectations of a Federal Reserve rate cut have cooled speculative fervor. After Trump takes office on January 20th, the US cryptocurrency system may become clearer.

Chris Weston, head of research at Pepperstone Group, said that part of Bitcoin’s “momentum comes from post-election trends,” partly due to ETF capital outflows. Meanwhile, MicroStrategy - the largest bitcoin-holding company - has been buying up bitcoins in large quantities over the past few weeks. Traders are watching whether this company with more than $40 billion in digital assets will continue to buy Bitcoins.