$BTC fell 3.2%, its first monthly decline since August
Gained 120% last year, investors optimistic for 2025
Bitcoin’s record-breaking run came to a halt in late 2024, with the price experiencing its first monthly decline since August.
The digital asset fell 3.2% last month as U.S. investors cashed in profits following a rally triggered by President-elect Donald Trump’s victory, with Bitcoin reaching an all-time high of $108,315 in mid-December. Fervent speculation in the cryptocurrency market has subsided as expectations of a Federal Reserve rate cut have faded and appetite for riskier assets has waned.
A dozen U.S. bitcoin exchange-traded fund groups have seen net outflows of about $1.8 billion since Dec. 19, according to data compiled by Bloomberg. Open interest — or outstanding contracts — for bitcoin futures hosted by Chicago-based CME Group Inc., a measure of U.S. institutional interest, has fallen about 20% from its December peak.
Despite this, Bitcoin is set to gain 120% in 2024, outpacing gold and global stocks.
“While optimism about crypto-friendly regulations has prevailed since Trump’s inauguration, we think the main catalyst could come in January as institutions readjust their asset allocations,” QCP Capital wrote in a note to clients. “With Bitcoin now embraced by a broad range of institutions — university endowments are joining the list this year — allocations are likely to increase, Bitcoin dominance to strengthen, spot movements to stabilize, and volatility dynamics to converge with equities.”
Bitcoin was down 0.20% at $93,518 as of 2:55 p.m. in Singapore on Wednesday. Smaller coins such as Ether and Dogecoin also struggled to gain ground.
