Bitcoin Slips in December as Investors Cash In on Record Rally

Bloomberg
01-01
  • Bitcoin fell 3.2% in first monthly drop since August

  • It gave 120% gains last year, investors optimistic for 2025

Bitcoin’s record-breaking run faltered toward the end of 2024, leading to its first monthly drop since August.

The digital asset fell 3.2% last month as US investors cashed profits after a rally triggered by President-elect Donald Trump’s victory pushed Bitcoin to an all-time high of $108,315 mid-December. Feverish speculation in the crypto market has cooled as expectations for interest-rate cuts from the Federal Reserve waned, eroding appetite for riskier assets.

The group of a dozen Bitcoin exchange-traded funds in the US saw a net outflow 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., seen as a measure for US institutional interest, also fell nearly 20% from its December peak.

Even so, Bitcoin racked up a 120% gain in 2024, outperforming gold and global equities.

“While optimism surrounds crypto-friendly regulations post-Trump inauguration, we think the key catalyst may come in January as institutions readjust asset allocations,” QCP Capital said in a note to clients. “With Bitcoin now broadly adopted by a broad spectrum of institutions — adding university endowment funds to the list this year — allocations are likely to increase, strengthening Bitcoin dominance, stabilizing spot movements, and shifting volatility dynamics closer to equities.”

Bitcoin slipped 0.20%, trading at $93,518 as of 2:55 p.m. on Wednesday in Singapore. Smaller coins like Ether and Dogecoin also struggled to gain ground.

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