Bitcoin stabilized on Thursday after a sharp decline in the final week of 2024, as traders expressed concerns about the regulatory future of cryptocurrencies under incoming President Donald Trump.
Market sentiment was also dampened by losses on Wall Street, with traders reacting to the likelihood of slower rate cuts in 2025, leading to profit-taking towards the end of the year.
Bitcoin experienced some profit-taking after surging over 100% in 2024, largely driven by optimism surrounding Trump’s election win. By 00:12 ET (05:12 GMT), Bitcoin had risen 1.8% to $95,469.5, after dipping as low as $92,000 earlier in the week.
Bitcoin drops below $100k in year-end sell-off
The price of Bitcoin fell below $100,000 in the past week as traders locked in profits at the end of the year. The cryptocurrency had reached an all-time high of over $108,000 in December, fueled by speculation that Trump’s presidency would bring favorable regulations for crypto. However, it couldn’t maintain this level as profit-taking persisted, and traders questioned the specifics of Trump’s crypto policies.
Trump has promised to implement more crypto-friendly regulations and nominated several crypto-supportive candidates for key regulatory roles, including the Securities and Exchange Commission chair. However, doubts remain about some of his other promises, particularly his plan to create a Strategic Bitcoin Reserve.
These uncertainties are expected to linger as Trump takes office in January.
Crypto market today: altcoins recover from year-end declines
The broader cryptocurrency market saw a sharp rebound, with many altcoins recovering some of their recent losses. Ethereum, the second-largest cryptocurrency, rose 2.1% to $3,411.12, while XRP, the third-largest token, surged 13.7% to $2.3904.
Risk appetite remained cautious, partly due to expectations of slower interest rate cuts by the Federal Reserve in 2025, as signaled during its December meeting. The Fed pointed to concerns about persistent inflation and the change in U.S. leadership. Higher rates are generally unfavorable for speculative assets like crypto, as they limit the capital available for such investments.
Other altcoins like Solana, Cardano, and Polygon saw increases ranging from 6% to 10%, while meme tokens such as Dogecoin gained 5%.
