Bitcoin Dips in December as Investors Take Profits from Rally
Bitcoin experienced its first monthly decline since August as investors cashed in on profits after a record-breaking rally
Bitcoin, US, Donald Trump, Crypto Market, Investors, CME Group
Singapore: So, Bitcoin had a bit of a rough patch in December. After an amazing run, it finally slipped, marking its first monthly drop since August. Can you believe it?
It fell by about 3.2% last month. A lot of US investors decided to cash in their profits after Bitcoin hit a jaw-dropping high of $108,315 in mid-December. That surge was fueled by all the excitement around President-elect Donald Trump’s victory.
But now, the hype is cooling off. With the Federal Reserve not expected to cut interest rates anytime soon, folks are getting a bit more cautious about risky investments.
Interestingly, Bitcoin exchange-traded funds in the US saw a net outflow of around $1.8 billion since December 19. Plus, the open interest for Bitcoin futures at CME Group dropped nearly 20% from its peak this month. That’s a sign that institutional interest is waning.
Despite all this, Bitcoin still managed to gain 120% in 2024, which is pretty impressive compared to gold and global stocks.
Experts think that while there’s a lot of buzz about crypto-friendly regulations coming after Trump’s inauguration, the real game-changer might be in January. Institutions are likely to adjust their asset allocations, which could boost Bitcoin’s standing even more.
As of now, Bitcoin is trading at $93,518, down 0.20%. Other smaller coins like Ether and Dogecoin are also having a tough time gaining traction.