(Bloomberg) — The Bitcoin rally sparked by U.S. President-elect Donald Trump’s early November election victory is stalling as 2024 draws to a close.

Read more from Bloomberg

The digital asset hovered around $94,000 as of 2:55 p.m. Tuesday in New York, about $14,000 below the record high set in mid-December. Smaller tokens like Ether and Dogecoin, a favorite of the meme crowd, also struggled for traction.

Trump’s preference for cryptocurrency-friendly regulations and support for the idea of ​​a national Bitcoin reserve boosted digital assets. But subdued expectations of interest rate cuts by the Federal Reserve have cooled the speculative frenzy.

More clarity on the US crypto regime is likely to emerge after Trump takes office on January 20. The Republican’s stance contrasts with President Joe Biden’s administration, which cracked down on the scandal-prone sector.

Chris Weston, head of research at Pepperstone Group, said the “momentum has come out of the post-election movement” in Bitcoin, in part due to outflows from exchange-traded funds for the token. The group of a dozen ETFs in the U.S. has seen a net outflow of nearly $1.8 billion since Dec. 19, according to data compiled by Bloomberg.

Meanwhile, software maker-turned-Bitcoin aggregator MicroStrategy Inc. has been on a buying spree in recent weeks. Traders are waiting to see if the firm, which owns more than $40 billion of the digital asset, will continue a pattern of announcing Bitcoin purchases on Mondays.

The original cryptocurrency is up roughly 120% this year, outperforming traditional investments like global stocks and gold. Bitcoin also doubled in 2023 in a comeback from a deep bear market.

(Price Updates)

Read more from Bloomberg Businessweek

©2025 Bloomberg LP