The continuous increase in the price of cryptocurrency Bitcoin faded towards the end of the year. According to a Bloomberg report, its price saw a decline for the first time since August. According to Bloomberg data, the price of cryptocurrency fell by 0.55 percent or $513.65 to a record level of $93,200.38.
Crypto surge after Trump's victory
It fell by 3.2 percent in December. After this, after the victory of republican party candidate donald trump in the US presidential election, American investors started investing heavily in it, due to which it reached its all-time high of $108,315 by mid-December. The price of cryptocurrency increased with Trump's arrival because trump supported cryptocurrency during his election campaign. In this election, tesla CEO Elon Musk also supported trump and crypto is also his favorite currency.
Reason for falling crypto price
However, after the expectations of interest rate cut by the US Federal Reserve diminished, the rate of crypto also kept falling because due to the risk factor in it, investors reduced their interest in it. There is always a possibility of losing the money invested while trading in crypto. According to the report, a group of Bitcoin exchange-traded funds in the US expected to invest about $1.8 billion in bitcoin after december 19.
Crypto may catch up again
Amid market volatility, the Chicago Mercantile Exchange (CME) opened interest in bitcoin futures and it also fell by 20 percent from its december high. However, despite this, bitcoin gained a total of 120 percent in 2024. The report quoted QCP capital as saying that after Trump's swearing-in, it may see a rise again.
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