Bitcoin's surge in valuation after Donald Trump's election win has lost momentum as 2024 comes to a close despite some experts initially predicting a possible $200,000 market cap before year-end.
After hitting a record high of $109,670 in mid-December, Bitcoin now hovered below $92,000, nearly a 16% drop since its peak.
Smaller cryptocurrencies, like Ether and Dogecoin, have also struggled to keep the steady traction they developed during Trump's campaign and post-Election Day win, Bloomberg reported.
Trump's support of Bitcoin and his call for a national strategic Bitcoin reserve fueled optimism among traders, causing the cryptocurrency to surge to a staggering 120% annual gain, inching closer to Google and Amazon's market cap ranks.
In comparison, President Joe Biden's administration implemented a regulatory crackdown on the crypto market.
Fears over fewer Federal Reserve interest rate cuts lulled speculation of another surge in Bitcoin's valuation.
MicroStrategy Inc., a major buyer of Bitcoin, owns over $40 billion worth of the cryptocurrency and has been on a buying spree, signaling a potential effect on the market.
Unlike other cryptocurrencies, Bitcoin continues to outperform traditional assets like gold and global stocks.
