Bitcoin slips following record run as investors take profits

Bitcoin slips following record run as investors take profits
The crypto leader has posted its first monthly drop since the summer.
JAN 02, 2025
By  Bloomberg

by Sidhartha Shukla

Bitcoin’s record-breaking run faltered toward the end of 2024, leading to its first monthly drop since August. 

The digital asset fell 3.2% last month as US investors cashed profits after a rally triggered by President-elect Donald Trump’s victory pushed Bitcoin to an all-time high of $108,315 mid-December. Feverish speculation in the crypto market has cooled as expectations for interest-rate cuts from the Federal Reserve waned, eroding appetite for riskier assets.

The group of a dozen Bitcoin exchange-traded funds in the US saw a net outflow of about $1.8 billion since Dec. 19, according to data compiled by Bloomberg. Open interest — or outstanding contracts — for Bitcoin futures hosted by Chicago-based CME Group Inc., seen as a measure for US institutional interest, also fell nearly 20% from its December peak. 

Even so, Bitcoin racked up a 120% gain in 2024, outperforming gold and global equities. 

“While optimism surrounds crypto-friendly regulations post-Trump inauguration, we think the key catalyst may come in January as institutions readjust asset allocations,” QCP Capital said in a note to clients. “With Bitcoin now broadly adopted by a broad spectrum of institutions — adding university endowment funds to the list this year — allocations are likely to increase, strengthening Bitcoin dominance, stabilizing spot movements, and shifting volatility dynamics closer to equities.”

Bitcoin slipped 0.24%, trading at $93,487 as of 8:10 a.m. on Wednesday in New York. Smaller coins like Ether and Dogecoin also struggled to gain ground.

Latest News

Farther adds $120M firm with science-backed approach to wealth management
Farther adds $120M firm with science-backed approach to wealth management

The latest addition to the tech-driven firm combines wellness and finances.

Cutting back on fun: a third of Americans plan to reduce spending on vices
Cutting back on fun: a third of Americans plan to reduce spending on vices

Your clients are likely to be spending on vices, depending on their generation.

Gold continues to shine, but will jobs data change that?
Gold continues to shine, but will jobs data change that?

Traders are awaiting the latest snapshot of US economic strength.

Veritas could be about to snap up one of Wall Street’s oldest names
Veritas could be about to snap up one of Wall Street’s oldest names

Private equity firm reportedly in talks to make an acquisition.

Trump wants to scrap one of private equities' tax breaks, again
Trump wants to scrap one of private equities' tax breaks, again

Exemption enjoyed by PE and VC firms was under fire in his first term too.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.