Bitcoin’s price climbs above $96,600, fueled by optimism over Trump’s crypto policies and strong ETF performance in 2024
New York: Bitcoin is holding strong above $96,600, thanks to some positive vibes around Trump’s upcoming crypto policies. After dipping to $92,000 last week, it’s nice to see it bounce back.
This recent price action shows that folks are taking profits after an impressive year where Bitcoin shot up over 111%. On Thursday, it even rose nearly 4% to $96,465, according to CoinGecko.
Even though it’s still below its all-time high of $108,000 from December, the demand for Bitcoin is pretty solid, especially with institutional investors getting into the game through US-based spot Bitcoin ETFs.
Speaking of ETFs, Ethereum ETFs also did really well in 2024, pulling in a record $2.08 billion in December alone. That’s almost double what they saw in November, showing that investors are really excited about ether-backed products.
Bitcoin’s big jump this year was driven by some key events, like the mid-year Bitcoin Halving and the launch of US-based spot Bitcoin ETFs. Plus, there’s a lot of buzz about favorable regulations coming in after Trump’s election win.
Ryan Lee from Bitget Research mentioned that 2024 was a big year for institutional adoption and tech advancements, laying a solid foundation for the crypto world.
As Trump gets ready to take office, traders are a bit split on how his policies will affect crypto. He’s promised friendlier regulations and has picked some crypto-friendly folks for important roles, but we’re still waiting on the specifics.
Bitcoin’s drop from December’s highs might just be traders cashing in after a great year. It dipped below $100,000 as people locked in their profits, which is pretty common after a big run-up.
Wall Street’s struggles at the end of 2024 and the Fed hinting at slower rate cuts in 2025 have made investors a bit cautious. Higher interest rates usually make people shy away from risky investments, but Bitcoin’s growing reputation as a store of value might help it weather the storm.
Ethereum also saw a nice bump, rising 3% to $3,464, while XRP jumped 12% to $2.39. Other altcoins like Solana, Cardano, and Polygon also had good days, with gains between 9% and 14%.
Looking ahead, analysts think Bitcoin could trade between $83,000 and $120,000 in January, with some peaks possibly hitting $120,000 as ETF activity and institutional investments pick up.
Lee also mentioned that the new year might bring a “January effect,” where renewed investments and optimism could lead to some market corrections as people take profits from 2024.
