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Bitcoin (BTC-USD) held steady above $96,600 (£77,591) on Thursday, bolstered by cautious optimism surrounding the incoming Trump administration’s crypto policies. This stability follows a recovery from a dip to $92,000 in the final week of 2024.
The cryptocurrency’s recent price action reflects profit-taking after a remarkable 2024 rally, during which it surged over 111% throughout the year.
Bitcoin rose by almost 4% to $96,465 on Thursday, according to CoinGecko data.
While the price remains below its 17 December all-time high of $108,000, bitcoin’s resilience underscores strong underlying demand, particularly from institutional finance via US-based spot bitcoin exchange-traded funds (ETFs).
Read more: Crypto live prices
US spot Ethereum ETFs delivered strong performance in 2024, with net inflows reaching a record $2.08bn in December — nearly double the $1bn seen in November. The surge reflects growing investor enthusiasm for ether-backed financial products, according to SoSoValue.
Bitcoin’s 2024 surge was driven by key events including the mid-year Bitcoin Halving, the January launch of US-based spot bitcoin ETFs, and speculation over favourable regulations following Donald Trump’s election victory on 5 November. Institutional adoption expanded significantly, fuelled by ETF activity and innovations in Real-World Asset (RWA) tokenisation.
“Reflecting on 2024, the year marked significant institutional adoption and technological advancements, setting a strong foundation for the crypto industry,” Bitget Research chief analyst Ryan Lee said.
“These factors, coupled with evolving market dynamics, position bitcoin for continued growth and maturity in 2025.”
As president-elect Trump prepares to take office, traders remain divided over how his administration’s policies will shape the crypto landscape. While Trump has pledged to enact friendlier regulations and nominated crypto-friendly candidates for key positions — including the chair of the Securities and Exchange Commission (SEC) — specific policy details remain unclear.
Bitcoin’s decline from December’s highs could reflect profit-taking, especially after a year of substantial gains. The cryptocurrency slid below the $100,000 level during the year-end as traders locked in profits, a common pattern following periods of rapid appreciation.
Read more: Best-performing memecoins of 2024
Wall Street’s losses towards the end of 2024 and the US Federal Reserve’s December signals of slower rate cuts in 2025 added to broader risk aversion. Higher interest rates historically limit speculative investments, though bitcoin’s growing adoption as a store of value may mitigate such effects.
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