Jan 2 2025: Bitcoin stabilized on Thursday, trading at $95,469.5 as of 00:12 ET (05:12 GMT), after a turbulent end to 2024 that saw its price dip as low as $92,000. The cryptocurrency faced pressure from regulatory uncertainty under incoming U.S. President Donald Trump and broader risk aversion due to slowing expectations for interest rate cuts in 2025.
Despite rallying over 100% in 2024, largely fueled by optimism surrounding Trump’s election and his crypto-friendly promises, Bitcoin experienced significant profit-taking towards the end of the year. Earlier in December, Bitcoin reached a record high of over $108,000 but struggled to maintain the level.
Traders remain cautious as questions linger about Trump’s proposed policies, including his promise to establish a Strategic Bitcoin Reserve. Doubts over the specifics of his administration’s approach to crypto are expected to weigh on the market as he assumes office later in January.
Altcoin Rebound from Year-End Losses
Other cryptocurrencies saw gains, recovering from recent losses. Ethereum, the second-largest crypto, rose 2.1% to $3,411.12, while XRP surged 13.7% to $2.3904. Altcoins like Solana, Cardano, and Polygon advanced by 6% to 10%, and meme token Dogecoin gained 5%.
Broader market sentiment remains cautious as the Federal Reserve signals slower rate cuts in 2025 due to persistent inflation concerns and the transition to a new U.S. administration. Higher interest rates could pose challenges for speculative assets like cryptocurrencies by limiting available capital for investment.
