2024 is ending with a massive cryptocurrency crash and Bitcoin (BTC) will lose its grip, retreating after Trump’s post-election rally. The air has become thinner and the market is drifting, suspended between uncertainty and anticipation for 2025.
Some analysts argue that Trump doesn’t matter. Now that Blackrock and all the other investment companies have Bitcoin ETFs, they will try to pump Bitcoin for all its value.
How true is this and when will this cryptocurrency crash end?
Trump’s push causes a new collapse in cryptocurrencies
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still king of the cryptocurrency market, it stands at $92,700, down $15,000 from its December highs. A 120% annual gain keeps the numbers bright, but the recent decline has cooled the election-fueled frenzy.
Meanwhile, smaller players like Ether ($ETH) and Dogecoin ($DOGE) are stuck in neutral, failing to generate excitement. 99Bitcoin analysts point to changing macroeconomic winds, with talk of Fed rate cuts dampening momentum.
President-elect Donald Trump has promised to bring a pro-crypto agenda to Washington, pushing ideas like looser rules and a national Bitcoin reserve. Compare that to Biden’s aggressive approach, and it’s clear that the industry’s fortunes have fluctuated wildly between the two administrations.
However, the initial euphoria surrounding Trump’s victory has waned as traders await more concrete measures following his inauguration on January 20, 2025. According to Chris Weston, head of research at Pepperstone Group, Bitcoin’s post-election momentum has slowed , noting that outflows from Bitcoin Exchange Traded Funds (ETFs) focus suggest a cooling of speculative activity.
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MicroStrategy’s Bitcoin buying spree
MicroStrategy acquired 2,138 BTC for ~$209 million at ~$97,837 per bitcoin and achieved a BTC yield of 47.8% QTD and 74.1% YTD. As of 12/29/2024, we owned 446,400 $BTC acquired for ~$27.9 billion at ~$62,428 per bitcoin. $MSTR https://t.co/58aXM7g6u2
—Michael Saylor
(@saylor) December 30, 2024
MicroStrategy Inc., once a conventional software company, has become Bitcoin’s institutional bulldozer. Between December 23 and 29, it collected 2,138 tokens, bringing its total haul to over $40 billion.
The drop in prices after the December highs has not scared the company: it is doubling. MicroStrategy aims to raise $42 billion through equity sales and debt offerings over the next three years, surpassing two-thirds of the goal in just two months. Their message is clear: they all agree.
“MicroStrategy’s focus on Bitcoin continues to be a proxy strategy for institutional investors seeking exposure to the asset,” the analysts noted.
While institutional players like MicroStrategy remain bullish, broader market sentiment is less certain. Hedge funds have used strategies such as convertible arbitrage to capitalize on the volatility of MicroStrategy’s stocks and bonds, reflecting a cautious but opportunistic outlook.
Additionally, as the end of 2024 approaches, crypto whales have made significant moves, as seen with large inflows into centralized exchanges.
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What to expect in 2025 after this cryptocurrency crash
There is no legal rhyme or reason for Bitcoin to go up. The world has never seen anything like it. There’s no way to predict it. If you try, you will most likely fail. It could easily go to $200,000 next year or $50,000 or both. It does not matter. It’s something completely new outside of the current system.
These are today’s facts:
- There is an extremely limited amount of cheap digital gold out there.
- You can sell an extremely large amount of fiat money, real estate, and extra gold.
- Everyone tries to predict each other’s move and not buy too early or too late.
- There is a huge advantage in being right and moving first
- There is a huge disadvantage in making mistakes and moving last
This dynamic is not stable. It’s unpredictable.
And as companies like MicroStrategy are proving, Bitcoin isn’t just a nice idea or an identity. Bitcoiners dedicate their lives to conquering big government and fighting for revolutionary, free money. You can fight Bitcoin, but you can’t stop it.
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