Bitcoin is poised to finish its first losing year since 2022, as global economic pressures and diminishing momentum affect the major cryptocurrency’s value.
Although it hit a new high this year, Bitcoin has struggled since October and recently saw its largest monthly downturn since mid-2021. Bitcoin’s year-end value could be over 6% lower after achieving gains in the previous two years. Last recorded at $87,474.2, its value surged earlier with the election of crypto-friendly Donald Trump as US President. Cryptocurrencies and stocks plummeted in April following Trump’s tariff announcements, only to rebound with Bitcoin peaking above $126,000 in October.
However, a few days later, on October 10, both markets nosedived as Trump introduced fresh tariffs on Chinese goods and threatened export controls on crucial software, leading to over $19 billion in crypto market liquidations – a record-breaking event. With the stock market also experiencing a volatile year, analysts noted Bitcoin increasingly mirrored stock indices as traditional and institutional investors entered the crypto market. This connection is expected to tighten next year, driven by monetary policy changes and concerns over AI stock valuations.
(With inputs from agencies.)