Bitcoin Slips In December As Investors Cash In On Record Rally

The group of a dozen Bitcoin exchange-traded funds in the US saw a net outflow of about $1.8 billion since Dec. 19, according to data compiled by Bloomberg. Open interest — or outstanding contracts — for Bitcoin futures hosted by Chicago-based CME Group Inc., seen as a measure for US institutional interest, also fell nearly 20% from its December peak. 

Even so, Bitcoin racked up a 120% gain in 2024, outperforming gold and global equities. 

“While optimism surrounds crypto-friendly regulations post-Trump inauguration, we think the key catalyst may come in January as institutions readjust asset allocations,” QCP Capital said in a note to clients. “With Bitcoin now broadly adopted by a broad spectrum of institutions — adding university endowment funds to the list this year — allocations are likely to increase, strengthening Bitcoin dominance, stabilizing spot movements, and shifting volatility dynamics closer to equities.”

Bitcoin slipped 0.20%, trading at $93,518 as of 2:55 p.m. on Wednesday in Singapore. Smaller coins like Ether and Dogecoin also struggled to gain ground.