Bitcoin Stabilizes After 2024 Surge as Traders Weigh Regulatory Concerns and Slower Rate Cuts – Century Financial

• Crude Oil

Oil prices experienced an uptick on Thursday following the release of data indicating a decline in U.S. oil inventories last week. Traders, however, remained cautious as they contemplated the market outlook for the upcoming year. The American Petroleum Institute (API) reported on Tuesday that U.S. oil inventories dropped by 1.4 million barrels last week. Such a decrease suggests a rise in crude oil demand, which can positively impact prices. When inventories fall, it often leads traders to re-enter the oil market, driving prices higher. Later on Thursday, the U.S. Energy Information Administration (EIA)—the statistical branch of the U.S. Department of Energy—is scheduled to release its weekly data. Market participants will be eager to see if the official inventory report corroborates the decline, as these figures offer valuable insights into the supply and demand dynamics of the U.S. crude oil market, influencing pricing and economic decisions. Looking ahead, the oil market is preparing for a potential oversupply in 2025. Despite the recent inventory drop, the latest EIA data indicates that U.S. oil production remains close to record levels. Furthermore, the incoming Donald Trump administration is expected to adopt policies aimed at boosting domestic fossil fuel production. The International Energy Agency (IEA) recently stated that the oil market will continue to be well-supplied, even with rising demand forecasts for 2025. The demand outlook is closely linked to expectations that China, the world’s largest oil importer, will rejuvenate its economy, particularly in light of concerns about an oversupply resulting from anticipated increases in production from non-OPEC nations. In his New Year’s address, Chinese President Xi Jinping indicated that the country would implement more proactive policies to foster growth in 2025.
Despite the positive signs, traders remain cautious about the future as increasing supply and sluggish demand recovery pose challenges to market stability.

• Cryptocurrency

Bitcoin steadied on Thursday after falling sharply in the last week of 2024 as traders fretted over the regulatory outlook for crypto under incoming President Donald Trump.

Broader risk appetite was also stymied by losses on Wall Street, as the prospect of slower rate cuts in 2025 sparked some profit-taking towards the end of the year. Bitcoin was also subject to profit-taking after rallying over 100% in 2024, with a bulk of its gains coming after Trump’s victory in the 2024 presidential election.

The world’s largest cryptocurrency rose 1.8% to $95,469.5, after falling as low as $92,000 in the past week. 

Technical indicators suggest some negative pressure; the relative strength index (RSI) hangs close to 45 while the 20-day exponential moving average (EMA) at $96,278 trends down. Between $90,000 and $85,000 is the important support zone.

Last Updated on 1 week by News Desk 1