Bitcoin BTC/USD scripted history in 2024, not only breaking the long-held record of $69,000 but also hitting the magical $100,000 milestone.
A slew of crucial developments occurred throughout the year, providing strong impetus to the apex cryptocurrency.
With the New Year knocking on our doorsteps, let's look back at some of the most pivotal bullish triggers for Bitcoin in 2024.
Trump Presidency: The electoral triumph of Donald Trump, who aggressively marketed himself as a cryptocurrency-friendly candidate during the campaign, proved to be the biggest positive driver for Bitcoin.
Since the elections, the leading cryptocurrency has surged 41%, hitting a peak of $108,000.
Trump pledged to establish a national Bitcoin reserve on the campaign trail, and reports suggested he might pass an executive order to establish one.
He also appointed pro-cryptocurrency venture capitalist David Sacks as the first-ever "White House A.I. & Crypto Czar,” signaling a commitment to fulfill his election promises.
Demand from Bitcoin ETFs: The successful launch of the first-ever U.S. exchange-traded funds that track the price of Bitcoin in early 2024 set the stage for broader institutional adoption of the cryptocurrency.
Since listing, the ETFs have seen net inflows of nearly $36 billion, with over $2 billion in transactions recorded as of Dec. 26, according to SoSo Value.
BlackRock's iShares Bitcoin Trust ETF IBIT emerged as the most successful fund, holding assets worth over $52 billion.
Monetary Policy Easing: The Federal Reserve delighted risk-on markets by enacting a 0.5% interest rate cut in September, the first in over four years. The bold reduction was followed by a more modest 25-basis-point cut in the successive months.
A drop in interest rates typically increases liquidity and borrowing power, leading to higher bets for stocks and cryptocurrencies, which are perceived to be risky investments.
Bitcoin's Halving Event: The quadrennial event took place in April, further squeezing the supply of an asset with deflationary characteristics.
The event slashed the mining reward after each successful block validation from 6.25 BTC to 3.125 BTC.
Previous instances of halving were followed by significant gains in Bitcoin. Since it's a known cyclical event, some experts argue that the halving is already priced in and there is no real expectation of Bitcoin reacting in a certain way after the event.
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