The Year in Bitcoin: Donald Trump’s Victory and ETFs Push BTC Above $100k
2024 has been a year like no other for Bitcoin. Over the past 12 months, the coin has achieved several milestones, from being adopted by institutions to setting a new all-time high and having new technological advancements.
In this article, we will discuss factors that led to increased Bitcoin adoption this year.
Bitcoin ETFs Launch
After over a decade of dismissing applications for crypto spot exchange-traded funds (ETFs), the US Securities and Exchange Commission (SEC) approved a Bitcoin ETF on January 10th following the entrance of the world’s largest asset management firm, BlackRock, in June 2023.
This ETF allows investors to gain exposure to Bitcoin without purchasing and holding the currency directly. It is an ideal investment, especially for novice investors who don’t know how to use noncustodial crypto wallets.
The SEC approved 12 Bitcoin ETFs, which collectively hold BTC worth over $100 billion. As mentioned, the US regulator had previously dismissed ETF applications, arguing that the cryptocurrency market was easy to manipulate. However, the filing of Wall Street giant BlackRock pushed the SEC to give the green light.
Following the ETF approval in January, Bitcoin hit a new all-time high ($73,727) in March. But, the coin couldn’t stay at higher levels due to geopolitical tension in the Middle East that caused investors to move away from risky assets.
Furthermore, the German government mounted selling pressure on Bitcoin when it started selling confiscated BTC worth millions of dollars in June. At that time, the coin plummeted below $60,000.
Then came the Federal Reserve’s interest rate cut in September. This move boosted investors’ appetite for risky assets like crypto, prompting a marketwide surge.
The US Citizens Elect a Pro-Crypto President
The primary reason Bitcoin has witnessed a massive rally in 2024 is the re-election of Donald Trump, a vocal crypto advocate. While campaigning, the billionaire politician told crypto enthusiasts that he would ensure that America becomes the world’s crypto capital if re-elected.
On November 6th, Trump’s re-election was confirmed. That day, Bitcoin crossed $73,727 and reached $80,000 a few days later. In early December, the coin hit $100,000 and then moved to $108,000, recording a new all-time high.
Many crypto fanatics expect Bitcoin’s price to rise further under Trump’s government, which includes several pro-crypto figures. For instance, incoming Vice President J.D Vance, who holds over $200,000 worth of Bitcoin, had been championing crypto policy as a lawmaker.
Additionally, nominated US Secretary of Health and Human Services Robert F. Kennedy Jr. proposed that Bitcoin should be used to back USD, and Michael Waltz, the incoming National Security Adviser, supported pro-crypto bills as a Congressman.
Meanwhile, many are waiting to see whether Trump will establish a strategic Bitcoin reserve when he assumes office. If this happens, some analysts say the move would legitimize BTC, pushing other countries to add the asset to their reserves. As such, Bitcoin’s value could rise significantly.
Companies Purchase Bitcoin
Institutional adoption was on the rise in 2024. Several companies led by MicroStrategy bought significant amounts of BTC, thus pushing the coin’s price higher. The firms’ Bitcoin purchases also prompted rallies in their respective stocks. For example, MicroStrategy, which currently holds over 444,000 BTC, has seen the price of its shares surge 234% in 2024.
The Fourth Halving Happens
Another factor behind Bitcoin’s rally this year is the halving event in April. This occasion, which happens every four years, cuts block rewards by 50% to reduce the rate at which new coins enter the circulating supply. When halving occurs, analysts say Bitcoin tends to rally in the months that follow. This has been the case in 2024.
Web3 Developer Introduces Runes
Bitcoin saw a new technical advancement this year following the introduction of Runes, a new standard for deploying tokens on the oldest network. When Web3 developer Casey Rodarmor launched Runes on April 20th, several meme coins were created on Bitcoin. The popular one is DOG, which boasts a market cap of $560 million, according to data from CoinGecko.
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