Summary:
Bitcoin ETFs finally approved after a decade of denials by the SEC.
Bitcoin reached an all-time high of over $73,000 in March.
The Federal Reserve's interest rate cut sparked renewed interest in Bitcoin.
Bitcoin crossed the $100,000 mark for the first time in December.
The Bitcoin halving event increased anticipation and interest in the asset.
It was a year unlike any other for Bitcoin, marked by new technological advancements, historic milestones, and its emergence on Wall Street while becoming a focal point in U.S. political discourse. Here’s a look back at the remarkable events that shaped Bitcoin in 2024.
Bitcoin ETFs: A Decade in the Making
The Securities and Exchange Commission (SEC) had spent a decade denying top asset managers' requests to offer a Bitcoin exchange-traded fund (ETF) in the United States. However, everything changed when BlackRock, the world’s largest asset manager, applied for its own Bitcoin ETF in June 2023. The SEC finally approved Bitcoin ETFs on January 10, allowing retail investors to invest in Bitcoin without the complications of cryptocurrency exchanges. This was a monumental shift, opening the door for widespread retail participation in the Bitcoin market.
All-Time Highs
In a surprising turn of events, Bitcoin reached an all-time high of just above $73,000 in March, attracting new investors who were previously excluded from crypto. Despite this surge, Bitcoin faced challenges, including geopolitical tensions and government actions that pressured its price. Notably, the German government sold off hundreds of millions in confiscated Bitcoin, contributing to market volatility.
In September, the Federal Reserve cut interest rates for the first time in four years, reversing a trend of aggressive rate hikes. This change reignited investor interest in riskier assets like Bitcoin, leading to renewed optimism in the market.
By December, Bitcoin crossed the $100,000 mark for the first time in its history, driven by expectations of a more favorable regulatory environment following the re-election of Donald Trump as President.
Institutional Adoption and Political Influence
The surge in Bitcoin's price was influenced by institutional adoption and significant political events. Trump's victory and his pro-Bitcoin stance fueled market enthusiasm, with Bitcoin's price climbing sharply in the aftermath. The approval of Bitcoin spot ETFs also attracted major financial players like Goldman Sachs and Morgan Stanley, marking a new era of institutional involvement in the crypto space.
The Bitcoin Halving
Another pivotal event was the Bitcoin halving, which took place this year. This event, occurring every four years, reduces the reward for mining Bitcoin, effectively controlling its supply. Anticipation surrounding this halving led to increased interest in Bitcoin, as many investors believed it would drive prices up due to reduced supply.
The Runes Craze
Alongside the halving, a new technical development in the Bitcoin network, known as Runes, gained temporary popularity. This new protocol allowed for the creation of tokens on the Bitcoin blockchain, leading to a surge in meme coins. While this innovation showcased Bitcoin's versatility, it also raised concerns over increased transaction fees during peak activity.
This year’s developments have proven that Bitcoin is more than just a speculative asset; it has established itself as a vital part of the global financial landscape.
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