Summary:
Bitcoin achieved a historic $100,000 milestone in 2024.
Trump's election victory acted as a major catalyst, leading to a 41% price surge.
The launch of Bitcoin ETFs attracted nearly $36 billion in net inflows.
Federal Reserve's interest rate cuts increased liquidity and risk appetite.
Bitcoin Breaks Records in 2024
Bitcoin (CRYPTO: BTC) made headlines in 2024, not only smashing the previous record of $69,000 but also achieving the remarkable milestone of $100,000. This monumental rise was fueled by several pivotal developments throughout the year.
Major Bullish Catalysts
As we reflect on the year, let's explore some of the most significant bullish triggers that propelled Bitcoin's growth:
Trump’s Election Victory
The electoral win of Donald Trump proved to be a substantial positive driver for Bitcoin. His strong pro-cryptocurrency stance during the campaign led to a 41% surge in Bitcoin's price, reaching a peak of $108,000. Trump hinted at establishing a national Bitcoin reserve and appointed David Sacks, a pro-crypto venture capitalist, as the White House A.I. & Crypto Czar, showcasing his commitment to cryptocurrency.
Bitcoin ETFs Demand
The launch of the first-ever U.S. Bitcoin exchange-traded funds (ETFs) in early 2024 marked a turning point for institutional adoption. These ETFs attracted nearly $36 billion in net inflows, with over $2 billion in transactions recorded as of December 26. The BlackRock iShares Bitcoin Trust ETF (NASDAQ: IBIT) emerged as the most successful, boasting over $52 billion in assets.
Easing Monetary Policy
In September, the Federal Reserve enacted a 0.5% interest rate cut, the first reduction in over four years, followed by a modest 25-basis-point cut in subsequent months. Lower interest rates typically enhance liquidity and borrowing power, stimulating investments in cryptocurrencies and stocks perceived as riskier assets.
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