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bitcoin (CRYPTO: BTC) wrote history in 2024, not only breaking the long-standing record of $69,000, but also reaching the magical milestone of $100,000.
Throughout the year, a series of crucial events occurred that gave a strong boost to the main cryptocurrency.
With the New Year knocking on our doors, let’s take a look at some of the most important bullish factors for Bitcoin in 2024.
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Trump Presidency: The electoral victory of donald trumpwho aggressively promoted himself as a pro-cryptocurrency candidate during the campaign, proved to be the biggest positive driver for Bitcoin.
Since the election, the leading cryptocurrency has risen 41%, reaching a high of $108,000.
Trump pledged to establish a national Bitcoin reserve during the election campaign, and reports suggested he could approve an executive order to establish one.
He also named a pro-cryptocurrency venture capitalist. David Sacos as the first “White House cryptocurrency and AI czar,” signaling a commitment to delivering on his election promises.
Bitcoin ETF Demand: The successful launch of the first US exchange-traded funds tracking the price of Bitcoin in early 2024 laid the groundwork for broader institutional adoption of the cryptocurrency.
Since their listing, the ETFs have seen net inflows of nearly $36 billion, with more than $2 billion in transactions recorded through Dec. 26, according to SoSo Value.
BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:IBIT) emerged as the most successful fund, with assets worth more than $52 billion.
See also: It’s no wonder Jeff Bezos has over $70 million worth of art. This alternative asset has outperformed the S&P 500 since 1995, delivering an average annual return of 11.4%. This is how everyday investors are getting started.
Flexibility of monetary policy: The Federal Reserve delighted risk-conscious markets by enacting a 0.5% interest rate cut in September, the first in more than four years. The bold reduction was followed by a more modest 25 basis point cut in subsequent months.
A drop in interest rates generally increases liquidity and borrowing power, leading to greater bets on stocks and cryptocurrencies, which are perceived as risky investments.