Benzinga and Yahoo Finance LLC may earn commission or revenue on certain items through the links below.
Bitcoin (CRYPTO: BTC) scripted history in 2024, not only breaking the long-standing record of $69,000 but also reaching the magical milestone of $100,000.
A series of critical developments took place throughout the year, giving the apex cryptocurrency a strong boost.
With the New Year knocking on our doorstep, let's look back at some of the most central bullish drivers for Bitcoin in 2024.
Don't Miss:
The Trump Presidency: electoral victory of Donald Trumpwho aggressively marketed himself as a cryptocurrency-friendly candidate during the campaign, to be the biggest positive driver for Bitcoin.
Since the elections, the leading digital currency has increased by 41%, reaching a peak of $108,000.
Trump promised to establish a national Bitcoin reserve on the campaign trail, and reports suggested it might pass executive order to establish one.
He also appointed pro-cryptocurrency venture capitalist David Sachau as the first ever “White House AI & Crypto Czar”, indicating a commitment to deliver on his election promises.
Demand from Bitcoin ETFs: First ever successful US launch exchange traded funds that track the price of Bitcoin in early 2024 setting the stage for wider institutional adoption of the digital currency.
Since listing, the ETFs have seen net inflows of nearly $36 billion, with over $2 billion in transactions recorded as of December 26, back to SoSo Value.
BlackRock's iShares Bitcoin Trust ETF (NASDAQ:He will go) emerged as the most successful fund, holding assets worth over $52 billion.
See Also: No wonder Jeff Bezos holds over $70 million in art – this alternative asset has outperformed the S&P 500 since 1995, providing an average annual return of 11.4%. This is how everyday investors get started.
Facilitating Monetary Policy: The Federal Reserve loves it risk markets forward by enacting a 0.5% interest rate cut. in September, the first for over four years. The bold drop was followed by a more modest cut of 25 basis points in subsequent months.
A drop in interest rates typically increases liquidity and borrowing power, leading to higher bets for stocks and cryptocurrencies, which are perceived as risky investments.