December 5th, 2024, marked a historic moment: Bitcoin crossed the $100,000 per coin milestone. Just 15 years after Satoshi Nakamoto introduced the idea of decentralized digital currency, Bitcoin has reached heights that once seemed unimaginable.
But how did we get here? What fueled this remarkable run in 2024? Let’s break it down.
These pivotal events in 2024 propelled Bitcoin to surpass $100,000 in December 2024:
- January 11, 2024: The first U.S. spot Bitcoin ETFs began trading, offering direct exposure to Bitcoin on American stock exchanges and attracting significant institutional investment.
- March 13, 2024: Bitcoin reached a new record high of $73,000, driven by insatiable demand for newly approved ETFs, especially BlackRock’s iBIT Bitcoin ETF.
- April 16, 2024: Bitcoin’s fourth halving occurred, reducing the block reward from 6.25 BTC to 3.125 BTC. This pivotal supply shock significantly heightened scarcity, fueling long-term bullish sentiment among investors.
- July 25-27, 2024: The Bitcoin 2024 Conference in Nashville attracted over 20,000 attendees, including presidential candidate Donald Trump who positioned himself as a Bitcoin supporter.
- August 21, 2024: MicroStrategy announced it had acquired an additional 35,000 BTC for $1.6 billion, reinforcing its position as the most significant corporate Bitcoin holder and signaling growing corporate confidence in Bitcoin as a reserve asset.
- November 5, 2024: Donald Trump won the U.S. presidential election, pledging to make the U.S. the “crypto capital of the planet,” boosting investor confidence.
- November 10, 2024: President-elect Trump announced plans to nominate crypto-friendly Paul Atkins as SEC Chair, signaling a more favorable regulatory environment.
- December 2, 2024: BlackRock’s iShares Bitcoin Trust (IBIT) surpassed 500,000 BTC in assets under management, reflecting robust institutional demand and solidifying its position as one of the largest Bitcoin holders globally.
- December 4, 2024: Federal Reserve Chair Jerome Powell referred to Bitcoin as “digital gold,” acknowledging its role as a speculative asset and store of value, which bolstered investor confidence and contributed to Bitcoin’s price surge.
- December 5, 2024: Bitcoin’s price reached an all-time high of $103,332.30, driven by cumulative positive developments.
Now, let’s look at the bigger picture. The following are bigger macro trends that are to a certain extent, driving the positive sentiment around Bitcoin.
1. The Bitcoin Halving
The first and most apparent catalyst for Bitcoin’s exceptional performance in 2024 was the Bitcoin Halving.
This event, which occurs roughly every four years, reduces the rate at which new Bitcoin is created by cutting mining rewards in half. With fewer Bitcoins entering circulation, scarcity increases—a fundamental driver of Bitcoin’s price.
The Bitcoin Halving 2024, which took place on April 19, 2024, reduced the block reward from 6.25 to 3.125 BTC. So, the miner or mining pool that ‘wins’ a freshly mined block every 10 minutes gets 3.125 BTC as a reward.
The Bitcoin Halving changes the economics of Bitcoin mining and the dynamics with which freshly mined Bitcoin enters the market and amplifies Bitcoin’s scarcity narrative.
Historically, halvings have led to exponential growth in Bitcoin’s value as supply decreases while demand remains steady or grows.
This year, the impact of the 2024 Halving was probably even stronger due to increasing interest from institutional investors and heightened public awareness of Bitcoin’s deflationary properties.
Many investors saw the halving as an opportunity to accumulate Bitcoin, betting on the long-term value of an increasingly scarce asset.
2. Political Developments
The re-election of President Donald Trump brought renewed confidence to Bitcoin and the crypto market. His administration’s pro-Bitcoin policies included appointing crypto-friendly regulators, pushing for legislation to support decentralized approaches to finance, and even floating the idea of establishing a national Bitcoin reserve.
This development was significant as it marked a clear 180-degree shift from the Biden administration, which took a hostile stance against crypto companies in the U.S. Ironically, the Democratic party (as well as the Republican party) happily took donations from the offshore crypto exchange FTX, which imploded in November 2022.
These moves signaled a shift in how governments view Bitcoin—from a fringe, speculative asset to a legitimate part of the global financial ecosystem. The political backing helped alleviate fears of harsh regulation, attracting more investors to Bitcoin. This support also extended internationally, as other nations began exploring ways to integrate Bitcoin into their economies to keep up with the United States.
3. Regulatory Clarity
The Bitcoin industry faced significant uncertainty for years due to vague or conflicting regulations. This changed in 2024 with the appointment of Paul Atkins as SEC Chair. A strong advocate for cryptocurrency innovation, Atkins is likely to establish clear, transparent rules for digital assets, fostering a regulatory environment that encouraged growth rather than stifling it.
Key regulatory changes included streamlined processes for Bitcoin ETFs, improved taxation guidance, and greater acceptance of blockchain-based businesses.
These developments made Bitcoin more appealing to institutional investors who had previously hesitated due to regulatory risks. Regulatory clarity became a driving force behind Bitcoin’s price surge by removing much of the ambiguity surrounding the industry.
4. Institutional Adoption
One of the most significant developments in 2024 was institutions’ widespread adoption of Bitcoin. The approval of Bitcoin Exchange-Traded Funds (ETFs) in the U.S. played a pivotal role, as these products made it easier for institutional and retail investors to gain exposure to Bitcoin without directly holding the asset.
Major financial firms, hedge funds, and pension funds began allocating portions of their portfolios to Bitcoin, viewing it as both a hedge against inflation and a high-growth asset. Additionally, prominent companies added Bitcoin to their balance sheets, following the lead of early adopters like MicroStrategy and Tesla. This institutional participation brought immense liquidity to the market, driving demand and significantly contributing to Bitcoin’s rise to $100,000.
Source: bitcointreasuries.net
5. Market Sentiment
A combination of political support, regulatory clarity, and institutional adoption created a wave of optimism in the Bitcoin market. Investors across the spectrum—from retail traders to billion-dollar funds—began to view Bitcoin not just as a speculative asset but as a legitimate store of value and a critical part of a diversified portfolio.
This shift in sentiment was further fueled by positive media coverage, celebrity endorsements, and the growing belief that Bitcoin could become a global reserve asset. Analysts began predicting even higher prices, creating a feedback loop where bullish sentiment attracted more buyers, driving prices up further.
6. Global Economic Factors
Global economic conditions in 2024 played a key role in Bitcoin’s rise. Persistent inflation, low interest rates, and increased liquidity from central banks made traditional investments less attractive. As investors looked for alternatives, Bitcoin emerged as a top choice.
Bitcoin’s decentralized nature, limited supply, and global accessibility positioned it as a hedge against economic instability and fiat currency devaluation. In many countries, particularly those with struggling economies, Bitcoin adoption surged as people sought to protect their wealth. This trend added to the overall demand for Bitcoin, pushing its price higher.
7. Technological Developments
Bitcoin’s infrastructure has continued to evolve, making it more efficient and scalable. Improvements like the Lightning Network have significantly reduced transaction costs and times, making Bitcoin more practical for everyday use. Upgrades to wallet technology and increased adoption of secure, user-friendly platforms have also made it easier for newcomers to enter the market.
These technological advancements have bolstered confidence in Bitcoin’s long-term viability. As the network becomes more robust and accessible, more people and institutions are willing to adopt it, further driving demand.
The Road Ahead
The journey to $100,000 was shaped by a perfect storm of events: reduced supply, supportive political and regulatory shifts, growing institutional participation, and favorable global economic conditions. Bitcoin has firmly established itself as a mainstream financial asset, earning the trust of both individual investors and international institutions.
But the story doesn’t end here. As adoption grows, infrastructure improves, and more nations explore Bitcoin’s potential as a reserve asset, the next chapter of Bitcoin’s journey could see even more significant milestones.
Disclaimer: Relai services are exclusively recommended for Swiss and Italian residents. None of this content constitutes investment advice. Always conduct your own research before investing in any digital asset.
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