Bitcoin has surged by an impressive 126% since January, reaching $100,000 for the first time in its history. This milestone comes after a year of remarkable growth fueled by factors such as strong demand for Bitcoin exchange-traded funds (ETFs), the cryptocurrency’s fourth halving in April, and Donald Trump’s victory in the U.S. presidential election.
Key Milestones
On December 5, Bitcoin surpassed the $100,000 mark, just weeks after crossing $90,000 on November 12, according to TradingView. Shortly after, Bitcoin set a new all-time high of $104,000 at 3:08 AM UTC. The cryptocurrency’s market capitalization has now reached an unprecedented $2 trillion.
Drivers Behind the Rally
- ETF Inflows: Over $31 billion in net inflows into spot Bitcoin ETFs in the U.S. have bolstered demand throughout the year.
- April Halving: The fourth Bitcoin halving tightened supply, creating upward pressure on prices.
- Trump’s Election Win: Speculation around a national Bitcoin reserve and increased corporate adoption, led by advocates like MicroStrategy’s Michael Saylor, contributed to the rally.
Trump has further reinforced confidence in the crypto market by nominating Paul Atkins, a well-known crypto advocate, to chair the Securities and Exchange Commission (SEC). This move signals potential relief from regulatory constraints imposed during the Biden administration. Additionally, Trump’s appointment of pro-crypto figures like hedge fund manager Scott Bessent as Treasury Secretary and Cantor Fitzgerald CEO Howard Lutnik as Commerce Secretary indicates a shift toward a more crypto-friendly government.
Historical Context
While Bitcoin’s 2024 rally is significant, it is not its most meteoric. In 2017, Bitcoin rose 1,900% from $1,000 in January to $20,000 by December. During the pandemic, it soared 1,250%, climbing from $5,100 in March 2020 to $69,000 in November 2021.
Bitcoin’s current rise has cemented its position as a transformative asset, driven by macroeconomic shifts, corporate adoption, and a growing regulatory acceptance of cryptocurrencies.
