The Remarkable Rise of Bitcoin in 2024: A Year in Review
Unprecedented Milestones for Bitcoin
As the curtain falls on 2024, Bitcoin (BTC) has experienced an extraordinary year, reaching a pinnacle above the much-anticipated $100,000 mark. This achievement is attributed to a combination of influential factors, including the entrance of influential Wall Street entities into the cryptocurrency market and significant political discourse surrounding the asset.
Bitcoin’s Explosive Growth in 2024
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At the dawn of 2024, Bitcoin was valued at approximately $42,200. Since then, it has surged by over 136% year-to-date, marking one of its most bullish annual performances to date. As of the latest updates, the pioneering digital currency is trading near the $99,930 mark, just shy of its all-time high.
Key Phases of Bitcoin’s 2024 Journey
The year 2024 can be divided into three distinct phases for Bitcoin. From January to March, the cryptocurrency experienced a rapid ascent, surpassing $70,000. This bullish run was primarily driven by a renewed interest from investors and increasing institutional adoption, significantly boosted by the approval of spot exchange-traded funds (ETFs) in the United States.
Between April and September, the market entered a consolidation phase, with Bitcoin fluctuating between $60,000 and $71,000. However, October marked a resurgence in momentum, as Bitcoin surged past $80,000, eyeing the critical $105,000 resistance level.
Catalysts of Bitcoin’s 2024 Performance
The year commenced with a major triumph for Bitcoin as it gained mainstream acceptance following the approval of the spot ETF on January 11, a pivotal event that propelled the asset to new heights above $70,000. This ETF, particularly BlackRock’s (NYSE: BLK) iShares Bitcoin Trust (IBIT) with $50 billion in assets, has been a significant driver of institutional interest.
Despite lingering skepticism regarding Bitcoin’s volatility, the ETF is regarded as a gateway for the asset into the traditional financial sector. Following this, Bitcoin’s value experienced a compression but gained renewed attention in the political sphere, especially during the November U.S. presidential elections.
The political dialogue was spurred by then-Republican nominee Donald Trump’s participation in the Bitcoin Conference in Nashville, where he made ambitious promises, including incorporating Bitcoin into the strategic reserve. As president-elect, Trump committed to replacing SEC Chair Gary Gensler, who faced criticism from the crypto community for allegedly hindering the sector’s growth.
Following Gensler’s resignation, Trump nominated pro-crypto Paul Atkins, which further bolstered Bitcoin to surpass the $100,000 mark. Trump’s election and his crypto-friendly policies have significantly contributed to Bitcoin’s momentum.
Prospects for Bitcoin in 2025
Looking ahead, there is a positive outlook for Bitcoin, particularly regarding its price trajectory. According to a report by Finbold, Standard Chartered’s analyst Geoff Kendrick forecasts that Bitcoin could reach $200,000 in 2025, driven by increased institutional investment.
This prediction aligns with Bernstein analysts, who also anticipate Bitcoin hitting a cycle high of $200,000 by late 2025, supported by regulatory clarity and growing institutional adoption. “We remain convinced that $100,000 is not the final milestone. We expect Bitcoin to reach a cycle-high of $200,000 in late 2025,” Bernstein analysts stated.
Prominent on-chain analyst Ali Martinez has indicated that technical indicators suggest a possible cycle peak in 2025. Historically, Bitcoin has taken 1,065 days to rise from a market bottom to its peak and 1,430 days to complete a full cycle. If this pattern persists, the next peak might occur by October 2025, indicating that the current bull run is still unfolding.
In the broader perspective, Bernstein envisions Bitcoin eventually replacing gold as the premier ‘store of value,’ becoming an integral component of institutional portfolios and corporate treasuries. Federal Reserve Chair Jerome Powell has also suggested that while Bitcoin competes with gold, it does not rival the U.S. dollar.
Conclusion
In conclusion, 2024 has been a transformative year for Bitcoin, characterized by significant milestones and a promising future. With increasing institutional interest and favorable political developments, Bitcoin’s trajectory appears poised for continued growth, potentially reaching new heights in the coming years.
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