Everything Happening to Bitcoin Through 2024: BTC ETFs, Trump, and the All-Time High

Bittime - 2024 will be an extraordinary year for Bitcoin. From new technological achievements, astonishing price spikes, to huge acceptance from institutions and politics, Bitcoin has experienced many things that show its future potential. Let's review what happened to Bitcoin during this year.

Bitcoin ETF: A Decade of Waiting

One of the biggest events in the world of Bitcoin this year was the approval of a Bitcoin ETF by the United States Securities and Exchange Commission (SEC). For more than a decade, the SEC rejected Bitcoin ETF applications from various major asset managers, citing concerns over potential crypto market manipulation. However, everything changed when BlackRock, the world's largest asset manager, applied for a Bitcoin ETF in June 2023.

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On January 10, 2024, the SEC finally gave the green light to a Bitcoin ETF. This was a historic moment that paved the way for retail investors in the United States to invest in Bitcoin without the hassle of crypto exchanges, wallets, or recovery phrases. The results were extraordinary, the price of Bitcoin reached an all-time high of over $73,000 in March 2024. The success of this ETF even exceeded the expectations of many observers who were optimistic about Bitcoin's prospects.

However, Bitcoin's journey has not been smooth. In the midst of macroeconomic turmoil and geopolitical events, Bitcoin slumped. One of them is the sale of Bitcoin which was confiscated by the German government in June 2024 which added to the selling pressure on the market. However, positive momentum began to emerge again after the Federal Reserve lowered interest rates in September 2024, making Bitcoin and other crypto assets attractive again to investors.

Trump and Political Influence on Bitcoin

Bitcoin has also received a big boost thanks to political factors, especially after Donald Trump's victory in the 2024 US presidential election. Previously, Trump had voiced his commitment to making America a "Bitcoin superpower" and promised to create a friendlier environment for crypto if elected. This promise was greeted positively by the market, and after Trump's victory was announced in early November 2024, Bitcoin prices jumped more than 140% within a year, surpassing $100,000 in December 2024.

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Additionally, with Trump's victory, investors are increasingly hopeful that the US administration will push for supportive crypto policies, including the possibility of having large Bitcoin reserves. Support for Bitcoin also emerged from a number of other politicians, such as J.D. Vance, the pro-crypto Vice President-elect.

Institutional Acceptance of Bitcoin

One of the significant changes occurring in 2024 will be the increasing adoption of Bitcoin by large institutions. Companies, especially those led by figures like MicroStrategy's Michael Saylor, have become increasingly aggressive in buying Bitcoin as part of an inflation hedging strategy. By the end of 2024, MicroStrategy is known to have accumulated more than 440,000 Bitcoins, worth approximately $42 billion.

Additionally, major investment banks such as Goldman Sachs and Morgan Stanley are also starting to get involved in the crypto world through Bitcoin ETFs, signaling that crypto is becoming more accepted in the world of traditional finance. Analysts say that 2024 could be called the “year zero of institutional adoption” for Bitcoin, with more and more large institutions entering the market.

Halving Bitcoin dan Runes

In addition to institutional adoption and ETFs, 2024 also sees a watershed moment for Bitcoin: the halving. This event occurs once every four years and reduces the rewards for Bitcoin miners by half. The halving in April 2024 occurred amidst high attention from investors, and although the impact was not immediately visible, Bitcoin prices again recorded new records even before the halving occurred.

Apart from the halving, 2024 also sees the emergence of a new phenomenon on the Bitcoin network: Runes. Runes is a new standard for token creation on the Bitcoin blockchain that was launched on the same day as the halving. Even though Runes caused a stir in the crypto world with the increase in the price of its dog-themed meme coin, this phenomenon has its pros and cons. Some feel that this activity overloads the Bitcoin network, leading to spikes in transaction fees. However, for some people, this shows that Bitcoin has the potential to be more than just "an investment waiting for the price to rise."

Conclusion

2024 is a year full of changes for Bitcoin. With the endorsement of Bitcoin ETFs, wider acceptance by financial institutions, growing political support, and incredible price gains, Bitcoin is increasingly asserting itself as an asset that cannot be ignored. However, Bitcoin's journey is far from over, and the crypto market is predicted to continue to develop along with policy changes and technological innovation in the future.

For those of you who have followed Bitcoin's journey this year, 2024 can be considered a moment of revival for this crypto. However, as always, the crypto world is full of uncertainty. What happens next, of course, remains to be seen, especially in the coming years which could bring new surprises.

FAQ Bitcoin 2024

What is a Bitcoin ETF?

Bitcoin ETFs allow investors to buy Bitcoin without having to own it outright. ETF approval in 2024 helps increase Bitcoin price.

Why will the price of Bitcoin rise in 2024?

Bitcoin prices rose due to ETF approval, support from US politics, and adoption by large institutions.

What is Bitcoin halving?

Bitcoin halving is an event that reduces miner rewards every four years. This usually increases prices due to lower supply.

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Reference

Decrypt, The Year in Bitcoin: From ETFs to All-Time Highs, accessed December 30, 2024.

Author: MF