Bitcoin’s Historic Surge #

Bitcoin has reached a significant milestone by surpassing the $100,000 mark, marking the culmination of a year defined by increasing acceptance from Wall Street and its emergence as a focal point in the U.S. presidential election. The cryptocurrency has seen a remarkable rise, climbing over 140% in 2024.

The journey to this milestone began in earnest with the launch of the first bitcoin ETFs on January 11. These funds attracted substantial inflows, with the largest amassing $50 billion in assets. The rapid growth of these funds highlights traditional financial institutions’ growing embrace of bitcoin.

Institutional investors have significantly contributed to bitcoin’s ascent, purchasing 683,000 bitcoins year-to-date through various means, including spot ETFs and strategic acquisitions. A notable portion of these inflows occurred post-election, propelling bitcoin beyond the $100,000 level.

Simultaneously, bitcoin’s influence has permeated U.S. political circles, evidenced by its presence in the 2024 election cycle. The crypto lobby’s efforts have resonated, with President-elect Donald Trump expressing newfound support for the industry. His attendance at the Bitcoin Conference in Nashville underscores this shift. Additionally, Trump’s choice for the Securities and Exchange Commission leadership signals a potential pivot from previous regulatory stances, which were perceived as less favorable to the crypto sector.

“Having people that come in, that understand and embrace it, is very important for the industry,” said the CEO of a company involved in crypto trading. Since November 4, just before the election, bitcoin’s value has surged by 49%.

A further boost to bitcoin’s trajectory came from a recent statement by the Federal Reserve Chair, who acknowledged bitcoin as a competitor to gold, an indication of its growing legitimacy among traditional investment assets.