The Road to $100,000 - What's Behind Bitcoin's Storied 2024 Run

A novelty Bitcoin token arranged in front of the price of the cryptocurrency against the US dollar, reaching over $100,000, in Hong Kong, China, on Thursday, Dec. 5, 2024.

Bitcoin's long-anticipated rise above $100,000 marks the peak of a year in which the cryptocurrency gained significant acceptance among major Wall Street institutions and became a focal point in the U.S. presidential race.

For years, supporters of Bitcoin have boldly predicted a surge to $100,000, viewing it as a sign of vigor in the crypto world. Many on Wall Street, however, were skeptical. But as of Wednesday night, Bitcoin crossed the six-figure mark and has ballooned over 140% in 2024.

Bitcoin has achieved remarkable growth, surging more than 140% in 2024 alone.

Wall Street Institutions Embrace Bitcoin

The start of 2024 is particularly noteworthy because it saw the launch of the first Bitcoin exchange-traded funds (ETFs) on January 11. These ETFs attracted substantial capital, with pioneers like the iShares Bitcoin Trust (IBIT) now boasting $50 billion in assets.

Though some investment firms remain cautious, the rapid development of Bitcoin ETFs displays a significant shift toward integrating Bitcoin within the traditional financial framework. Once regarded merely as a speculative venture for retail traders, increasing institutional investments have elevated Bitcoin's status.

According to Geoff Kendrick, a global head of digital assets research at Standard Chartered Bank, "Institutions have net-bought 683,000 bitcoins year-to-date, primarily through U.S. spot ETFs and substantial acquisitions by companies like MicroStrategy, which has acted as a Bitcoin proxy. Notably, 245,000 of these inflows occurred after the U.S. election, contributing significantly to the surge past the $100,000 mark."

Political Support for Bitcoin

Bitcoin's acceptance also extends into political circles in the United States. The crypto lobby has invested heavily during the 2024 election cycle, and there's evidence to suggest that President-elect Donald Trump might be an ally of Bitcoin and the cryptocurrency sector.

Trump attended the Bitcoin Conference in Nashville as part of his campaign efforts, signaling his interest in cryptocurrency. His choice of Paul Atkins to head the Securities and Exchange Commission is seen as a positive step for the crypto community compared to the current SEC chair, Gary Gensler.

Robinhood CEO Vlad Tenev remarked, "This current administration has shown hostility toward crypto. We've faced challenges alongside the broader industry. It's vital to have leaders who genuinely understand and support it." Robinhood enables users to trade cryptocurrencies on its platform.

Bitcoin's value has surged by 49% since November 4, right before the presidential election.

Additionally, the value of Bitcoin may have received a small uplift from comments made by Federal Reserve Chair Jerome Powell. Powell remarked that Bitcoin functions as a competitor to gold rather than the dollar. While this isn't a strong endorsement of Bitcoin, many view the association with gold as a sign of growing legitimacy for the cryptocurrency.

Bitcoin, WallStreet, Politics