Bitcoin in 2024: Impact of Donald Trump’s Re-election and Increasing Institutional Interest on Investor Sentiment
This past year has been quite a ride for Bitcoin, starting at $38,505 in January and climbing to $96,082 by December. The surge in prices was fueled by various factors, like the re-election of Donald Trump and a growing interest from institutional investors.
One major highlight was the approval of the first US-listed spot Bitcoin exchange-traded funds by the US Securities and Exchange Commission in January. This allowed investors to access Bitcoin without owning the actual cryptocurrency. Companies like BlackRock also entered the scene with the launch of the iShares Bitcoin Trust ETF, integrating digital assets into traditional financial markets.
MicroStrategy, a business intelligence firm, significantly increased its Bitcoin holdings throughout the year, reaching a total of 423,650 bitcoins worth $41.5 billion by December. Trump even expressed plans to create a US Bitcoin strategic reserve, similar to reserves for oil and gold. This move, along with promises made by Trump, pushed Bitcoin prices over $100,000.
Looking ahead, experts predict a possible correction in Bitcoin prices, as nothing can keep going up indefinitely. However, the hope is that even with a correction, prices will remain strong in the coming year.
Meanwhile, in India, the crypto landscape saw its share of challenges and opportunities. The hacking of the WazirX exchange in July raised concerns about security and regulation, prompting exchanges to reinforce their compliance measures. Despite this, the rising prices of Bitcoin overshadowed these issues, drawing attention away from regulatory discussions.
As we head into 2025, all eyes are on the potential altcoin rally following the recent surge in Bitcoin. Altcoins like Ethereum, Solana, and XRP tend to heat up after Bitcoin cools down, offering investors new opportunities for gains. With a pro-crypto US president soon taking office and signs of an altcoin rally on the horizon, the next year promises to be an exciting time for crypto enthusiasts.
