Bitcoin’s Year of Success: ETF Approval and Impact of Donald Trump’s Win on Economy and Business
2024 has been a monumental year for Bitcoin, the most popular cryptocurrency in the world. Since January, Bitcoin has seen a remarkable rebound of over 120%, surpassing all expectations and reaching unprecedented levels. This surge has been driven by a variety of factors, from increased adoption by both retail and institutional investors to significant events like the approval of bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) in January.
The approval of Bitcoin ETFs marked a significant milestone for the industry, signaling the entry of crypto assets into traditional finance. This move opened the door to broader access for investors and institutions, leading to the creation of a more legitimate asset class for Bitcoin. Major players like BlackRock, Fidelity, and Grayscale backed these ETFs, driving acceptance and adoption across the board. In less than a year, Bitcoin ETFs have become the most successful in history, surpassing $100 billion in total assets.
Another key event in 2024 was the halving event in April, which happens every four years and reduces the reward for mining bitcoins, thereby slowing down the rate of new units introduced into the network. Historically, halving events have been followed by significant price increases, suggesting that Bitcoin still has room for growth in the coming months.
2024 also offered a chance for the industry to overcome past scandals, such as the collapse of FTX in 2022, one of the largest recent financial frauds in U.S. history. The aftermath of this collapse has had a lasting impact on regulatory attitudes, with U.S. regulators taking a more hostile stance towards the industry. However, amidst these challenges, the election of Donald Trump in 2024 as the first “cryptocurrency president” has brought hope to the sector. Trump’s promises of relaxed regulations and establishing a strategic bitcoin reserve have instilled confidence among investors, potentially paving the way for a new era in the industry.
Critics, however, are wary of Bitcoin’s extreme volatility and reliance on speculative expectations, raising concerns about its effectiveness as a store of value. Despite these doubts, the market remains optimistic, especially with countries like Brazil and Russia planning to accumulate Bitcoin in their reserves. In addition, companies like MicroStrategy have also significantly increased their Bitcoin holdings, signaling a continued bullish sentiment in the market.
Overall, 2024 has been a transformative year for Bitcoin, marked by significant milestones and events that have reshaped the industry. With the approval of ETFs, the halving event, and the potential for greater institutional adoption, Bitcoin’s future looks promising as it continues to cement its position as a leading digital asset in the financial world.
