Bitcoin Soars 129% in 2024: Halving Event and Election Fuel Price Surge, $100K Milestone in Sight
Monday, Dec 2, 2024 4:29 am ET
Bitcoin has been on an unprecedented tear in 2024, surging 129% since the beginning of the year. The world's first cryptocurrency has defied expectations and reached new heights, with analysts predicting a potential milestone of $100,000 in the near future. But what has driven this remarkable rally, and what does it mean for the future of Bitcoin and the broader cryptocurrency market?
At the heart of Bitcoin's 2024 surge lies the April halving event, which reduced the block reward by half. This scarcity-driven event, coupled with the outcome of the 2024 U.S. Presidential election, has fueled a wave of investor enthusiasm and capital inflows into the cryptocurrency. The election of Donald Trump as the next president of the United States has further bolstered confidence in the cryptocurrency market, leading to a 30% rally in just a week.
Institutional investors have also played a crucial role in Bitcoin's price rally. US-based spot Bitcoin ETFs saw $6.46 billion in inflows in November, led by BlackRock, signaling a growing interest in the cryptocurrency market. Additionally, Bitcoin futures on the Chicago Mercantile Exchange (CME) reached $100,200 on November 29, indicating a potential spot price rise. However, Bitcoin dominance has been falling, suggesting that investors are rotating into altcoins and heralding the start of an altcoin season.
Despite these dynamics, analysts remain bullish on Bitcoin's prospects. Raoul Pal, CEO of Global Macro Investor, has forecasted a $110,000 local top for Bitcoin by January 2025. Pal also predicts that the cryptocurrency's price will peak sometime during the end of 2025. Bitcoin advocate Samson Mow has even speculated about the possibility of an "Omega Candle" event, where the price of Bitcoin could rise by as much as $10,000 per day.
The potential for Bitcoin to reach the psychologically important $100K milestone has significant implications for the cryptocurrency's future supply and demand dynamics. As the price increases, so does its attractiveness as a store of value and a hedge against inflation. This could lead to increased demand from institutional investors, retail traders, and even nation-states. However, as the price approaches the $100K level, investors should be prepared for increased volatility and potential corrections, as some analysts predict.
In conclusion, Bitcoin's 129% surge in 2024 is a testament to the power of scarcity-driven events and the impact of geopolitical factors on the cryptocurrency market. As the world's first digital asset continues to defy expectations, investors should remain vigilant and prepared for the challenges and opportunities that lie ahead. With the $100K milestone in sight, the future of Bitcoin and the broader cryptocurrency market remains bright, but also fraught with uncertainty.

As the world's first digital asset, Bitcoin has emerged as a prominent player in the global financial landscape. Its remarkable price surge in 2024, driven by the April halving event and the outcome of the U.S. Presidential election, has captured the attention of investors worldwide. As Bitcoin continues to breach new milestones and challenge conventional wisdom, the future of cryptocurrencies and their role in the global economy remain a topic of intense debate and speculation.