Bitcoin’s Record-Breaking Year: A Look at 2024’s Milestones
Bitcoin’s journey throughout 2024 has seen it reach unprecedented levels, fueled by institutional investment, ETF approvals and renewed interest following its April halving. Here’s a clear look at the actual price milestones Bitcoin achieved, based on verified data.
Early 2024: Building Momentum with Institutional Interest
At the beginning of the year, Bitcoin’s price remained steady, supported by optimism over pending U.S. spot Bitcoin ETFs. This regulatory progress attracted institutional capital, which added significant liquidity to the market and contributed to a bullish trend in the first quarter.
March 2024: Breaking the $70,000 Barrier
By March, Bitcoin surpassed $70,000, setting a new high since its previous peak in late 2021. This rally was primarily fueled by expectations surrounding the April halving event, which historically has tightened Bitcoin’s supply by reducing mining rewards. This anticipation created a buying frenzy as both institutional and retail investors sought to capitalise on the expected post-halving price increase.
April Halving Event: Reducing Supply, Driving Demand
On April 19, 2024, Bitcoin underwent its scheduled halving, cutting block rewards from 6.25 BTC to 3.125 BTC per mined block. This halving had a significant impact on the asset’s scarcity. After the halving, Bitcoin’s price experienced a steady upward trajectory, driven by both the reduction in new supply and a strong demand for the asset as a hedge against inflation and economic uncertainties.
Early November: Surpassing $90,000
Bitcoin set a new all-time high by breaking the $90,000 mark in early November 2024. This milestone, achieved on November 13, marked Bitcoin’s highest price to date, reflecting its increased adoption across institutional channels. The approval and subsequent inflows into spot Bitcoin ETFs played an important role in this price surge, but the recent US election might have been the real crucial driver of this latest development. The election outcome contributed to the Bitcoin rally, as market sentiment anticipated potential economic and regulatory shifts under Trump’s administration.
Historically, Trump’s stance on cryptocurrencies has been mixed, but his economic policies generally favour tax cuts and reduced regulation, which many investors see as potentially favourable for the cryptocurrency sector. With expectations for a more lenient regulatory environment and reduced restrictions on financial innovation, institutional and retail investors increased their exposure to Bitcoin. Additionally, heightened concerns over inflation, fiscal policy changes, and global economic volatility may have driven investors toward Bitcoin as a hedge asset, reinforcing its role as “digital gold.”
Additionally, data showed that the amount of Bitcoin held on exchanges hit a five-year low, indicating strong holding sentiment among investors.
Outlook: What’s Next for Bitcoin?
As Bitcoin’s 2024 closes out with impressive highs, analysts suggest the market could see continued growth, with projections of $100,000 or beyond by early 2025. The reduction in supply due to the halving and ongoing ETF adoption are likely to play key roles in Bitcoin’s near-term performance.
