Why Has Bitcoin’s Ascent to $100,000 in 2024 Been So Remarkable?

(VOR News) – Bitcoin has finally surpassed the $100,000 threshold, following a year in which the principal cryptocurrency was accepted by prominent Wall Street organisations and became a heated topic in the presidential race in the United States.

This accomplishment is the result of the cryptocurrency’s acceptance by significant Wall Street institutions.

Over the course of several years, individuals who are enthusiastic about bitcoin have expressed optimism regarding the cryptocurrency by predicting that its value will rise to $100,000.

Conversely, a significant number of individuals on Wall Street elected to disregard them. The digital currency’s value surpassed the six-figure threshold on Wednesday evening, and it is presently experiencing a gain of over 140% in 2024.

Wall Street’s institutions love it.

The most recent chapter in the history of cryptocurrency is a suitable moment to contextualise it, given that the first exchange-traded funds (ETFs) based on bitcoin were introduced on January 11, 2024.

The funds have received inflows aggregating tens of billions of dollars since their inception. The iShares Bitcoin Trust (IBIT) has been the source of the majority of these inflows, with assets presently valued at $50 billion.

The establishment of these funds and the rapid expansion of their activities are the most evident indication that bitcoin is accepted by the conventional financial system, despite the presence of a few notable outliers among investment companies.

This remains the case, despite the fact that there are still a few notable exceptions among investment enterprises. Bitcoin has been considered a speculative asset by individual speculators for a number of years. Nevertheless, Bitcoin has now achieved a new level of profitability as a consequence of institutional purchases.

Institutions have acquired 683,000 cryptocurrencies since the commencement of 2018. These acquisitions have been primarily accomplished by employing US spot exchange-traded funds (ETFs) and substantial purchases made by the software development company MicroStrategy, which functions as a Bitcoin proxy.

A substantial 245,000 of these inflows occurred in the weeks following the United States’ election. According to Geoff Kendrick, the global director of digital assets research at Standard Chartered Bank, this is one of the factors that has enabled Bitcoin to surpass the USD 100,000 threshold. Kendrick is employed by Standard Chartered Bank.

Kendrick composed this statement, which was incorporated into a memo that was sent to consumers on Thursday.

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Kendrick’s memo seeks to reassure customers that the bank is taking steps to ensure their safety and stability. Kendrick also encourages customers to contact the bank if they have any questions or concerns.

Furthermore, an increasing number of political organisations in the United States are beginning to recognise the potential that Bitcoin has. It would seem that President-elect Donald Trump has altered his perspective on bitcoin and the business that is associated with it, as the cryptocurrency lobby spent a significant amount of money during the 2024 election cycle.

During his campaign for office, Trump attended the Bitcoin Conference in Nashville. The appointment of Paul Atkins as chief of the Securities and Exchange Commission is widely considered to be a substantial departure from Gary Gensler’s current role.

Bitcoin is generally viewed favorably by Atkins.

The current administration has exhibited substantial aversion to alternative cryptocurrencies. We, along with the rest of the industry, have been influenced by it to a certain extent.

As Vlad Tenev, the CEO of Robinhood, stated during an appearance on “Squawk Box” on Thursday, it is imperative that the industry has individuals who understand, appreciate, and adopt it. This assertion was issued by Tenev. Robinhood’s broking platform provides access to cryptocurrency trading.

Since November 4, the day preceding the presidential election, the price of Bitcoin has surged by 49%. This is a substantial increase. This increase occurred on November 4th.

Additionally, it is conceivable that Jerome Powell, the chairman of the Federal Reserve, may have provided Bitcoin with a slight lift in order to help it surpass the $100,000 threshold. This is a potential action that could have been taken to assist Bitcoin in achieving the milestone.

The currency that competes with bitcoin, according to Powell’s statements as of Wednesday, is gold, not the currency of the United States.

Although it is conceivable that the association between bitcoin and one of the oldest investment vehicles in the world could be interpreted as a sign of legitimacy, it is crucial to recognise that this is not a definitive endorsement of cryptocurrencies

SOURCE: CNBC

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