New York (Agencies): The year 2024 marked a significant turning point for Bitcoin, driven by Donald Trump’s election victory and his promises to make the US the “crypto capital” of the world. Bitcoin’s price soared, with several factors contributing to the bullish streak.
Bitcoin’s price is primed for new record highs after topping $107,780 in December. It is currently trading at approximately $94,282.07, but under an optimistic scenario, Bitcoin could reach upwards of $120,000 in Q1 2025, according to crypto experts.
- Boosted Investor Confidence
Since Donald Trump’s US presidential election win on November 5, there has been anticipation of a favorable environment for Bitcoin. Total assets in Bitcoin exchange-traded funds (ETFs) reached around $113 billion in December, driven by post-election tailwinds. The token went on a streak of highs on Trump’s promise to set up a strategic US Bitcoin reserve. Trump’s pick of digital-asset supporter Paul Atkins as his new Securities and Exchange Commission (SEC) chair in early December lifted Bitcoin to $100,000 for the first time.
- Relaxed Regulations
The token trended higher for most of 2024 after the launch of several US spot Bitcoin ETFs in January. This allowed trading on traditional market exchanges rather than cryptocurrency exchanges. The approval of cryptocurrency ETFs by the US SEC prompted increased capital inflows into Bitcoin ETFs.
- Supply Constraints
Since Bitcoin’s total supply is permanently capped at 21 million coins, this tightened supply also affects the price as demand continues to grow.