Bitcoin achieved a significant milestone in 2024 by surpassing the $100,000 mark, defying even the most optimistic projections and setting a new benchmark in the digital currency world. This achievement marked a turning point for cryptocurrency, driven by pivotal events throughout the year, including the introduction of Bitcoin ETFs, the Halving event, and the U.S. presidential elections.
Key Events Driving Bitcoin’s Bullish Performance
1. Approval of Bitcoin ETFs
On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin-based ETFs, a transformative moment for institutional and retail investors alike. This decision paved the way for greater mainstream adoption, with BlackRock’s iShares Bitcoin Trust (IBIT) accumulating $50 billion in assets by year-end. The influx of institutional capital strengthened Bitcoin’s position as a competitive financial asset, fueling a bullish trend that saw prices rise from $38,000 to $73,000 in the first quarter.
2. The 2024 Halving Event
The Halving, a scheduled event reducing Bitcoin mining rewards, occurred on April 20, 2024. The reduction of rewards from 6.25 BTC to 3.125 BTC per block introduced scarcity, driving renewed investor interest. Although Bitcoin initially dropped to $57,000 after the Halving, it rebounded to stabilize around $73,000 by mid-year, demonstrating the market’s resilience.
3. Post-Election Momentum
Bitcoin’s most dramatic surge came after the U.S. presidential election on November 5. Donald Trump’s victory and his pro-crypto agenda, including plans for a National Strategic Reserve in Bitcoin and reforms to the SEC, ignited investor enthusiasm. Bitcoin’s average daily price movements increased significantly, with the price climbing 60% post-election to break the $100,000 milestone and reach $108,000 by December.
Market Reactions and Future Expectations
The rapid price acceleration in late 2024 increased Bitcoin’s market capitalization from $1.3 trillion in early November to over $2 trillion by December. While this remarkable growth reflects strong investor confidence, analysts caution about potential bearish corrections in early 2025. Indicators such as the RSI, which has remained above 70, suggest overbought conditions and potential for short-term selling activity.
Key Levels to Monitor in 2025
- $100,000: A critical psychological resistance zone that will determine Bitcoin’s ability to sustain its upward trajectory.
- $88,000: A tentative support level where selling pressure may concentrate.
- $73,000: The most significant support level, representing the floor before 2024’s final bullish movements.
As Bitcoin continues to redefine its position in the global financial landscape, the cryptocurrency’s performance in 2025 will be closely watched. While the remarkable rise in 2024 underscores its growing acceptance, the market’s response to potential corrections will test its resilience in the coming year.
