In the rebound of Bitcoin from below $16,000 in late 2022 to the $100,000 mark in late 2024, the approval of US-listed Bitcoin exchange-traded funds in January 2024 has played a role a lot.
Over $4 billion has rushed into US-listed Bitcoin exchange-traded funds since the election of the United States.
The Securities and Exchange Commission didn’t want ETFs to invest in Bitcoin, quoting investor protection concerns.
The speculations revolving around the Bitcoin crossing the $100,000 mark came to be true on December 5. After the election results of the United States revealed Donald Trump as the new president, there were expectations that he would make a crypto-friendly environment and this led to an overall increase in the industry.
Taking the data from November 2024, Bitcoin is up around 45% and has more than doubled in value this year. The chief executive officer of the US crypto firm Galaxy Digital, Mike Novogratz states that we have observed a paradigm shift. After four years of political torment, bitcoin along with the overall industry is all set to keep its foot in the financial mainstream.
He further added that this boost is driven by various reasons such as institutional adoption, developments in tokenization and payments, and a comprehensible regulatory path. Since Bitcoin was created, it appeared on the brink of mainstream acceptance, regardless of critics and a series of controversies surrounding the largest cryptocurrency.
Promotion by the leader contributes to this milestone
Source: CoinMarketCap
A crypto analyst from Hong Kong, Justin D’Anethan kept his point on this matter and said that crossing $100,000 mark by Bitcoin is not just a milestone but it is also a testament to shifting tides in terms of finance, technology, and geopolitics.
Trump has promoted virtual assets to its extent at the time of his political events, giving guarantee to make the state a crypto capital of the planet and also to have a Bitcoin reserve. Crypto investors are also excited for the exit of the current chair of SEC, Gary Gensler as they believe that the increased scrutiny under this commission will be reduced after a new chair takes the lead.
On December 4, Trump revealed that he would like to nominate Paul Atkins as the new chair of the Securities and Exchange Commission. The nominated candidate was an ex-SEC Commissioner, who was also involved in crypto policy as co-chair of the Token Alliance, which focuses on making best practices for virtual asset issuances and trading platforms.
Other reasons surrounding this push
Source: CoinGecko
Apart from Trump, the CEO of Tesla Motors, Elon Musk is also a great supporter of cryptocurrencies. He has also helped push the digital assets ecosystem a lot. In the rebound of Bitcoin from below $16,000 in late 2022 to the $100,000 mark in late 2024, the approval of US-listed Bitcoin exchange-traded funds in January 2024 has played a role a lot.
The Securities and Exchange Commission didn’t want ETFs to invest in Bitcoin, quoting investor protection concerns, but the products have opened the doors for more investors, such as institutional investors to have exposure to Bitcoin.
Over $4 billion has rushed into US-listed Bitcoin exchange-traded funds since the election of the United States. At the time of writing this, the price of Bitcoin is hovering around $101,979 with a market capitalization of $2.02T.
