Bitcoin ($BTC ) has experienced a significant price increase in recent months of 2024, surpassing the $100,000 threshold for the first time on December 5, 2024.

This surge can be attributed to several factors:

1. Approval of Bitcoin ETFs:

On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, including those from BlackRock and Fidelity. This decision facilitated the entry of institutional investors into the cryptocurrency market, boosting demand and contributing to the price increase.

2. Bitcoin Halving:

In April 2024, Bitcoin underwent its halving event, which reduces miners’ rewards by 50%, thereby decreasing the supply of new Bitcoin. Historically, this event has led to price increases in the following months due to the reduced supply combined with steady or growing demand.

3. Pro-Crypto Policies:

The re-election of Donald Trump as U.S. President generated expectations of more favorable regulations for cryptocurrencies. Trump expressed intentions to create a strategic reserve of Bitcoin and appointed pro-crypto figures, such as Paul Atkins, to key positions like the head of the SEC. These moves increased investor confidence in the cryptocurrency market.

4. Interest Rate Cuts:

Throughout 2024, the Federal Reserve reduced interest rates, making traditional investments less attractive and pushing investors to seek alternatives like cryptocurrencies. This contributed to the increased demand for Bitcoin, positively influencing its price.

In summary, Bitcoin’s price increase before January 2025 results from a combination of factors, including ETF approvals, the halving event, favorable government policies, and global economic conditions that have driven investors toward cryptocurrencies.