Bitcoin Hits High in 2024 Rally, Surpasses $100,000 for the First Time

Bitcoin has reached a historic high of $100,000 for the first time in 2024. The surge is a new step in the evolution of the digital currency, establishing it as one of the strongest forces in finance worldwide.

According to CNBC, the cryptocurrency was last higher by more than 3% at $102,485.78. It earlier rose as high as $103,844.05. Bitcoin now is up more than 140% in 2024 and 48% since the election of Trump as the President.

Factors Driving Bitcoin Market Growth

With the price of Bitcoin reaching new highs, people have been left to wonder what drives this phenomenal growth. According to analysts, there are various reasons behind Bitcoin’s market growth, including institutional adoption and broader market confidence. Even though Bitcoin is originally anti-establishment, a lot of companies and financial institutions are turning towards Bitcoin as a store of value. Such demand has been a critical component of the rapid rise of cryptocurrencies.

Mike Novogratz, CEO of Galaxy Digital, told CNBC, “We’re witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream.”

The Bitcoin market growth has been particularly notable this year, with institutional investors and high-net-worth individuals leading the charge. Moreover, with Trump returning to power investors are excited as they are expecting the new President to push cryptocurrency including Bitcoin.

Bitcoin Surpasses $100,000

Broader macroeconomic factors also benefited the Bitcoin price. With global inflation concerns still persistent, investors increasingly rely on Bitcoin as a hedge against traditional fiat currencies. Unlike conventional assets, Bitcoin is not affected by inflation. It remains an attractive alternative for preserving wealth during uncertain economic times.

Bitcoin has attracted the attention of institutional investors more in recent years. The start of this year witnessed major companies like BlackRock, Fidelity, and Invesco launch the first spot Bitcoin ETFs. Most view this as a milestone for Bitcoin, much like its “IPO” moment.

As a result, it increases the demand from institutions and propels the price of Bitcoin upward. Moreover, in November 2024, Rick Wurster, the incoming CEO of Charles Schwab, said that the company is gearing up to begin spot crypto trading upon regulatory changes that could accompany the next Trump administration.

This increasing mainstream acceptance of digital currencies has led to greater trust and adoption has helped Bitcoin reach high levels.

The Future of Bitcoin

As Bitcoin reaches high,, it’s important to remember that the cryptocurrency market remains volatile. The rapid increase in Bitcoin’s price in 2024 has been driven by significant demand, but market fluctuations are common.

Novogratz added, “Over the long term, I’m bullish. It won’t be a straight line up, and investors should always consider taking gains off the table. But, with a pro-crypto administration about to take charge in the U.S., it’ll be hard for the rest of the world not to take notice.”