2024 has been a historic year for the cryptocurrency market, especially Bitcoin. The year began with the news that Wall Street fund managers, including BlackRock, Fidelity, and Ark Invest, launched the first-ever exchange-traded funds ETFs backed by the flagship cryptocurrency.
This event combined with the Bitcoin network's quadrennial reward halving event, resulted in a 50 reduction in its supply, increasing market demand and value of the cryptocurrency. BTC recorded a new all-time high of 73,798 after a surge in spot Bitcoin ETF trading activity and hype surrounding the reduction in rewards to 3.125 BTC per block mined.
The halving event is historically perceived as positive for Bitcoin's price, as it helps control the supply while increasing demand.
What Is Driving Bitcoin's Surge?However, following the U.S. presidential elections, where pro-crypto Republican candidate Donald Trump made a commanding victory, and the Federal Reserve's subsequent decision to cut its rate by 25 basis points, to a range of 4.50 to 4.75, Bitcoin's price skyrocketed to a 91,000 - its highest valuation to date.
