Bitcoin: Dawn of a New Era

The cryptocurrency Bitcoin is experiencing a remarkable comeback in 2024. With a 130% increase since the beginning of the year, Bitcoin has surpassed the magical mark of $100,000, particularly following the recent presidential elections. But what differentiates the current upswing from the spectacular increases of the past, such as the 155% last year or even 5,481% in 2013? A key driver of this development is the introduction of new Bitcoin ETFs in January. These exchange-traded funds have triggered a veritable rush of investors and now manage assets worth billions. The largest among them, the iShares Bitcoin Trust, now records an impressive investment volume of $53 billion. In just the first two weeks of December, $4.4 billion flowed into these ETFs, indicating that interest remains unbroken and could continue to increase. These ETFs offer stability to the cryptocurrency by partially absorbing the selling pressure. Additionally, they gain the trust of institutional investors who are now using Bitcoin to diversify their portfolios. In contrast to previous speculative surges, the current upward trend seems more sustainable, indicating a broadening base of support. Bitcoin also receives favorable political support from the crypto-friendly stance of the new Trump administration. President Trump has clearly expressed his support for cryptocurrencies, including appointing a pro-crypto candidate to head the US Securities and Exchange Commission. Moreover, he plans to make the USA a hub for cryptocurrencies and their mining. The combination of political support and institutional trust could point to a promising future for Bitcoin and extend the current boom beyond the year 2024.