2024: The Year of Bitcoin – What Drove Its Appreciation?
Bitcoin, the first and leading cryptocurrency, has seen a remarkable surge in 2024.
Few assets, including Nvidia’s shares, which belong to the artificial intelligence giant, have outperformed Bitcoin this year, driven by both economic factors and favorable conditions for its adoption.
The cryptocurrency’s optimism has driven its price from around $42,300 per BTC/USD at the end of 2023 to a recent high of $108,000, reflecting an impressive revaluation of more than 155%. Some consider this increase excessive, while others anticipate even greater rises.
Why Bitcoin Surged in 2024
Key intrinsic factors behind Bitcoin’s appreciation include:
- Approval of Bitcoin ETFs: The launch of the first Bitcoin exchange-traded funds (ETFs), including those backed by major firms like Fidelity Investments and BlackRock, provided a significant boost to Bitcoin’s price.
- The Halving Event: In April, the halving process reduced the reward miners receive for solving complex equations to earn Bitcoin, increasing the asset’s scarcity and pushing its value higher.
- Active Corporate Investment: Companies like MicroStrategy, which openly invest in Bitcoin, are playing an increasingly important role in driving Bitcoin’s price. MicroStrategy is now part of the prestigious Nasdaq 100.
- Technological Advancements: The increased computational power and reduced transaction costs through the Lightning Network have made Bitcoin more efficient and practical, enhancing its overall utility.
Macroeconomic Factors
Additionally, there are macroeconomic factors that have further fueled Bitcoin’s rise:
- Inflation: Although inflation has shown signs of easing, concerns remain. Bitcoin’s deflationary nature has driven its rise in a manner similar to gold as a hedge against inflation.
- Interest Rate Cuts: Reduced interest rates have weakened demand for the US dollar. If inflation stabilizes, Bitcoin’s deflationary appeal may lose relevance and be replaced by concerns over the dollar’s weakness.
Bitcoin’s ascent in 2024 is a combination of both intrinsic and external factors, positioning it as one of the most notable assets in global financial markets.

