Bitcoin Soars More Than Double In 2024 Thanks To Spot ETF And Trump's Optimism

JAKARTA Bitcoin recorded a surge of more than 120% throughout 2024, reaching a milestone with a value of 100,000 US dollars (Rp1.6 billion). This increase was driven by approval by US market regulators for exchange-traded funds (ETF) related to the price of Bitcoin spot, as well as optimism for regulatory relief in line with Donald Trump's re-electing as President of the United States.

As the world's largest cryptocurrency, Bitcoin has revived the enthusiasm of its supporters after achieving this achievement. This sharp increase also prompted the market capitalization of the cryptocurrency sector to around $3.5 trillion, according to CoinGecko data.

Analysts expect this momentum to continue. Analysts from brokerage firm Bernstein predict that Bitcoin could reach a peak value of 200,000 US dollars (Rp3.2 billion) by the end of 2025.

MicroStrategy, a software company that is the largest Bitcoin corporate holder in the world, recorded a nearly fivefold increase in shares throughout 2024. The company's shares are now the proxy for sentiment towards Bitcoin, while other companies are starting to allocate part of their cash funds into cryptocurrencies.

In addition, an analysis from Bernstein states that Bitcoin has the potential to replace gold as a major "store of value" asset in the coming decade. Bitcoin is expected to be a fixed part of the company's multi-institutional and standard asset allocation in financial management.

Optimism for Bitcoin began in January 2024 when the US Securities and Exchange Commission (SEC) approved the first ETF to track the price of the Bitcoin spot. This move provides wider institutional legitimacy and appeal to the sector. The launch of the ETF is supported by major financial companies such as BlackRock and Fidelity.

Trump's influence on the Crypto Industry The victory of Donald Trump in the presidential election is also a big boost for the crypto industry. Trump, promising to make the US a "world crypto center," garnered great support from the crypto community, including millions of dollars in donations to support pro-crypto candidates during elections.

Shares of crypto companies such as MicroStrategy, Coinbase, and Hut 8 recorded huge profits in 2024. However, several crypto miners such as Riot Platforms, Digital Marathon, and Digital Bit suffered losses between 26% and 32% due to shrinking margins due to rising energy and hardware costs.

Bitcoin is now increasingly gaining a place in institutions and corporations, with a surge in value that continues to attract global attention. 2024 is an important milestone for cryptocurrencies to strengthen its legitimacy in the financial market.