What drives the predicted $100,000 value of bitcoin by 2024?

• On Wednesday night, the digital coin surpassed the six-figure mark and has since gained over 140% in value in 2024.
• Since their launch in January, billions of dollars have flowed into Bitcoin exchange-traded funds.
• It seems that President-elect Trump has become a supporter of bitcoin and the crypto industry.

The long-awaited push of Bitcoin above $100,000 occurs at the end of a year where it was accepted by major Wall Street institutions and became a significant issue in the U.S. presidential election.

Bitcoin surpassed $100,000 for the first time Wednesday night, defying the skepticism of many on Wall Street and achieving a 140% increase in value in 2024.

Wall Street Institutions embrace

Since the launch of the first bitcoin ETFs on Jan. 11, 2024 marks the beginning of the latest chapter in bitcoin's journey. These funds have attracted tens of billions of dollars in inflows, with the iShares Bitcoin Trust (IBIT) leading the way with $50 billion in assets.

The acceptance of bitcoin by the traditional financial system is most evident through the launch and rapid growth of investment funds, despite some holdouts among firms. Bitcoin, previously viewed as a speculative asset for retail traders, has been pushed to a new level by institutional buying.

According to Geoff Kendrick, global head of digital assets research at Standard Chartered Bank, institutions have purchased 683,000 bitcoins YTD through US spot ETFs and large purchases by MicroStrategy. Of these inflows, 245,000 occurred in the weeks following the US election, which helped propel BTC above the USD 100,000 level.

Trump's conversion

The crypto industry has been gaining traction with the political institutions of the United States, with the lobby spending heavily during the 2024 election cycle and President-elect Donald Trump expressing his support for bitcoin and the industry.

Trump attended the Bitcoin Conference in Nashville as part of his campaign. His choice for head of the Securities and Exchange Commission, Paul Atkins, is viewed as favorable to the crypto industry, marking a stark contrast from current SEC Chair Gary Gensler.

The current administration has been highly hostile towards crypto, and Robinhood, as a part of the broader industry, has suffered as a result. However, having leaders who are knowledgeable and supportive of crypto is crucial for the industry's growth, as CEO Vlad Tenev stated on "Squawk Box." Robinhood provides crypto trading on its brokerage platform.

Since the day before the presidential election, the price of bitcoin has increased by 49%.

Jerome Powell, the Federal Reserve Chair, may have given Bitcoin a slight push towards the $100,000 milestone by stating that it is a competitor to gold, not the U.S. dollar. While this is not a full-blown endorsement of cryptocurrency, it could be perceived as a sign of legitimacy by some.