Bitcoin $100000 milestone in December 2024 stands as a defining event in financial history. Starting the year at $42,577, the cryptocurrency shattered expectations, crossing six figures propelled by several intertwined factors.
Now ahead about 130% year-to-date, bitcoin’s market capitalization has risen to just shy of $2 trillion only 15 years after coming into existence. For reference, Nvidia and Apple sport market caps of about $3.5 trillion, Microsoft $3 trillion, and Google and Amazon $2.2 trillion. The market capitalization of all the gold in the world is roughly $17.7 trillion.
From groundbreaking regulatory clarity and a surge in institutional participation to evolving macroeconomic trends, technological progress, and geopolitical dynamics, this article unpacks the forces behind Bitcoin’s historic ascent, supported by sharp data insights and contextual depth.
Building on the Past: A Legacy of Milestones
Each time Bitcoin crossed thresholds like $1, $100, $1,000, and $10,000, the world’s response blended euphoria with skepticism. But the Bitcoin $100000 milestone marked a new era of mainstream acceptance. When Bitcoin traded at mere pennies and then inched toward $1 in its earliest days, the conversation revolved around a curious experiment in digital scarcity.
Its pseudonymous creator, Satoshi Nakamoto, had envisioned a currency free from central bank interference—an ideal that seemed utopian at the time. By February 2011, as Bitcoin first crossed $1, discussions on the Bitcointalk forum reflected both excitement and caution. One user even asked if investing $1,000 at just $0.10 per BTC would be safe.
By April 2013, as Bitcoin approached $100, excitement surged within its community, and its price soared from $13 to over $200 later that year. During this rally, observers like Eric Posner, a law professor at the University of Chicago, commented that “bitcoin seems more like a collective delusion”.
Figures like Laszlo Hanyecz (famous for the 10,000 BTC pizza purchase) looked back on their early transactions with a mix of nostalgia and acceptance. Hanyecz told The New York Times he had “no regrets,” since at the time Bitcoin held no recognized value.
A Watershed Moment: January 2024 and the Launch of Bitcoin Spot ETFs
The game changed for Bitcoin on January 11, 2024. The U.S. Securities and Exchange Commission (SEC) greenlit 11 spot Bitcoin ETFs, including offerings from heavyweight financial players like BlackRock, Fidelity, and Grayscale. This approval paved the way for the Bitcoin $100000 milestone, allowing institutional investors to enter the market with confidence.
A watershed moment arrived, culminating years of tireless effort. A formidable regulatory barrier was shattered, granting both institutional and retail investors unprecedented access to Bitcoin within a regulated framework.
A Breakdown of Market Reaction
- Initial Inflows: Launch day saw inflows exceeding $676 million—setting a blistering pace for ETF adoption.
- Growth Projections: Analysts predicted ETF investments to hit $14 billion by year-end.
- BlackRock’s Success: The iShares Bitcoin Trust alone amassed $50 billion in assets by December which underlined institutional confidence in the cryptocurrency.
Bitcoin’s elevation from speculative asset to a legitimate portfolio staple gained momentum as firms like BlackRock and Fidelity—once skeptical of cryptocurrencies—threw their weight behind it.
As January 2024 drew to a close, Bitcoin had soared to $47,000, a steady rise from its year’s beginning at $42,577. This marked the dawn of an unprecedented year, ultimately leading to Bitcoin’s historic zenith above $100,000.
February–March 2024: Gaining Momentum Ahead of the Halving
Bitcoin’s upward trajectory continued, driven by strong institutional interest and anticipation of the fourth halving. This period of growth set the stage for the eventual Bitcoin $100000 milestone. The cryptocurrency peaked near $73,000 in early March, driven by anticipated supply constraints, before consolidating around $67,000–$68,000 by the quarter’s end.
Institutional involvement played a pivotal role, fueled by the SEC’s January approval of spot Bitcoin ETFs. By March, Bitcoin ETFs amassed over $52 billion in assets, led by BlackRock’s iShares Bitcoin Trust, which set records for inflows. Large-scale transactions exceeding $1 million dominated activity, particularly in North America.
Market sentiment remained bullish, with the Crypto Fear & Greed Index firmly entrenched in the greed zone, peaking at 70. Anticipation of Bitcoin’s fourth halving in April fueled speculative interest, propelling its upward trajectory. This period not only solidified Bitcoin’s institutional acceptance but also set the stage for its historic surge past $100,000 later in the year.
April 2024: Halving and Supply Shock
On April 19, 2024, Bitcoin’s fourth halving event cut the block reward from 6.25 BTC to 3.125 BTC. Historically a catalyst for price increases, the halving tightened Bitcoin’s already scarce supply against escalating demand. This tightening supply contributed significantly to the eventual Bitcoin $100000 milestone later in the year.
Key Halving Dynamics
- Scarcity Effect: Bitcoin’s annual issuance rate dropped from 1.64% to 0.82%, reinforcing its scarcity narrative and elevating its appeal as a deflationary asset.
- Miner Activity: The network’s hashrate surged to an all-time high of 750 EH/s, signaling miners’ confidence despite reduced rewards. Mining difficulty also increased by 7% which showed us there’s competition and network security.
- Transaction Fees Spike: Transaction fees temporarily surged, with users spending over $2.4 million in fees for a single block.
By the end of April, Bitcoin’s price stabilized at $63,821—giving off moderate gains post-halving. The event served as a foundation for long-term growth, setting up a tightening supply-demand dynamic that would favor price appreciation.
May–September 2024: Accumulation Underway
Following the halving, Bitcoin entered a consolidation phase, trading within a range of $60,000 to $66,000. While retail interest waned, institutional players leveraged the quieter market to strategically accumulate Bitcoin. Institutional investors strategically accumulated, laying the groundwork for the Bitcoin price surge 2024 that culminated in the historic Bitcoin $100000 milestone.
Exchange-held Bitcoin dropped to 2.3 million BTC by September, a level not seen since November 2018. This 19% decline from January reflected reduced selling pressure and a shift towards long-term holding.
Spot Bitcoin ETF inflows totaled $1.2 billion during this period, with BlackRock and Fidelity ETFs collectively holding 750,000 BTC—around 4% of Bitcoin’s circulating supply. Institutional holdings of Bitcoin ETFs grew by 14%, reaching $11 billion by Q2.
Persistent global inflation heightened Bitcoin’s attractiveness as a store of value with a fixed supply, positioning it as a hedge against fiat depreciation. In September, the Federal Reserve’s 50 basis point rate cut boosted investor interest in risk assets like Bitcoin, contributing to a 4% price increase that month.
This period of strategic accumulation and macroeconomic support laid the groundwork for Bitcoin’s next rally, reinforcing its role as a store of value and investment-grade asset.
October–November 2024: Bull Market Vibes in Full Swing
Bitcoin’s upward momentum accelerated in October, fueled by significant political and geopolitical developments. The pace quickened notably after Donald Trump’s re-election on November 7, 2024, which sparked renewed energy in the cryptocurrency market. The market rally gained momentum, leading to the anticipated Bitcoin $100000 milestone.
Round up of Political Catalysts
- Trump’s campaign promises to prioritize cryptocurrency reforms and appoint Paul Atkins, a crypto-friendly advocate, as SEC Chair created optimism among investors.
- Bitcoin ETFs recorded a substantial influx of capital, with a 45% rise in inflows in the four weeks following Trump’s election victory. By late November, Bitcoin climbed to $81,000.
- China’s reversal of its 2021 ban on holding Bitcoin, announced earlier in May 2024, provided added liquidity to Asian markets and contributed to global adoption.
- Nations like Brazil explored incorporating Bitcoin into national reserves.
The bullish sentiment following the U.S. election extended beyond Bitcoin, igniting the entire crypto ecosystem. Over $250 billion was added to the crypto market in a week, with Reserve’s RSR token soaring over 100% after Paul Atkins, a former protocol advisor, was announced as Trump’s SEC pick.
These policies solidified Bitcoin’s position as a pivotal asset class and laid the foundation for its historic crossing of $100,000 in December 2024.
December 2024: Bitcoin Crosses $100,000
On December 5, 2024, Bitcoin reached a long-anticipated milestone, surpassing $100,000 and peaking at $104,000 during Asian trading hours. This historic achievement elevated Bitcoin’s market capitalization to $2 trillion, placing it alongside global giants like Google and Amazon. This historic achievement cemented Bitcoin’s reputation as digital gold and marked the culmination of the year’s Bitcoin price surge 2024.
Bitcoin reached an all-time high of 39 ounces per BTC, further cementing its reputation as “digital gold” and a modern store of value. Also, combined spot and derivative market volumes surpassed $10 trillion in December.
Moreover, adoption of the Lightning Network surged by 45%, enabling faster, cheaper transactions and advancing Bitcoin’s scalability for broader use cases.
Federal Reserve Chair Jerome Powell lent further legitimacy to Bitcoin during The New York Times DealBook Summit on December 4, 2024. He remarked,
“Bitcoin is a speculative asset, much like gold—it’s virtual, digital. It’s not a competitor for the dollar; it’s really a competitor for gold.”
At the time of writing, Bitcoin was trading at approximately $97,188, just shy of breaking the $100,000 mark. Powell’s acknowledgment of Bitcoin as an alternative to gold rather than a currency resonated with institutional investors, adding weight to its standing as a legitimate store of value.
Market Comparisons and Sentiment
Bitcoin stood out as the top-performing asset of 2024, surpassing traditional benchmarks:
- Gold: Achieved an 8.5% gain, overshadowed by Bitcoin’s 140% rise.
- S&P 500: Posted a 14% increase—underlining Bitcoin’s dominance as a high-growth investment.
- Treasuries: Despite stable yields of 4–5%, Bitcoin’s superior risk-reward ratio continued to attract high-conviction investors.
Market sentiment reflected this bullish outlook. The Crypto Fear & Greed Index peaked at 88 in November—an extreme greed as Bitcoin approached its record-breaking highs.
2024—Bitcoin’s Defining Year
Bitcoin’s rise from $60,000 to over $100,000 in 2024 marked more than just a price milestone. It symbolized the convergence of regulatory breakthroughs, institutional adoption, technological advancements, and geopolitical shifts.
Once considered a speculative niche asset, Bitcoin solidified its position as a credible store of value, rivaling gold and challenging fiat currencies in global financial strategies. Its performance in 2024 rewrote the narrative around digital assets, transforming Bitcoin into a cornerstone of the global financial ecosystem.
