Bitcoin surged to an all-time high of R1 981 614 last Monday, fueled by incoming U.S. President Donald Trump’s vocal support for digital assets and his pledge to establish the United States as a global leader in the cryptocurrency sector.
Christo de Wit, South Africa country manager at Luno, attributed Bitcoin’s latest rally to a combination of factors, with Trump’s announcement of a potential “strategic” Bitcoin reserve being the most recent catalyst.
“Speaking to CNBC last week, Trump indicated that the U.S. wanted to get ahead of China and other countries and that he had plans for a reserve,” De Wit explained.
Bitcoin’s Performance in 2024
This latest high surpassed the previous record of R1 840 061 set on December 8. De Wit highlighted the Trump administration’s perceived crypto-friendly stance, contrasting it with the outgoing Biden administration’s more reserved approach.
Several key developments in 2024 have propelled Bitcoin’s price growth, including the approval of Bitcoin spot ETFs in January, which ignited positive investor sentiment.
Another pivotal factor was the 2024 Bitcoin halving event, which occurs approximately every four years. This process reduces the reward for mining new Bitcoin, effectively curbing supply and introducing an anti-inflationary mechanism that often triggers bullish momentum.
“The halving has often sparked a bullish momentum, leading to significant price increases,” De Wit noted.
U.S. Influence and Investor Sentiment
Market analysts believe Trump’s pro-crypto rhetoric is driving investor optimism, particularly around the prospect of institutional support for cryptocurrencies in the U.S.
“The market commentators say that investors appear to be rallying behind the prospect of institutional-level support from the U.S., which further fuels market momentum,” De Wit said.
Looking ahead, he remarked that it remains uncertain whether the current positive sentiment will carry into 2025.
“With the U.S. presidential inauguration set for January 20 next year, crypto investors will be watching closely to see whether the Trump administration delivers on its pro-crypto policy,” he concluded.
Broader Implications
As Bitcoin continues to break records, its trajectory underscores the growing influence of government policies and institutional adoption on the cryptocurrency market. The coming months will be critical in determining whether the momentum built in 2024 can sustain itself in the face of regulatory and economic uncertainties.