Bitcoin has experienced an extraordinary surge in 2024, climbing by 129% in value, largely fueled by the April halving event and the U.S. Presidential election. This impressive performance marks Bitcoin’s strongest year in recent history, with the digital currency making headlines once again as it nears the coveted $100,000 price point. As of November, Bitcoin has gained 37%, with only a few other years—2013, 2017, and 2020—recording higher monthly gains during this time. This surge follows a predictable pattern, as Bitcoin prices often rise six months after halving events, which restrict the supply of newly mined coins, creating an environment of scarcity and increased demand.
Bitcoin’s Journey to $100K: Halving and Election Fuel Bull Run
In November 2024, Bitcoin came tantalizingly close to crossing the $100,000 threshold, briefly touching $99,000 before retreating to the $96,000-$98,000 range. Despite this brief dip, Bitcoin futures on the Chicago Mercantile Exchange (CME) briefly exceeded $100,000 twice within the same week, sparking speculation that the cryptocurrency’s spot price could follow suit soon. As of November 30, Bitcoin’s dominance in the market had dipped to 56.1%, signaling that profits are being rotated into altcoins. This could signal the start of an “altcoin season,” as investors diversify their portfolios.
Scarcity and Institutional Interest Push Bitcoin Price Higher
The limited availability of Bitcoin on exchanges is another factor contributing to its bullish price action. According to data from CryptQuant, less than 2.5 million Bitcoin are left on exchanges, further emphasizing its scarcity. Analysts remain bullish on Bitcoin’s price outlook. Raoul Pal, CEO of Global Macro Investor, predicts Bitcoin could reach a local top of $110,000 by January 2025, with a potential larger peak later in the year. Meanwhile, Bitcoin advocate Samson Mow has suggested that once Bitcoin hits the $100,000 mark, it could trigger a “hyperbolic surge,” with the potential for the price to rise $10,000 a day due to increased demand from traders, institutions, and even governments.
Historical Patterns and Market Sentiment: What’s Next for Bitcoin?
Bitcoin’s strong performance this year mirrors patterns seen during previous halving years. Each halving event reduces the rewards for miners, decreasing the rate at which new coins enter circulation. This reduced supply, coupled with growing demand from both institutional and retail investors, has contributed to Bitcoin’s remarkable ascent in 2024. November’s 37% gain solidifies Bitcoin’s reputation as a resilient and high-potential digital asset, attracting increased interest from both new and seasoned investors alike.