The cryptocurrency market got its biggest highlight in 2024 when Bitcoin crossed the $100,000 level that was facilitated by two major drivers. SEC granting its approval to the spot Bitcoin ETFs paved way for institutional investment and ascending trends of Donald Trump regaining presidency boosted the sentiments around friendly policies.
Bitcoin Breaks $100K: Historic ETF Rally and Trump Effect in 2024
That dramatic growth changed the entire picture of the digital asset market, as the flagship cryptocurrency, bitcoin, rose more than by 120% since the beginning of the year. This rally indeed spilled over into the other verticals and horizontals of the crypto economy backed by Ethereum reaching the 50% upshot and the total crypto market capitalization growing to $3.5 trillion.
The price of $100 000 that was considered by the skeptics as an unreachable dream worked as a confirmation for bitcoins proponents. The Wall Streetावन had been passive spectators with new institutional funds being allocated via the recently permitted EFT structures, that placed Bitcoin firmly in the traditional investment fold.
The brilliant mix of regulatory certainty and political optimism made it possible for Bitcoin to soar even higher as it reached its skies. The expectation of Trump’s return to the presidency increased market optimism in relation to a favourable attitude towards crypt currencies in the future, as well as optimistic expectations regarding the development of the sector.
They see also adopting of Bitcoin for payments as probable by late 2025, and their research team at Bernstein gives this digital currency a target price estimate of $200,000. This expectation stems from the increasing belief of Bitcoin functioning as both a premium asset and an institutional asset, implying that what’s currently witnessed can be viewed as the first phase of a secularity.
MicroStrategy's Bitcoin Bet Pays Off: 400% Surge in 2024
The transition of MicroStrategy from a software development firm to one of the biggest Conservative holders of Bitcoin has paid off hugely in 2024 with the firm’s stock rising to almost 400%. The decision to make Bitcoin its primary focus has emerged as prophetic given that BTC surged to new highs after spot ETF listings .
The company has been added to the prestigious Nasdaq-100 index of the world’s largest and most innovative listed companies which puts it in a clas NT protocols, making it the effective Bitcoin proxy for institutional investors. This has encouraged other large companies to do the same, so gradually COIs have started to distribute portions of their treasury funds to BTC signaling increasing corporate acceptance.
Bernstein’s analysts have been unreserved in their calls, still pointing out that Bitcoin will replace gold as the leading store of value asset in the decade. This change has the potential to revolutionize the institutional portfolio management strategy alongside the corporate treasury management.
The initial transformation occurred at the beginning of January 2024 when the Commission approved the first spot Bitcoin ETFs. This change in regulation allowed ‘traditional’ financial institutions, such as banks, to provide their customers all-access, direct exposure to Bitcoin; cryptocurrency was now mainstream.
Institutional adoption, regulatory certainty and corporate treasury diversification have combined into a feedback loop, existing as a virtuous cycle both for Bitcoin and MicroStrategy’s market capitalisation. The company got on the Bitcoin early, putting it at a vanguard of what could be a groundbreaking change in how companies handle their cash reserves.
Crypto Giants Soar: ETF Victory and Trump Win Reshape Industry
The cryptocurrency industry received unparalleled credibility in 2024, as two financial giants; BlackRock and Fidelity, launched spot Bitcoin ETFs approved by the SEC. This shift made [crypto] more institutional and less a marginalized asset of the financial markets.
The cryptosurge further advanced with Trumps’ win to presidency, pro-crypto stance propagated by him, and his willingness to turn the U.S into a crypto hub. The sector’s political lobbying saw it financially support politicians who favor the use of cryptocurrencies thus placing the right people in power.
Crypto stocks went down in 2024 but the large cap stocks in particular moved in opposite directions. Market major players for instance MicroStrategy, Coinbase, and Hut 8 recorded massive profits as the institutions played a pivotal role in turning the market around.
But the rally wasn’t general to all sorts of crypto miners. They showed that numerous players faced increasing operational expense pressure, which continued to pin the sector’s growth despite advancing market sentiments.
Some of the worst performers were Riot Platforms, Marathon Digital and Bit Digital shares which plunged by more than a quarter in the year. Such disparity demonstrates the increase in the gap between the better placed large industries and the small declining industries.
