Crypto In 2024: How Cryptocurrency Market Turned Into A $3.68-Trillion Powerhouse
2024 was a dream run for the crypto market with Bitcoin hitting the historic milestone of $100,000. While the entire crypto community celebrates the six figures, BTC needed multiple small boosts throughout the year to cross the $100k mark, reaching the new all-time high of $107,700. Starting from the approval of Bitcoin ETFs in January till the recent $100k milestone, the landscape has matured so much that leading economies have started going big on the crypto market. As we come toward the end of the year, let's take a look at all the key events that shaped the crypto market to what it is today, taking its total market capitalisation to a massive $3.68 trillion – larger than that of Microsoft and Nvidia. ETFs Driving Institutional Adoption The crypto market got its first boost from the approval of Bitcoin ETFs by the SEC making it easier than ever for institutional investors to enter the crypto market. Since its launch, Bitcoin ETFs have seen massive adoption from institutions like Blackrock, Grayscale and others. To put this adoption in perspective, the Gold ETFs by Blackrock that were launched back in 2003 have total assets under management of $33.5 billion while the AUM of Blackrock’s bitcoin ETFs has reached a whopping $54.3 billion in just 11 months of launch. Soon after the BTC ETF approval, Ethereum ETFs were also launched which also grew to an AUM of close to $12 billion in just 5 months. This demand from institutions played a major role in pushing BTC’s price, increasing the confidence of the crypto community over the months. Bitcoin Halving Sets Stage For 2025 The rally we saw in March, driven by the approval of Bitcoin ETFs and anticipation surrounding the halving event, took BTC to a then-record high of $73,000. During the halving event, it was observed that despite seeing increased demand from institutions, BTC traded sideways for a long time, building momentum for a much bigger rally towards the end of the year. Bitcoin tends to peak in the year following a halving event, indicating that BTC may have significant growth potential heading into 2025. Central Banks Fueling BTC Rally Central Banks across the globe also provided Bitcoin with some momentum with their rate cuts over the past year. Started with The European Central Bank easing the interest rates followed by other major economies countries like Canada, China and most importantly, the US. Since September, the Feds have slashed the interest rate by 75 basis points with another 25 basis points expected in the coming days. These rate cuts worldwide have put more money in the hands of both retail and institutional investors to invest in alternate assets like crypto pushing BTC’s price higher. The rate cuts also indicate a strong economic outlook for the respective countries boosting investor confidence in the market. Donald Trump's Election Win The biggest booster of Bitcoin price is the reelection of Donald Trump as the 47th President of the US. His pro-crypto agenda has lifted the spirits of the crypto community. Since the election, Trump’s new appointments for key roles like the SEC and CFTC with pro-crypto leadership, his plans for a 'Crypto Czar' role in the White House and the formation of the Department of Government Efficiency (DOGE) have strengthened the positive sentiment in the market in hopes of positive regulatory clarity, taking Bitcoin through the historic milestone of $100,000. His vision of making America the crypto capital of the world and setting up a “Strategic Bitcoin Reserve” similar to the gold and oil reserves has further increased adoption from both retail and institutional investors. As there is momentum towards the Bitcoin strategic reserve and the emergence of crypto-friendly regulations, the adoption is only set to grow increasing demand for the asset and maturing markets going ahead. Increased Global Crypto Adoption This year also saw many countries that have been anti-crypto for ages opening doors to crypto. China legalised crypto a few weeks ago followed by Morocco bringing new regulations to crypto after its ban in 2017. Hong Kong on the other hand is planning for tax exemptions on crypto gains for private equity funds, hedge funds and high-net-worth investment vehicles making it easier for institutions to invest in crypto. These developments from all the leading economies show their seriousness in bringing crypto mainstream. On the other hand, Brazil has gone a step ahead following Trump’s path to create a Bitcoin reserve for global risk protection of the nation’s financial assets and promote blockchain technology integration across the public and private sectors. As more countries turn towards crypto, the retail investors of these countries enter the market increasing the grassroots adoption of the asset. While we have seen some increase in retail participation, there is a lot more
2024 was a dream run for the crypto market with Bitcoin hitting the historic milestone of $100,000. While the entire crypto community celebrates the six figures, BTC needed multiple small boosts throughout the year to cross the $100k mark, reaching the new all-time high of $107,700.
Starting from the approval of Bitcoin ETFs in January till the recent $100k milestone, the landscape has matured so much that leading economies have started going big on the crypto market. As we come toward the end of the year, let's take a look at all the key events that shaped the crypto market to what it is today, taking its total market capitalisation to a massive $3.68 trillion – larger than that of Microsoft and Nvidia.
ETFs Driving Institutional Adoption
The crypto market got its first boost from the approval of Bitcoin ETFs by the SEC making it easier than ever for institutional investors to enter the crypto market. Since its launch, Bitcoin ETFs have seen massive adoption from institutions like Blackrock, Grayscale and others. To put this adoption in perspective, the Gold ETFs by Blackrock that were launched back in 2003 have total assets under management of $33.5 billion while the AUM of Blackrock’s bitcoin ETFs has reached a whopping $54.3 billion in just 11 months of launch.
Soon after the BTC ETF approval, Ethereum ETFs were also launched which also grew to an AUM of close to $12 billion in just 5 months. This demand from institutions played a major role in pushing BTC’s price, increasing the confidence of the crypto community over the months.
Bitcoin Halving Sets Stage For 2025
The rally we saw in March, driven by the approval of Bitcoin ETFs and anticipation surrounding the halving event, took BTC to a then-record high of $73,000.
During the halving event, it was observed that despite seeing increased demand from institutions, BTC traded sideways for a long time, building momentum for a much bigger rally towards the end of the year.
Bitcoin tends to peak in the year following a halving event, indicating that BTC may have significant growth potential heading into 2025.
Central Banks Fueling BTC Rally
Central Banks across the globe also provided Bitcoin with some momentum with their rate cuts over the past year. Started with The European Central Bank easing the interest rates followed by other major economies countries like Canada, China and most importantly, the US.
Since September, the Feds have slashed the interest rate by 75 basis points with another 25 basis points expected in the coming days. These rate cuts worldwide have put more money in the hands of both retail and institutional investors to invest in alternate assets like crypto pushing BTC’s price higher.
The rate cuts also indicate a strong economic outlook for the respective countries boosting investor confidence in the market.
Donald Trump's Election Win
The biggest booster of Bitcoin price is the reelection of Donald Trump as the 47th President of the US. His pro-crypto agenda has lifted the spirits of the crypto community. Since the election, Trump’s new appointments for key roles like the SEC and CFTC with pro-crypto leadership, his plans for a 'Crypto Czar' role in the White House and the formation of the Department of Government Efficiency (DOGE) have strengthened the positive sentiment in the market in hopes of positive regulatory clarity, taking Bitcoin through the historic milestone of $100,000.
His vision of making America the crypto capital of the world and setting up a “Strategic Bitcoin Reserve” similar to the gold and oil reserves has further increased adoption from both retail and institutional investors.
As there is momentum towards the Bitcoin strategic reserve and the emergence of crypto-friendly regulations, the adoption is only set to grow increasing demand for the asset and maturing markets going ahead.
Increased Global Crypto Adoption
This year also saw many countries that have been anti-crypto for ages opening doors to crypto. China legalised crypto a few weeks ago followed by Morocco bringing new regulations to crypto after its ban in 2017.
Hong Kong on the other hand is planning for tax exemptions on crypto gains for private equity funds, hedge funds and high-net-worth investment vehicles making it easier for institutions to invest in crypto. These developments from all the leading economies show their seriousness in bringing crypto mainstream.
On the other hand, Brazil has gone a step ahead following Trump’s path to create a Bitcoin reserve for global risk protection of the nation’s financial assets and promote blockchain technology integration across the public and private sectors. As more countries turn towards crypto, the retail investors of these countries enter the market increasing the grassroots adoption of the asset. While we have seen some increase in retail participation, there is a lot more room for growth that will eventually be captured by the retail investors.
While we are closing the year with major coins trading at all-time highs, this is just the beginning of a mega bull run. 2024 saw many positive changes shaping the crypto market into a more mature one. Stepping into 2025, we will witness a much bigger growth from institutions, retail and some of the largest nations like China trying to capitalise on the market. As the crypto market grows, it is upon us to invest responsibly while understanding the evolving landscape. Investors need to do their research and invest according to their income and risk appetite to minimise risks ensuring healthy exposure to the market.
(The author is the CEO and Co-founder of Mudrex, a global crypto investment platform)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
What's Your Reaction?
