2024 was truly monumental for the crypto community, and the numbers prove it as its value reached six figures for the first time. Apart from it also became one of the top 10 assets by market capitalization for the first time, currently holding the 7th position, just behind gold and the stocks of major tech companies like Apple, Amazon, NVIDIA, and others.
Bitcoin’s $100,000 milestone
2024 was undeniably Bitcoin’s year, with key events fueling its historic rise. On December 5, Bitcoin surpassed the $100,000 mark, continuing its upward momentum to reach $104,000. However, after a brief correction below the $100,000 level, it set a new all-time high of $108,249 on December 17. The lowest value in 2024 was $39,504. As of time of writing, from January to December, Bitcoin has gained 119.03%.
The spot Bitcoin ETF launch
The launch of 11 Bitcoin ETFs in 2024 marked a milestone for the crypto industry. The success of these funds which brought massive corporate purchases played a key role in Bitcoin’s price gains. By the end of December 2024, the total net value of all assets held by all U.S. Bitcoin Spot ETFs reached $108.24 billion, signaling robust investor interest through traditional financial structures.
Spot Ethereum ETFs
After the launch of spot Ethereum-based ETFs in July, initial capital raising was slow, but by year-end, the momentum picked up significantly. As of December 26, these funds had accumulated over $12 billion in assets. Although Ethereum lagged behind Bitcoin in growth this year, upcoming regulatory changes in the U.S. could bolster its position in the market.
Bitcoin’s halving
The Bitcoin halving event in April 2024 reduced the daily issuance of BTC from 900 to 450 coins.
At the time of the event, Bitcoin’s price was around $63,000, and judging from the chart, the trading range averaged $60,000 – $70,000 for a couple of months. This is not surprising, as it is believed that the average uptrend begins 170 days after the halving.
April reduction slowed down the pace of coin creation in half, noticeably reducing the income of miners. Moreover, the total level of computing power used in bitcoin mining has increased to 762 EH/s, which means that it has become even more difficult to mine bitcoins while total revenues have already decreased.
As a result, some miners began investing in DeFi projects, while others shifted towards artificial intelligence applications. Notably, Marathon Digital (MARA) adopted a strategy of holding onto mined Bitcoin, raising debt capital to purchase even more on the open market.
U.S. elections and the main rally
Bitcoin’s remarkable 2024 growth closely mirrored Donald Trump’s political rise. Ahead of the November 5 election, the cryptocurrency gained momentum as his chances of winning increased, becoming a “bet on Trump.” Following his victory, Bitcoin surpassed the $100,000 threshold, fueled by enthusiasm for a blockchain-friendly government.
Trump’s proposals included introducing a national Bitcoin reserve, prohibiting CBDCs, transforming the United States into the global hub for crypto, and safeguarding mining and personal custody of digital assets. These initiatives ignited significant optimism within the digital currency sector.
By December 27, Trump appointed Bo Hines to lead the U.S. Crypto Council and David Sacks as “AI and Crypto Czar” to spearhead advancements in the digital asset space. Additionally, Paul Atkinson, an advocate for streamlined regulations, assumed the role of SEC chairman, signaling a pro-industry regulatory shift.
MicroStrategy’s BTC accumulation
MicroStrategy played a pivotal role in the cryptocurrency market’s growth in 2024. The company added 249,845 BTC to its holdings, raising its total to over 444,000 BTC by year-end. Its bold acquisition strategy, paired with the introduction of the 21/21 plan, propelled its stock price by more than 400%, solidifying MicroStrategy’s position as a dominant force in the digital asset ecosystem
Regulatory developments
The global cryptocurrency landscape experienced regulatory changes in 2024, with new laws and policies shaping the industry’s future. Here’s a roundup of the most notable developments:
United States
In the U.S., the Lummis bill, introduced at the Bitcoin 2024 conference in Nashville on July 27, outlined a plan for the government to purchase up to 200,000 BTC annually over five years, aiming to accumulate 1 million BTC.
Earlier, in May, the FIT21 bill was passed by the full House, gaining support from 71 Democrats and 208 Republicans. This bill seeks to enhance the CFTC’s authority, and it includes provisions that would allow cryptocurrencies to be traded on exchanges, even if originally sold as part of an investment contract. FIT21 is now set to be considered by the Senate, but its vote is still pendingю
European Union
The EU implemented the MiCA (Markets in Crypto-Assets) regulations, setting new standards for the euro-backed stablecoin market. These rules led to product adjustments on major exchanges, but cryptocurrency trading in euros remained robust. By November, MiCA-compliant stablecoins accounted for 91% of the market, demonstrating the regulation’s broad acceptance, according to Kaiko data.
Russia
In Russia, a landmark cryptocurrency regulation law was enacted, signaling a formal acknowledgment of digital assets and their circulation within the country’s economy.
China
China’s Supreme Court made strides in clarifying its stance on digital assets. Anti-money laundering (AML) regulations were updated to include virtual asset transactions as a recognized form of money laundering. Furthermore, cryptocurrency ownership was officially deemed legal and classified as personal property.
South Korea
South Korea took steps to strengthen consumer protection in the crypto space. Newly enacted laws require local exchanges to store at least 80% of user deposits in cold wallets, ensuring greater security and segregation from operational funds.
Luxembourg
Luxembourg embraced innovation by passing a blockchain law designed to simplify the issuance of digital investment funds, streamlining processes for investors and issuers alike.
United Arab Emirates
In Dubai, cryptocurrency adoption reached a new milestone as a court ruled that crypto transactions could legally be used for salary payments, highlighting the growing acceptance of digital assets in everyday transactions.
LATAM
In July 2024, Argentina issued a Resolution, allowing corporate capital contributions using cryptocurrencies. Additionally, the country’s Congress approved a tax amnesty law, offering amnesty for undeclared assets.
In October, Uruguay passed a law regulating cryptocurrencies. The law recognizes virtual assets and gives the Uruguayan Central Bank the authority to regulate them. The Central Bank will oversee virtual asset service providers (VASPs), while the Superintendence of Financial Service (SSF) will identify exchanges, wallets, and miners eligible for regulation.
Crypto trends of 2024
Memecoin Mania
Memecoins dominated the 2024 market narratives, according to CoinGecko, a leading cryptocurrency aggregator. This category was the most searched by its users, accounting for 14.5% of total interest.
The craze was further highlighted by the Pump.fun platform, which enables users to create memecoins effortlessly. Since its January launch, over 4.8 million memecoins have been launched via the platform.
DOGE led the pack among traders, buoyed by President-elect Donald Trump’s announcement of a Department of Government Efficiency (D.O.G.E.), spearheaded by Elon Musk and Vivek Ramaswamy. As of December 27, DOGE was trading at $0.3126, marking an impressive 246.11% annual gain.
AI and crypto
In 2024, artificial intelligence and cryptocurrency came together excitingly, creating several key trends. Additionally, AI enhanced security by improving fraud detection systems, with platforms such as SingularityNET providing decentralized solutions to identify anomalies. The integration of AI into dApps also expanded, with projects like Cortex embedding AI into smart contracts, enabling decentralized execution of models and automating various processes.
NEAR Protocol played a key role by supporting scalable, AI-driven applications with its efficient blockchain, making it ideal for processing complex data and computations. Meanwhile, Oasis focused on privacy, providing a secure environment for training AI models on sensitive data without compromising privacy.
Moreover, AI agents emerged as a popular trend, blending the worlds of meme coins and artificial intelligence. These AI-powered chatbots, such as GOAT, promoted cryptocurrencies across social media platforms, automating engagement and driving adoption.
Tap-to-earn games
Early 2024 saw the rapid rise of Tap-to-Earn projects on Telegram, quickly amassing millions of users. Leading the trend were Notcoin (NOT) and Hamster Kombat (HMSTR), with the latter reportedly attracting 300 million players.
These games employed simple mechanics where players “mined” in-game currency with the hope of profiting from future token listings. The surging value of the Notcoin token provided additional motivation. Telegram’s founder Pavel Durov praised the success of Notcoin and confirmed the platform’s commitment to supporting similar projects.
Restaking
Restaking emerged as one of the year’s most significant trends in crypto. This process involves reusing assets already engaged in staking, offering an opportunity for additional income with minimal risk. EigenLayer led the field, amassing billions in user assets. By December, over $27 billion was locked in restaking protocols, according to DeFi Llama.
Real-World Assets (RWA)
Tokenized Real-World Assets (RWA) gained momentum in 2024, driven by BlackRock’s announcement of a fund dedicated to tokenized financial assets. CoinGecko estimates the total RWA token market capitalization at $20.1 billion as of December 28.
RWA refers to the digital representation of tangible or financial assets, such as commodities or real estate, integrated into blockchain ecosystems. Leading players in the space include ONDO, OM, CFG, and POLYX. Tokenization enables ownership or interests in these assets to be traded or utilized in decentralized finance (DeFi).
Other events
- Binance prosecution in the US and its CEO imprisonment: Former Binance CEO Changpeng Zhao served four months in federal prison for violating U.S. anti-money laundering regulations. In November, Zhao agreed to a $50 million fine, while Binance paid $4.3 billion in penalties. Zhao retains a majority ownership stake in the exchange, reportedly valued at 90%.
- Justin Sun’s Art Stunt: On November 20, TRON founder Justin Sun purchased and then ate the infamous “banana taped to a wall” art piece for $6.2 million. The event sparked the creation of memecoins on the Solana blockchain, including Banana Tape Wall (BTW) and Comedian (Ban), which saw significant market gains.
- Sam Bankman-Fried’s Sentence: Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud and embezzlement. Meanwhile, efforts to rebuild the bankrupt exchange were abandoned in January.
- HBO Documentary: HBO released “Money Electric: The Bitcoin Mystery,” exploring the creation of Bitcoin. A developer named Todd was falsely implicated as Satoshi Nakamoto, leading to significant personal challenges and safety concerns. Todd dismissed the claims as sensationalism aimed at marketing the documentary.
Conclusion
2024 was a transformative year for the cryptocurrency market, marked by milestones, regulatory changes, and emerging trends. Bitcoin’s historic price surge and the widespread adoption of crypto-friendly policies are just the beginning of what promises to be an exciting future. As we look to 2025, the momentum and growth in the crypto space will likely continue, driven by both technological innovations and evolving global regulations.
FAQ
What were the most impactful events that led Bitcoin to $100,000 in 2024?
2024 was marked by fundamental events such as the approval of spot Bitcoin ETFs, the Bitcoin halving, and the emergence of a more crypto-friendly political environment in the US following Donald Trump’s victory in the presidential elections, among others.