Key Points
- Bitcoin surged more than 120% in 2024, crossing the $100,000 milestone. The SEC’s approval of spot-price ETFs marked a watershed moment.
- Ether’s 50% rise helped lift the cryptocurrency market’s value to $3.5 trillion.
- Analysts predict bitcoin could reach $200,000 by late 2025.
- MicroStrategy’s shares rose nearly fivefold, mirroring Bitcoin’s success. Rising costs hurt several crypto miners, leading to significant stock losses.
Bitcoin’s remarkable rise in 2024 saw its value double, reaching a historic milestone of $100,000. This surge was driven by the U.S. Securities and Exchange Commission’s (SEC) approval of exchange-traded funds (ETFs) tied to bitcoin’s spot price and optimism surrounding regulatory easing as Donald Trump prepares to return to the White House. The milestone has reignited enthusiasm among cryptocurrency supporters, propelling Bitcoin to its strongest year since its inception.
According to CoinGecko data, Bitcoin’s 120% increase this year and a nearly 50% jump in ether have lifted the overall cryptocurrency market value to approximately $3.5 trillion. Analysts forecast further gains, with projections of bitcoin hitting $200,000 by late 2025.
According to brokerage Bernstein, this growth will solidify Bitcoin’s position as a leading “store of value,” potentially replacing gold and becoming a staple in institutional portfolios and corporate treasury strategies over the next decade.
MicroStrategy, the largest corporate holder of Bitcoin, saw its shares surge nearly fivefold in 2024, mirroring Bitcoin’s success. Recently added to the Nasdaq-100 index, MicroStrategy is increasingly viewed as a proxy for the digital asset. Inspired by its strategy, several smaller companies allocate parts of their cash reserves to Bitcoin.
The cryptocurrency sector’s turning point came in January when the SEC approved the first ETFs tracking bitcoin’s spot price. This milestone in the industry’s mainstream adoption saw major financial institutions like BlackRock and Fidelity introduce these products, bolstering institutional confidence in the crypto market.
Donald Trump’s election victory also significantly boosted the sector. His promise to make the U.S. the “crypto capital of the planet” resonated with advocates who had donated millions to pro-crypto campaigns.
While major crypto stocks like Coinbase, MicroStrategy, and Hut 8 thrived, some miners struggled. Riot Platforms, Marathon Digital, and Bit Digital faced declining margins due to rising energy and hardware costs, losing between 26% and 32% this year.
