Bitcoin had an unprecedented year, from technological advances and historic milestones to Wall Street adoption and political use in the U.S. elections. The world’s largest crypto’s year in review.
Bitcoin ETFs, a decade in the waiting
Leading financial managers wanted to provide a Bitcoin ETF to US investors, but the SEC said “no” for a decade.In June 2023, BlackRock, the world’s largest asset management, requested a Bitcoin ETF from the SEC, changing the climate. ETFs give investors asset exposure without buying and holding. For years, gold ETFs have let investors invest in gold without storing bars or coins.
For fear of crypto market manipulation, the SEC repeatedly denied Bitcoin applications. Industry watchers thought BlackRock would convince the regulator. So it was. The SEC approved Bitcoin ETFs on January 10, and 10 traded the following day. Retail investors in the U.S. might now invest in Bitcoin without exchanges, wallets, or seed words. It was huge and had a broader impact than Bitcoin bulls predicted.
All-time highs
No one—not even ETF analysts—expected such a strong start when trading began. Fast money impacted funds. Investors previously locked out of the world of crypto investing could suddenly buy shares on stock exchanges that tracked the price of Bitcoin. But the ride was hard. Bitcoin suffered from macroeconomic issues, government confiscations, and big crypto fluctuations all year.
Bitcoin struggled after reaching a record high in March as investors shunned risk assets due to geopolitical concerns, notably in the Middle East. Bitcoin struggled to break $60,000 owing to Iran-Israel tensions and missile launches. In June, the German government sold hundreds of millions of dollars of confiscated Bitcoin, adding to selling pressure.
Fed Rate Cuts Drive Bitcoin to $100K
Finally, in September, the Federal Reserve cut interest rates by 50 basis points, its first cut since rapidly hiking rates in 2022. The central bank raised rates to curb post-pandemic inflation. Higher interest rates cause investors to “risk off” and run to the U.S. dollar from stocks and other riskier assets like crypto.
The September and November cuts increased investor interest in the asset, resulting in a price increase. The “risk on” trade returned, pushing crypto assets beyond Bitcoin to record highs. Bitcoin reached $100k for the first time in 15 years in early December, following the reelection of Donald Trump as U.S. president. Investors anticipate a more relaxed regulatory environment for digital assets.
Companies bought bitcoin
Speaking of Saylor, the Bitcoin preacher’s company heavily bought Bitcoin in 2024, especially at the conclusion. The software company’s stock rose to record highs, and its co-founder preached Bitcoin’s ability to save companies. The billionaire—whose company possessed 444,462.
Bitcoins worth $42 billion at the time—shared a Bitcoin adoption strategy with the Microsoft board. The corporation chose not to buy Bitcoin after considering it. Other tiny companies, including MetaPlanet from Japan and Semler Scientific and Cosmos Health from the U.S., purchased the asset as an inflation hedge.
