From ETFs to Trump’s Triumph: How 2024 Redefined Crypto’s Future

2024 has been a transformative year for the cryptocurrency industry, defined by unprecedented growth, regulatory breakthroughs, and a shift toward mainstream adoption.

The market capitalization of digital assets surged by 95.5%, reaching $3.37 trillion by the end of 2024, a testament to the growing confidence and interest in cryptocurrencies. Bitcoin, the market’s bellwether, led the charge with a 140% gain, leaving traditional assets like equities, bonds, and even gold far behind. Starting the year at around $42,000, Bitcoin’s price rocketed to an all-time high of $108,000, captivating investors and sparking a renewed sense of optimism in the sector.

The driving forces behind this growth were manifold: the approval of spot Bitcoin ETFs, which opened the door for everyday investors to gain exposure to crypto through traditional brokerage accounts, played a key role in unlocking new capital. Meanwhile, Bitcoin’s resurgence, spurred by Donald Trump's electoral victory, further galvanized the digital asset community, particularly as he pledged to position the U.S. as a global crypto leader. Regulatory developments in Europe and growing global political support also paved the way for cryptocurrencies to gain greater acceptance across borders, with countries like Russia and China reevaluating their stance on digital assets.

In addition to Bitcoin’s triumphs, the year saw the rise of other notable trends. The return of memecoins and platforms like pump.fun, and the development and growth of asset tokenization exemplified the expanding possibilities of crypto beyond traditional use cases. Nation states and companieslike MicroStrategy made headlines with their Bitcoin acquisitions, while the emergence of AI and blockchain integration set the stage for new technological frontiers. All these factors came together to propel the industry into the mainstream in a way not seen before. Here are some of the top stories that defined a banner year.

January: Spot crypto ETFs gain SEC approval

The approval of 11 spot crypto ETFs by the SEC in January was a watershed moment for the crypto industry, allowing average investors to gain exposure to crypto without needing to directly buy and store digital assets, and to invest through traditional brokerage accounts. By all accounts, they've been a hit. As of December 27, Bitcoin ETFs have seen almost $36 billion in net inflows.

March: SBF sentenced

FTX founder Sam Bankman-Fried was sentenced to 25 years in jail for stealing $8 billion from the exchange's customers. Stating SBF showed no remorse, US District Judge Lewis Kaplan said, "He knew it was wrong. He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right."

March: Ethereum's upgrade

Ethereum's Dencun upgrade ushered in a new era of functionality and, most importantly, scalability for the dominant smart contract platform.

April: Bitcoin halving

At block height 840,000, the BTC block reward was reduced from 6.25 BTC to 3.125 BTC. This completed the fourth halving event for Bitcoin, cutting its supply by half again as it inches ever closer to the 21 million mark.

May: CZ goes to jail

Initially facing a 36-month prison sentence, Binance founder Changpeng Zhao was sentenced to just 4 months behind bars. He reemerged at Binance Blockchain Week in Dubai at the end of October, greeted by an enthusiastic crowd. The exchange said its now focusing on compliance and global expansion.

July: Mt Gox begins repayments

After years of legal battles and restructuring, the Mt. Gox trustee began issuing repayments to the affected creditors in late 2024. The repayment process was closely watched by the crypto community, both for its symbolic significance and its potential market impact. With over 140,000 BTC to be repaid to creditors, some speculated that these assets could flood the market, potentially causing downward pressure on Bitcoin’s price. However, as repayments were spread out over time, the actual impact on the market was less dramatic than many had feared.

September: Fed rate cuts boost crypto

For the first time in more than four years, the US central bank lowered borrowing costs by 50 basis points. Global shares rose, and Bitcoin reached a three-week high.

November: Trump's victory

As Donald Trump, who marketed himself as a crypto-friendly candidate, was declared the winner of the 2024 US presidential election, beating Democrat candidate Kamala Harris. Global markets reacted swiftly, and nowhere was the shift more pronounced than in the cryptocurrency sector. Among Trump's pledges was to establish a national Bitcoin reserve and to fire SEC chair Gary Gensler.

December: Bitcoin crosses the $100,000 mark

Bitcoin crossed the symbolic $100,000 threshold for the first time in history, marking a monumental milestone for the cryptocurrency market. This achievement was symbolic not only of Bitcoin's enduring status as the leader of the digital asset space but also of the broader maturation of the industry as a whole. For many, Bitcoin’s rise to $100,000 was seen as the clearest signal yet that crypto is here to stay.

December: Microstrategy joins Nasdaq

MicroStrategy qualified to join the Nasdaq-1o0 Index following a series of sizeable Bitcoin purchases. Year-to-date, MicroStrategy's stock price is up almost 500%, even outperforming Bitcoin's 140% surge as it continues to break new highs. As of December 8, MicroStrategy holds about 423,650 BTC, purchased at a cost of $25.6 billion. With Bitcoin recently surpassing $100,000, this investment is now valued at approximately $42.43 billion.

As we close the books on 2024, it's clear that cryptocurrency has entered the mainstream and is an entrenched part of the global financial ecosystem. With momentum building from regulatory approvals and growing institutional interest, the crypto industry looks poised for even more evolution in the year ahead.

From Bitcoin's continued rise to game-changing events like the approval of spot crypto ETFs and the political reshaping under Donald Trump's administration, 2024 has set the stage for the next chapter in the digital asset revolution. Looking forward, the industry's trajectory will likely continue to intertwine with global political dynamics, technological innovation, and shifting investor sentiment, all of which will keep crypto firmly in the spotlight in 2025 and beyond.

As we enter the new year, the entire Blockhead team would like to take a moment to thank our readers for their continued support. We are committed to continue bringing you the latest insights, updates, and in-depth analysis from the world of crypto. We look forward to navigating another exciting year of growth and innovation alongside you. Happy New Year, and here’s to a great year ahead!