Bitcoin had a really remarkable year, filled with technical breakthroughs, historical moments, widespread adoption on Wall Street, and its political usage in the US elections. Here is a recap of the year for the biggest cryptocurrency in the world. Even ETF analysts were surprised by the robust start of trading.
Quick money affected the funds. Once inaccessible to the general public, crypto investors could now purchase shares on stock exchanges that monitored Bitcoin’s price. Bitcoin’s Breakthrough, It was a challenging ride, nevertheless. Throughout the year, Bitcoin was plagued by macroeconomic concerns, government confiscations, and massive crypto volatility.
Bitcoin Exchange-Traded Funds
Over a decade has passed since the SEC said “no” to leading financial managers’ requests to offer US investors a Bitcoin ETF. When world-renowned asset manager BlackRock asked the SEC to approve a Bitcoin exchange-traded fund (ETF) in June 2023, the atmosphere shifted. Investors can gain exposure to various assets without really owning any of them through exchange-traded funds (ETFs). Even those without the space to keep physical gold ingots can now invest in the precious metal through exchange-traded funds (ETFs).
On multiple occasions, the SEC rejected Bitcoin applications because of concern for the manipulation of the cryptocurrency market. Numerous industry observers had high hopes that BlackRock would persuade the regulator. Just as planned. After the SEC gave the go-ahead for Bitcoin ETFs on January 10, trading in the cryptocurrency began the next day. U.S. retail investors currently won’t need Bitcoin exchanges, wallets, or seed words to buy Bitcoin. Unlike what Bitcoin bulls had anticipated, its magnitude and scope were overwhelming.
Bitcoin Climbs to $100k
This past September, the Federal Reserve finally lowered interest rates for the first time since the rate hikes of 2022. The drop was 50 basis points. In order to control inflation occurring after the epidemic, Bitcoin’s Breakthrough, the central bank decided to boost interest rates. A flight to safety from riskier assets like equities and cryptocurrency occurs as interest rates rise, prompting investors to “risk off” and buy dollars instead.
The asset’s price went up after the September and November cuts piqued investors’ attention. Beyond Bitcoin, other cryptocurrency assets also reached new highs as the “risk on” trade resumed. Shortly after Donald Trump was re-elected as president of the United States in early December, the price of Bitcoin surpassed $100,000 for the first time in fifteen years. Many people are hoping that the rules surrounding digital assets will be loosened up soon.
Businesses invested in Bitcoin transactions
By the way, Saylor’s business invested extensively in Bitcoin in 2024, particularly towards the end of the year. The software company’s co-founder proclaimed Bitcoin’s Breakthrough, sending the stock price soaring to new heights. The quadruple-millionaire—whose business held 644,462.
Bitcoins, valued at $42 billion at the time—shared a Bitcoin adoption strategy with the Microsoft board. Following much deliberation, the company decided against purchasing Bitcoin. Inflation protection was the driving factor for the acquisition of the asset by other small businesses, such as the Japanese MetaPlanet and the American firms Semler Scientific and Cosmos Health.
Summary
ETF approval and a price gain above $100,000 were highlights of Bitcoin’s 2024 year. After years of rejections, the SEC approved Bitcoin ETFs, allowing mainstream investors to access Bitcoin without owning it. Bitcoin’s price rose due to investor optimism and Federal Reserve interest rate reduction. Bitcoin’s reputation as an inflation hedge was further legitimized by big investments in companies like Michael Saylor’s. Bitcoin grew all year despite macroeconomic concerns and crypto volatility.
