Bitcoin emerged as the best-performing asset class in 2024, buoyed by the launch of exchange-traded funds (ETFs) and increased investor interest.
The cryptocurrency more than doubled its value, starting the year in the $40,000 range and trading near $94,000 by December. Ether also posted significant gains, rising nearly 50% to trade at approximately $3,355.
The most notable surge occurred after the U.S. presidential election in November. Bitcoin reached an all-time high of over $108,000 by mid-December, driven by optimism over President-elect Donald Trump’s victory and expectations for greater regulatory clarity under his administration.
However, prices eased toward the year’s end, with Bitcoin declining in December amid slower-than-expected Federal Reserve rate cuts and profit-taking by investors.
The year began with strong momentum as Bitcoin ETFs launched in January, attracting tens of billions of dollars in investments. The iShares Bitcoin Trust ETF (IBIT) accumulated more than $50 billion in assets, offering a streamlined way for investors to access the cryptocurrency.
Ether ETFs debuted in July, garnering over $2 billion in inflows within six months, though demand remained lower than for Bitcoin ETFs.
Cryptocurrency-related stocks also saw strong performance. MicroStrategy rose over 360% and was added to the Nasdaq 100 index in December, while Coinbase and Robinhood gained 43% and 196%, respectively. However, mining stocks, including Mara Holdings and Riot Platforms, faced double-digit losses due to the impact of Bitcoin’s halving, which reduced block rewards and impacted miners’ profitability.
Despite volatility and challenges, 2024 marked a year of significant growth for Bitcoin and the broader cryptocurrency sector, setting a strong foundation for continued adoption and market expansion in the coming year.
