The world’s largest cryptocurrency, bitcoin, has more than doubled its value in 2024, reaching a milestone of $100,000 earlier this month. The surge is attributed to the U.S. Securities and Exchange Commission’s approval for exchange-traded funds (ETFs) tied to its spot price, as well as optimism over easing regulatory hurdles under President-elect Donald Trump.
The sector’s market value has reached roughly $3.5 trillion, with more gains expected in 2025 according to analysts. MicroStrategy, a software firm that holds the largest amount of bitcoin, has seen its shares surge nearly five-fold this year.
Analysts at Bernstein predict that bitcoin will hit a cycle-high of $200,000 by late 2025. The approval of ETFs marked a significant moment for the industry, giving it institutional legitimacy and improved mainstream appeal.
The victory of Trump, who has promised to make the United States “the crypto capital of the planet,” has further bolstered the industry’s position. Crypto advocates donated millions during the election, hoping to elect candidates that favor the sector.
Several other companies have also benefited from the industry-wide rally, including cryptocurrency exchange Coinbase and bitcoin miner Hut 8. However, some crypto miners have struggled due to higher energy and hardware costs, missing out on the year’s gains.
Source: https://www.reuters.com/markets/currencies/bitcoin-more-than-doubles-2024-spot-etf-approval-trump-euphoria-2024-12-31