12/25/2024–|Last updated: 12/25/202405:41 PM (Mecca time)
The most optimistic cryptocurrency optimists did not expect the Bitcoin market to be as prosperous as it was during 2024, especially after a year of investigations and arrests that included the heads of cryptocurrency platforms, such as the head of the FTX platform, Sam Bankman Fried.
By 129%, the price of a Bitcoin unit jumped from the beginning of 2024 until the beginning of trading on December 25 of this year, recording $98,000 per unit, but it was lower than the historical peak on the 17th of the same month at $105,000.
A year of brilliance
In the following report, Anatolia monitors the most prominent milestones that pushed Bitcoin to record unprecedented historical levels, with a market value exceeding two trillion dollars, outperforming major economies in the world.
In January 2024, the US Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs, offered by major financial institutions such as BlackRock and Fidelity.
This approval represented a pivotal moment, as it gave investors direct exposure to Bitcoin through regulated financial products, while the introduction of these funds legitimized Bitcoin as an asset class, attracting a significant increase in interest from institutions and individual investors.
While in April 2024, Bitcoin underwent its fourth halving event, where the reward for cryptocurrency miners was reduced from 6.25 to 3.125 Bitcoin.
Halving events, which take place approximately every 4 years, are an essential part of Bitcoin’s monetary policy, as they reduce the rate of creation of new Bitcoins and thus affect supply dynamics.
This event received great attention, which contributed to price stability and strengthened Bitcoin’s role as a safe haven in light of global economic uncertainty.
In May 2024, the US House of Representatives passed the Financial Innovation Technology for the Twenty-First Century Act (FIT21), with the aim of creating a comprehensive regulatory framework for digital assets.
This legislation provided the necessary clarity regarding the classification of digital assets and market behavior, which led to providing a safer environment for investors and companies working in the field of digital currencies.
Also, the re-election of Donald Trump as President of the United States in November 2024 led to the adoption of a pro-cryptocurrency stance at the highest levels of government.
The Trump administration has expressed its intention to integrate Bitcoin into economic frameworks, including the creation of a strategic Bitcoin reserve.
These policy trends signaled a shift toward mainstream acceptance and potential integration of digital currencies into national economic strategies.
Last July, Trump participated in the annual Bitcoin miners conference in the United States, which constituted an important point in the recognition of the cryptocurrency market.
Paul Atkins
After winning the elections, Trump announced the nomination of Paul Atkins for the position of Chairman of the US Securities and Exchange Commission, a man who supports cryptocurrencies and their regulation in the American market.
Concurrent with these developments, and throughout 2024, there has been a notable increase in institutional investment in Bitcoin, as companies such as MicroStrategy continue to expand their Bitcoin holdings, with plans to significantly increase authorized shares to purchase more Bitcoin.
These institutional strategies highlighted growing confidence in the long-term value of Bitcoin and its potential role as a treasury reserve asset.
In early December 2024, Bitcoin achieved a historic achievement by surpassing the $100,000 barrier.
This achievement was the result of several factors, including increased institutional adoption, favorable regulatory developments, and growing recognition of Bitcoin’s potential as a hedge against inflation.
While on December 17, the currency recorded its highest historical level, at $105.3 thousand per unit, before a corrective decline at $98.2 thousand in early trading on Wednesday.
