As 2024 draws to a close, crypto investors are making huge gains, with Bitcoin outperforming traditional investments like stocks, bonds, and gold, just as it did in 2023.
Bitcoin was the best performing investment in 2024, rising 140% in just 12 months. It started the year at about $42,000 to $43,000, but by December it had soared to an all-time high of $108,000. This return far outpaced the Nifty50 index, which rose about 10%, and gold, which rose more than 20%.
What triggered the rise in Bitcoin?
Several major events contributed to Bitcoin's rise this year. In January, the SEC approved the first Bitcoin ETF, making it easier for people to invest in Bitcoin. Then, in July, Donald Trump spoke at a Bitcoin conference, and in November, Trump's victory in the US presidential election gave Bitcoin another big boost.
crypto tracker
Adding to this momentum, Trump appointed Paul Atkins, a well-known cryptocurrency advocate, as SEC Chairman. The move hinted at the possibility of favorable regulations and boosted investor optimism.
Another major factor is that the US Federal Reserve (Fed) has cut interest rates. The Fed cut interest rates by 50 basis points in September for the first time in four years. It then cut interest rates by another 25 basis points in November and December. Lower interest rates typically prompt investors to direct their capital to riskier assets such as Bitcoin.
World politics also plays a role in the success of cryptocurrencies. Russian President Vladimir Putin criticized how the United States uses the dollar as a global currency. This has forced other countries to look for alternatives like Bitcoin, he said. “For example, who could ban Bitcoin? No one,” Putin recently said, showing support for the cryptocurrency.
Europe has also softened its stance on cryptocurrencies, with Poland and Italy reviewing their crypto tax regimes, and the EU moving forward with regulatory frameworks such as MiCA. Even China, previously critical of cryptocurrencies, has shown signs of a more open approach.
Soaring altcoins
While Bitcoin has gained traction, many smaller cryptocurrencies known as altcoins have also made big gains. Tokens like Solana (SOL), Ethereum (ETH), Ripple (XRP) and Cardano (ADA) hit near all-time highs, while lesser-known altcoins like PaLM AI and MANTRA soared over 1,50,000% I did.
“Aside from Bitcoin, other tokens are also experiencing strong growth, with XRP and SOL hitting new all-time highs, indicating the maturity of the digital asset environment,” said Balaji Srihari, vice president of CoinSwitch. said.
As 2024 comes to a close, the crypto market has proven its resilience and growth potential. This year has been a turning point for digital assets, with Bitcoin surpassing $100,000 and major altcoins hitting record highs. As regulatory clarity and institutional adoption increases, 2025 could bring even greater changes to the crypto world.
Experts predict the following for 2025:
Edul Patel, CEO of Mudrex
The strong momentum from 2024 is expected to continue until 2025. Regulatory clarity will increase individual adoption, and Solana and Ripple's new ETFs will increase inflows to institutional investors. Given these favorable conditions, Bitcoin could reach $200,000 by the end of 2025, ushering in a new era in the market.
Balaji Srihari, Vice President, CoinSwitch
In 2024, India will emerge as a global leader in cryptocurrency adoption, and 2025 promises even greater potential. With clearer regulation and accelerating mainstream integration, the evolution of cryptocurrencies in India and other countries will shape the future of global finance.
Bitget CEO Gracie Chen
The cryptocurrency industry will evolve significantly in 2025, with AI technology complementing trading strategies and improving user experience. With increasing institutional trust and regulatory changes, these changes could propel Bitcoin to new heights.
Anish Jain, WadzChain Founder and CEO
The growing demand for tokenization solutions will drive opportunities across various sectors. In 2025, diversification in tokenization will allow companies to effectively target new market segments and help shape a more inclusive and prosperous financial future.
Avinash Shekhar, Co-Founder and CEO, Pi42
Historical trends suggest that the crypto market typically peaks the year after the Bitcoin halving, making 2025 a hot year. However, as we have seen in previous cycles, this peak is often followed by an extended bear market. For now, those who persevered through the challenges of 2024 are beginning to reap their rewards. Strategic positioning and understanding the cyclical nature of cryptocurrencies can make a big difference as the market moves forward.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of Economic Times)
