Why 2024 was Bitcoin’s Year
2024 was a transformative year for Bitcoin, cementing its status as a mainstream financial asset and cultural phenomenon. Key events, from groundbreaking regulatory milestones to unprecedented levels of institutional and political engagement, propelled Bitcoin to new heights of adoption and value.
The convergence of these factors not only boosted Bitcoin’s price but also reshaped its perception — from a fringe asset to a cornerstone of the global financial system. Here, we dive into the critical developments that defined Bitcoin’s remarkable journey throughout 2024.
Launch of Spot Bitcoin ETF
Arguably the biggest development for Bitcoin in 2024 was the SEC’s approval of spot Bitcoin ETFs in January, including offerings from major financial institutions like BlackRock and Fidelity. 11 ETFs received green lights from the SEC, enabling investors to gain exposure to Bitcoin without directly purchasing it. In addition, BlackRock’s CEO Larry Fink, who had previously been skeptical of Bitcoin, made headlines by becoming one of its strongest advocates.
This marked a significant shift in Bitcoin’s mainstream acceptance and accessibility to traditional investors, leading to record inflows — $1.9 billion within just three days of trading. The excitement around these ETFs played a crucial role in driving Bitcoin’s rally throughout the year.
Bitcoin Enters Politics
The 2024 U.S. presidential election became a pivotal moment for Bitcoin, particularly with the election of Donald Trump. His campaign actively embraced cryptocurrency, even accepting donations in Bitcoin.
Among others, Bitcoin regulation became a surprisingly bipartisan issue, though with different approaches. The debate wasn’t just about whether to regulate crypto anymore, but how to do it while keeping American competitiveness in mind, especially given other countries’ advancement in digital asset frameworks.
Trump’s administration signaled a more favorable regulatory environment for cryptocurrencies, with plans to nominate Paul Atkins, a known crypto advocate, as the chair of the US Securities and Exchange Commission (SEC). This shift in leadership was welcomed by many in the crypto community, who anticipated less stringent regulations and greater legitimacy for digital assets.
Following his victory on November 5, Bitcoin surged past the $100,000 mark for the first time, reaching an all-time high of $103,713 shortly after the election results were announced. It ultimately reached another new ATH of over $108,000 on December 17. This represented an increase of more than 50% since Trump’s election victory.
Growing Institutional Adoption
Beyond spot Bitcoin ETFs, which cleared the way for institutions to easily gain exposure to Bitcoin, institutional adoption of Bitcoin has been a rather fascinating aspect of Bitcoin growth to witness, especially for OGs who always saw their favorite crypto as an anti-establishment asset of sorts.
With Microstrategy at the helm (which, by the way, has outperformed every S&P 500 company since adopting Bitcoin, including Bitcoin itself), traditionally conservative financial institutions such as pension funds in US, UK and even Australia are starting to allocate small portions of their portfolios to Bitcoin. BNY Mellon Bank itself received SEC approval to expand its Bitcoin and custody services beyond ETFs.
The Fourth Halving
The April 2024 halving was the fourth in Bitcoin’s history. For context, halvings occur every 210,000 blocks (roughly every four years) and cut the mining reward in half. The reward was set to decrease from 6.25 to 3.125 bitcoins per block. This event was particularly interesting because it was the first halving to occur in an environment with significant institutional involvement.
In Conclusion
By the end of 2024, Bitcoin had firmly established itself as a leading force in global finance and a prominent topic in political discourse. Milestones like the approval of spot Bitcoin ETFs, growing institutional adoption, a favorable regulatory shift, and the impact of the fourth halving highlighted the evolving narrative around Bitcoin. These events demonstrated that Bitcoin is no longer just a speculative asset but a transformative technology reshaping how the world thinks about money, investment, and governance. As Bitcoin heads into 2025, its trajectory seems poised to influence markets, policies, and society like never before.
