Bitcoin value has doubled in a year - Reuters
Kyiv • UNN
In 2024, bitcoin grew by more than 120%, reaching a historic high of $100,000. The growth was fueled by the approval of ETFs in the United States and Trump's return to power, which reduced regulatory barriers.
In 2024, the value of bitcoin more than doubled, boosted by the US market regulator's approval of exchange-traded funds tied to its spot price, as well as investor optimism after Donald Trump returned to the White House, which reduced regulatory barriers, UNN writes with reference to Reuters.
At the beginning of the month, bitcoin hit a historic $100,000 mark, creating a stir among cryptocurrency supporters as an asset class.
According to CoinGecko, bitcoin has grown by more than 120% this year, and ether, the second largest cryptocurrency, has jumped by almost 50%. This has contributed to an increase in the market capitalization of the cryptocurrency sector to approximately USD 3.5 trillion.
Analysts predict further growth in this market until 2025.
"We remain convinced that $100,000 is not the last milestone. We expect bitcoin to hit a cycle high of $200,000 in late 2025," analysts at brokerage Bernstein wrote in a note to clients earlier this month. MicroStrategy (MSTR.O), a software firm that has become the world's largest corporate holder of bitcoin, increased its shares almost fivefold in 2024.
The stocks that recently entered the benchmark Nasdaq-100 index are now perceived as an indicator of sentiment toward bitcoin, and their dynamics are closely linked to the popularity of this digital asset. Some smaller companies are following this trend by investing part of their reserves in bitcoin.
"We expect bitcoin to become a key asset of the new era as a store of value, gradually replacing gold over the next decade and taking a permanent place in institutional investors' portfolios," the experts say.
Optimism around bitcoin increased significantly in January, when the US Securities and Exchange Commission approved the first ETFs tied to the spot price of bitcoin. This event was a turning point for the entire cryptocurrency industry, providing it with institutional legitimacy and attracting the attention of a wider audience. Recognized financial market players, such as BlackRock and Fidelity, also launched their own bitcoin-focused products.
The return of Donald Trump to the White House, who promised to make the United States the "crypto capital of the world," further strengthened the position of the cryptocurrency sector. During the election campaign, cryptocurrency supporters donated millions of dollars to support candidates who advocated for the development of the industry.
In general, most cryptocurrencies benefited from the industry boom. Among the biggest winners in 2024 were MicroStrategy, crypto exchange Coinbase, and bitcoin miner Hut 8.
At the same time, some cryptocurrency miners have faced difficulties due to rising energy and hardware costs, which have led to a reduction in margins. Shares of companies such as Riot Platforms, Marathon Digital, and Bit Digital lost between 26% and 32% over the year, missing out on the growth seen in the sector.
Recall
Bitcoin's record growth at the end of 2024 has weakened. In December, bitcoin fell by 3.2% after hitting a high of $108,315, the first decline since August.
