Bitcoin dominates 2024 as the top investment asset by far

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Cryptopolitan2024/12/31 19:33

By:By Jai Hamid

Share link:In this post: BTC was the best investment of 2024, starting the year at $40,000, peaking at $108,000, and ending near $95,500 thanks to ETFs and Trump’s win. Bitcoin ETFs pulled in over $50 billion, while Ethereum ETFs launched in July and added another $2 billion to the crypto frenzy. Mining stocks like Mara Holdings struggled after the Bitcoin halving, but companies like MicroStrategy soared, with its stock up 388%.

Bitcoin owned 2024. It crushed every other investment class, climbed to insane heights, and proved once again why it’s king. Starting the year around $40,000, it more than doubled, hitting $108,000 in mid-December. How crazy is that?

The launch of Bitcoin ETFs was a big reason behind the surge. These funds made it easier for investors to get in on the action. BlackRock’s iShares Bitcoin Trust ETF (IBIT) pulled in over $50 billion in 12 months, forcing Bloomberg to dub it the “greatest launch in ETF history.”

And Bitcoin wasn’t the only winner. Ethereum ETFs hit the market in July, attracting $2 billion in just six months. Ether itself has gained nearly 50% this year, trading at about $3,400 as of press time.

The Trump effect and Bitcoin’s biggest moments

The U.S. presidential election was the tipping point. Donald Trump’s win over Kamala Harris lit a fire under Bitcoin. Investors saw Trump’s administration as crypto-friendly, and the market reacted.

But the price action wasn’t all smooth sailing. December was rough. Profit-taking hit the market hard, and expectations of very few Federal Reserve rate cuts in 2025 didn’t help. Bitcoin turned red for the month, but even then, its yearly performance outshined everything else.

See also ProShares proposes Bitcoin hedge ETFs linked to S&P 500, Nasdaq 100, and gold

Wall Street wasn’t left behind either. The S&P 500 rose 23% in 2024, while the Dow and Nasdaq set so many new records. AI, strong economic data, and hopes for deregulation drove those gains. Still, Bitcoin dwarfed them all, proving it’s in a league of its own.

The April halving reduced block rewards for miners, and the effect was immediate. Mining stocks like Mara Holdings and Riot Platforms struggled, logging double-digit losses for the year. Miners faced tough conditions, with reduced rewards squeezing profits.

But not everyone in the crypto space felt the pinch. Companies tied closely to Bitcoin saw massive gains. MicroStrategy, known for holding a ton of Bitcoin, skyrocketed 388% this year. Coinbase rallied 47%, while Robinhood went up an eye-popping 200%.

MicroStrategy even got added to the Nasdaq 100 index, proving its Bitcoin bet paid off big, though it’s also ending the year with huge losses. Still, the company bought thousands of more Bitcoins just yesterday.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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