As 2024 draws to a close, it’s time to reflect on a year that has been nothing short of transformative for the cryptocurrency market. The highs and lows of the past 12 months have shaped a dynamic landscape for investors and traders, leaving 2024 as a year to remember.

One of the standout moments of 2024 was the U.S. Securities and Exchange Commission’s (SEC) approval of multiple Bitcoin spot Exchange-Traded Funds (ETFs) in January. This marked a turning point, providing investors with direct exposure to Bitcoin through traditional financial markets. The implications have been far-reaching:

• Legitimacy and accessibility: Cryptocurrency investments gained increased legitimacy, bridging the gap between traditional finance and digital assets.
  
• Institutional adoption: Bitcoin’s presence expanded significantly, with governments, investment funds, institutions, and individuals now participating more actively than ever before.
  
• Integration into broader financial instruments: ETFs became integral to larger investment funds. For instance, Fidelity’s inclusion of the VanEck BTC ETF in their All-in-One World fund allowed millions of Americans to gain exposure to Bitcoin through their 401k and Roth IRA accounts, pushing daily traded ETF volumes into billions.
  

April 2024 saw Bitcoin’s fourth halving event, reducing block rewards from 6.25 BTC to 3.125 BTC. Historically, halvings have spurred bullish market cycles, and this year followed suit. After an initial dip post-halving, Bitcoin rallied, aligning with the U.S. election cycle. This event set the stage for what appears to be another 500-day rally, potentially lasting into late 2025.

MicroStrategy continued its aggressive accumulation strategy, surpassing 300,000 BTC in corporate holdings by December 2024. Under the leadership of Michael Saylor, the company exemplified Bitcoin’s potential as a long-term treasury asset. By leveraging a strategy of issuing low-interest debt to acquire Bitcoin, MicroStrategy demonstrated the power of long-term investment in driving both corporate growth and market confidence.

The election of President Donald Trump brought a pro-crypto agenda to the forefront. Promises of reduced regulatory enforcement and support for the cryptocurrency industry have already boosted market optimism. Speculation about a potential U.S. Strategic Bitcoin Reserve only adds to the excitement for 2025.

The crowning achievement of 2024 was Bitcoin, reaching an all-time high of over $100,000 in December. This milestone symbolised the growing maturity and acceptance of Bitcoin as both a speculative and long-term asset. For institutional traders and individual investors alike, this price point underscored Bitcoin’s staying power in the global economy.

While 2024 was monumental, there are several key areas to watch in the coming year:

• Regulation: The UK’s roadmap for crypto-asset business regulation will bring clarity and potentially align its standards with other leading markets like the U.S. and Europe. This includes consultations on custody, trading, DeFi, and staking.
  
• Taxation: With a global push for clearer tax reporting standards, the UK’s approach will be crucial for investor confidence. A balanced approach that avoids taxing unrealised gains could make the UK a favourable environment for crypto.
  
• Bitcoin loans and collateralisation: The next wave of innovation could centre around using Bitcoin as collateral for various loans, extending beyond advanced trading strategies to real-world applications such as property and business investments.
  

2024 has been a rollercoaster ride for the cryptocurrency market, leaving seasoned investors and new entrants alike with much to celebrate and even more to anticipate. As we close the chapter on this remarkable year, we look forward to the opportunities and challenges that 2025 will bring.

From everyone at OANDA coinpass, we wish you a prosperous New Year.

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