Bitcoin, the world’s most well-known cryptocurrency, shattered records in December 2024, reaching an unprecedented $100,000 milestone. The surge marked a more than 120% gain for the digital asset in a single year, driven largely by the U.S. Securities and Exchange Commission’s (SEC) approval of exchange-traded funds (ETFs) tied to Bitcoin’s spot price and renewed optimism surrounding easing regulatory hurdles.
The cryptocurrency’s remarkable ascent has rekindled enthusiasm among investors and supporters alike. The approval of Bitcoin spot ETFs by the SEC in January 2024 was hailed as a landmark moment for the industry, granting the sector long-sought institutional legitimacy. Financial giants such as BlackRock and Fidelity quickly launched these products, further solidifying Bitcoin’s position in mainstream finance.
Microstrategy, the software firm renowned for its massive Bitcoin holdings, emerged as one of the year’s biggest beneficiaries. Its stock surged nearly fivefold in 2024 and now serves as a barometer for Bitcoin sentiment. Microstrategy’s recent inclusion in the Nasdaq-100 index underscores its growing prominence, with other companies following its lead by allocating parts of their cash reserves to Bitcoin.
“We expect Bitcoin to emerge as the new-age premier ‘store of value’ asset, eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management,” analysts at Bernstein wrote in a client note earlier this month.
2025 Forecasts and Industry Optimism
The optimism surrounding Bitcoin shows no signs of waning. Analysts project that the cryptocurrency could hit a cycle-high of $200,000 by late 2025. The sector’s overall market value has swelled to $3.5 trillion, with Ethereum, the second-largest cryptocurrency, also experiencing a nearly 50% jump in 2024.
Bitcoin’s rally has been further bolstered by Donald Trump’s return to the White House. The president-elect has pledged to make the United States the “crypto capital of the planet,” a promise that has resonated with advocates who contributed millions to pro-crypto campaigns during the election.
Winners and Losers
While Bitcoin and a handful of industry players have thrived, others have struggled to keep pace. Major winners of 2024 include Microstrategy, crypto exchange Coinbase, and bitcoin miner Hut 8, which benefited from the rally.
However, not all players have enjoyed similar success. Several crypto miners, including Riot Platforms, Marathon Digital, and Bit Digital, suffered losses ranging from 26% to 32%, grappling with rising energy and hardware costs that eroded profit margins.
As Bitcoin enters 2025 on a high note, analysts and investors remain divided on its long-term trajectory. With the advent of spot ETFs and growing institutional interest, the cryptocurrency continues to solidify its place in global finance, setting the stage for another potentially transformative year ahead.
