Bitcoin experienced a significant rise in 2024, surging over 120% following the U.S. securities regulator's approval of exchange-traded funds (ETFs) linked to its spot price. The cryptocurrency hit a peak of $100,000, driven by market optimism and the anticipation of Donald Trump's return to the presidency. The overall market value of cryptocurrencies jumped to approximately $3.5 trillion, largely due to the increases in Bitcoin and Ether. MicroStrategy, the largest corporate holder of Bitcoin, saw its stock increase nearly fivefold after joining the Nasdaq-100 index. Other smaller companies have also begun investing in Bitcoin, solidifying its position as a primary asset for institutional investment and corporate treasury management. The approval of the first Bitcoin spot ETFs provided the industry with institutional acceptance, attracting traditional finance firms BlackRock and Fidelity. Analysts predict Bitcoin could reach $200,000 by late 2025. The industry's growth was further supported by Trump's crypto-friendly stance, although some crypto mining firms faced challenges due to rising operational costs.
Leave a Reply