December 30, 2024
2024's Top 3 Moments in Crypto
Dear Subscriber,
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| By Marija Matic |
From groundbreaking ETFs to high-stakes political drama, 2024 has been full of market-shaking events in the world of crypto, ones that will echo throughout the space for years to come.
Whether you’re a seasoned investor or a newcomer, this year was a roller-coaster ride. And I believe it’s worth taking a moment to recap the top three moments that moved the market.
2024 Highlight No. 1: Spot ETFs Became a Bullish Game Changer
Undoubtedly, one of the most significant events in the crypto space this year was the approval of Bitcoin (BTC, “A”) spot ETFs.
After years of anticipation and delays, the U.S. Securities and Exchange Commission gave the green light for Bitcoin spot ETFs on Jan. 10, 2024.
Initially, the market responded with a short-lived correction. But that was soon followed by a massive bullish surge.
The approval of these financial products provided retail and institutional investors with an easy, regulated way to gain exposure to Bitcoin without needing to manage private keys or navigate the complexities of crypto exchanges.
This moment wasn’t just a win for Bitcoin — it was a watershed event for the entire cryptocurrency industry. The ETF effect was undeniable, pushing Bitcoin’s value above $60,000 for the first time in years and attracting institutional capital from traditional finance giants who had previously been reluctant to dive in.
As of now, the 12 spot bitcoin ETFs collectively surpassed $106 billion in assets under management, marking one of the most successful ETF launches in history.
BTC Spot ETFs now own more Bitcoin than even its creator.
Source: CNBC.
Click here to see full-sized image.
For many, this was the long-awaited validation of Bitcoin’s place in the global financial system. But it wasn’t all smooth sailing.
While Bitcoin saw a bullish rally post-ETF approval, Ethereum’s (ETH, “A-”) spot ETF debut was a different story.
Despite the hype surrounding the launch of Ethereum’s spot ETF — a significant milestone for ETH as well — the market reaction was less than stellar. Ethereum investors were eager for a continuation of the bullish momentum seen with Bitcoin, but the announcement led to a classic "sell the news" moment.
Ethereum’s price corrected sharply after the launch, reaching the year’s bottom at $2,100 two weeks later. Some analysts speculated that the market had already priced in the positive news, leaving little room for further upside. Others pointed to broader macroeconomic conditions and rising skepticism surrounding the lack of approval for ETH staking services.
Regardless, Ethereum’s spot ETF debut didn’t bring the sustained bull run that many had expected, but it still marked an important step forward for the network.
Although the initial reaction was disappointing, Ethereum's spot ETF still marked a major milestone for the network. It provided tangible validation for ETH as a legitimate asset class within traditional finance and opened the door for increased institutional involvement.
In the months following the launch, the market began to show renewed interest. Ethereum ETF inflows accelerated significantly in December, reaching the lion’s share of the $2.68 billion in total inflows since inception.
With over 20 consecutive days of inflows leading up to the end of the year, it’s clear that the market is slowly but steadily gaining confidence in Ethereum ETFs.
Looking ahead, we can expect inflows to dramatically increase in 2025 when the new Trump administration issues more crypto-friendly rules and regulations to further boost the digital asset class in general.
2024 Highlight No. 2: Bitcoin’s Latest Halving
Every four years, the Bitcoin halving event is one of the most anticipated moments in the crypto calendar. Historically, these events have been followed by significant price increases as the supply of new Bitcoin entering the market becomes scarcer.
In April 2024, Bitcoin experienced its latest halving, reducing the reward for miners from 6.25 BTC to 3.125 BTC per validated block of transactions.
However, while the long-term bullish implications of the halving were clear, Bitcoin’s price didn’t immediately reflect this anticipated surge. Instead, Bitcoin underwent a correction in the weeks following the event, sparking concerns that the event had already been priced in by the market.
Despite this short-term volatility, the halving remains a pivotal moment in Bitcoin's journey, with its impact extending far beyond just price.
As Bitcoin’s supply continues to tighten, the effects of the halving are becoming more pronounced, and the market's focus is shifting toward the growing supply squeeze.
The narrative surrounding Bitcoin’s scarcity is stronger than ever, and as global demand for Bitcoin increases — driven by institutional adoption, ETF inflows and broader financial integration — the halving's long-term effects are expected to fuel further price appreciation.
2024 Highlight No. 3: Regulatory Progress and Challenges
The regulatory landscape in 2024 was as dynamic as ever.
While the SEC’s approval of Bitcoin and Ethereum ETFs marked a significant step forward for regulatory clarity, the year also saw ongoing debates about how to classify and regulate cryptocurrencies. Governments around the world grappled with how to balance innovation with consumer protection, leading to a patchwork of regulations that, while moving in the right direction, often caused confusion and market uncertainty.
In the U.S., lawmakers pushed for clearer guidelines on stablecoins, with some proposing legislation to ensure they are backed by real-world assets and subject to appropriate oversight.
Meanwhile, in the European Union, the Markets in Crypto-Assets, or MiCA regulation came into effect, offering a rigid and somewhat stiff approach to crypto regulation. MiCA's stringent rules introduced significant compliance burdens. But the trade-off was a unified framework across EU member states.
While regulatory progress was slow in some regions, these developments paved the way for a more structured and predictable future for crypto markets.
Looking Ahead: A New Year of Opportunity
Despite the occasional correction and market volatility, the crypto industry continues to show incredible resilience.
As we enter 2025, the underlying fundamentals of blockchain technology remain strong. with institutional adoption growing, new financial products on the horizon and ongoing innovation in areas like DeFi, tokenization of Real-World Assets and decentralized identity.
In short, the future looks brighter than ever for crypto!
The approval of Bitcoin and Ethereum ETFs was just the beginning of what promises to be a long-term trend toward greater mainstream adoption.
The halving events, political developments and technological breakthroughs we’ve seen in the past year all point toward a future where cryptocurrencies become an integral part of the global financial system, and even part of national reserves.
As we bid farewell to 2024, the lessons learned this year will help guide the next wave of innovation and adoption, and with more and more people embracing blockchain technology, the crypto community is poised to thrive.
So, here’s to the future — to a new year of opportunity, growth and breakthroughs!
May 2025 be another year of progress, where the promises of decentralized finance, borderless transactions and financial freedom become an even more tangible reality for all.
Best,
Marija MatiΔ
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