Bitcoin in 2024: Donald Trump’s re-election, institutional interest turned sceptics investors
The year was marked with ups and downs, with prices rising from as low as $38,505 on January 23 to $96,082 as of Sunday, sparked by Donald Trump’s re-election as US president and large institutional interest.
From a stormy start in January to shattering all-time records, in 2024, Bitcoin evolved from a speculative asset to being part of institutional portfolios, driven by regulatory approvals and a growing global investor audience.
To put this in numbers: Bitcoin was trading at $38,505 in January. In December, the asset had a price tag of $96,082 as of Sunday, December 22.
Bitcoin prices as of the last day of every month in 2024 (excluding December)
There were several reasons behind the asset class touching these highs, including pro-crypto Donald Trump returning to the US presidency, signalling a regulatory leeway for crypto trading in the world’s biggest economy, as well as rising institutional interest.
On January 10, 2024, the US Securities and Exchange Commission (SEC) approved the first US-listed spot Bitcoin exchange-traded funds (ETFs). They allow investors to gain exposure to Bitcoin without owning the cryptocurrency directly.
Financial institutions bank on crypto
Investment company BlackRock launched iShares Bitcoin Trust ETF (IBIT) in January, marking a significant milestone in integrating digital assets into traditional financial markets. In June, the company introduced the iShares Ethereum Trust ETF.
In the meantime, companies like US-listed business intelligence and software firm MicroStrategy have been increasingly shoring up their bitcoin holdings, now totalling 423,650 bitcoins worth $41.5 billion, as of December 9. According to Investopedia, the company now controls over 2% of the 21 million bitcoins that will ever exist.
Additionally, Trump has also expressed intentions to establish a US Bitcoin strategic reserve. This refers to a stockpile of bitcoin held by the US government—similar to strategic oil and gold reserves—which can be used to manage risk and hedge against inflation or economic instability.
Amidst the series of promises made by Trump, bitcoin prices surpassed the $100,000 mark. However, industry experts YourStory spoke to said; there will be a significant impact if the elected government led by Trump fails to implement the promises made to the crypto community.
While the crypto landscape enthusiastically awaits policy changes and regulatory frameworks, experts warn of an impending correction to Bitcoin prices.
“Nothing always goes up, right? I'm sure there will always be a little bit of correction here and there. Again, hope is that even with the correction next year, we are still high,” said Balaji Srihari, Vice President at crypto exchange CoinSwitch. YourStory had reported earlier that the industry is awaiting a correction but does not expect the price fall to be significant.
The Indian crypto landscape
The Indian crypto landscape went through some tumultuous times this year.
In July, the crypto exchange WazirX was hacked and assets worth $234.9 million were transferred to unknown addresses. The investigation is ongoing, and YourStory had exclusively reported that one individual associated with the crime was arrested by the Delhi Police in August.
This opened up conversations surrounding the security of cryptocurrencies and the regulatory framework governing the digital asset. Other cryptocurrency exchanges took to educating their users and strengthening their security systems.
FIU-IND (Financial Intelligence Unit-India), the anti-money laundering agency of India, doubled down on compliance and exchanges began strengthening their compliance framework.
However, as bitcoin prices rose during the months following the incident, much of the attention has been shifted towards the rally.
But as WazirX paused withdrawals, many of its users were unable to cash in on the bitcoin rally. However, the platform earlier in December took steps to expedite the process of reopening its platform so that its users could begin trading and take advantage of the ongoing rally.
Additionally, many international exchanges are now looking at India as an interesting market to set up their exchanges. For example, Bitget is awaiting FIU-IND approval to begin its India operations. Similarly, BitGo and Binance are also looking to open up their services in India.
Altcoin rally is around the corner
Historically, every bitcoin rally is followed by an altcoin rally fuelled by investors wanting to benefit from indications of short-term gains. Altcoins refer to all cryptocurrencies other than Bitcoin such as Ethereum, Solana, and XRP, among others. This rally often occurs after Bitcoin prices cool post a bull run and other coins begin to heat up.
In fact, early indications of the rally are already underway. According to a blog by Mudrex, the Altcoin Season Index, which measures the performance of the top 50 altcoins against Bitcoin over 90 days, rose to 31 points on November 7. Historically, when the index has approached or exceeds 30, it has signalled the early stages of an altcoin rally, the blog notes.
As Trump takes office in a few weeks as a pro-crypto US president, and the initial hints of an altcoin rally surface, 2025 will be closely watched by crypto investors, who expect nothing short of a bonanza.
Edited by Kanishk Singh