Bitcoin price doubles in 2024 after ETF approval, Trump euphoria

Written by Manya Saini

(Reuters) – Bitcoin’s value more than doubled in 2024, driven by U.S. markets regulator approval of exchange-traded funds linked to its spot price, and optimism about easing regulatory hurdles as Donald Trump returns to the White House.

The world’s largest and most popular cryptocurrency reached $100,000 earlier this month, a milestone that ignited “animal instincts” among supporters of the once nascent asset class.

The more than 120% rise in bitcoin this year and the nearly 50% jump in ether, the second-largest cryptocurrency, have pushed the sector’s market cap to nearly $3.5 trillion, according to CoinGecko data.

Analysts expect further gains for 2025.

“We remain convinced that $100,000 is not the final milestone. We expect Bitcoin to reach a high of $200,000 in late 2025,” analysts at brokerage Bernstein wrote in a note to clients earlier this month.

MicroStrategy, a software company that has become the world’s largest bitcoin holder, saw its stock rise nearly five-fold in 2024.

The stock, which recently joined the benchmark Nasdaq-100 index, is now seen as a proxy for Bitcoin, with its movement closely tied to sentiment toward the digital asset. Many small businesses follow the rules of the game and allocate portions of their funds to Bitcoin.

“We expect bitcoin to emerge as the premier ‘store of value’ asset of the new era to eventually replace gold over the next decade and become a permanent part of institutional multi-asset allocation and the standard for corporate treasury management,” Bernstein’s note said.

Much of the optimism began in January when the US Securities and Exchange Commission approved the first ETFs to track the spot price of bitcoin, marking a watershed moment for the broader cryptocurrency industry.

The move gave institutional legitimacy to the sector and improved its mainstream appeal as traditional finance heavyweights, including BlackRock and Fidelity, launched products.

The victory of Trump, who promised to make the United States the “cryptocurrency capital of the planet,” has boosted the industry’s standing later this year. Cryptocurrency advocates donated millions during the election, hoping to elect candidates who favor the sector.

Most cryptocurrency stocks also benefited from the industry-wide rally. Big winners in 2024 are MicroStrategy, cryptocurrency exchange Coinbase and bitcoin mining company Hut 8.

On the other hand, many cryptocurrency miners have suffered from shrinking profit margins due to rising energy and hardware costs, leading to a loss of appreciation this year.

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