In 2024, the Bitcoin and Crypto Stocks Surge asset class performed the best. This was because new exchange-traded funds brought about more widespread adoption of the cryptocurrency, and the aspirations for deregulation that a new presidential administration brought about brought digital assets to record heights.
Bitcoin and Ether Surge After Election
However, along with the usual instability and dizzying swings that come with cryptocurrency ownership, this month’s trading highlights this. The price of bitcoin has more than doubled since the beginning of the year when it was trading in the neighborhood of $40,000; it was most recently trading near $94,000.Ether has seen a gain of about fifty percent (50%) this year, last traded at approximately $3,355.
The period immediately following the presidential election in the United States was the most prosperous stretch of the year economically. This euphoria was bolstered by the belief that President-elect Donald Trump’s triumph over Vice President Kamala Harris would open the way for greater regulatory certainty and send new money streaming into the sector. By the middle of December, the cryptocurrency had surged above $108,000 for the first time.
Bitcoin Declines Amid Fed Outlook ETF Success
Prices, on the other hand, have decreased since then. A negative monthly performance for Bitcoin and Crypto Stocks Surge can be attributed to the anticipation that the Federal Reserve will implement rate cuts at a slower pace than anticipated. Additionally, the market has been experiencing a period of apparent profit-taking and choppiness right up until the conclusion of the business year.
The introduction of new exchange-traded funds (ETFs) containing cryptocurrencies in January significantly boosted investors’ confidence at the beginning of the year. The funds have attracted tens of billions of dollars in capital this year. Asset managers have marketed these funds as a more straightforward method for investors to access Bitcoin. The iShares Bitcoin Trust ETF (IBIT) holds over fifty billion dollars in assets.
In July, ether exchange-traded funds (ETFs) became a part of the excitement. The demand for these funds has not been as substantial as the demand for their Bitcoin and Crypto Stocks Surge equivalents; nonetheless, according to FactSet, the category has still drawn more than $2 billion in net inflows in less than six months.
Crypto Stocks Surge Mining Stocks Struggle
Additionally, related stocks increased to record levels due to strong cryptocurrency tailwinds. Since the beginning of the year, the value of Bitcoin proxy Microstrategy has increased by more than 360%. In contrast, the value of Coinbase and Robinhood has increased by approximately 43 percent and 196 percent, respectively. MicroStrategy’s share price has experienced a dramatic increase since the company’s inclusion in the Nasdaq 100 index in mid-December.
On the other hand, some mining stocks have not performed as well as others; Riot Platforms and Mara Holdings are both on course to experience losses in the double digits for the year to date. The decrease in mining stocks may directly affect the halving of Bitcoin and Crypto Stocks Surge this year, decreasing block rewards.
FAQs
What impact did the US presidential election have on cryptocurrency?
he euphoria following President-elect Trump’s win boosted expectations for deregulation, helping cryptocurrencies like Bitcoin and Ether reach record highs.
Why did Bitcoin prices decline later in 2024?
Bitcoin’s price decline was influenced by anticipation of slower Federal Reserve rate cuts, profit-taking, and market volatility towards the end of the year.
What role did exchange-traded funds (ETFs) play in Bitcoin’s rise?
New cryptocurrency ETFs, including the iShares Bitcoin Trust ETF, significantly boosted investor confidence and attracted tens of billions of dollars in capital.
How did related stocks perform in 2024?
Companies linked to Bitcoin, like Microstrategy, Coinbase, and Robinhood, saw significant stock price increases, with Microstrategy rising over 360% since the start of the year.
