Bitcoin was the best-performing asset class in 2024 as new ETFs began to gain more widespread adoption and hopes of deregulation under the new presidential administration drove the digital asset to record highs.
But owning cryptocurrencies also came with its usual unpredictability and dizzying ups and downs, as this month’s trading clearly shows. Bitcoin Its price has more than doubled in the $40,000 range since the beginning of the year, last trading near $95,500. ether It has gained nearly 50% year-to-date, and last traded around $3,400.
Bitcoin and Ether from early 2024
The richest period of the year occurred in the weeks following the US presidential election. By mid-December, the cryptocurrency rose above $108,000 for the first time, driven by optimism that President-elect Donald Trump would prevail over Vice President Kamala Harris. Open the door to more regulation Clarity and sending new money into the region faster.
However, prices have since dropped. Bitcoin is negative for the month, hurt by hopes that Federal Reserve rate cut Will start slower than anticipated. The market has also faced obvious profit taking and volatility at the end of the year.
The year started with a strong boost in confidence from the launch of a new ETF holding cryptocurrencies in January. The fund, described by asset managers as an easier way for investors to access Bitcoin, has pulled in tens of billions of dollars in cash this year. iShares Bitcoin Trust ETF (IBIT) He now has a net worth of more than $50 billion.
microstrategy shares this year
ether etf joined in the excitement in julyDemand for those funds hasn’t been as strong as their Bitcoin counterparts, but the category still attracted net inflows of more than $2 billion in less than six months, according to FactSet.
Strong tailwinds for cryptocurrencies also pushed connected stocks to record highs. bitcoin proxy micro strategy Has increased by 388% since the beginning of the year coinbase And Robin Hood There has been an increase of 47% and 200% respectively. The company’s shares have been rising since mid-December Added to the Nasdaq 100 Index,
However, some mining stocks have not performed as well Mara Holdings And riot platform On track for double-digit losses year over year. The decline in mining stocks may be a direct result of this year’s Bitcoin halving, which reduced block rewardsAlong with transaction fees, this is one of the most important ways miners make money.
, CNBC’s Jesse Pound contributed reporting
