Bitcoin Breakthrough Year: 2024 has been a milestone for Bitcoin, as it shifted from being a niche asset to a widely recognized financial tool.
The year saw Bitcoin reach record prices, launch Bitcoin ETFs, and experience huge growth from institutional investors, confirming its place in the mainstream financial world. From the approval of exchange-traded funds (ETFs) to record-breaking prices and explosive institutional growth, Bitcoin’s momentum reached new heights this year.
Bitcoin Breakthrough Year: BTC ETFs & Institutional Demand
Bitcoin took a giant leap in 2024 with the launch of 11 exchange-traded funds (ETFs) in January, marking a major milestone in the cryptocurrency’s evolution. Bitcoin-focused ETFs were approved as more big investors showed interest, bringing Bitcoin into the spotlight. These ETFs let traditional investors invest in Bitcoin without buying it directly, which was an important step for Bitcoin to become widely accepted.
By the end of the year, Bitcoin-focused funds had attracted more than $113.5 billion, mostly from big investors. This surge in institutional demand helped drive Bitcoin’s price to new record highs, with the cryptocurrency reaching $100,000 per Bitcoin in December. The surge was largely driven by professional buyers, with institutional investors contributing heavily to the over-the-counter (OTC) market.
Record-Setting Bitcoin Prices and Market Impact
Bitcoin price surge in 2024 reached unprecedented levels, largely due to the increased institutional participation driven by ETFs and other financial products. The launch of Bitcoin ETFs acted as a catalyst, attracting billions of dollars in institutional investments, and pushing Bitcoin’s value to its peak of $100,000. This great achievement showed that Bitcoin is becoming a strong investment, not just for regular investors, but also for big companies, hedge funds, and organizations.
As Bitcoin price went up, other cryptocurrencies also became more valuable. The growing interest and investment from big institutions helped make Bitcoin even more popular, attracting more attention from professional investors and financial companies.
Explosive Growth in Over-the-Counter (OTC) Markets
One of the biggest trends in 2024 was the big increase in over-the-counter (OTC) transactions in the Bitcoin market. OTC markets allow large investors to buy and sell a lot of Bitcoin without changing its public price. This type of trading is important for big investors who want to buy large amounts without affecting the price.
Kraken, a leading cryptocurrency exchange, reported a staggering 220% year-over-year increase in OTC market activity in 2024. According to Tim Ogilvie, Kraken’s head of institutional services, the OTC market has been “going gangbusters,” reflecting the increasing interest and activity from institutional investors. The surge in OTC transactions demonstrates the growing demand for Bitcoin from large players in traditional finance.
Public Companies Embrace Bitcoin on Their Balance Sheets
In 2024, publicly traded companies have increasingly embraced Bitcoin as a strategic asset, taking advantage of its potential as a store of value and a hedge against inflation. MicroStrategy, a business intelligence firm, has been at the forefront of this trend, amassing over 444,000 BTC in its treasury since 2020. In 2024, MicroStrategy’s stock surged by over 420%, largely driven by its Bitcoin holdings, showcasing the financial power of Bitcoin as a corporate asset.
MicroStrategy’s success has prompted other companies to consider Bitcoin as part of their investment strategy. As of the end of 2024, several other publicly traded firms had added Bitcoin to their balance sheets, signaling a growing acceptance of the cryptocurrency among traditional businesses. The growing interest from big institutions helps Bitcoin’s price go up and makes it more accepted as a regular financial asset.
Bitcoin’s Core Values Stay the Same
Even though Bitcoin is getting more involved with big institutions and moving away from its original focus on decentralization, its main values remain the same. Bitcoin continues to work independently, giving people a way to store and transfer money without relying on banks. These features help Bitcoin keep its value as a tool for financial freedom, even as it becomes more part of traditional finance.
Although Bitcoin’s growth in 2024 has been driven by interest from big institutions, its original values still inspire its supporters. The network stays decentralized and resistant to control, providing an alternative to traditional financial systems.
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Bitcoin breakthrough year in 2024 has firmly established it as a dominant force in the global financial landscape. The approval of ETFs, record-high prices, and the rise in interest from big institutions have made Bitcoin a mainstream asset and a safe option during economic uncertainty. As more institutions continue to invest, Bitcoin is set to play an important role in the future of finance. With its core values still strong and more institutions getting involved, Bitcoin’s journey is just beginning, and its future looks very promising.
Also Read: Bitcoin Drops To $95K After 135% Surge: Will MicroStrategy Spark New Inflows?
