In 2024, the cryptocurrency market experienced significant growth, marked by notable milestones and increased institutional adoption.
Bitcoin, the leading cryptocurrency, surpassed the US$107,000 threshold for the first time on Dec 17, 2024, reaching an all-time high of US$107,000 as investors grow increasingly bullish on the prospects for crypto in 2025.
This achievement was influenced by several factors, including the approval of Bitcoin exchange-traded funds (ETFs) by major financial institutions like BlackRock Inc and Fidelity Investment, which facilitated greater investment opportunities and diversification.
The election of President Donald Trump also played a role in the market's performance.
His administration's supportive stance toward cryptocurrencies, exemplified by the appointment of crypto advocates to key government positions, fostered optimism for favourable regulatory developments.
This political shift contributed to a 40% increase in Bitcoin prices following the presidential election on Nov 5.
Other cryptocurrencies, such as Ethereum (ETH), Ripple (XRP), Solana (SOL), Aave (AAVE) and Cardano (ADA), also experienced significant movements throughout the year.
As of Dec 31, 2024, the cryptocurrency market continues to exhibit volatility.
A check in the Luno cryptocurrency trading app showed that over the past year, Bitcoin has surged close to 100% from US$40,985 on Dec 31, 2023, to US$93,017 on Dec 31, 2024.
As for other cryptocurrencies, ETH has increased by 42.65% to US$3,368, XRP showcased the most growth as the cryptocurrency improved by 249.5% to US$2.05 from its US$1.46 a year ago. For SOL and AAVE, both cryptocurrencies also showed improvement of 100.67% and 214.59%, respectively.
These fluctuations underscore the dynamic nature of the cryptocurrency market, influenced by factors such as regulatory developments, technological advancements and macroeconomic trends.
On that note, although cryptocurrency has been on a trajectory towards maturity since the US-approved spot Bitcoin ETF in early January 2024, it is not fully known to what extent the cryptocurrency market will react to the market's future performance particularly when off late the Bitcoin rally that was sparked by Trump's election victory in early November is stalling as 2024 draws to a close.
Looking ahead, analysts have varied predictions for the cryptocurrency market in 2025.
Some forecast that Bitcoin could exceed US$150,000 in the first half of 2025, driven by widespread institutional, corporate, and national adoption.
However, the market's future performance will largely depend on policy outcomes, market reactions and broader economic conditions.
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