In 2024, the industry experienced unprecedented growth, controversy, and milestones. From the historic high of Bitcoin to transformative regulatory changes and high-profile legal disputes, the cryptocurrency sector continued to develop at an astonishing pace. This year is destined to go down in history. 2024 not only witnessed the rapid growth of the industry, but also laid a clearer direction for the future. The following are the most representative events of 2024, understanding their impact on the future of cryptocurrencies.
US Bitcoin ETF: A Long-Awaited Milestone
In January 2024, the US Securities and Exchange Commission (SEC) approved the first Bitcoin exchange-traded fund (ETF), a significant moment for cryptocurrencies. The Bitcoin ETF provides investors with a secure, regulated way to invest in Bitcoin without having to hold it directly. As asset management firms incorporate Bitcoin ETFs into their products, institutional participation has surged, attracting a wider pool of investors. This approval is widely seen as an important step towards mainstream adoption of cryptocurrencies, signaling the US government's growing recognition of digital assets.
The launch of the Bitcoin ETF has also sparked innovation in the financial sector, with the introduction of a series of blockchain-based products aimed at meeting institutional demand. Analysts believe this development is a sign of a maturing market, with the integration of traditional finance and the crypto industry accelerating. These ETFs have also helped alleviate some of the risks associated with cryptocurrencies, such as custody and security issues, making Bitcoin more attractive to conservative investors.
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Samuel Bankman-Fried's Sentencing: Justice Served
In March 2024, former FTX CEO Sam Bankman-Fried, SBF, was sentenced to 25 years in prison for fraud, leading to the collapse of his cryptocurrency exchange FTX. He was convicted on charges of fraud and mismanagement, sending a clear signal to the crypto industry about the importance of accountability. The trial exposed the systemic failure of FTX, a massive cryptocurrency exchange, including the misuse of client funds and lack of internal controls.
This sentencing marks one of the most notorious scandals in the cryptocurrency industry, serving as a warning to other industry participants. This case not only exposed the risks in the crypto industry, but also made the public aware of the serious lack of regulation and compliance in the industry. SBF's downfall has become a catalyst for industry reform, prompting more platforms to re-examine their management and operations to ensure investor interests are no longer easily compromised.
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Hong Kong Launches First Bitcoin ETF: The Rise of the Asian Market
In April 2024, Hong Kong launched Asia's first physical Bitcoin and Ethereum ETF, solidifying its position as a global cryptocurrency hub. These ETFs provide investors in the region with a regulated and secure way to invest in cryptocurrencies, boosting confidence in digital assets. Hong Kong's proactive crypto regulatory approach has provided a blueprint for other regions seeking to integrate blockchain technology into their financial markets.
By balancing innovation and regulation, Hong Kong has set an example for other countries, demonstrating how to drive industry development while safeguarding investor interests. This move not only reinforced Hong Kong's status as an international financial center, but also made more institutions recognize the potential of the Asian market. Analysts generally believe that Hong Kong's successful experience will have a far-reaching impact on the global regulatory model for cryptocurrencies.
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Bitcoin: The Fourth Halving
In April 2024, Bitcoin underwent its fourth halving. Miner rewards were reduced from 6.25 Bitcoins per block to 3.125 Bitcoins, making Bitcoin mining more difficult than before and further slowing the rate of Bitcoin supply growth. Historical data shows that each halving event has created strong value expectations in the market due to the reduced supply, driving long-term price increases for Bitcoin.
Although the market did not immediately experience drastic changes after the halving, institutional investors have shown keen interest and view Bitcoin as a scarce asset that can hedge against inflation. The halving event has further reinforced Bitcoin's "digital gold" status and laid the foundation for a potential future bull market.
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Post-Halving: Opportunities and Challenges in Volatility
After the halving, Bitcoin prices experienced significant volatility, with dramatic price swings presenting both opportunities and risks for traders. Some market participants believe this volatility reflects a healthy level of market activity, but others are concerned about the potential for speculative bubbles. Nonetheless, the market performance during this period has once again demonstrated that Bitcoin, as a unique asset class, has economic dynamics that differ from traditional commodities and securities. Bitcoin's halving not only reaffirms the value of its scarcity, but also further solidifies its unique position in the global financial system.
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Ethereum ETF Launched: Injecting New Vitality into the Market
Following the successful launch of the Bitcoin ETF, the US SEC approved an Ethereum ETF in July 2024. This approval not only expanded the investment options for institutional investors, but also elevated the status of Ethereum as a leading blockchain technology platform. As the second-largest cryptocurrency globally, Ethereum has long been favored by investors due to its smart contract and decentralized finance (DeFi) applications.
The launch of the Ethereum ETF provides investors with a safer and more convenient investment option, while also further increasing market recognition of blockchain technology. This move has made it clear that Ethereum is not just a digital asset, but a key force driving the next generation of the decentralized internet.
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CZ's Release: A New Chapter Begins
In September 2024, cryptocurrency exchange Binance founder CZ was released after serving a four-month prison sentence for anti-money laundering violations, a development that significantly changed the operational direction of Binance. After his release, CZ clearly stated that he would not return to Binance and plans to focus his efforts on other projects.
Despite leaving Binance, CZ's influence in the cryptocurrency industry remains significant. He revealed that he has received multiple proposals to sell his Binance shares, but has not yet made a decision. For the entire industry, his future moves will become a far-reaching point of influence and could potentially bring new breakthroughs to the market.
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The Do Kwon Extradition Case: A Legal Tug-of-War Across Borders
The extradition case of Terraform Labs co-founder Do Kwon has reached an impasse in 2024. After the Constitutional Court of Montenegro temporarily suspended the extradition decision, the United States has also filed an extradition request, plunging his fate into an even more complex legal dispute.
This case highlights the difficulties of international judicial cooperation in the cryptocurrency sector. As blockchain technology becomes globalized, such cases also remind us that the challenge of pursuing justice in a decentralized world will be one that the industry needs to face.
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Fed Rate Cuts: Bitcoin Regains Favor
In 2024, the Federal Reserve announced two rate cuts in September and November respectively to stimulate the economy. This policy adjustment has reduced the appeal of traditional assets, while cryptocurrencies like Bitcoin have once again gained attention due to their anti-inflationary characteristics. As investors seek alternative investments, the Bitcoin price has risen rapidly after the rate cuts, demonstrating strong market appeal.
This phenomenon further confirms Bitcoin's status as the "digital gold," and also shows the increasingly close connection between the crypto market and the macroeconomy. Institutional investors' interest in cryptocurrencies has also grown significantly during this period, injecting more confidence and vitality into the market.
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The Legal Dispute Between FTX and Binance: Escalating Tensions
In November 2024, the cryptocurrency exchange FTX filed a lawsuit against another cryptocurrency exchange Binance and its former CEO CZ, seeking $1.8 billion in damages. The case revolves around Binance's sale of its 20% stake in FTX in 2021 for $1.76 billion. FTX claims that the payment was made using customer funds, and that FTX and Alameda Research's mismanagement exacerbated its financial problems.
FTX also accused CZ of making public statements in November 2022 that worsened its liquidity crisis and led to the exchange's collapse. Binance has denied the allegations, claiming they are baseless, and vowed to defend itself in court. This legal dispute is not only part of the effort to recover funds after FTX's bankruptcy, but also prompts the industry to rethink the rules of competition among crypto companies.
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Coinbase Stock Breaks the $300 Barrier
In November 2024, the stock price of the US cryptocurrency exchange Coinbase broke through the $300 mark, once again igniting market confidence in the cryptocurrency industry. As a leading company in the cryptocurrency sector, Coinbase has successfully overcome multiple challenges and continued to expand its market influence.
This milestone underscores the growing recognition of cryptocurrency companies in the traditional financial market, and also highlights the importance of building trust through transparent operations and strong governance, setting an example for other companies in the industry.
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Bit Hits a New All-Time High: Driven by the "Trump Effect"
In November 2024, the Bit price soared to a new all-time high of $93,450, a milestone that set the entire cryptocurrency market ablaze, widely known as the "Trump Pump." This surge was mainly driven by the market's optimistic expectations of Trump's policies after his re-election as president. Trump promised to strongly promote blockchain technology innovation and provide tax cuts for cryptocurrency companies, which boosted market confidence and directly pushed the Bit price to new heights.
Not only Bit, but the entire cryptocurrency market was also affected by the "Trump Effect," with the prices of popular Altcoins like ETH, Solana, and Cardano also experiencing significant increases. This phenomenon once again affirms the core position of Bit in the cryptocurrency market, and its important role in driving market sentiment and liquidity.
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Post-Election Rebound: Bit Surges to $90,000
The rise of Bit did not end with the "Trump Effect," but further accelerated after the election. With the active participation of institutional investors, the Bit price quickly surged to the $90,000 mark. Many hedge funds and asset management companies are optimistic about the stable regulatory environment that the Trump administration may bring, and have begun to significantly incorporate Bit into their investment portfolios.
This post-election rebound has also driven a strong performance in the Altcoin market, with ETH, Solana, and Cardano recording significant gains. This round of market momentum not only demonstrates the market's sensitivity to political stability, but also indicates that clear regulatory policies can effectively boost investor confidence and drive the overall industry's further development.
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Trump's Media Group Considers Acquiring Crypto Exchange Bakkt
Reports indicate that the Trump Media & Technology Group (TMTG) will enter the cryptocurrency exchange sector, and may consider acquiring the cryptocurrency exchange Bakkt. The re-elected President Trump is now deeply involved in the cryptocurrency sector through his controlling stake in TMTG. The Financial Times has revealed that TMTG, which operates Truth Social, is finalizing the acquisition of the entire stake in Bakkt, although the specific valuation details have not been disclosed.
With the Bit price soaring to unprecedented levels, currently approaching $100,000, speculation about Trump's support for digital assets has fueled market optimism. The news of this development has led to a significant surge in the Bakkt stock, reflecting the market's enthusiasm. This move not only aligns with Trump's public support for cryptocurrencies before his re-election campaign, but also marks his strategic integration in the cryptocurrency industry. Against this backdrop, the broader cryptocurrency market has experienced significant growth, including ETH and DeFi tokens, highlighting the widespread excitement and the potential brought by Trump's increased focus on the digital asset space.
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Bit Breaks $100,000: Opportunities and Challenges Coexist
The Bit price has already approached the $100,000 target on December 5th, thanks to strong institutional support and expectations of a more friendly US regulatory environment. Heavyweight institutions like MicroStrategy have further fueled market confidence with their increased holdings. Experts predict that if the Bit market dominance falls below 58%, it may trigger an "Altcoin season," driving a broad-based rally across the entire cryptocurrency market.
The surge in Bit price has also raised concerns about the potential risks and challenges that may arise, such as increased volatility, regulatory scrutiny, and the need for greater institutional maturity. As the industry continues to evolve, navigating these complexities will be crucial for the sustainable growth of the cryptocurrency ecosystem.
However, the market frenzy is also accompanied by potential risks. Analysts warn that Bitcoin may experience a "top explosion" phenomenon - a rapid surge in prices followed by a violent correction. In addition, the Federal Reserve's cautious stance on interest rate cuts has also dampened the market, and investors are more cautious about the potential for growth slowdown. Although Bitcoin has broken through the $100,000 target, the road ahead is still filled with uncertainty, and the risk of volatility cannot be ignored. Summary: A Year of Transformation In 2024, the cryptocurrency industry experienced earth-shaking changes. From the historic high of Bitcoin, to the major breakthrough of ETFs, to the high-profile legal cases, these events not only reshaped the market landscape, but also pointed the way for future development. Looking ahead to 2025, with the progress of technology, the deeper participation of institutional investors, and the gradual improvement of the regulatory environment, the cryptocurrency industry is expected to usher in a new prosperous cycle. The key events of 2024 have provided important reference for the long-term development of the cryptocurrency industry, and have also provided a new imagination for the future of the global financial system.
