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 and 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 companies 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 the 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, leading to the introduction of a series of blockchain-based products aimed at meeting institutional demands. 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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Sentencing of Samuel Bankman-Fried: 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 failures of FTX, a massive cryptocurrency exchange, including the misuse of client funds and the lack of internal controls.
This sentencing marks one of the most notorious scandals in the cryptocurrency industry, serving as a warning to other 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 an opportunity to drive industry reform, prompting more platforms to re-examine their management and operations to ensure that 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 spot Bitcoin and Ethereum ETFs, 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 Bitcoin per block to 3.125 Bitcoin, 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 a long-term rise in Bitcoin prices.
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 have experienced significant volatility, with dramatic fluctuations 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, this period's market performance has once again demonstrated that Bitcoin, as a unique asset class, has economic dynamics that differ from traditional commodities and securities. The Bitcoin halving not only reaffirms the value of its scarcity, but also further solidifies its special 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 contracts 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 development of the next-generation decentralized internet.
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CZ's Release: A New Chapter Begins
In September 2024, Changpeng Zhao, the founder of the cryptocurrency exchange Binance, was released after serving a four-month prison sentence for anti-money laundering violations. This event led to a significant shift in Binance's operational direction. 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 has 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 focus and could potentially bring new breakthroughs to the market.
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Do Kwon Extradition Case: The Legal Tug-of-War
The extradition case of Terraform Labs co-founder Do Kwon reached an impasse in 2024. After the Constitutional Court of Montenegro temporarily suspended the extradition decision, the US also made 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 industry. As blockchain technology becomes more globalized, such cases serve as a reminder that the challenge of pursuing justice in a decentralized world will be one that the industry must face.
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Fed Rate Cut: Bitcoin Regains Popularity
In 2024, the Federal Reserve announced two rate cuts in September and November to stimulate the economy. This policy adjustment reduced the appeal of traditional assets, while Altcoins like Bitcoin gained attention again due to their anti-inflationary characteristics. As investors sought alternative investments, Bitcoin prices quickly rose after the rate cuts, demonstrating strong market appeal.
This phenomenon further confirms Bitcoin's status as "digital gold" and also shows the increasingly close connection between the crypto market and the macroeconomy. Institutional investor interest in Altcoin assets also grew significantly during this period, injecting more confidence and vitality into the market.
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Legal Dispute Between FTX and Binance: Escalating Tensions
In November 2024, the Altcoin exchange FTX filed a lawsuit against another Altcoin exchange Binance and its former CEO CZ, seeking $1.8 billion in compensation. The case revolves around Binance's sale of its 20% stake in FTX in 2021 for $1.76 billion. FTX claims the payment was made using customer funds, and FTX and Alameda Research were mismanaged. The lawsuit accuses Binance of irresponsibility, claiming the transaction exacerbated FTX's 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 denies the allegations, calling them baseless, and vows 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 entire industry to rethink the rules of competition among Altcoin companies.
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Coinbase Stock Breaks $300 Barrier
In November 2024, the stock price of the U.S. Altcoin exchange Coinbase broke through the $300 mark, reigniting market confidence in the Altcoin industry. As a leading company in the Altcoin field, Coinbase has successfully overcome multiple challenges and continued to expand its market influence.
This milestone underscores the growing recognition of Altcoin 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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Bitcoin Hits New All-Time High: Driven by the "Trump Effect"
In November 2024, the price of Bitcoin soared to a new all-time high of $93,450, igniting the entire Altcoin market, widely known as the "Trump Pump". This surge was mainly driven by the optimistic market expectations for Trump's policies after his re-election as president. Trump promised to strongly promote blockchain technology innovation and provide tax cuts for Altcoin companies, boosting market confidence and directly pushing Bitcoin to new heights.
Not only Bitcoin, but the entire Altcoin market was also affected by the "Trump Effect", with the prices of Ethereum, Solana, and other popular Altcoins also rising significantly. This phenomenon further confirms Bitcoin's core position in the Altcoin market and its important role in driving market sentiment and liquidity.
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Post-Election Rebound: Bitcoin Surges to $90,000
Bitcoin's upward trend did not end with the "Trump Effect", but further accelerated after the election. With the active participation of institutional investors, Bitcoin prices 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 started to significantly include Bitcoin in their investment portfolios.
This post-election rebound also drove a strong performance in the Altcoin market, with Ethereum, Solana, and Cardano recording significant gains. This round of market momentum not only demonstrates the market's sensitivity to political stability, but also shows 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 Altcoin Exchange Bakkt
Reports indicate that the Trump Media and Technology Group (TMTG) will enter the Altcoin exchange sector, and may consider acquiring the Altcoin exchange Bakkt. Trump, who has been re-elected as president, is deeply involved in the Altcoin field through his controlling TMTG. The Financial Times revealed that TMTG, which operates Truth Social, is finalizing the acquisition of all shares of Bakkt, although the specific valuation details have not been disclosed.
With Bitcoin prices soaring to unprecedented levels, currently approaching $100,000, market optimism has been driven by speculation about Trump's support for digital assets. Upon the release of this news, Bakkt's stock, which is supported by Intercontinental Exchange, has risen sharply, reflecting the market's enthusiasm. This move not only aligns with Trump's public support for Altcoins before his re-election campaign, but also marks his strategic integration in the Altcoin industry. Against this backdrop, the broader Altcoin market has experienced significant growth, including Ethereum 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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Bitcoin Breaks $100,000: Opportunities and Challenges Coexist
Bitcoin prices have already approached the $100,000 target, with the momentum mainly attributable to strong institutional support and expectations of a more friendly U.S. regulatory environment. The increased holdings of heavyweight institutions like MicroStrategy have further ignited market confidence. Experts predict that if Bitcoin's market dominance falls below 58%, it may trigger an "Altcoin season", driving a broad-based rally in the Altcoin market.
However, the market frenzy also comes with potential risks. Analysts warn that Bitcoin may experience a "top explosion" phenomenon - a rapid price surge followed by a violent correction. Additionally, the Federal Reserve's cautious stance on rate cuts has also dampened the market, and investors are more cautious about potential growth slowdowns. Although Bitcoin has broken the $100,000 target, the path ahead is still filled with uncertainty, and the risk of volatility cannot be ignored.
Summary: A Year of Transformation
In 2024, the Altcoin industry has undergone earth-shaking changes. From Bitcoin's new all-time high, to the major breakthrough of ETFs, to the high-profile legal cases, these events have not only reshaped the market landscape, but also pointed the way for future development.
Looking ahead to 2025, with technological progress, deeper institutional investment, and the gradual improvement of the regulatory environment, the Altcoin industry is expected to enter a new period of prosperity. The key events of 2024 have provided important references for the long-term development of the Altcoin industry, and have also offered a new vision for the future of the global financial system.
