In 2024, the global cryptocurrency market experienced unprecedented drastic fluctuations and important milestones. Although it generally showed a bullish trend, it was not until the fourth quarter of 2024 when BTC had a complete breakout that the bull market truly entered the explosive stage. Now, as 2024 is coming to an end, looking back on the whole year, there were both FOMO (Fear of Missing Out) and crises. We have sorted out the core stages of the year. The following is an inventory of the annual hot events based on time nodes, along with in-depth analysis combined with the latest data.
January: Bitcoin broke through $30,000, and the bull market began to show signs.
At the beginning of the new year, Bitcoin recovered from its weakness at the end of 2023 and broke through $30,000, and the market sentiment began to warm up. The main driving force behind this upward trend was the return of institutional funds and the expectation that the Federal Reserve would slow down interest rate hikes.
In the middle of the month, the US Securities and Exchange Commission (SEC) approved the first batch of spot Bitcoin ETFs, which became the most explosive positive event of the year and also a milestone event in the history of the cryptocurrency market. It not only provided a safe and convenient investment channel for mainstream investors but also marked the in-depth integration of traditional finance and the cryptocurrency ecosystem.
Analysis: On-chain data showed that the BTC holdings in the wallets of large investors increased significantly, indicating that institutional buying was injecting liquidity into the market.
March: The banking crisis boosted BTC to break through $60,000.
The bankruptcy of Silicon Valley Bank (SVB) triggered a financial crisis, and investors’ trust in the traditional banking system further declined. Bitcoin, as “digital gold”, broke through $60,000 under the impetus of the demand for hedging and became the focus of mainstream media.
Although people had been shouting that the bull market was coming since 2023, it was not until this time that the bull market began to show initial signs!
Analysis: During the crisis, the trading volume of stablecoins surged, indicating that the market’s recognition of the hedging function of cryptocurrencies had increased.
Apr: Ethereum’s Shanghai Upgrade boosted on-chain activity.
Ethereum completed the “Shanghai Upgrade” and enabled the unlocking function of staked ETH. This move not only enhanced the liquidity of Ethereum but also drove the activity of the DeFi market.
Analysis: After the upgrade, the price of ETH once broke through $4,000, and the number of daily active addresses on the chain increased by 15%, marking the steady development of the Ethereum ecosystem.
June: Bitcoin fluctuated between $60,000 and $65,000, and the market tended to stabilize.
In June, the price of Bitcoin hovered in the range of $60,000 to $65,000 and failed to continue the upward trend of the previous months. Although the market experienced a certain correction, the boom in spot Bitcoin ETFs still supported price stability.
Analysis: The spot ETF applications of institutions such as BlackRock and Fidelity sparked heated discussions, but the uncertainty of approval limited the short-term upward space. Meanwhile, the Federal Reserve’s pause in interest rate hikes alleviated the liquidity pressure in the market.
July: Solana’s technological breakthrough brought a second spring for NFTs.
In July, Solana launched the innovative zk-proof technology, further improving network performance. This led to a new round of growth for NFT projects on the Solana chain, and the sales of many game and art NFT projects soared.
In-depth analysis:
Solana’s technological upgrade not only improved trading efficiency but also reactivated its ecological attractiveness. The recovery of the NFT market showed that despite the market’s experiencing a cold winter, users’ demand for digital cultural assets remained strong.
August: TON Blockchain’s expansion plan promoted market innovation.
Telegram announced the ecological expansion plan for the TON Blockchain, including support for decentralized payments and multi-chain interoperability. As a result, the price of TON Token hit a new high, and the projects in the ecosystem also received widespread attention.
Analysis: TON’s expansion was regarded as an important breakthrough in the Web3.0 ecosystem, and its characteristics of low cost and high-efficiency on-chain transactions attracted many developers.
October: The Meme Coin boom swept the market again.
Meme Coins represented by $PEPE ushered in a new wave of boom in October, attracting a large number of retail investors. Although such assets were highly volatile, the short-term return on investment was extremely high.
Analysis: The Free Market function of SuperEx became a gathering place for Meme Coin trading. With its support for cross-chain liquidity and personalized screening functions, the trading volume increased significantly.
December: The total market value of the cryptocurrency market broke through $3 trillion, confirming the bull market.
At the end of the year, the total market value of the cryptocurrency market once again broke through $3 trillion, marking the highest level since the bull market in 2021. The price of Bitcoin broke through $100,000, the highest price of Ethereum broke through $4,000, and other mainstream assets also generally rose.
The Bank for International Settlements (BIS) and G20 countries jointly released a regulatory framework for stablecoins, stipulating that the issuance of stablecoins must meet strict requirements for capital reserves and transparency. The market shares of USDC and USDT expanded rapidly, while small stablecoin projects faced the pressure of being phased out.
Analysis: This bull market benefited from the global economic recovery, the continuous increase in institutional investment, and the improvement in the recognition of blockchain technology. On-chain data showed that both retail and institutional funds flowed in simultaneously, forming a stable long position pattern.
And the stablecoin regulatory framework injected a stronger trust foundation into the market and paved the way for the development of cross-border payments and central bank digital currencies (CBDCs). This policy benefit is expected to guide stablecoins into the financial systems of more countries.
Summary
2024 was a major turning point for the cryptocurrency industry. From the strengthening of the hedging function to the breakthroughs in the technological ecosystem and the improvement in the degree of institutionalization, each hot event was shaping the future of this emerging market. Although there were still volatility and regulatory uncertainties in the market, the overall development trend indicated that cryptocurrency assets were becoming an important part of the global economy.
