Key Lessons Learned in 2024
Today we will talk about the most important lessons learned from the year 2024 so that we can prepare for the world of digital currencies in 2025. This year was truly the strangest of strange because all expectations were broken and no one was able to accurately predict what would happen. We will focus on four points, which are:
Crypto investment funds.
Meme coins.
Alternative currencies.
Crypto earnings in 2024.
This is because we believe that these four points are the most affected by what happened in 2024 and therefore we want to focus on them. This will help the reader to read the market better in 2025, so let's learn more about each point.
Cryptocurrency Investment Funds
Since Bitcoin ETFs were approved in January, the crypto world has changed dramatically. The forecasts for 2024 were very negative at the end of 2023 as everyone was expecting a recession. But contrary to expectations, cryptocurrencies led by Bitcoin surged strongly in the first quarter of the year. This was due to Bitcoin ETFs that were approved and listed on the US Stock Exchange in January 2024. These funds have changed the crypto world dramatically and attracted new investors and capital as well.
Bitcoin has been the biggest beneficiary of these funds, with the price of the digital currency rising from $38,000 at the beginning of the year to $108,000, and now it looks like we will end the year with Bitcoin above $90,000. That’s an increase of nearly 250%.
Of course, after these funds, Ethereum funds were also accepted in May 2024, and they did not have a positive impact on Ethereum immediately. The digital currency suffered a lot until capital inflows began to enter it in the last quarter of the year. The price of Ethereum has recently increased from about $2,100 to $4,100, and currently the price seems to be closing the year around $3,300.
The changing nature of crypto investment
Crypto investment funds have changed the world of investment a lot and will undoubtedly affect digital currencies in 2025. This is because they have attracted a new type of investors who were not interested in the world of crypto before, namely Wall Street investors and investors of the older generation, i.e. those over 60 years old. They did not have much interest in the world of cryptocurrencies due to the difficulty of acquiring them. Therefore, the funds have represented a very easy way for them to buy Bitcoin and Ethereum without having to resort to wallets or encrypted platforms, whether centralized or decentralized. They can buy as they buy stocks and various funds.
This has attracted pension funds and even major states in the United States to invest in the world of crypto, especially Bitcoin. Net Bitcoin fund inflows exceeded $35 billion in 2024. Bitcoin funds are considered among the most successful in the history of the United States and Wall Street. This will undoubtedly lead to market growth and Bitcoin’s volatility will decrease sharply in 2025 due to the growth of the market value and also the daily trading volume.
Also, major investment institutions are starting to enter the world of crypto investing, which means a greater focus on smart money principles. On the other hand, it seems that Ethereum investment funds may see some aggressive inflows at least in the first quarter of 2025. We will follow this moment by moment to update you as it happens. $BNB
