The year 2024 is witnessing a strong resurgence in the cryptocurrency market with many prominent trends and developments. In this context, cryptocurrencies like Bitcoin and various altcoins are receiving increasing attention from investors and major financial institutions. One of the standout events this year is that MicroStrategy (MSTR) will be included in the Nasdaq-100 index, marking the first time a company focused on Bitcoin has achieved this. The Nasdaq-100 index tracks the 100 largest non-financial companies on the Nasdaq exchange, featuring major names like Apple and Microsoft.
According to this announcement, the price of Bitcoin has slightly increased, surpassing the $102,000 mark. MicroStrategy's market capitalization is around $92 billion, ranking 40th in the index and accounting for about 0.47% of the weighting. Including MicroStrategy in the index would significantly increase the Nasdaq 100's exposure to Bitcoin, thanks to the company's large Bitcoin holdings valued at approximately $42 billion. At the same time, this also attracts billions of dollars from passive investments through index-tracking ETFs, with total assets exceeding $550 billion.
Analysts believe this could be one of the biggest stories of 2024, although there are concerns that MicroStrategy may be reclassified as a financial company due to its focus on Bitcoin, which could make its inclusion in the index short-lived. The rebalancing of the Nasdaq 100 will take effect from December 23.
In addition, Hong Kong has emerged as an important cryptocurrency hub, competing with the UAE and Singapore for financial innovation. CEO Ivan Ivanov of WOW Summit believes this development is the result of strong regulatory policies and Hong Kong's unique economic position, which helps promote innovation while ensuring stability and safety. The city's relationship with mainland China and its legal environment provide a strong support base for startups and investors.
Key developments include a stablecoin policy requiring licensing and local bank reserves, AI regulations introduced by the Financial Services and Treasury Bureau, and the Ensemble Project for cross-border payments with Brazil and Thailand. Furthermore, over 270 blockchain companies have joined Hong Kong's Cyberport Web3 network, and ZA Bank has begun retail cryptocurrency trading. The government is also considering capital gains tax exemptions for institutional investors on cryptocurrencies to stimulate investment.
With these developments, the cryptocurrency and altcoin markets promise to continue to grow robustly in the near future, opening up many new opportunities for investors.
