In 2024, the cryptocurrency industry experienced unprecedented growth and transformation. From Bitcoin reaching historic highs to regulatory reforms and legal disputes, this year propelled the industry's development at an astonishing pace, while also laying a clear direction for the future. Here are the key events in 2024 that will impact the industry's future.
U.S. Bitcoin ETF: A Long-Awaited Breakthrough.
In January 2024, the U.S. SEC approved the first Bitcoin ETF, marking an important milestone for the mainstream acceptance of cryptocurrencies. The Bitcoin ETF provides investors with a safe and compliant investment channel, attracting institutions and a broader group of investors, showcasing the government's recognition of digital assets.
This move has promoted financial innovation, accelerating the integration of traditional finance with the cryptocurrency industry, while alleviating risks such as custody and security, making Bitcoin more attractive to conservative investors. Analysts believe this reflects the market's increasing maturity and the speeding up of its mainstreaming process.
SBF Sentenced to 25 Years: A Wake-up Call for Accountability in the Cryptocurrency Industry.
In March 2024, former FTX CEO SBF was sentenced to 25 years in prison for fraud, shaking the cryptocurrency industry. The trial revealed systemic failures in FTX's abuse of customer funds and internal mismanagement, becoming one of the industry's most impactful scandals.
This ruling sends a clear signal to strengthen accountability, warning industry participants to prioritize compliance and transparency. SBF's downfall also drives industry reform, prompting platforms to reassess their operations and place greater emphasis on protecting investors' rights.
Hong Kong Launches First Bitcoin ETF: Leading a New Era for Cryptocurrency in Asia
In April 2024, Hong Kong launched Asia's first spot Bitcoin and Ethereum ETFs, reinforcing its status as a global crypto hub. These products provide investors with safe and compliant investment channels, enhancing confidence in digital assets while providing a blueprint for the integration of blockchain and financial markets.
Hong Kong's balance of innovation and regulation sets an example for other countries, not only solidifying its status as an international financial center but also highlighting the potential of the Asian market. Analysts believe this move will profoundly impact global cryptocurrency regulation models.
Bitcoin's Fourth Halving: Scarcity Further Enhanced.
In April 2024, Bitcoin completed its fourth halving, reducing miner rewards from 6.25 to 3.125, further slowing the supply growth. History shows that halvings often trigger market expectations of the value of scarcity, driving long-term price increases.
Although market volatility was not significant after the halving, institutional investors' interest in Bitcoin as an inflation-resistant scarce asset continues to rise. This halving solidified Bitcoin's status as 'digital gold,' paving the way for the next bull market.
Post-halving Bitcoin: Opportunities and Challenges in Volatility
Post-halving, Bitcoin's price fluctuated dramatically, bringing opportunities and risks to traders. Market activity is viewed as a sign of health, but concerns about speculative bubbles remain. Bitcoin's unique economic dynamics once again highlight its value as a scarce asset and solidify its special status in the global financial system.
Ethereum ETF Launch: New Market Momentum
In July 2024, the U.S. SEC approved the Ethereum ETF, once again expanding institutional investment channels following Bitcoin, solidifying Ethereum's position as a leading platform in blockchain technology.
This move provides investors with a safe and convenient investment method, enhancing market recognition of Ethereum and its DeFi and smart contract applications, while further demonstrating its core role in building a decentralized future.
Zhao Changpeng Released: A New Chapter is About to Unfold.
In September 2024, Binance founder Zhao Changpeng was released after serving four months of his sentence. He was imprisoned for anti-money laundering violations, which significantly changed Binance's operational direction. After his release, Zhao made it clear that he would not return to Binance and plans to focus on other projects.
Although Zhao Changpeng left Binance, his influence in the cryptocurrency industry remains significant. He revealed that he has received multiple offers to sell his Binance shares but has not yet made a decision. His future moves will become a point of great interest for the entire industry and may bring new breakthroughs to the market.
Do Kwon Extradition Case: A Game of Transnational Law.
The extradition case of Do Kwon, co-founder of Terraform Labs, got bogged down in 2024. After the Montenegrin constitutional court paused its extradition decision, the U.S. also submitted an extradition request, complicating his fate with further legal disputes.
This case highlights the challenges of international judicial cooperation in the cryptocurrency field. As blockchain technology globalizes, such cases remind us that pursuing justice in a decentralized world will be a challenge the industry must face.
Federal Reserve Rate Cut: Bitcoin Gains Favor Again.
In 2024, the Federal Reserve announced two rate cuts in September and November to stimulate the economy. This policy adjustment reduced the attractiveness of traditional assets, while cryptocurrencies like Bitcoin, due to their anti-inflation characteristics, garnered renewed attention. As investors sought alternative investments, Bitcoin's price rapidly increased post-rate cuts, demonstrating strong market appeal.
This phenomenon once again proves Bitcoin's status as 'digital gold,' while also showing the increasingly close relationship between the crypto market and the macro economy. Institutional investors' interest in crypto assets also significantly grew during this period, injecting more confidence and vitality into the market.
FTX and Binance Legal Dispute: Escalating Conflicts.
In November 2024, cryptocurrency exchange FTX filed a lawsuit against another cryptocurrency exchange, Binance, and its former CEO Zhao Changpeng, seeking $1.8 billion in damages. The case revolves around Binance's sale of its 20% stake in FTX in 2021, a transaction valued at $1.76 billion. FTX claims that this payment was made using customer funds and mismanagement by FTX and Alameda Research. The lawsuit accuses Binance of irresponsibility, stating that this transaction exacerbated FTX's financial problems.
FTX also accused Zhao Changpeng of worsening its liquidity crisis with public comments made in November 2022, leading to the exchange's collapse. Binance denied the allegations, claiming they are baseless, and vowed to fight back in court. This legal dispute is not only part of FTX's efforts to recover funds after bankruptcy but also prompts the entire industry to reconsider the competitive rules among cryptocurrency enterprises.
Coinbase's Stock Price Surpasses $300: Confidence Rekindled.
In November 2024, Coinbase's stock price surpassed $300, showcasing market confidence in the cryptocurrency industry. As a leading enterprise, Coinbase continuously expands its influence while overcoming challenges, earning recognition through transparent operations and strong governance, setting a benchmark for the industry.
Bitcoin Reaches Historic Highs: Driven by the Trump Effect.
In November 2024, Bitcoin's price soared to $93,450, setting a new record high, a rise referred to as the 'Trump Effect.' After Trump's re-election, he promised to promote blockchain technology and tax cuts, boosting market confidence and driving up the prices of Bitcoin and other cryptocurrencies. This phenomenon once again proves Bitcoin's core status in the market and has a significant impact on market sentiment and liquidity.
Trump Media Group is considering acquiring the cryptocurrency exchange Bakkt.
Reports indicate that Trump Media and Technology Group (TMTG) plans to acquire the cryptocurrency exchange Bakkt, further expanding its footprint in the crypto sector. TMTG's Truth Social is negotiating to acquire all shares of Bakkt, although specific valuations have not yet been disclosed.
As Bitcoin's price soared to nearly $100,000, market expectations for Trump supporting digital assets boosted optimism in the cryptocurrency market. Bakkt’s stock surged, reflecting the market's enthusiastic reaction to this acquisition news. This move not only echoed Trump's public support for cryptocurrencies but also marked a strategic integration in the crypto industry, further driving market growth.
Bitcoin Breaks $100,000: Opportunities and Challenges Coexist.
On December 5, 2024, Bitcoin's price broke through $100,000, benefiting from strong institutional support and expectations of a friendly regulatory environment in the U.S. The increased holdings by institutions like MicroStrategy boosted market confidence. Experts predict that if Bitcoin's market share drops below 58%, it may trigger an 'altcoin season,' driving the overall market up.
However, the market frenzy also comes with potential risks. Analysts warn of a 'top explosion' phenomenon where Bitcoin may experience a rapid price increase followed by a sharp correction. Additionally, the Federal Reserve's cautious stance on interest rate cuts keeps the market on guard, and volatility risks still exist.
Summary: A Year of Transformation.
In 2024, the cryptocurrency industry underwent significant transformation. From Bitcoin's historic highs to ETF breakthroughs and major legal cases, these events reshaped the market landscape and pointed the way for future development.
Looking ahead to 2025, with technological advancements, deeper institutional investments, and improved regulatory environments, the cryptocurrency industry is expected to enter a new cycle of prosperity. The key events of 2024 provide important references for the industry's long-term development and bring new opportunities for the future of the global financial system.
That's all for today's article. Currently in a bull market, with dynamics swirling, we share insights every day.
