Macroeconomics factors and use case for Bitcoin

US macroeconomics also supported risky assets like Bitcoin in 2024. The US Federal Reserve announced a 50 basis point (bps) cut in interest rates in September, lowering borrowing costs for the first time in over four years (COVID-19 times). This big rate cut is considered a bullish sign for cryptocurrencies, stocks, and global risk markets.

Lower borrowing costs generally provide more purchasing power for investors, who would invest their money in assets rather than keep it in the bank. Thus, since the September rate cut, Bitcoin has rallied from $55K to more than $100K.

“Rate cuts are generally pretty good for the risk assets.[...]Trump is coming. Elon Musk is joining Trump in forming the government, so 2025 could be the year of crypto and we are witnessing history,” Arjun Vijay, Chief Operating Officer and founder at Indian crypto exchange Giottus, told FXStreet.

Additionally, this year, the Bitcoin network discovered a new use case with the introduction of the RUNES protocol, enabling the minting of tokens directly on the Bitcoin blockchain. By leveraging the OP_RETURN opcode to inscribe RUNES, the protocol unlocked a wave of innovation, resulting in an unprecedented surge in the use of OP_RETURN, with 81 million recorded throughout the year.

Bitcoin: OP Return Code Use chart. Source: CryptoQuant