Main topics of the post:
In April, Bitcoin underwent its fourth halving, reducing miners' rewards from 6.25 BTC to 3.125 BTC per block mined.
The launch of Bitcoin and Ethereum spot ETFs in Hong Kong and later in the US was another milestone of this revolutionary year.
Following the success of Bitcoin and Ethereum spot ETFs in Hong Kong and the US, discussions about a possible Solana spot ETF have gained momentum.
We also saw a groundbreaking move this year: a UK pension fund became the first in the world to incorporate Bitcoin into its investment portfolio.
2024 was undoubtedly a landmark year for the global cryptocurrency market. With significant advancements, historic events, and industry-defining movements, blockchain investors and enthusiasts had a lot to look forward to.
In this article, we will present a summary of the most relevant points we have had in the crypto market globally this year. These points help explain the increase in prices, the size of the crypto market and also the positive expectations heading towards 2025 onwards.
Don't worry about understanding which one happened first or which one was more important: all of these that we will remember here make up the gift package that this year represented. Let's go!
Halving do Bitcoin em 2024
Halving is one of the most anticipated events in the cryptocurrency universe, and in 2024 was no different. In April, Bitcoin underwent its fourth halving, reducing the miners' reward from 6.25 BTC to 3.125 BTC per mined block.
This event, which occurs approximately every four years, is essential for controlling the issuance of new coins and maintaining the scarcity of the asset. Remember that point about Bitcoin being a deflationary digital currency with limited supply? So, halving is an occasion that is part of this explanation.
Historically, halving events have a direct impact on the price of Bitcoin. With the reward for mining new units reduced (and, consequently, a reduction in the supply of these new units), even if demand remains the same, the value of the asset tends to increase, as was observed after similar events in 2012, 2016 and 2020.
What we saw that was new in 2024 is that the price reached a new level, never reached before. But hold on to your seat, because we will talk about this later in this article.
Bitcoin and Ethereum Spot ETFs in Relevant Markets
The launch of spot Bitcoin and Ethereum ETFs in Hong Kong and later in the US was another groundbreaking milestone this year. These funds, which allow investors to gain direct exposure to the price of cryptocurrencies, represented a significant step forward in institutional adoption and market legitimacy.
This happens because the requirements and checks for an ETF are much more in-depth than those for a regular asset. And, in practical terms, this means that having seen Bitcoin and Ethereum spot ETFs become a reality in the financial tip of Asia and in the largest financial market on the planet is a huge representation of the maturity that the crypto market has gained in recent years (and consolidated in 2024).
In the US, the approval of the Bitcoin spot ETF was a historic moment, marked by strong demand and large trading volumes on its first day. The initiative was also accompanied by the introduction of an Ethereum ETF, which attracted a significant volume of institutional investment. The launch in Hong Kong, which took place months earlier, represented the expansion of the island's position as a global crypto hub.
What we see with this news are actually two very positive developments: firstly, the assets linked to these ETFs (Bitcoin and Ethereum) have gained greater maturity and, secondly, markets with huge capital have shown great interest in these crypto assets. All of this has contributed and will continue to contribute positively to the rise in prices.
Solana Spot ETF Discussions
Following the success of Bitcoin and Ethereum spot ETFs in Hong Kong and the US, discussions about a potential Solana spot ETF have gained momentum. While many analysts consider immediate approval unlikely, the possibility of such a product has generated positive speculation for the Solana blockchain and its investors.
Solana, known for its high scalability and low transaction fees, has attracted the interest of major market players, who see it as having great potential to leverage Web3 and DeFi solutions. If the Solana spot ETF materializes in 2025, it could mean a new era of diversification for institutional portfolios.
UK Pension Fund Invests in Bitcoin
Speaking of diversification, we saw a groundbreaking move this year: a UK pension fund became the first in the world to incorporate Bitcoin into its investment portfolio. The move highlighted the asset’s growing acceptance as a store of value and long-term diversification tool.
Pension funds are known for their conservative approach, prioritizing security and stability to protect the capital of their beneficiaries. The fact that such a fund embraces Bitcoin is one of the reasons why the world’s largest cryptocurrency has advanced so much in maturity this year.
Such moves are significant because the amount of money involved in these funds is immense: globally, they represent more than US$20 trillion. Any move to incorporate crypto assets could have significant impacts on the price and liquidity of these assets in the coming decades - and, as we have seen this year, that door has already been opened.
Bitcoin hits $100,000 and takes other tokens with it
Remember when we asked you to hold on to your chair? Well, it was because the memory of this would come later: this year, Bitcoin reached a historic milestone by surpassing, for the first time, the US$ 100,000.00 barrier.
This feat, fueled by the halving, increased institutional adoption and the launch of spot ETFs, symbolized the consolidation of the asset as one of the world's leading stores of value. The ten thousand units of Bitcoin used to buy two pizzas a few years ago would be equivalent to roughly a trillion dollars today.
The $100,000 milestone was not just a symbolic number, but also served as a kind of catalyst for a new cycle of adoption and innovation in the blockchain ecosystem. It reinforced the positive cycle of all the other items we have recalled and were reasons for the industry to smile this year.
Not surprisingly, other cryptocurrencies benefited from the movement. Ethereum hit the $4,000 mark, BNB reached its ATH of $750, and Solana returned to the $260 price range. And what about memecoins? In some cases, such as DOGE and PEPE, the appreciation in 2024 exceeded 500%.
The current bull market, although it has increased Bitcoin's dominance, is quite 'democratic' in the sense of increasing general interest in altcoins, meme coins and other groups of tokens.
What's coming in 2025?
With Donald Trump's reelection in the United States and the expectation of more favorable regulation for the crypto market, 2025 signals a period of continued expansion for the sector. Analysts believe that greater regulatory permissiveness could attract even more institutional investments and that this should happen through new financial products, such as altcoin ETFs and remuneration solutions such as staking.
Furthermore, increased adoption in emerging markets and the advancement of Web3 technologies promise to keep the crypto market at the center of global financial innovations.
All this said, we can say that, while 2024 was a year of historic milestones, 2025 has the potential to be a year of even greater growth and consolidation.
In such a dynamic and opportunity-filled sector, it is up to investors to assess market conditions and make informed decisions. The future of cryptocurrencies remains bright, and 2024 is just one of many steps towards a new global financial era.
And you, have you already bought your chair in this space rocket?
