The cryptocurrency market has experienced a significant boost in recent days, fuelled by the approval of spot Exchange-Traded Funds (ETFs) and Donald Trump’s victory in the United States presidential election.
Following a slow 2023, 2024 has delivered on its promise of being a bullish year, with Bitcoin and altcoins recording notable gains.
Bitcoin Reaches Record High
Bitcoin (BTC) hit an all-time high (ATH) of $93,000 in November 2024 and continues to trade above $90,000.
The cryptocurrency has enjoyed eight months of positive growth this year. Similarly, altcoins have surged, with several reaching new ATHs, underscoring a revitalised market heading into 2025.
Trump’s Win Boosts Crypto Sentiment
Throughout the year, investors closely monitored the US election, keen to see its potential impact on the crypto market.
Donald Trump’s pro-crypto stance, including promises of regulatory reform and a declaration of support for Bitcoin, earned him the nickname “Bitcoin President.”
His platform included pledges to dismiss SEC Chair Gary Gensler and to advance pro-crypto policies, which resonated with the crypto community.
Trump’s win triggered an immediate bullish response in the market. Anticipation is high for his administration to enact clearer regulations, which analysts believe could stabilise and grow the sector.
Trump’s inauguration in January 2025 is expected to mark the beginning of a new regulatory framework.
Global Crypto Adoption Grows
Governments such as Bhutan and El Salvador continue to dominate headlines for their Bitcoin strategies. Bhutan holds over $1 billion in Bitcoin, representing one-third of its GDP.
The country recently sold $33 million worth of BTC during a price surge, generating substantial profits. Meanwhile, El Salvador has amassed over 6,000 BTC since 2021, advancing its Bitcoin adoption plan.
Speculation is mounting that other nations, including the US, could follow suit.
Discussions around a strategic Bitcoin reserve are gaining traction, with proposals such as Senator Cynthia Lummis’s suggestion to sell Federal Reserve gold to buy BTC.
Countries in the Middle East, such as the UAE and Saudi Arabia, are also rumoured to be exploring Bitcoin acquisitions for their sovereign wealth funds.
Potential for Crypto ETF Expansion
The approval of Bitcoin and Ethereum Spot ETFs has sparked immense investor interest, with Bitcoin ETFs alone reaching a market cap of $98.66 billion.
Analysts anticipate further ETF approvals for cryptocurrencies such as Solana and XRP in the near future. According to Nate Geraci, CEO of the ETF Institute, the market could see multiple spot ETF filings by year’s end.
Bull Market on the Horizon
The much-anticipated Bitcoin halving in April 2024 is expected to set the stage for a historic bull run in early to mid-2025.
Market analysts predict that this event, coupled with Trump’s crypto-friendly policies and increasing global adoption, will drive the market to unprecedented highs, potentially pushing the cryptocurrency market capitalisation beyond $4 trillion.
However, experts caution that macroeconomic factors and market fluctuations could influence this timeline.
Despite these uncertainties, the overall sentiment remains optimistic, with 2025 poised to be a transformative year for the cryptocurrency market.
The convergence of a favourable regulatory outlook, rising global adoption, and the introduction of innovative financial products like Spot ETFs have positioned the cryptocurrency market for exponential growth.
As 2024 winds down, anticipation builds for what could be the most significant year yet in the evolution of digital assets.
