2024: The Year Crypto Finally Achieves Its Wildest Dreams!
December 26, 2024
0 4 minutes read
Once upon a time, crypto was merely a quirky footnote in the world of investment—a subject of mockery among Wall Street elites and a puzzle for policymakers in Washington, D.C.
But fast forward to 2024, and the landscape has dramatically transformed.
Today, digital assets like bitcoin (BTC-USD) are now within reach of everyday Americans, much like any stock on the market. Wall Street’s heavyweights are beginning to view crypto as a savvy investment, and the new administration in D.C. is gearing up to roll out significant legislative support for the industry. Crypto is officially mainstream!
The wave of acceptance has paid off handsomely for those who jumped on board early.
Bitcoin holders have seen a jaw-dropping 126% increase since the year’s start, as its price soared beyond the $100,000 mark following Donald Trump’s election. The entire crypto market value ballooned by nearly $1.7 trillion, as reported by Coinmarketcap.
“Everything is aligning for the crypto sector right now,” said Ian Katz, managing partner at Capital Alpha, in a recent interview with Yahoo Finance.
And enthusiasm is running high; many believe this is just the beginning.
“Next year, we’ll still be talking about Bitcoin’s incredible run,” predicts Matt Hougan, Chief Investment Officer at Bitwise. The firm is optimistic that Bitcoin may hit $200,000 by the end of 2025.
Notably, one of the biggest beneficiaries of this crypto renaissance, BlackRock (BLK) CEO Larry Fink, has transitioned from being a “proud skeptic” of Bitcoin to one of its staunchest advocates.
“After studying it, I’ve changed my mind; I was wrong for five years,” Fink admitted to CNBC earlier this year.
Now, BlackRock recommends that investors sprinkle up to 2% of their portfolios into Bitcoin.
“We view Bitcoin as a unique asset class, comparable to gold,” Fink noted during an October earnings call.
Larry Fink, CEO of BlackRock, during an interview with CNBC in 2023. REUTERS/Brendan McDermid ·REUTERS / Reuters
This exciting shift has allowed BlackRock and ten other financial giants, including Fidelity Investments and Franklin Templeton, to launch spot Bitcoin exchange-traded funds (ETFs), paving the way for everyday investors to dip their toes into the crypto waters without the hassle of direct ownership.
BlackRock’s ETF, IBIT, quickly became the fastest-growing ETF in history, with all 11 ETFs launching a whopping $100 billion in assets under management by December 18, according to JPMorgan Research.
“Investors were eager to allocate to Bitcoin, but they lacked a reliable and straightforward way to do so until the ETFs entered the scene,” explained Robbie Mitchnick, BlackRock’s head of digital assets.
BlackRock’s enthusiastic embrace of crypto coincided with an election year where pro-crypto candidates received substantial backing from the industry. Major players like Coinbase Global (COIN), Ripple, and the venture firm Andreessen Horowitz collectively invested around $135 million through super PACs.
An illustration featuring U.S. President-elect Donald Trump holding Bitcoin is displayed outside a cryptocurrency exchange store after Bitcoin soars above $100,000, in Hong Kong. REUTERS/Tyrone Siu ·REUTERS / Reuters
Trump made bold promises to the crypto community, including plans to dismiss SEC Chair Gary Gensler—one of the industry’s biggest critics—and to form a “strategic national Bitcoin stockpile” with Congressional support.
The speculation continues: Will the U.S. government become a Bitcoin holder?
Gensler has already submitted his resignation, paving the way for well-known crypto advocate, Paul Atkins, to potentially take his place. Atkins has long championed clearer regulations that foster innovation without stifling growth.
Trump has also appointed venture capitalist David Sacks as the AI and crypto czar, indicating a clear direction toward innovation in the sector. Sacks has already invested in various crypto and AI startups through his firm.
Moreover, other cabinet appointees have previously shown interest in crypto, signaling growing momentum in the industry. This is a crucial moment for crypto.
U.S. Securities and Exchange Commissioner Paul Atkins, the nominee to become SEC chair under Trump, pictured in 2008. REUTERS/Alessia Pierdomenico ·REUTERS / Reuters
With a pro-crypto Congress on the horizon, the future looks bright for the industry.
“It’s astonishing how influential we’ve become in Washington considering our nascent status,” remarked Nic Carter, co-founder of Castle Island Ventures.
The GOP is likely to champion legislation that clarifies stablecoin regulations and provides traditional banks with pathways to engage with digital assets.
Carter highlighted the industry’s determination to protect its interests after being targeted for so long.
The Capitol is illuminated in Washington, on Dec. 19. (AP Photo/J. Scott Applewhite) ·ASSOCIATED PRESS
However, the road ahead is not without hurdles. David Solomon, CEO of Goldman Sachs, recently pointed out that many regulated U.S. banks still shy away from crypto.
“Everyone’s speculating how the regulatory framework will evolve; the timeline remains uncertain,” Solomon remarked.
As we await the first pieces of crypto legislation to surface, it’s essential to maintain realistic expectations.
“Don’t assume a magic switch will flip on January 20, making everything rosy for the Bitcoin community—it’s not how Washington operates,” cautioned Anthony Scaramucci, a crypto investor and former advisor in Trump’s administration.
Michael Saylor, CEO of MicroStrategy Inc. REUTERS/Marco Bello ·REUTERS / Reuters
Yet, many crypto advocates remain undaunted.
“For the past four years, I’ve consistently advised buying Bitcoin and never selling it. I’m committed to increasing my holdings,” declared Michael Saylor, chairman of MicroStrategy and a relentless Bitcoin supporter.
“I’ll keep buying Bitcoin at its peak—forever!”
Even some Wall Street skeptics are beginning to feel the pangs of regret.
“Of course, I wish I had invested in something that has skyrocketed 100-fold in value!” remarked Citadel CEO Ken Griffin at the NYT DealBook Summit.
“We’re all feeling that FOMO.”
David Hollerith is a senior reporter for Yahoo Finance, covering banking, crypto, and more in the finance world.
