The crypto market in 2024 was defined by institutional adoption, regulatory shifts, and record-breaking performance. From Bitcoin’s surge past $100,000 to the rise of meme tokens and transformative policy changes, the landscape evolved dramatically. In this article, we break down the most significant developments using data and charts to help you understand what shaped the market this year.
Bitcoin’s Path to $100K
2024 was a landmark year for Bitcoin. The launch of spot BTC exchange-traded funds (ETFs) in January marked a new era of maturity, while the fourth halving event proceeded smoothly.
Despite several multi-billion-dollar liquidations and sell-offs, Bitcoin sustained strong momentum. Year-to-date, BTC gained nearly 140% in U.S. dollar terms. Its performance was even more impressive against several fiat currencies that experienced significant devaluation.
The convergence of institutional interest, regulatory clarity, and macroeconomic trends created a perfect environment for growth.
U.S. Elections Fuel Bullish Sentiment
The 2024 U.S. elections played a pivotal role in shaping crypto market sentiment. For the first time, digital assets received substantial positive attention on the global political stage.
Former President Donald Trump voiced support for progressive regulation and open dialogue with the industry. Following an assassination attempt, he appeared at the Bitcoin Nashville conference, further energizing his crypto advocate image. Much of the crypto community rallied behind Republican and eventually Democratic candidates who embraced digital assets.
A “Trump trade” narrative emerged among traders ahead of the November 5th election. Derivatives markets reflected this optimism, with election-related contracts attracting billions in volume and open interest. Post-election, traders positioned for new all-time highs—and they were right. By November, Bitcoin was trading above $75,000.
The Senate election results were also perceived as favorable for crypto. Bitcoin led a post-election rally, breaking $80,000 by November 11th.
This bullish trend continued throughout December, with Bitcoin eventually surpassing $107,000.
Bitcoin Fee Spike Before the Halving
The fourth Bitcoin halving occurred on April 19th. On that day, the average transaction fee on the Bitcoin network soared to a record $146—far exceeding Ethereum’s average fee of $3 that same day.
This fee surge was one of the most critical developments in Q4 2024. While expected by some, the magnitude caught many off guard.
The rise was largely influenced by the introduction of Runes, a protocol that simplifies the issuance of fungible tokens on Bitcoin. Created by Ordinals founder Casey Rodamor, Runes significantly increased demand for block space.
Ordinals, which allow users to inscribe data and images onto satoshis (similar to NFTs), had already driven up fee demand. Runes amplified this effect, further increasing miner revenue.
BlackRock Overtakes Grayscale
BTC ETFs broke numerous records in 2024, with total assets under management across 11 funds surpassing $100 billion.
BlackRock emerged as the dominant player, signaling deep institutional interest in Bitcoin. Its spot BTC ETF accumulated over $55 billion in assets, quickly overtaking Grayscale’s GBTC.
GBTC, launched in 2013, was long known for trading at significant premiums or discounts to net asset value. After the ETF conversion, Grayscale maintained a 1.5% fee—much higher than competitors like BlackRock and Fidelity. This led to sustained outflows from GBTC throughout the year.
ETH/BTC Ratio Declines
The ETH/BTC ratio continued its downward trend throughout 2024, reaching a low of 0.033 in November—its weakest level since March 2021.
This ratio measures Ethereum’s performance relative to Bitcoin. A decline indicates ETH is underperforming.
Several factors contributed to this trend:
- Increased regulatory scrutiny around staking in the U.S.
- The rise of Solana as a preferred network for speculation and meme token trading
- Migration of users to lower-fee environments during high-activity periods
At times, Solana’s DEX volumes even surpassed Ethereum’s, highlighting its growing influence.
Slow Start for ETH ETFs
Ethereum ETFs launched in July but got off to a slow start. Similar to the BTC ETF rollout, Grayscale’s high fee structure (2% for ETHE) initially dampened enthusiasm.
However, flows began improving toward the end of the year. After the U.S. elections, inflows increased substantially, and traders flocked to CME’s ETH futures.
By November and December, net flows turned positive, surpassing $2 billion since launch. Over $3 billion had flowed out of ETHE, but new funds saw growing interest.
Regulatory shifts following the election improved the outlook for ETH. Clarity around its classification—whether as a security or commodity—and staking regulations are expected to drive growth in 2025.
MicroStrategy Accelerates Bitcoin Purchases
MicroStrategy had its most active year yet in accumulating Bitcoin. The company, once primarily a software business, now brands itself as the world’s first “Bitcoin development company.”
Since January, MicroStrategy purchased over 249,850 BTC, accelerating buying after the election. The company funded these acquisitions through multiple convertible bond offerings—a strategy that raised concerns about potential forced selling in a downturn.
So far, the approach has worked. Rising BTC prices and bullish sentiment propelled MSTR’s stock to all-time highs, a milestone not seen since the dot-com era.
Some U.S. politicians have even proposed that the federal government emulate MicroStrategy’s strategy by building a strategic Bitcoin reserve.
The Alameda Gap Narrows
2024 was the year the crypto market finally moved past the collapse of FTX. The “Alameda Gap”—the liquidity shortfall left after FTX and Alameda Research shut down—narrowed significantly this year.
Bitcoin’s market depth (1%) now exceeds pre-FTX levels of around $120 million, driven by rising prices and growing market share across major exchanges.
Kraken, Coinbase, and LMAX Digital showed notable recoveries. LMAX Digital, in particular, reached a record $27 million in Bitcoin market depth, briefly overtaking Bitstamp as the third-most-liquid BTC market.
Meme Token Mania
Meme tokens saw exponential growth at various points in 2024, especially on Solana. The launch of Pump.fun—a protocol that allows anyone to create and launch tokens—democratized meme coin creation and liquidity building.
Despite the influx of new tokens, established assets like Dogecoin continued to dominate centralized exchange volumes. DOGE rose on election-related bullishness, particularly after news that Donald Trump planned to form a “Department of Government Efficiency” (D.O.G.E.) led by Elon Musk and Vivek Ramaswamy.
One standout Solana meme token was PNUT, inspired by Peanut the Squirrel, a New York-based pet influencer. What began as a tribute grew into a multi-million-dollar phenomenon. One trader turned $16 into $3 million in realized profits.
PNUT is now listed on major exchanges including Binance, Crypto.com, and OKX.
Stablecoin Market Shifts Under New Regulations
Regulatory changes in Europe reshaped the stablecoin landscape. The Markets in Crypto-Assets (MiCA) regulation, enacted in June, led to the delisting of several stablecoins and prompted exchanges to adjust their offerings.
Euro-to-crypto volume remained above 2023 averages throughout the year, reflecting growing demand. Three months after MiCA took effect, MiCA-compliant euro stablecoins began dominating the market.
By November, compliant stablecoins—including Circle’s EURC, Société Générale’s EURCV, and Banking Circle’s EURI—captured a record 91% market share.
Binance emerged as a key player in the euro stablecoin market after listing EURI in late August. Coinbase remained the largest market, holding 47% share, largely driven by EURC.
Frequently Asked Questions
What drove Bitcoin’s price increase in 2024?
Bitcoin’s surge was fueled by the launch of spot ETFs, institutional adoption, positive regulatory developments, and macroeconomic factors such as currency devaluation in several countries.
How did the U.S. election affect cryptocurrency markets?
The election introduced a friendlier regulatory outlook, with both major candidates showing support for crypto. This led to increased investor confidence and bullish market positioning.
What are MiCA regulations, and how did they impact stablecoins?
MiCA is a comprehensive regulatory framework in the EU that sets standards for crypto assets. It led to the delisting of non-compliant stablecoins and encouraged the adoption of regulated alternatives.
Why did Ethereum underperform Bitcoin in 2024?
Ethereum faced regulatory uncertainty, especially around staking. The rise of Solana and other competitors also diverted attention and trading volume away from ETH.
What is the significance of Bitcoin’halving?
The halving reduces the block reward miners receive, cutting the rate of new Bitcoin supply. Historically, this event has preceded bull markets due to increased scarcity.
Did meme tokens have a lasting impact in 2024?
While many meme tokens were volatile and short-lived, they demonstrated the power of community-driven projects and introduced new participants to crypto markets.
Conclusion
2024 was a foundational year for digital assets, establishing cryptocurrencies as viable investment vehicles for Wall Street investors. This rally felt different—supported by established institutions, clearer regulations, and improved market structure.
While Bitcoin and Ethereum led the way, the stage is set for broader asset growth in the coming year. As regulatory clarity improves and adoption spreads, the market is poised for continued evolution and maturity.