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The year 2024 marked a historic turning point for the crypto industry, with bitcoin surpassing the symbolic threshold of 100,000 dollars in December. Between the resounding successes of Bitcoin ETFs and colossal losses due to hacks, this year has been rich in twists and turns for the crypto sector.
A record year for hodlers and institutions
The crypto market underwent a major transformation in 2024, driven by massive institutional adoption and regulatory validation in the United States. On December 5, bitcoin crossed the 100,000 dollar mark for the first time, fueled by a favorable political context and the historic approval of spot Bitcoin ETFs by the SEC in January. This rally peaked at 108,000 dollars in mid-December, allowing 87% of holders to realize substantial profits.
MicroStrategy has become the perfect example of this institutional success, with bitcoin reserves reaching 42 billion dollars by the end of December. El Salvador also saw its strategy of adopting bitcoin as legal tender bear fruit, its 5,942 BTC now representing 576 million dollars. In their wake, many companies like Metaplanet and Rumble have integrated bitcoin into their treasury.
Moreover, Bitcoin ETFs enjoyed resounding success, surpassing gold funds with 129 billion dollars in assets under management in December. Furthermore, the memecoin sector is not lagging behind, with a total market cap of 104 billion dollars, driven by the impressive performances of Dogecoin and Shiba Inu.
Hacks and troubles, the other side of crypto in 2024
The year was also marked by a surge in malicious activities, with losses totaling 2.2 billion dollars over 303 incidents. The biggest heist hit the Japanese exchange DMM in May, with 300 million dollars stolen by alleged North Korean hackers. PlayDapp and WazirX also suffered major losses of 290 and 235 million dollars, respectively.
Crypto-specialized lawyers have been the big winners of these troubles, raking in over 751 million dollars in fees solely for Chapter 11 bankruptcies. The SEC maintained regulatory pressure, obtaining 8.2 billion dollars in financial reparations over the fiscal year.
The “paper hands” and latecomers missed the opportunity of the century. Germany notably sold 50,000 seized BTC at 57,000 dollars, missing the rise towards 100,000 dollars. The United States also liquidated 19,800 BTC to their disadvantage, though they still hold 183,850 BTC.
This year 2024 will remain in the annals as the year of the maturity of the crypto market, marked by historic institutional successes, but also by the persistence of the inherent risks in this constantly evolving industry.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
