The historic crypto bull run shows no sign of slowing down as the year of catalysts is transforming the digital financial landscape. 

Bitcoin has made history in 2024, surpassing the long-anticipated six-figure mark ($100,000) and cementing its place as a transformative asset in global markets. This milestone caps a year of unprecedented momentum for cryptocurrencies, fueled by favorable regulatory developments, market adoption, and shifting political winds. With Bitcoin now valued just shy of $2 trillion—larger than all but a handful of the world's public companies—the crypto ecosystem is undeniably entering a new golden era.

Bitcoin's price trajectory from its inception, when it was worth mere pennies, to reaching the milestone of $100,000 in 2024 (Figure 1) underscores its evolution from a niche experiment to a globally recognized asset class. The timeline reveals periods of sharp volatility, characteristic of Bitcoin's history, with significant price spikes in 2017, 2021, and now 2024.

The final surge to $100,000 in 2024 is particularly noteworthy, as it follows a period of consolidation and slower growth post-2021. This rise likely reflects increasing institutional adoption, regulatory clarity, and macroeconomic factors driving demand for decentralized, deflationary assets. The data highlights Bitcoin's resilience and growing importance as a store of value, despite enduring skepticism and challenges over the years.

Figure 1

The Perfect Storm of Catalysts

The factors driving Bitcoin’s explosive rally this year go beyond mere speculation; reflecting a confluence of structural, political, and market shifts.

➲ Bitcoin ETFs: Mainstream Adoption Unlocked
The launch of spot Bitcoin exchange-traded funds (ETFs) in Jan. 2024 marked a seismic shift for institutional and retail investors. Previously barred by regulatory uncertainty, ETFs opened the floodgates for trillions of dollars locked in traditional finance to flow into Bitcoin.

Major players like BlackRock, Fidelity, and ARK Invest introduced Bitcoin ETFs, providing credibility to the asset class while making it easier for investors to gain exposure through tax-advantaged retirement accounts. The chart below (Figure 2) demonstrates the increasing adoption of Bitcoin by U.S. spot Bitcoin ETFs in 2024.

Beginning the year with holdings below 600,000 coins, the total has surged past 1 million by November, reflecting growing institutional confidence and demand. The steady upward trend, punctuated by periods of accelerated accumulation, aligns with broader market optimism following the approval of Bitcoin ETFs. This surge in ETF-held Bitcoin has likely contributed to Bitcoin's recent price rally, as asset managers increasingly view the cryptocurrency as a valuable and regulated investment vehicle.

Figure 2

➲ Trump’s Election and a Crypto-Friendly SEC
Donald Trump’s return to the presidency in 2024 was an unexpected boon for crypto markets. His incoming administration quickly pivoted from the cautious regulatory approach of its predecessors. The most significant move came with the appointment of Paul Atkins - a known crypto advocate, to replace Gary Gensler as chair of the Securities and Exchange Commission (SEC).

Atkins’ pro-innovation stance has set the tone for a friendlier regulatory environment, alleviating fears of stringent crackdowns. With clearer rules around custody, DeFi, and token classification, investor confidence has soared, removing a long-standing overhang on the crypto market.

➲ Broader Market Momentum
Bitcoin’s rally has been mirrored by surges in associated cryptocurrencies and blockchain-related equities. MicroStrategy, the poster child of Bitcoin adoption, has seen a 500% surge in its stock price this year, benefiting from the appreciation of its vast Bitcoin holdings. Meanwhile, Ethereum, Solana, and other altcoins have also posted significant gains, fueled by booming activity in decentralized finance (DeFi).

MicroStrategy: The Clear Winner

While Bitcoin itself has dominated headlines, 2024’s crypto bull run has also crowned new winners in the equities market. MicroStrategy, which now owns more than 400,000 BTC, has been one of Wall Street's standout performers. Its bold, high-conviction bet on Bitcoin is paying off handsomely, with its stock rallying 500% year-to-date (Figure 3), dwarfing Bitcoin’s price gains. Co-founder Michael Saylor has leveraged borrowed funds to amass Bitcoin now valued at approximately $40 billion.

While retail investors are drawn to the stock, captivated by its surge this year, hedge funds have also been actively purchasing over $6 billion in convertible notes issued by MicroStrategy to finance these Bitcoin acquisitions. Meanwhile, other major financial firms are also entering the fray. Goldman Sachs, JP Morgan, and other legacy institutions have accelerated their crypto services, from Bitcoin trading desks to blockchain-powered solutions, further driving adoption.

Figure 3

What’s Next for Crypto?

As Bitcoin’s price surges, the broader crypto landscape is poised for further growth. Here’s what to watch in the months ahead:

• Global Policy Shifts: Countries like El Salvador and Argentina are doubling down on Bitcoin adoption, while others are exploring regulatory frameworks that foster innovation without compromising investor protections.

• DeFi and Tokenized Assets: Ethereum and other smart contract platforms are benefiting from renewed interest in decentralized finance, tokenized real estate, and securities.

• New Institutional Entrants: With Bitcoin ETFs paving the way, expect a wave of institutional money to pour into crypto markets, including sovereign wealth funds and central banks exploring Bitcoin reserves.

2024 has solidified Bitcoin’s status as a global asset class and reignited the broader crypto bull market. As Bitcoin powers through six digits and the total market value of cryptocurrencies approaches new highs, the world is witnessing the evolution of a financial revolution once dismissed as a fringe movement. The question now is not whether Bitcoin will stay at these levels, but how far it will go in reshaping the global financial landscape.

Originally published at Substack.