2024 was a transformative year for the cryptocurrency industry — a year of institutional embrace, regulatory breakthroughs, and geopolitical influence reshaping the digital asset landscape. From Bitcoin’s historic milestones to Ethereum’s technological evolution and the rising role of global politics, the crypto market transitioned from speculative frontier to mainstream financial consideration.
This year marked the end of crypto’s long struggle for legitimacy. With Bitcoin surpassing $100,000 and major financial institutions integrating digital assets into their portfolios, the narrative shifted from "if" to "when" for widespread adoption. At the same time, innovation continued beneath the surface — Layer 2 solutions matured, new ecosystems emerged, and public sentiment evolved.
Let’s walk through the pivotal moments that defined 2024.
January: The Institutional Floodgates Open with Bitcoin Spot ETF Approval
The year began with a landmark achievement — the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs on January 10. This decision marked a turning point in crypto history, signaling formal regulatory recognition of Bitcoin as a legitimate investment vehicle.
Major financial players including BlackRock (iShares), Fidelity, VanEck, Ark Invest, and Grayscale gained approval to launch ETFs, opening the floodgates for institutional capital. By December 31, these ETFs had accumulated over $109.5 billion in net assets, with total inflows exceeding $35.27 billion.
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This shift also altered market dynamics: institutional investors gradually replaced miners as key price influencers, reflecting a maturing ecosystem where long-term holders drive stability over short-term volatility.
March: Ethereum’s坎昆 Upgrade Powers the Layer 2 Revolution
While Bitcoin dominated headlines early, Ethereum made quiet but profound progress. On March 13, the network successfully completed the Kanpur upgrade (also known as Dencun), introducing blobs — a critical step toward scalability via proto-danksharding.
This upgrade drastically reduced transaction fees across Ethereum’s Layer 2 networks. Platforms like Optimism, zkSync, Base, and Starknet saw gas costs drop by up to 90%, accelerating user adoption and developer activity.
By year-end:
- Over 1.2 million blocks included blob transactions
- More than 2.4 million transactions utilized blobs
- Nearly 4.9 million blobs were deployed, saving an estimated 3,008 ETH in gas fees
However, fragmentation remains a challenge. Liquidity is now spread across multiple L2s, raising concerns about interoperability and value accrual back to Ethereum’s base layer.
April: Bitcoin Halving and Hong Kong’s Virtual Asset ETF Launch
April brought two major events: Bitcoin’s fourth halving and Hong Kong’s launch of spot crypto ETFs.
On April 20, at block height 840,000, Bitcoin’s block reward halved from 6.25 BTC to 3.125 BTC. Historically, halvings precede bull markets due to supply scarcity. This time was no different — though immediate price impact was muted, long-term bullish sentiment strengthened.
Mining operations consolidated under pressure, with leaders like Marathon Digital and CleanSpark expanding capacity using advanced ASICs and low-cost energy. Some even began pivoting into AI computing to diversify revenue.
Meanwhile, Hong Kong launched its first batch of spot Bitcoin ETFs on April 30. Issued by华夏基金、博时国际、and 嘉实国际, these products symbolized Asia’s attempt to become a compliant crypto hub. However, high fees and limited capital inflows — only $409 million in AUM by year-end — highlighted structural challenges compared to U.S. counterparts.
Despite setbacks, Hong Kong’s focus on stablecoins and real-world asset (RWA) tokenization positions it as a potential bridge between traditional finance and Web3 in 2025.
May: Ethereum ETF Hope Rises and CZ’s Legal Resolution
May reignited hope for Ethereum’s institutional future. On May 24, the SEC approved rule changes allowing exchanges like NYSE and Nasdaq to list spot Ethereum ETFs — a surprising reversal given past resistance.
This move suggested regulators no longer viewed ETH as a security, setting a precedent for other decentralized protocols. The final approval came on July 23, with ETFs attracting over $2.68 billion in inflows** and reaching **$12.11 billion in AUM by December.
Also in May, former Binance CEO Changpeng Zhao (CZ) faced sentencing after pleading guilty in 2023. Supported by over 160 letters from the community — including one from his wife He Yi — CZ received only four months in prison, far less than feared. He was released on September 28, greeted by a surge in BNB price — a testament to his enduring influence.
June–July: Airdrop Backlash and Market Volatility
June saw growing tension around token distribution. LayerZero’s controversial airdrop sparked backlash after "degen hunters" exploited eligibility rules, leading to accusations of unfair allocation. The incident highlighted the need for better anti-sybil mechanisms.
Similarly, zkSync faced criticism over insider allocations ("rat farming"), though it set new standards for user retention post-airdrop. These cases signaled a shift: easy "free money" opportunities are fading as projects demand more genuine engagement.
Market sentiment soured further in early July when Mt. Gox began repaying creditors and German authorities sold seized BTC — triggering a selloff dubbed “7.5 crash.” Bitcoin dipped below $60,000, wiping out billions in market cap.
But hope returned mid-month when Donald Trump released his pro-crypto “life photo”, pledging support for Bitcoin reserves and U.S.-based mining. His appearance at the Bitcoin Miami conference solidified his image as the “Bitcoin President.”
August–September: TON Shock and Fed Rate Cuts
In August, Telegram CEO Pavel Durov was arrested in France, causing panic in the TON (The Open Network) ecosystem. Toncoin dropped nearly 11% in 24 hours; TVL plummeted by over 57%. Yet recovery was swift — underscoring TON’s resilience despite centralized leadership risks.
September brought macro relief: the Federal Reserve cut interest rates by 50 basis points, ending a four-year tightening cycle. By year-end, rates had dropped to 4.25%–4.50%, fueling risk appetite across equities and crypto alike.
Lower rates typically boost speculative assets — and Bitcoin responded strongly.
October–December: Trump Wins Presidency, Bitcoin Breaks $100K
The U.S. election became crypto’s dominant narrative. On November 5, Donald Trump won the presidency — delivering what many called a “crypto supercycle catalyst.” With a pro-digital asset platform and supportive Congress, expectations soared.
Bitcoin surged past $90,000**, surpassing silver as the world’s 8th-largest asset by market cap. On **December 5**, it broke **$100,000, validating its status as “digital gold.”
Key developments followed:
- SEC Chair Gary Gensler announced resignation
- Trump nominated Paul Atkins, a known crypto-friendly regulator
- David Sacks appointed as White House Crypto & AI Czar
MicroStrategy’s inclusion in the Nasdaq-100 index further cemented institutional acceptance.
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Frequently Asked Questions
Q: What caused Bitcoin to reach $100,000 in 2024?
A: A combination of spot ETF approvals, the halving event, Fed rate cuts, and pro-crypto political leadership — especially Trump’s election win — created perfect bullish conditions.
Q: Did Ethereum ETFs perform as well as Bitcoin ETFs?
A: No. While Ethereum ETFs attracted significant inflows ($2.68B), they lagged behind Bitcoin due to lingering regulatory uncertainty and lower institutional demand.
Q: Is Hong Kong becoming a major crypto hub?
A: It has potential, especially with its focus on stablecoins and RWAs. But high fees and limited liquidity have slowed momentum compared to U.S. markets.
Q: How did the Kanpur upgrade benefit everyday users?
A: It dramatically lowered transaction costs on Layer 2 networks — making DeFi and NFT interactions far more affordable.
Q: Will airdrops remain profitable for retail users?
A: Likely not at previous levels. Increasing complexity, anti-sybil measures, and professional farming groups have raised barriers to entry.
Q: What does MicroStrategy joining Nasdaq-100 mean for crypto?
A: It signals growing integration between traditional finance and crypto-native businesses — enhancing credibility and investor access.
As 2024 closed, the stage was set for broader adoption in 2025. With macro tailwinds, regulatory clarity emerging, and technological foundations strengthening, the market moved from hidden potential — a dragon in the depths — toward visible emergence.
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