2024 was a monumental year for Bitcoin, the world’s leading cryptocurrency. From shattering price milestones to gaining regulatory wins to surviving a critical halving event, BTC had a rollercoaster 12 months. Let’s dive into the key events that defined Bitcoin’s wild 2024 journey.
Bitcoin Spot ETFs Finally Arrive in the US
After years of rejection, the crypto industry finally got its wish – the SEC approved the first Bitcoin spot ETFs in January 2024. Giants like BlackRock and Fidelity raced to launch their own products, unleashing a tidal wave of institutional adoption. In just 30 days, BTC spot ETFs generated billions in trading volume, marking the best ETF debuts in history.
4th Halving: Block Reward Drops to 3.125 BTC
On April 20th, 2024, Bitcoin underwent its fourth halving event, cutting the block reward in half from 6.25 BTC to 3.125 BTC. This quadrennial occurrence, baked into Bitcoin’s code, helps control the issuance of new coins. Historically, halvings have kicked off bull markets, although the effect often lags by several months.
In the lead-up to the halving, Bitcoin’s price surged to a new all-time high of $73,000 as investors anticipated the supply shock. However, the network saw a temporary dip in mining difficulty post-halving as some operators went offline due to reduced profitability – a common adjustment mechanism.
Bitcoin Smashes $100,000: A Historic Milestone
On December 5th, 2024, Bitcoin finally achieved the long-awaited six-figure milestone, crossing $100,000 for the first time. The price continued surging to a new all-time high of $108,135 on December 17th. This astronomical rise was fueled by a confluence of factors:
- The return of Donald Trump to the US presidency and his pro-crypto stance
- The appointment of crypto-friendly officials to key positions like the SEC and Treasury
- Increased confidence from institutions thanks to the spot ETF approvals
Layer 2 Solutions Flourish on Bitcoin
2024 saw major breakthroughs in layer 2 scaling solutions for Bitcoin. In July, the BitcoinOS project successfully verified a zero-knowledge proof on the Bitcoin mainnet, paving the way for trustless bridges between BTC and L2 rollups. Meanwhile, leading L2s like Spiderchain inked key partnerships with oracles like Chainlink and DeFi giants like Aave.
OP_CAT: Unlocking Greater Programmability?
Bitcoin developers resurrected the debate around OP_CAT in 2024. This early op code, if re-enabled, could allow for more complex smart contracts on Bitcoin. Firms like Starkware announced plans to leverage OP_CAT to connect their L2 scaling solutions to the Bitcoin base layer, with a potential activation in 2025.
Bitcoin as a Strategic Reserve Asset
2024 saw Bitcoin mature from an investment asset to a strategic reserve. Beyond institutions like MicroStrategy stacking sats, even nations and municipalities began debating the need to hold BTC in their treasuries. The U.S., Poland, Brazil, Japan, and Vancouver were among those mulling Bitcoin reserves.
Key Takeaways from Bitcoin’s 2024
- Spot ETF approvals in the US unleashed massive institutional adoption
- The 4th halving cut block rewards to 3.125 BTC, triggering short-term mining difficulty adjustments
- BTC finally broke $100K in December, hitting a new all-time high of $108,135
- Layer 2 solutions made major strides, with potential OP_CAT activation on the horizon
- Bitcoin began transitioning from an investment to a strategic reserve asset
2024 was a defining year for Bitcoin, marked by historic milestones in price action, institutional adoption, technological innovation, and macroeconomic significance. As the dust settles on this momentous chapter, all eyes now turn to 2025. Will BTC’s ascent continue, or will the next cycle chart a different course? One thing’s for certain – the Bitcoin rollercoaster is far from over.