Bitcoin Was The Best-Performing Asset in 2024

Bitcoin was the star performer of 2024, driven by the launch of exchange-traded funds (ETFs) and hopes for a regulatory boost under a new U.S. administration. The cryptocurrency skyrocketed from $40,000 in January to a peak of over $108,000 in December, marking an extraordinary 170% gain compared to 30% for the NASDAQ and 27% for gold. The S&P500, by comparison, grew by 25%.

The biggest gains came after Donald Trump’s election victory over Kamala Harris, fueling optimism for deregulation and drawing substantial new investments into digital assets. Bitcoin ETFs played a huge role in this surge. The iShares Bitcoin Trust ETF (IBIT), introduced in January, hoovered up over $50 billion in assets, providing investors with an easy way to tap into cryptocurrency markets.

Despite the euphoria, the end of the year saw a pullback. Profit-taking, choppy trading, and concerns over the Federal Reserve’s slower-than-expected rate cuts put pressure on prices. December’s decline marked Bitcoin’s first negative monthly performance in nearly a year, revealing the volatility of the market.

Stocks tied to cryptocurrency also saw dramatic movements. MicroStrategy shares soared over 360% as the company entered the Nasdaq 100 index, while Coinbase and Robinhood rallied 43% and 196%, respectively.

What Does This Mean for Me?

As the year ends, Bitcoin’s steep rise highlights both its growing legitimacy in traditional markets and the inherent volatility that keeps investors on edge. For those bold enough to stay the course, 2024 proved to be a strong crypto investing year.