Year-ender 2024: Shares and gold left behind, Bitcoin’s pace surprised everyone, investors became rich, know what will happen in 2025?

Year-ender 2024: The year 2024 is about to end. When we evaluate this year in terms of investment, we find that in 2024, Bitcoin has given more returns than gold, silver, bonds and stock market. Cryptocurrency investors have got great returns this year. Bitcoin has been the best performing investment of 2024. It has given a great return of 140 percent in 12 months. At the beginning of the year, Bitcoin was close to $42,000-$43,000. Now at the end of the year, the price of Bitcoin has reached a record $1,08,000. This return is much higher than the return of the Nifty-50 index, which gave about 10 percent return this year. On the other hand, gold has given 20 percent return this year.

Why did Bitcoin rise? 

Many events have been responsible for the rise in bitcoin this year. In January, the SEC approved the first bitcoin ETF. This made it easier for people to invest in bitcoin. After this, Donald Trump was seen speaking at a bitcoin conference in July. After this, bitcoin got wings after Trump’s victory in the US presidential election in November. Even more, Trump appointed a well-known crypto supporter Paul Atkins as SEC chairman. This move indicated the possibility of cryptocurrency-friendly regulations, which increased the enthusiasm of investors.

This is the second big factor

The second major factor behind the rise in Bitcoin was the reduction in interest rates by the US Fed. In September, the Fed cut the interest rate by 0.50% for the first time in 4 years. After this, it cut the rate by 0.25 percent each time in November and December. Low interest rates usually support investors to move towards riskier investment options. Bitcoin benefited from this.

World Politics

World politics also played an important role in the success of crypto. Russian President Putin criticized the way America uses the dollar as a global currency. He said that this forces other countries to look at alternatives like bitcoin. On the other hand, Europe has also adopted a soft stance on cryptocurrency. Not only this, China also indicated an open approach to crypto.

What will be the situation in 2025?

According to Edul Patel, CEO of crypto platform Mudrex, Bitcoin’s strong momentum of 2024 is likely to continue in 2025 as well. With clear regulations, retailers will adopt it rapidly. Institutional inflows will increase with new ETFs from Solana and Ripple. With these favorable conditions, Bitcoin can reach $200,000 by the end of 2025.