Crypto Returned With a Vengeance in 2024, and It's Poised to Do Even Better in 2025

Crypto was not much known to a common man or small scale investors till the digital currencies in the basket, including the oldest and most-traded - bitcoin

Cryptocurrency, a virtual or digital currency, gained immense popularity in 2024, particularly following Donald Trump's victory in the US Presidential election. Prior to 2024, crypto was largely a niche interest among investors. However, with the changing political landscape, crypto assets like bitcoin became accessible to Americans, much like stocks.

The incoming administration in Washington also promised to support the crypto industry with major legislative changes. As a result, investors holding bitcoin saw a 130 per cent gain since the beginning of the year. The price of the largest cryptocurrency soared past $100,000 after Trump's triumph in the November 2024 presidential elections. According to Coinmarketcap, the market value of all crypto rose by nearly $1.7 trillion.

The US SEC's approval of Bitcoin and Ethereum ETFs earlier in the year also contributed to the crypto surge. This prompted financial giants like BlackRock and Fidelity to significantly increase their crypto investments.

Bitcoin also rallied earlier in the year due to massive demand from newly launched spot bitcoin exchange-traded funds (ETFs). Additionally, an enhanced blockchain infrastructure with improved scalability and security features attracted a host of new users.

Crypto's upward movement began around the US Presidential election, when Trump promised to establish a crypto presidential advisory committee to draft robust regulations, enable individuals to mine bitcoin, allow self-custody of digital assets, and reduce government oversight.

He also proposed a strategic bitcoin reserve to position the US as the dominant “Bitcoin superpower.” The US President proposed using bitcoin reserves to reduce the US' national debt.

While bitcoin is often associated with cryptocurrency, Pepe - a token inspired by the meme frog - emerged as the top performer in 2024, with a market capatilisation of over $5 billion.

Pepe soared by a staggering 1,570.7 per cent, reaching a market cap of $9 billion. Another significant gainer was SUI, the native token for the Sui blockchain, which posted a remarkable 509 per cent gain.

According to a Forbes report, Dogecoin, a favorite among meme coin enthusiasts and promoted by Elon Musk, surged 333.1 per cent. Meme coins like Dogecoin and Shiba Inu contributed significantly to the expansion of the crypto market in 2024.

As 2025 approaches, market participants remain optimistic about the prospects for cryptocurrency, especially with the Trump-led administration returning to the White House. Many analysts and experts anticipate bitcoin to reach $200,000 by the end of 2025.