In 2024, the cryptocurrency world witnessed a tumultuous year of significant gains, devastating losses, and surging enthusiasm. Bitcoin holders celebrated as the cryptocurrency sailed past the monumental $100,000 mark in December, fueled partially by pro-crypto sentiment in the U.S. government and a wave of supportive legislation. Yet, not everyone shared in the jubilation. The year also bore witness to a staggering $2.2 billion loss from numerous scams and hacks, overshadowing the victories for many in the community.
Among the key winners were Bitcoin enthusiasts who saw their investments soar as the coin hit unprecedented highs, peaking at $108,000 before settling around $96,000 by the year’s end, boasting 87% of holders still in profit. MicroStrategy emerged as a notable beneficiary with its significant Bitcoin holdings valued at $42 billion. Meanwhile, El Salvador and several firms continued to expand their Bitcoin reserves, marking a growing trend of institutional adoption.
In the financial sector, the U.S. Securities and Exchange Commission (SEC) approved Spot Bitcoin ETFs, enabling Bitcoin to overtake gold in assets under management. The memecoin market, led by tokens such as Dogecoin and Shiba Inu, also thrived, with the total market cap reaching $104 billion, despite high failure rates for new entrants.
Legal professionals in the crypto space revelled in what proved to be a lucrative year due to the sustained demand for litigation and advisory services as the industry navigated regulatory challenges. Law firms handling Chapter 11 bankruptcy cases alone reportedly earned $751 million in fees.
However, not all developments were positive. The soaring crime in the crypto world saw notable heists, including the breach of Japanese exchange DMM and decentralized finance platform PlayDapp, resulting in hundreds of millions in losses. Celebrities venturing into crypto faced backlash and legal troubles for allegedly unregistered security offerings, further marring the industry’s reputation.
Governments, too, faced criticism. Germany’s decision to liquidate seized Bitcoin at relatively low prices drew condemnation after the cryptocurrency’s value surged. Similarly, the U.S. government’s transfer of a substantial Bitcoin cache from the Silk Road bust to Coinbase also did not escape scrutiny.
On the legal front, Sam Bankman-Fried, former CEO of FTX, was sentenced to 25 years in prison for his involvement in criminal activities. Meanwhile, U.S. regulators saw a significant increase in lawsuit settlements, signaling an ongoing legal tussle within the crypto industry.
As the year concluded, it was clear that 2024 would be remembered as a year of extreme highs and difficult lows, underscoring the volatile and unpredictable nature of the cryptocurrency landscape.
