Bitcoin is undoubtedly the best-performing asset class in 2024, as new ETFs usher in wider adoption and hopes of deregulation under the new presidential administration lift the digital asset to record levels.
But owning cryptocurrencies also comes with its usual unpredictability and dizzying volatility, as this month’s trading clearly shows. Bitcoin Its price has more than doubled in the $40,000 range since the start of the year, and was last trading near $95,500. ether It’s up nearly 50% year to date and last traded around $3,400.
Bitcoin and Ethereum since early 2024
The most prosperous time of the year occurs in the weeks following the U.S. presidential election. By mid-December, the cryptocurrency surged above $108,000 for the first time, fueled by optimism over President-elect Donald Trump’s victory over Vice President Kamala Harris. Opening the door to greater regulation transparency and allowing new money to flow into the industry.
Since then, however, prices have dropped. Affected by market expectations, Bitcoin showed negative value this month Fed cuts interest rates Will roll out slower than expected. The market faced a significant series of profit-taking and volatility into the end of the year.
The launch of new ETFs holding cryptocurrencies in January provided a major confidence boost. The funds, promoted by asset managers as an easier way for investors to acquire Bitcoin, have absorbed tens of billions of dollars in cash this year. this iShares Bitcoin Trust ETF (IBIT) Currently has assets of over $50 billion.
Microstrategy stock this year
Ethereum ETF Join the excitement of July. Demand for these funds has not been as strong as its Bitcoin counterparts, but the category has still attracted more than $2 billion in net inflows in less than six months, according to FactSet data.
Strong momentum from cryptocurrencies has also pushed related stocks to record levels. Bitcoin proxy micro strategy has soared 388% since the beginning of the year, while Coin library and Robin Hood Increases of approximately 47% and 200% respectively. MicroStrategy shares have surged since mid-December as the company Included in the Nasdaq 100 Index.
However, some mining stocks have underperformed, Mara Holdings and Anti-riot platform So far this year, the company is expected to post double-digit losses. The decline in mining stocks could be a direct result of this year’s Bitcoin halving, Reduce block rewards. Like transaction fees, this is one of the most important ways miners make money.
— CNBC’s Jesse Pond contributed reporting
