Guest Contribution From: ICONOMI
In the latest instalment of our guest series featuring content from cryptocurrency experts, ICONOMI, they take a direct look at the recent performance of Bitcoin, and why corporate investors should be paying attention.
A Historic Breakthrough For Bitcoin: Why $100k Matters
Bitcoin’s historic breakthrough past $100k last week has marked a pivotal moment in the evolution of digital assets, driven by a confluence of macroeconomic factors and shifting market sentiment.
Bitcoin has been a top-performing asset in 2024, climbing over 130% year-to-date, from just above $40,000 at the start of the year. Institutional interest played a key role, with Bitcoin investment products alone pulling in $3 billion in inflows in the last week of November, contributing to a record-breaking $37 billion in digital asset inflows year-to-date. Historical data suggests that Bitcoin’s final-quarter performance tends to outperform other periods, with average gains of 80% between October and December in past years.
The Bitcoin Spot ETFs appear to show no signs of slowing down, with an average daily gain of 2,000 BTC, worth today at $200 million. To put this into perspective, Bitcoin miners produce 450 Bitcoin per day through supporting the Bitcoin network, the ETFs are accumulating 4.4X the amount of Bitcoin than what is being produced per day.
The ‘Trump Effect’ on Crypto
Donald Trump’s re-election has further spurred optimism in the crypto markets. His administration is reportedly considering policies aimed at fostering a more favourable environment for digital assets. Proposed measures include tax incentives for blockchain innovation, clearer regulatory frameworks to differentiate between securities and cryptocurrencies, and federal acceptance of digital currencies for payments. These initiatives are anticipated to reduce friction for institutional adoption while signalling broader government support for the sector. Additionally, states like Texas and Wyoming, alongside central banks in El Salvador and Argentina, are exploring the idea of building Bitcoin strategic reserves, citing its potential as a hedge against inflation and currency volatility.
Ethereum, often seen as the backbone of the decentralised finance (DeFi) ecosystem, also had a standout year. Ethereum’s price has surged 72% year-to-date, closing in on $4,000. Institutional sentiment toward Ethereum shifted dramatically in late 2024, with $634 million in inflows recorded last week alone, bringing its year-to-date inflows to $2.2 billion—the highest on record. This growth has been fueled by Ethereum’s dominance in DeFi and layer-2 solutions, as well as increased optimism surrounding its energy-efficient proof-of-stake system.
Solana, another major player, has seen a remarkable resurgence. Starting 2023 at roughly $10, Solana’s price has climbed over 1,400%, recently surpassing $225. The blockchain’s high-speed, low-cost infrastructure has drawn significant developer activity and investor interest, leading to $16 million in inflows last week. Though smaller compared to Bitcoin and Ethereum, Solana’s year-to-date performance has cemented its place as a top contender in the digital asset ecosystem.
Globally, macroeconomic shifts have amplified the crypto market’s momentum. The U.S. Federal Reserve’s interest rate cuts, alongside expectations of looser fiscal policies under the Trump administration, have made digital assets more attractive to investors seeking alternative stores of value. This is particularly relevant as central banks and sovereign states increasingly explore Bitcoin as a strategic reserve. El Salvador, the first nation to adopt Bitcoin as legal tender, has reportedly doubled its holdings, while Argentina’s central bank is rumoured to be considering a similar move.
An Exciting Time For Cryptocurrency
The final months of 2024 illustrate not just the resilience but the growing integration of digital assets into the broader financial ecosystem. Bitcoin’s surpassing of $100k represents more than just a price milestone—it is a testament to the maturity of the asset class and its ability to respond to economic, technological, and geopolitical tailwinds. Ethereum and Solana, alongside Bitcoin, showcase the diversification opportunities in this space, reflecting investor confidence in a multi-chain future.
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Disclaimer: The content of this article has been provided by ICONOMI and reflects their views and insights. Nordens Chartered Accountants does not provide financial or investment advice, and this article should not be interpreted as such. We are not endorsing or recommending any spe
