2024 Year in Review: Key Crypto Moments and What Lies Ahead in 2025

Key Takeaways

• The SEC approved Bitcoin and Ethereum ETFs in 2024, drawing billions in institutional inflows and signaling trust in crypto-backed investments.
• Bitcoin reached $108,000 in December 2024, driven by institutional interest, economic factors, and regulatory clarity.
• Cryptocurrency hacks rose by 21%, with North Korean-linked hackers stealing $1.3 billion.
• The UAE clarified crypto taxation, and US states introduced tailored regulations, promoting global crypto adoption.

The cryptocurrency market in 2024 was a tale of two extremes, marked by groundbreaking wins and sobering losses. 

From the landmark approval of Bitcoin and Ethereum ETFs to the surging institutional adoption, the year showcased the growing maturity of digital assets.

However, it wasn’t without its challenges, as exchange failures, altcoin downturns, and a rise in scams reminded investors of the market’s volatility. 

This review dives deep into the pivotal moments that defined 2024, offering a comprehensive perspective on the opportunities and risks shaping the crypto landscape.

The Year of the Bull: Major Wins of 2024

Major ETF Approvals and Their Performance

The SEC’s landmark approval of spot Bitcoin ETFs on January 10, 2024, reshaped the U.S. crypto investment landscape. With 11 Bitcoin ETFs, including offerings from giants like BlackRock, Fidelity, and ARK Invest, daily trading volumes surged to nearly $10 billion by March.

These funds even outpaced the inflation-adjusted flows of the first gold ETF launched in 2005 (see image below).

Adding to this momentum, the SEC approved eight Ethereum ETFs on May 23, 2024, signaling growing regulatory acceptance for crypto-focused investment vehicles. 

November was another standout month, with crypto ETFs attracting  $7.6 billion in inflows, representing 9.4% of their starting asset base. This surge was driven by optimistic market sentiment and expectations of a more crypto-friendly regulatory environment under Trump’s leadership. 

Institutional interest in crypto ETFs surged, with Bitcoin ETFs adding 21,158 BTC ($2.22 billion) and Ethereum ETFs acquiring 220,702 ETH ($873 million) in December 2024.

The total BTC ETF holdings now approach 1.2 million BTC, reflecting growing confidence in Bitcoin as a leading investment asset. 

Similarly, Ethereum ETFs surpassed 3 million ETH in holdings, fueled by renewed investor interest. These inflows underscore institutional confidence in crypto-backed financial products, offering a legal and low-risk pathway to access digital assets. 

The upward trend in Bitcoin and Ethereum prices further highlights the role of ETFs in bridging traditional finance with the crypto economy.

Bitcoin Halving

The much-anticipated Bitcoin halving took place on April 19, 2024, reducing block rewards from 6.25 BTC to 3.125 BTC. This event, which occurs roughly every four years, will continue until 2140 when the last halving will put the entire 21 million Bitcoin supply into circulation. 

As expected, the halving sparked a strong market reaction, driving BTC prices up by 146% due to reduced supply and increased scarcity, a pattern often observed following these events.

The Craze of Telegram Games

2024 has undeniably been a breakthrough year for gaming on Telegram, with the platform not just emerging as a significant player in the Web3 gaming space but also demonstrating its capacity to attract massive user bases.

• Dominating Web3 game launches: Telegram captured  a remarkable 21% of all new Web3 game launches in 2024. This highlights a major shift in how developers are approaching game distribution and community building, leveraging Telegram’s vast network.
  
• Massive user adoption: Games like Hamster Kombat, boasting over 300 million users since March 2024, showcase Telegram’s potential for viral growth and widespread adoption. This, coupled with Catizen surpassing 39 million users with 18 million monthly active users by September, underscores the platform’s ability to attract and retain a substantial player base.
• Challenging traditional mobile platforms: The rise of Telegram games presents a potential challenge to traditional mobile gaming platforms. Telegram offers a more open environment for developers, free from the restrictive app store policies of Apple and Google, as well as regulatory uncertainties in mainstream markets.
• Focus on token launches: While funding for Web3 gaming saw a 17% increase in 2024, there was a noticeable shift towards smaller, strategic rounds focused on token launches, with game titles accounting for 74% of these launches. This indicates a growing interest in integrating blockchain technology and token economies into Telegram games
• Increased player engagement: Data from Q3 2024 revealed  considerable growth in player engagement within the Telegram gaming ecosystem, with players seeking more varied gaming experiences and engaging in longer session lengths. This suggests that Telegram games are not just attracting users, but also providing engaging experiences that keep them coming back for more.

Regulatory Progress

2024 has been a pivotal year for cryptocurrency regulation, marked by significant progress on multiple fronts. One of the most important developments is the ongoing implementation of the Markets in Crypto-Assets (MiCA) regulation in the European Union.

MiCA represents a landmark achievement, establishing a comprehensive legal framework for crypto assets across the EU. Its phased rollout in 2024 has brought increased clarity and structure to the European crypto market.

Key milestones include the implementation of rules for stablecoins and the establishment of licensing requirements for crypto asset service providers (CASPs). This means that companies offering services like trading, custody, and exchange of cryptocurrencies within the EU now operate under a defined regulatory structure, promoting greater consumer protection and market integrity.

Beyond MiCA, other regions have also made strides in regulating crypto. The UAE, for example, has clarified its VAT treatment of crypto transactions, providing much-needed guidance for businesses operating in the country.

This clarity around taxation, along with the UAE’s existing progressive stance on crypto, further solidifies its position as a hub for the digital asset industry.

These regulatory developments are not happening in isolation. They reflect a growing global trend towards establishing clear rules for the crypto market. 

While approaches vary by jurisdiction, the overall direction is towards creating frameworks that balance innovation with consumer protection and financial stability. This regulatory progress is a key moment for the crypto industry, as it provides a foundation for sustainable growth and wider adoption.

By addressing concerns around risks and uncertainties, regulators are paving the way for crypto to become a more integrated part of the global financial system.

Federal Reserve Rate Cuts

2024 witnessed a notable shift in US monetary policy as the Federal Reserve initiated a series of interest rate cuts. This move aimed to recalibrate the economy amidst easing inflation and evolving economic conditions.

• September 2024: The Fed implemented a significant 0.50% rate cut, signaling a proactive approach to adjusting monetary policy.  
• November 2024: This was followed by a 0.25% cut, further lowering borrowing costs.  
• December 2024: The year concluded with another 0.25% reduction, bringing the federal funds rate to a range of 4.25% to 4.5%.  

These rate cuts, totaling 1 percentage point since September, have several implications for the crypto market:

• Increased liquidity: Lower interest rates generally increase the availability of capital, making it more attractive for investors to explore riskier assets like cryptocurrencies.
• Weakening dollar: Rate cuts can put downward pressure on the US dollar, potentially making dollar-denominated assets like Bitcoin (since the price of Bitcoin is typically quoted and traded in relation to the US dollar) more appealing to international investors.
• Debt-fueled investments: In a low-interest-rate environment, companies like MicroStrategy, led by Michael Saylor, find it more appealing to take on debt to fund Bitcoin acquisitions as the cost of borrowing decreases.

US Election: Pro-Crypto President Wins

In a dramatic turn of events, Donald Trump secured victory in the 2024 US Presidential election, marking his return to the White House. This win has significant implications for the cryptocurrency sector, as Trump has pivoted from his previously skeptical stance on digital assets to supporting their integration into the US financial system.

During his campaign, Trump was willing to explore blockchain technology’s potential to modernize infrastructure and foster economic growth. His administration is expected to focus on regulatory clarity for cryptocurrencies, which could encourage innovation while addressing long-standing concerns over compliance and fraud prevention.

The pro-crypto shift aligns with broader Republican initiatives to position the United States as a blockchain technology and digital finance leader. Industry stakeholders are optimistic about the potential for a friendlier regulatory environment, particularly concerning stablecoins and Bitcoin mining operations.

Coinbase Stock Surges Past $300 Mark

Coinbase, a leading cryptocurrency exchange in the US, witnessed a significant surge in its stock price in 2024, breaking past the $300 mark. This milestone reflects a broader resurgence in the crypto market and signifies growing investor confidence in the industry’s future.

• Market rebound: After a challenging period in 2022 and early 2023, the cryptocurrency market experienced a notable recovery in 2024. This positive trend contributed significantly to Coinbase’s stock performance, as the company’s revenue is closely tied to trading volumes and market activity.
• Regulatory developments: Progress in regulatory clarity, such as the implementation of MiCA in the EU and clearer guidelines in other jurisdictions, has helped to alleviate some of the uncertainty surrounding the crypto industry. This has likely had a positive impact on investor sentiment towards Coinbase, as a regulated exchange.
• Broader market Trends: Factors such as the Federal Reserve’s interest rate cuts and increased institutional adoption of crypto have also contributed to the positive market environment, further boosting Coinbase’s stock price.

Bitcoin’s All-Time-High

Bitcoin first reached an all-time high in early December 2024, surpassing its previous record. It subsequently reached a peak price of approximately $108,000. This surge propelled Bitcoin’s market capitalization to over US$2.1 trillion, a staggering figure that underscores its growing dominance in the financial landscape.

While Bitcoin’s market cap still has a way to go to match gold’s multi-trillion dollar valuation, the December 2024 surge reignited discussions about Bitcoin’s role as “digital gold.” The limited supply of Bitcoin, coupled with its increasing adoption, has led many to view it as a hedge against inflation and a store of value in a digital age.

This all-time high in December 2024 was driven by a combination of factors, including increased institutional adoption, growing regulatory clarity, Trump’s win, and macroeconomic conditions. It solidified Bitcoin’s position as a leading digital asset and marked a pivotal moment in its journey toward mainstream acceptance.

The Dark Side of the Moon: Major Losses of 2024

The cryptocurrency landscape in 2024 faced significant setbacks with exchange failures, altcoin collapses, and a rise in scams and hacks.

Exchange Failures

Cryptocurrency exchanges faced significant challenges in 2024, with legal actions and operational issues impacting some of the industry’s largest platforms.

Binance’s Legal Troubles

• Binance, the largest cryptocurrency exchange globally, faced intensified scrutiny for anti-money laundering (AML) failures.
• A federal judge allowed the SEC’s lawsuit against Binance to proceed, alleging violations of US securities laws and AML regulations.

eToro’s Service Reduction:

• eToro stopped offering most cryptocurrency services to US customers after an SEC settlement.
• The SEC accused eToro of operating as an unregistered broker and clearing agency for crypto assets classified as securities.

Altcoin Collapse

The altcoin market faced significant challenges in 2024, with widespread downturns and shifting priorities among investors. Analysts predict this trend may persist into early 2025, with established cryptocurrencies gaining more favor.

Market Downturns

Analysts warn of a “slow bleed,” or prolonged gradual decline, among altcoins, projecting continued declines until January 2025.

The altcoin market in 2024 saw several notable examples of underperformance, highlighting challenges specific projects face. The three examples are illustrative and not exhaustive:

• Optimism (OP): Declined from $2.50 to $1.70 in 2024, a 32% drop driven by utility concerns and slower-than-expected adoption.
• Polygon (MATIC): Declined sharply from $0.81 to $0.43 in 2024, representing a nearly 47% drop, driven by scaling competition and waning transaction volumes.
• Celestia (TIA): Fell from $12.80 to $4.60 in 2024, a steep 64% decline attributed to profit-taking and reduced market interest.

As a result, some analysis sustain that investor focus has shifted towards established cryptocurrencies, reflecting caution amid broader market uncertainty.

Scams and Hacks

In 2024, the cryptocurrency sector faced a wave of cybercrimes, with hackers and scammers targeting platforms and individuals. Key trends and incidents marked a year of increased risks.

Overall hacking losses

Losses from cryptocurrency hacks increased by 21%, reaching $2.2 billion, according to Chainalysis.

Major incidents included:

• DMM Bitcoin: The Japanese exchange lost 4,500 BTC (about $305 million) in May 2024.
• WazirX: The Indian crypto platform suffered a theft of $235 million in July 2024.

North Korea-linked Hacks

• North Korean-affiliated hackers stole a record $1.3 billion, accounting for nearly two-thirds of global cryptocurrency thefts.
• These funds reportedly supported North Korea’s missile and nuclear programs.

Romance Scams

• In 2024, fraudsters exploited personal relationships to deceive victims into transferring digital assets, often through schemes like pig-butchering scams, which involved prolonged deception to build trust before stealing large sums. 
• These incidents highlight the rising complexity of cybercriminal strategies and the pressing need for stronger security measures and improved user education to address risks in the cryptocurrency sector.

High-Stakes Legal Battles and Arrests in 2024

• Sam Bankman-Fried’s sentencing: In March 2024, a court sentenced Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange FTX, to 25 years in prison. He orchestrated fraudulent schemes that defrauded customers and investors of billions of dollars. In 2025, FTX will start the creditor payout. 
• Changpeng Zhao’s guilty plea and sentencing: US authorities charged Changpeng Zhao, also known as CZ, founder and former CEO of Binance, with violating AML laws. He pleaded guilty in November 2023. In April 2024, a court sentenced him to four months in prison and imposed $4.3 billion in fines as part of a settlement.
• Pavel Durov’s arrest: French authorities arrested Pavel Durov, CEO and founder of Telegram, in August 2024. They accused him of enabling criminal activities through the messaging platform, including drug trafficking and the distribution of child exploitation material. He was later released on bail but remains under judicial supervision.
• Do Kwon’s extradition: Montenegrin authorities arrested Do Kwon, co-founder of Terraform Labs, in March 2023. In February 2024, a Montenegrin court approved sending him to the United States to face fraud charges tied to the $4.5 billion collapse of TerraUSD and Luna cryptocurrencies. He will be extradited to the US to face federal fraud charges, the Montenegro Ministry of Justice announced on Dec. 27, over a year after his arrest.

Challenging Crypto Moments of 2024

The year wasn’t just about milestones and victories; it was also marked by setbacks that tested the resilience of the crypto community. These moments revealed vulnerabilities in the industry and highlighted areas requiring improvement for sustainable growth.

Regulatory Uncertainties Persist

Crypto’s regulatory environment remained a mixed bag in 2024. While some regions made strides, major markets like the US struggled to provide clear guidelines, keeping businesses cautious and investors hesitant.

• Progress overshadowed by ambiguity: Inconsistent regulations slowed innovation and kept companies on edge.
• Impact on global growth: Markets reliant on US leadership were waiting for clarity, stalling momentum.

Trust Shaken by Exchange Failures

Exchanges play a critical role in the crypto ecosystem, but 2024 tested their credibility. Legal challenges and operational issues left many users questioning the reliability of these platforms.

• Legal woes and mismanagement: High-profile cases exposed weaknesses in compliance and operations.
• Users seek alternatives: Loss of trust pushed traders toward decentralized options and smaller exchanges

Decentralized Finance (DeFi) Vulnerabilities Exposed

DeFi continued to grow in 2024 but faced major security challenges. Hacks like the $235 million attack on WazirX, an Indian crypto exchange, revealed how vulnerable platforms can be, leading to significant user losses. These incidents highlighted the need for stronger defenses and better preparation across the industry.

• Exploits lead to losses: The WazirX breach exposed security gaps that left users at risk despite the plan for reimbursements.
• Cybercrime remains a threat: Sophisticated attacks targeting decentralized platforms and centralized systems show the need for better safeguards.
• Stronger safeguards are essential: These events made it clear that improving risk management is key to DeFi’s future.

Lessons for the Future

The challenges of 2024 offer valuable insights for anyone navigating the unpredictable world of cryptocurrency. 

These lessons highlight the need for caution and informed decision-making to protect investments and build resilience.

• Make security a priority: Crypto platforms can be vulnerable, as seen in  2024 hacks. Always use platforms with a proven track record, activate two-factor authentication (2FA), and store assets in secure wallets, like hardware wallets, rather than leaving them on exchanges. Staying vigilant about phishing schemes and scams like pig-butchering is equally crucial.
• Stay informed and adaptable: Knowledge is the most valuable tool in the crypto space. Regularly update your understanding of market trends, emerging projects, and security risks. Platforms and technologies evolve quickly, and staying one step ahead can mean the difference between growth and loss.
• Invest in projects with substance: Hype can often overshadow a project’s value. Focus on assets with clear use cases, strong teams, and transparent roadmaps. Projects demonstrating tangible impact and utility stand a better chance of weathering market volatility.
• Diversify to manage risk: Concentrating all investments in a single digital asset or region increases exposure to specific risks. Spread your portfolio across well-researched projects and geographies to reduce vulnerability to localized market disruptions or regulatory changes.

Key Events to Watch in 2025

1. Regulatory Developments:

MiCA Full Implementation (EU)

The MiCA regulation will be fully implemented in the European Union. This means:

• CASPs operating in the EU must be licensed and comply with specific requirements, impacting how exchanges, custodians, and other crypto businesses operate.
• New rules for stablecoins will be in effect, impacting their issuance and usage within the EU. This will likely lead to greater scrutiny and stricter requirements for stablecoin issuers.
• EU member states will be working to enforce MiCA, and how they handle cross-border operations of crypto companies will be a key area to observe.

US Regulatory Landscape

The regulatory situation in the United States will remain a critical factor:

• The appointment of a new SEC Chair with a potentially different perspective on crypto could drastically alter the regulatory approach. 
• Government entities and corporations are actively discussing and considering moves to recognize Bitcoin as a strategic reserve asset, drawing significant attention. This would have major implications for Bitcoin’s adoption and legitimacy.
• Individual states in the US are actively developing their own crypto regulations, creating a key dynamic as these interact with federal regulations.
  

2. Institutional Adoption

ETFs Beyond BTC and ETH

The expansion of ETFs to other cryptocurrencies is a significant development to watch:

• Solana ETFs: Solana’s growing ecosystem and technological advancements are sparking discussions about the possibility of a Solana ETF. Approval would signal institutional confidence in Solana’s long-term potential.
• XRP ETFs: The outcome of the Ripple XRP vs. SEC case will heavily influence the likelihood of an XRP ETF. A positive resolution for Ripple could attract institutional investment.

Tokenized Real-World Assets (RWA)

Tether, known for its USDt stablecoin, launched Hadron, a platform for tokenizing real-world assets. This signifies a major move by a key player in the crypto space towards RWA tokenization. The tokenization of real-world assets is further expected to accelerate significantly:

• Market growth: Some estimates suggest the RWA tokenization market could reach trillions of dollars in value in the coming years. For example, Boston Consulting Group (BCG) has estimated that the tokenization of illiquid assets could create a $16 trillion market by 2030.  

3. Technological Advancements

Following “The Merge” in 2022, further scaling of the Ethereum blockchain will be crucial:

• The adoption of layer-2 rollups like Optimism and Arbitrum is expected to increase, helping to reduce transaction fees and improve scalability.
• Ethereum’s Pectra upgrade is set to be a pivotal development to watch in 2025. A standout feature is the introduction of EIP-7702, enabling Externally Owned Accounts (EOAs) to execute smart contract code directly. This advancement moves Ethereum closer to full account abstraction, significantly enhancing account flexibility and user experience.

Focusing on these specific developments can help you gain a clearer understanding of the key events shaping the crypto industry in 2025. However, it’s crucial to acknowledge that the cryptocurrency market is inherently volatile, and various events could influence the rollout and impact of the above-listed key events.

Conclusion

As the curtain closes on 2024, the crypto market stands at a crossroads, reflecting on a year that brought both triumphs and tribulations. 

While institutional adoption, regulatory clarity, and Bitcoin’s new all-time high symbolize progress, challenges like exchange failures and security breaches highlight areas for caution and growth. 

The lessons of 2024 underscore the importance of resilience, innovation, and vigilance as the crypto ecosystem marches toward a more integrated and secure future in 2025 and beyond.

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