Bitcoin surged past $100,000 in 2024, more than doubling its value, driven by pivotal regulatory and political developments. The US Securities and Exchange Commission’s approval of exchange-traded funds tied to Bitcoin’s spot price marked a significant milestone, attracting mainstream and institutional interest in the cryptocurrency sector.
A broader crypto rally saw Bitcoin gain over 120% and Ethereum rise nearly 50%, boosting the market’s total value to $3.5 trillion. Analysts predict Bitcoin could reach $200,000 by late 2025, solidifying its status as a premier store of value. Enthusiasm for the asset class has extended to corporate treasuries, with firms like MicroStrategy leading the charge.
MicroStrategy’s shares quintupled in 2024, reflecting its substantial Bitcoin holdings. Other companies, including major financial players, are incorporating Bitcoin into their portfolios. Meanwhile, Donald Trump’s victory in the US presidential election, coupled with his pro-crypto stance, further energised the market.
Despite the rally, challenges persist for smaller crypto miners. Rising energy and hardware costs have limited gains for firms like Riot Platforms and Marathon Digital, which struggled against the year’s bullish trends.
Indian tax authorities have uncovered a complex money laundering scheme involving hawala networks and cryptocurrency transactions in Jaipur. The investigation, triggered by raids on local wedding planners, led to the seizure of $2 million (₹20 crores) in cash and jewellery. Officials also recovered three crypto wallets linked to the operation, including one tied to a major global exchange.
The scheme involved clients making unreported cash payments exchanged for cryptocurrencies like Bitcoin and Tether through hawala operators in Gujarat and Rajasthan. Hawala, an illegal payment system, allows funds to be transferred abroad without moving money physically. Authorities believe the perpetrators exploited crypto exchanges with weak KYC policies or intermediaries to launder funds.
Records of these activities, including WhatsApp messages, emails, and spreadsheets, reveal the network extends beyond Jaipur to cities like Mumbai, Hyderabad, and Delhi. The operation also implicated resorts, hotels, and event service providers who accepted cash or bank payments. The tax department plans further raids across India to tackle tax evasion in the wedding and events industry.
Ukraine is preparing to block Russia’s use of Bitcoin and other cryptocurrencies in international trade. The announcement follows comments from Russian Finance Minister Anton Siluanov, who confirmed that Russian companies use crypto to bypass Western sanctions.
Vladyslav Vlasiuk, an advisor to Ukraine’s president, stated that Ukraine had warned its international partners of Russia’s crypto strategy earlier this year. Measures, including sanctions and other solutions, are now in development to prevent unwanted crypto payments. Ukraine remains committed to limiting Russia’s ability to evade sanctions through digital currencies.
Russia has sought alternatives to traditional payment systems as sanctions disrupt its trade with countries like China. Some Russian companies have reportedly used stablecoins for transactions with Chinese partners. This follows the Kremlin’s recent legal framework allowing Bitcoin miners to use crypto for international trade, signalling an intensified reliance on digital assets to navigate economic restrictions.
MicroStrategy Inc., the business intelligence firm and the largest corporate holder of Bitcoin has emerged as the top-performing cryptocurrency stock of 2024. The company’s stock surged by an impressive 402%, driving its market cap to $83 billion. The rise aligns with MicroStrategy’s ongoing strategy of acquiring more Bitcoin throughout the year, with the firm now holding approximately 444,262 BTC, valued at over $45 billion at current prices. The rally in Bitcoin’s price, which soared by 120% in 2024, contributed significantly to the company’s impressive performance, bolstered by factors like the approval of a spot Bitcoin ETF and geopolitical support for the digital asset.
Alongside MicroStrategy, other crypto-linked stocks also saw significant gains, with Core Scientific rising 307%, Terawulf gaining 142%, and Bitdeer Technologies increasing by 122%. These firms benefitted from strong market conditions and strategic moves such as AI partnerships and mining expansions. However, MicroStrategy remains the standout performer, driven by its growing Bitcoin holdings.
Looking ahead, MicroStrategy is set to hold a shareholder meeting in early 2025, where it will present key proposals to increase the number of authorized shares. These proposals are part of the company’s broader plans to raise $42 billion through equity and fixed-income instruments, further cementing its position as a major Bitcoin treasury holder. Chairman Michael Saylor sees these measures as essential for the company’s continued growth and expansion in the crypto space.
Elder fraud scams are becoming increasingly sophisticated, as illustrated by a recent case where an 82-year-old woman lost her life savings to criminals posing as the FBI. After depleting her accounts, the scammers coerced her into withdrawing funds via a Bitcoin machine and kept her isolated in a hotel under the guise of ‘protection.’ Despite her family’s intervention, the scammers struck again, convincing her to hand over $20,000 by exploiting false hopes of recovering a promised reward.
Elderly individuals are prime targets for such schemes, often due to their savings, trust in others, and unfamiliarity with modern technology. Fraudsters employ tactics like intimidation, urgency, and psychological manipulation to exploit their victims. According to recent statistics, seniors lose billions annually to scams, with the emotional toll leaving many feeling ashamed and fearful.
To combat these threats, experts recommend verifying unsolicited requests, limiting personal information sharing, using strong security measures, and reporting suspicious activity. Education and vigilance are key to protecting vulnerable individuals and ensuring scammers are outsmarted.
Russia is advancing its use of digital financial assets (DFAs), including Bitcoin, to facilitate foreign trade. Finance Minister Anton Siluanov revealed in a recent interview that these transactions are part of an experimental legal framework that began in September 2024. The initiative is seen as a step towards modernising global trade settlements and reducing reliance on the US dollar.
Siluanov highlighted that Russia’s ability to mine Bitcoin domestically supports this effort. “We can pay for goods with digital financial assets, including Bitcoin we mine here,” he said, adding that such practices will be further developed in the coming year. The shift aligns with Russia’s 2021 law recognising DFAs, although their use as domestic payment methods remains prohibited.
While embracing Bitcoin for trade, Siluanov has cautioned against investing in cryptocurrencies, citing their volatility. Despite Bitcoin reaching record highs recently, he advised against viewing it as a secure investment, pointing to safer alternatives. Russia’s push towards DFAs marks a significant shift in its economic strategy, aiming for resilience and innovation in global markets.
Craig Wright, an Australian computer scientist, has been found in contempt of court for falsely asserting he is Bitcoin’s creator, Satoshi Nakamoto. Despite a High Court ruling in March debunking his claim, Wright continued launching lawsuits seeking intellectual property rights over Bitcoin, including a $1.2 trillion demand.
The court described Wright‘s actions as ‘legal terrorism’ and sentenced him to a suspended 12-month prison term. If he persists, he risks jail time. Wright’s claim lacked concrete evidence, prompting the cryptocurrency industry to unite against him.
The court found Wright ‘lied extensively’ in his pursuit of recognition, creating a ‘chilling effect’ on the industry. The identity of Bitcoin’s inventor, Satoshi Nakamoto, remains unknown, as all claims, including Wright’s, have been discredited.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
Spot Bitcoin ETFs in the US faced $680 million in outflows on 19 December, following Bitcoin’s fall below $96,000. This marks the end of a 15-day inflow streak that had brought over $6.7 billion into funds. Fidelity’s FBTC led the outflows, with Grayscale and ARK 21Shares also seeing significant withdrawals. However, WisdomTree’s BTCW recorded modest inflows, standing out as an exception on an otherwise difficult day for the market.
The broader cryptocurrency market struggled as the Federal Reserve announced a cautious stance on future rate cuts, despite implementing a 0.25% reduction. Bitcoin fell to $96,751, a 4.4% decline, whilst trading volumes in Bitcoin ETFs surged to $6.31 billion. The Fed’s hawkish tone, projecting only two additional cuts by 2025 alongside delayed inflation targets, has dampened investor sentiment.
Ethereum ETFs mirrored Bitcoin’s trend, recording $60 million in outflows. Grayscale’s ETHE led these withdrawals, although Fidelity and VanEck managed small inflows. Despite the day’s challenges, Ethereum ETFs still hold a positive net inflow of $2.4 billion. Ethereum’s price dropped 8.1%, landing at $3,378 as the market absorbed the Federal Reserve’s cautious outlook.
El Salvador has agreed to make Bitcoin acceptance voluntary for companies and limit public sector involvement in Bitcoin-related activities as part of a $1.4 billion loan deal with the International Monetary Fund (IMF). The agreement aims to reduce the country’s debt-to-GDP ratio, with the IMF highlighting that these measures will minimise risks associated with the Bitcoin project.
The government will also scale back its involvement with the Chivo wallet, the state-backed application launched to promote Bitcoin adoption, and taxes will continue to be paid in US dollars. Despite these reforms, the National Bitcoin Office confirmed El Salvador’s dedication to Bitcoin, stating that it will keep accumulating the cryptocurrency and maintain its strategy of daily Bitcoin purchases.
The loan deal, which awaits IMF Executive Board approval, ends years of negotiation that began after President Nayib Bukele made Bitcoin legal tender in 2021. While the IMF has criticised cryptocurrency’s volatility, Bukele’s advisers have dismissed the agreement’s restrictions as insubstantial. Meanwhile, surveys show limited adoption, with over 90% of Salvadorans not using Bitcoin for transactions.
