The year 2024 is destined to be recorded in the annals of the crypto world.

Bitcoin has welcomed multiple historic moments, including the Bitcoin spot ETF, Bitcoin halving, the launch of Bitcoin spot ETF Options, the arrival of the USA's first 'Crypto President', and the 'AI and Crypto Emperor', as well as a historic breakthrough of surpassing 0.1 million dollars.

As Bitcoin surges, the stocks and ETFs related to the crypto concept are also experiencing a meteoric rise.

From the performance of crypto concept stocks in the US stock market this year, "Hold" positions. $MicroStrategy (MSTR.US)$ The stock price has soared over 520%, Bitcoin mining companies. $TeraWulf (WULF.US)$ The increase reached 213%. $Bitdeer Technologies (BTDR.US)$ Cumulative increase exceeded 116%. $Hut 8 (HUT.US)$ Soared over 100%. $IREN Ltd (IREN.US)$ Rises over 87%, while the crypto exchange giant $Coinbase (COIN.US)$ Accumulated an increase of nearly 80%.

Hong Kong stock crypto ETFs also performed well, $Samsung Bitcoin Futures Active ETF (03135.HK)$ 、 $CSOP Bitcoin Futures ETF (03066.HK)$ All have doubled. $ChinaAMC Bitcoin ETF (03042.HK)$ 、 $Bosera HashKey Bitcoin ETF (03008.HK)$ 、 $Harvest Bitcoin Spot ETF (03439.HK)$ Increased by over 50%. $CSOP Ether Futures ETF (03068.HK)$ Increased by over 45%, $ChinaAMC Ether ETF (03046.HK)$ 、 $Harvest Ether Spot ETF (03179.HK)$ 、 $Bosera HashKey Ether ETF (03009.HK)$ Cumulatively increased by nearly 20%.

Why have Cryptos risen sharply?

From the supply side, historically, after halving events, the cryptocurrency market often sees a rally starting about six months later. On the demand side, the market generally believes that the election of pro-Bitcoin President Trump is the main reason for the current rise in the cryptocurrency market. Additionally, the Federal Reserve's interest rate cut cycle and Institutions continuously accumulating assets have also contributed to the increase in Bitcoin prices.

During his campaign, Trump repeatedly stated that the innovative spirit and autonomy of "Bitcoin" and "Cryptos" align with America's core values. Since his election, he has built a "Cryptocurrency Dream Team" with most cabinet members being pro-Cryptocurrency.

Moreover, early this year, Wall Street giants like Blackrock launched a Bitcoin ETF, laying the foundation for this bull market. With the launch of the Bitcoin spot ETF in the USA, the purchase threshold for Bitcoin has significantly lowered, widening the inflow channel of funds, while large Institutions accumulating assets have also propelled the market's rise.

According to TheMinerMag data, as of the end of November, miners listed in North America alone have accumulated over 73,000 Bitcoins, in addition to other $MicroStrategy (MSTR.US)$ Institutions like Blackrock ETF that have made substantial purchases.

TheMinerMag Analyst states that the institutional force of Bitcoin is more significant, as institutional holdings of Bitcoin have already become mainstream since the last cycle (around 2020).

Notably, MicroStrategy's Bitcoin strategy has sparked imitation, and BitcoinTreasuries data shows that about 144 companies hold Bitcoin on their balance sheets. The market expects this to become a mainstream investment behavior for enterprises in the future.

Where will Bitcoin go in the future?

Bernstein stated that Bitcoin's upward trend has just begun. The bank expects that with clearer regulations and increasing interest from institutional investors, Bitcoin will rise to $0.2 million by the end of next year, marking the peak of this cycle.

In the long run, Bitcoin will replace Gold and become the largest reserve asset. It is expected that Bitcoin will be integrated into various allocations of institutional investors and become part of corporate financial strategies, fundamentally changing the global financial landscape.

Coincidentally, last April, when the trading price of Bitcoin was around $0.027 million, Standard Chartered's head of Emerging Markets Forex Research and Cryptocurrency Research, Geoffrey Kendrick, accurately predicted that the Bitcoin price would reach $0.1 million by the end of this year. Now that Bitcoin has broken the $0.1 million barrier, Kendrick is increasingly optimistic about the future market. He expects that under the backdrop of institutions possibly increasing their investments in Bitcoin, the price will rise to about $0.2 million by the end of next year.

Kendrick mentioned that by 2025, Standard Chartered expects institutional inflows to maintain or exceed the inflow rate of Bitcoin in 2024. MicroStrategy is on track to realize its plan announced at the end of October, which is to raise $42 billion to Buy Bitcoin over the next three years. Thus, MicroStrategy's purchasing volume in 2025 should match or exceed that of 2024.

Regarding Bitcoin ETFs in the USA, Standard Chartered noted from the 13F filings submitted to the SEC that the reported shareholding of pension funds accounted for only 1% of the nine new Bitcoin ETF shares. Standard Chartered expects that

With the changes in regulation following the Trump administration's rise to power, traditional financial industries will find it easier to invest in digital assets. By 2025, the share of Retirement Funds holding Bitcoin ETFs will increase. Even allocating a small portion of the total $40 trillion in USA retirement funds to Bitcoin would significantly boost its price.

Moreover, since the USA elections, there has been a growing call for the establishment of a national strategic Bitcoin reserve, which was one of the friendly commitments to Cryptos made during President Trump's campaign.

On Thursday, Texas introduced legislation to establish a strategic Bitcoin reserve by accepting taxes, fees, and donations in the form of Bitcoin, and to hold these Bitcoins for at least five years. This proposal in Texas may pave the way for a national-level strategic Bitcoin reserve plan in the USA. Other states are also following suit, with Pennsylvania having proposed similar legislation last month, and areas like Oklahoma have enacted laws to protect Bitcoin-related rights.

Needham Analyst John Todaro stated that although the likelihood of the USA government massively purchasing Bitcoin is low, there are still doubts about whether this initiative will truly be implemented, but this topic has sparked optimism in the market.

Despite the optimistic market outlook, analyst Lau from Oppenheimer cautions investors that bitcoin's price may experience fluctuations after breaking through important thresholds. He specifically pointed out:

Once the price of Bitcoin reaches $0.1 million, investors need to remain cautious as there may be selling pressure, and the market will look for the next breakout point.

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Editor/Somer