Bitcoin Tops the 2024 Asset Return Rankings with a 49.2% Return Rate
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In the 2024 financial market, Bitcoin (BTC), with its strength and strong momentum, has delivered substantial returns to many investors. This Bitcoin craze has sparked widespread discussions globally and captivated countless investors.
According to data from the New York Digital Investment Group (NYDIG), despite a seasonally weak third quarter, Bitcoin remains the best-performing asset so far this year, with an annual return of up to 49.2%. This far surpasses other traditional asset classes such as stocks, bonds, and gold, leaving many crypto competitors far behind.
A Celebration of Bitcoin
As the Bitcoin market continues to mature and grow, more investors are flocking to this space in search of new investment opportunities and sources of income. Their fervent enthusiasm for Bitcoin has not only driven its price steadily upward but has also breathed new life into the entire cryptocurrency market.
- Market Performance and Growth
According to MEXC data, as of October 2024, Bitcoin has shown a steady and continuous upward trend throughout the year. Compared to the beginning of the year, its price has surged by 49.2%, with its market capitalization reaching $124 billion, maintaining a clear lead in the cryptocurrency space. Notably, over the past six months, Bitcoin's price has fluctuated steadily between $50,000 and $70,000.
- U.S. Spot Bitcoin ETFs
This year, the approval of spot Bitcoin ETFs marked Bitcoin's official entry into mainstream finance, bringing it into the public eye. According to Sosovalue data, since their launch in January, U.S. spot Bitcoin ETFs have generally maintained an upward trend. Even during periods of high volatility in the crypto market, the overall amount of Bitcoin held by these ETFs has remained relatively stable. As of October 11, the fund size had reached $58.66 billion, accounting for 4.71% of Bitcoin's total market capitalization.
Given the current growth rate (now at 900,000 BTC), some analysts predict that by 2025, the holdings of spot Bitcoin ETFs could surpass the 1.1 million BTC held by Satoshi Nakamoto, indicating that more traditional financial institutions will enter the market through U.S. spot Bitcoin ETFs. This could further drive up Bitcoin's market capitalization.
- Institutional Support
In recent years, Bitcoin has garnered significant attention from institutional investors, who increasingly view it as an indispensable investment channel. The latest data from 2024 reveals that institutions like MicroStrategy, Tesla, Grayscale, and Block.one are among the top holders of Bitcoin. The top ten Bitcoin holders also include major entities such as Coinbase, BlackRock, Grayscale, and the U.S. government. Meanwhile, high-end investment institutions like family offices and hedge funds have started to embrace Bitcoin, incorporating it into their portfolios. According to the latest survey, approximately 25% of family offices have already allocated Bitcoin within their investment portfolios.
As Bitcoin becomes increasingly integrated into the holdings of governments, publicly traded companies, and other sectors, the landscape of asset ownership is undergoing a profound shift from individual to larger, more centralized entities. Crypto Insights points out that optimism among fund managers toward cryptocurrencies has reached its "highest level" this year, with the number of funds investing in cryptocurrencies surpassing the 1,600 mark.
Diverse Factors Behind Bitcoin's Prosperous Growth
So, what has driven Bitcoin's robust market performance?
One of the most impactful events in Bitcoin's ecosystem this year is the halving mechanism, which has profoundly affected its price. When demand remains relatively stable, a reduction in supply naturally pushes prices upward. Looking back at history, Bitcoin has typically seen a significant price increase within a year after a halving. For example, after the 2012 halving, the BTC/USDT price surged from around $11 to over $1,000 within a year, an increase of 80 times. Similarly, after the 2016 halving, Bitcoin's price rose again, fluctuating between $580 and $700 initially, then gradually climbing to $900 by year-end. The halving event this April has undoubtedly provided strong support for Bitcoin's price trajectory.
Current macroeconomic conditions have also been favorable for Bitcoin's rise. Increasing geopolitical tensions and imbalances in traditional markets have heightened uncertainties in traditional financial markets. At the same time, global rate cuts triggered by the U.S. Federal Reserve's rate reductions have created a more accommodative environment for Bitcoin investments. In this context, investors are seeking channels that can hedge against risks and offer asset appreciation. With its decentralized nature, high level of anonymity, and global liquidity, Bitcoin has become an ideal tool for many investors to hedge and grow their assets. This influx has injected more capital and liquidity into the Bitcoin market.
Moreover, key technological upgrades that Bitcoin underwent in 2024 have been instrumental in driving its strong market performance. The widespread adoption of Layer 2 scaling solutions and smart contract technologies has significantly improved Bitcoin's transaction efficiency, privacy, scalability, and programmability. These technological advancements have not only created new use cases and opportunities for further innovation in Bitcoin but have also boosted investor confidence.
Final Thoughts
As we approach the end of the year, the market remains broadly optimistic, with the belief that the multiple factors previously mentioned will continue to drive Bitcoin's ascent in the coming months. Some investors have boldly predicted that Bitcoin could reach a new high, possibly approaching the $100,000 mark.
In this context, MEXC, as a globally leading cryptocurrency exchange, has become the trusted choice for many Bitcoin investors, thanks to its outstanding security features, wide range of trading options, efficient transactions, and professional customer service.
While it may be impossible to predict the next major trend, the key is to seize the opportunities at hand. To help with this, MEXC is offering users extremely low trading fees. Anyone purchasing BTC on the platform can enjoy the lowest fees in the industry, making it easier to capitalize on current investment opportunities.
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