2024 has proven to be nothing short of remarkable for the financial markets, particularly for Bitcoin, which has seen unprecedented growth.
El Salvador's investment strategy has positioned it as one of the major players globally, now holding over 6,000 BTC and ranking sixth among countries with the largest Bitcoin holdings. Despite volatility, Bitcoin reached $100,000 for the first time, signaling significant interest and confidence among investors.
Throughout the year, Bitcoin demonstrated resilience. Although it faced a slight dip—as much as 1.3%—in the final days of December, it still marked a stunning overall rise of approximately 130% for the year. This performance outshone traditional assets like the S&P 500 and gold, which reported increases of 28% and 32%, respectively. The approval of Bitcoin Exchange-Traded Funds (ETFs) and the expectation around the upcoming halving event fueled Bitcoin's remarkable performance, creating optimism for its continued growth.
Meanwhile, the global stock markets mirrored the cautious optimism brewing for the upcoming year. European markets, albeit experiencing low trading volumes during the holiday period, reflected slight daily gains: Paris up 0.64%, and London increasing by 0.73%. Sector reallocation and low participation have led to exaggerated market movements, as many investors have turned their attention to potential policy shifts following Donald Trump's inauguration.
Asian markets presented mixed signals, with Shanghai and Shenzhen dropping by 1.63% and 2.40%, respectively, but Hong Kong remained stable. Investors are keeping close watch on China's economic reforms aimed at rectifying its past economic struggles, which have strained markets.
On the investment management side, J.P. Morgan Asset Management announced final cash distributions for their ETFs. According to their statement, participants registered as of December 31 will receive distributions on January 9, 2025, showing the continued interest and engagement of traditional finance with ETF products.
It remains to be seen how the financial markets will adjust to new policies and economic conditions, but the general sentiment is hopeful as analysts predict beneficial effects from the easing of monetary policies by central banks around the globe.
Analysts note, "2025 should be marked by positive changes as the easing of monetary policies aids the rally of major American tech companies extending their success to other sectors."