The cryptocurrency market has witnessed an extraordinary surge in 2024, gaining nearly £1.7 trillion in value, primarily driven by Donald Trump’s unexpected election victory. The combined worth of digital currencies reached £3.29 trillion by 30 December, marking a significant increase from £1.6 trillion in January.
Bitcoin emerged as the primary beneficiary of this remarkable upturn, with the ‘Trump bump’ propelling its value beyond £100,000 for the first time in its history. The flagship cryptocurrency now trades at £93,700, reflecting a substantial 122% increase from its January valuation of £42,200. Ethereum, its closest rival, has also experienced impressive growth, climbing 54% to exceed £3,400.
The market’s robust performance can be attributed to Trump’s dramatic shift in stance towards cryptocurrencies. The president-elect, who previously dismissed Bitcoin as a “scam against the dollar,” has now positioned himself as the “crypto president,” suggesting the possibility of establishing a strategic Bitcoin reserve within the US Treasury.
Market momentum has gained traction in the UK, with the Financial Conduct Authority announcing plans to implement comprehensive cryptocurrency regulations by 2026. Recent data indicates that 12% of British citizens now own cryptocurrency, representing a 2% increase from the previous year.
Despite the optimistic outlook, security concerns persist within the sector. Chainalysis recently reported £2.2 billion in cryptocurrency theft during 2024, marking a 21% increase from the previous year. North Korean hackers were identified as major perpetrators, reportedly responsible for £1.3 billion in stolen funds, raising significant concerns about cybersecurity in the digital asset space.
The appointment of Paul Atkins, a cryptocurrency lobbyist, as Trump’s nominee for SEC chair signals a potentially more favourable regulatory environment for digital assets, replacing the notably crypto-skeptic Gary Gensler. This leadership change could herald a new era of cryptocurrency integration into mainstream finance.
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