Bitcoin Hits $100K Milestone as Markets Surge: 2024’s Economic Rollercoaster
Staff Editor 2024 Market Recap: Bitcoin Soars, Stocks Rally, and Dollar Strengthens
In a year marked by significant market movements, 2024 saw notable events across cryptocurrencies, stocks, bonds, and currency markets. Bitcoin reached unprecedented levels, while the stock market continued its upward trajectory. Bond yields experienced volatility, and the US dollar saw a strong rally.
Bitcoin Breaks $100,000 Barrier
Bitcoin emerged as a standout performer in 2024, experiencing a 43% surge in February. The cryptocurrency remained relatively stable until the November presidential election, after which it surged past the $100,000 mark. This rise was largely fueled by expectations of a crypto-friendly administration under President-elect Donald Trump. Bitcoin is projected to end the year up about 124%, with forecasts suggesting potential further gains in 2025. Speculation includes the possibility of a Bitcoin reserve being established during Trump’s second term.
Bond Yields Experience Roller Coaster Ride
The 10-year US Treasury yield began 2024 below 4% and is expected to close around 4.57%. April saw a spike to 4.74% due to strong economic growth and persistent inflation. Yields subsequently dropped to 3.62% by mid-September in anticipation of Federal Reserve rate cuts. Despite a 100 basis point rate cut by the Fed, yields rose again as fewer cuts are expected in 2025. Bond markets adjusted expectations, with key areas like mortgages remaining elevated.
Stock Market Continues to Soar
The S&P 500 saw another year of impressive gains, rising about 23% in 2024. The index reached record highs, driven by economic confidence, a dovish Fed, AI advancements, and corporate earnings growth. The market experienced minimal downside, with the largest decline being only 8%. Expectations for 2025 are mixed, with potential volatility due to the incoming Trump administration.
Nvidia Maintains Momentum
Nvidia’s stock continued its upward trend, increasing by about 174% in 2024. The company briefly surpassed Apple as the world’s largest company. Nvidia is expected to report over $110 billion in revenue for the year. Wall Street anticipates continued growth with the production of the next-generation AI chip, Blackwell.
US Dollar Reaches Multi-Year Highs
The US dollar experienced a significant rally, rising over 8% since before the election. Trump’s victory led to expectations of inflation rebound, limiting Fed rate cuts and strengthening the dollar. A stronger dollar impacts investment portfolios and multinational company profits. The US dollar index reached $108.37, below its peak levels from previous years.
As 2024 comes to a close, market participants are closely watching these trends and their potential implications for the coming year.
