MicroStrategy (MSTR) has announced impressive gains in 2024, significantly benefiting from its strategic focus on Bitcoin investments. Although the company’s stock had plummeted nearly 50% since its entry into the Nasdaq 100 index in November, it has astonishingly surged by 600% since the start of the year.
What Impact Did Bitcoin Have This Year?
In 2024, Bitcoin (BTC) saw a remarkable 100% increase. Factors contributing to this spike include the halving event in April and the green light for spot exchange-traded funds (ETFs) in the U.S. This led to a surge in Bitcoin demand, with the iShares Bitcoin Trust (IBIT) ETF achieving returns exceeding 100%, rapidly reaching a $50 billion asset benchmark.
How Have Other Cryptocurrencies Performed?
Ethereum (ETH) recorded a 42% rise, while Solana (SOL) experienced a 79% uptick. Although Bitcoin mining companies faced challenges, Bitdeer (BTDR) saw a 151% increase, and WULF (WULF) rose by 131%. The Valkyrie Bitcoin Miners ETF (WGMI) also showed approximately a 30% gain.
Key observations from the financial market include:
- MicroStrategy stands out with a 342% increase in 2024.
- The Nasdaq 100 Index surged by 28%, and the S&P 500 Index rose by 25%.
- Gold prices climbed by 27% in comparison to the S&P 500.
- U.S. Treasury yields have shown continuous rises throughout the year.
As 2023 concludes, the focus shifts toward the implications of the U.S. debt ceiling, new presidential policies, and the viability of sustained economic growth in the country.
