Best Cryptocurrencies 2024: Performance Review & 2025 Outlook

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The past year has been packed with transformative events that have left a profound mark on the world of crypto. From renewed interest by institutional investors to groundbreaking developments that opened new horizons for Bitcoin, the market has evolved in ways few could have anticipated.

Cryptos are no longer a niche interest โ€”theyโ€™ve become a cornerstone of modern investment portfolios and global financial strategies. But with great opportunities also come significant challenges.

What lies ahead in 2025? With the promise of growth, emerging regulations, and constantly shifting trends, the upcoming year could prove to be a defining moment for the industry.

๐‚๐ฎ๐ซ๐ข๐จ๐ฎ๐ฌ ๐ญ๐จ ๐ญ๐ซ๐ฎ๐ฅ๐ฒ ๐ฎ๐ง๐๐ž๐ซ๐ฌ๐ญ๐š๐ง๐ ๐ฐ๐ก๐š๐ญโ€™๐ฌ ๐ก๐š๐ฉ๐ฉ๐ž๐ง๐ข๐ง๐  ๐š๐ง๐ ๐ฐ๐ก๐ž๐ซ๐ž ๐ฐ๐žโ€™๐ซ๐ž ๐ก๐ž๐š๐๐ข๐ง๐ ?

This video provides an exclusive breakdown of the key events from 2024 and offers insights into potential market shifts. Donโ€™t miss your chance to stay informed and get prepared!

Enjoy! ๐Ÿ˜‰

Transcription

An Intense Year For Crypto

As we near the end of an incredibly eventful year for cryptocurrencies, it's clear that 2024 has been pivotal.

Following a challenging 2022, 2023 has seen a gradual recovery, driven largely by anticipation of the 2024 halving for Bitcoin.

Will 2024 Be The Turning Point?

Will 2024 be the game-changing year for crypto? In this video, we will explore some key insights, but one thing is certain: 2024 will go down in history as a year to remember.

Cryptocurrencies have grown into a truly impressive asset class. Bitcoin, with a market cap exceeding $2 trillion, has become the seventh-largest asset globally.

Behind Bitcoin, we have Ethereum, XRP, and Solana, among the top cryptocurrencies, excluding stablecoins like USDT, pegged to the dollar.

A Phenomenon Bigger Than The Entire European Banking System

To put this in perspective, the crypto market has grown to a size that far surpasses the entire European banking system. But when evaluating the crypto market, Bitcoin undeniably remains the benchmark for performance and trends.

Bitcoin Is Indispensable

Looking at this chart, which shows the year-to-date performance of major cryptocurrencies, as of mid-December 2024, Bitcoin wasn't the best performing asset in terms of annual return, yet it still crossed the psychological threshold of $100,000, setting new all-time highs as the year came to a close.

Bitcoin has been the top-performing asset in nine out of the last 12 years, and now we can say 10 out of 13 years, as it delivered yet another extraordinary performance in 2024.

However, Bitcoin tends to be an all-or-nothing asset. In here, when it isn't the top performer, it often ranks as the worst compared to the other asset classes. This has led to a common concern.

Is Bitcoin Too Volatile?

Isn't Bitcoin too volatile? Many argue that investing in cryptocurrencies is inherently riskier than other asset classes.

To some extent, this is true, but there's a difference between talking about crypto in general and Bitcoin specifically.

Bitcoin volatility is comparable to that of Tesla as a major Nasdaq stock, which has been a key player in recent market gains. As we know, returns correspond to risk taken.

However, in Bitcoin's case, these risks are much higher than those associated with stocks, for example.

Interestingly, Bitcoin's volatility appears to be decreasing, as noted by BlackRock in a recent investor presentation.

2024 Will Be A Year To Remember

With all this in mind, 2024 will be remembered for several defining events in the history of Bitcoin and the crypto world.

In our last video, linked here in the description, we highlighted the analysts' predictions of Bitcoin reaching $100,000 by the end of the year, and those expectations have been met.

Let's quickly recap the major events that contributed to this achievement and consider what might be on the horizon for 2025.

One of the key milestones this year was the January launch of Bitcoin ETFs. This opened up the cryptocurrency market to a much broader pool of liquidity, making it accessible to international investors and a large base of retail investors.

In less than 12 months, BlackRock, Fidelity, and other funds collectively rose $37 billion in net inflows, smashing all previous ETF records.

Bitcoin Halving

Another pivotal event for Bitcoin was for sure its halving, a quadrennial reduction in Bitcoin issuance, and this time the reward for mining a block dropped from 6.25 Bitcoin to 3.125 Bitcoin.

For a detailed breakdown of the halving, please check out the video linked here in the description. But as shown in this chart, also this year's halving was followed by a period of sideways movements before a breakout to new highs in price.

How Did The Presidential Elections Impact The Market?

Then the US presidential election was another catalyst for Bitcoin breakout. Promises from the Republican candidate, Donald Trump, who ultimately won, fueled the Bitcoin rally to $100,000 in price.

Among these promises was a proposal to make Bitcoin a national reserve asset and use it to reduce the 35 trillion national debt.

Meanwhile, speculation involving Elon Musk added fuel to the crypto market. Trump, in fact, announced a new government efficiency department, DOGE, partially led by Musk.

The department's acronym matches the name of a popular meme coin, DOGE, which Musk frequently referenced in the past.

This coincidence drew a 150% surge in DOGE's market capitalization, reaching $60 billion in November 2024.

Digital Gold

Finally, in December, Federal Reserve chairman Jerome Powell declared Bitcoin to be more akin to gold than a competitor to dollar, reinforcing Bitcoinโ€™s status as a store of value.

What To Expect For 2025

So, what can we expect for 2025? Many believe it will be a positive year, driven by the four-year halving cycle, which historically includes three bullish years, followed by one bearish year, as shown in this statmuse.com chart.

Additionally, they anticipated the alt-season when altcoins often experience substantial gains, typically following Bitcoinโ€™s initial rally after the halving.

Even with the rise of ETFs and the initial regulations, the crypto markets remain volatile.

The advice still holds, avoid allocating a larger portion of your portfolio to assets that could overly increase your overall risk, since cryptocurrencies have shown time and again their potential for incredible returns as well as dramatic declines.

That said, with institutional investors now heavily involved, cryptocurrencies have become an essential component of diversified portfolios. Let's see what 2025 has in store.

Lastly, if you are interested in these topics or need more information, please check the links you find in the description. Happy trading, everyone!

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Andrea Unger

Andrea Unger

Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.

I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. 

In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.

Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.

Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.