Q4 2024: Five stories that shaped cryptocurrency
Quarterly retrospective covering October 1–December 31, 2024. Dated December 31, 2024. Stories selected for market impact, policy significance, and consequences for cryptocurrency infrastructure.
1. Trump’s election victory changes expectations for crypto policy
Bitcoin and cryptocurrency-related shares rallied after Donald Trump’s election victory, with Associated Press reporting on November 6 that Bitcoin had risen above $75,000. Investors anticipated a more supportive U.S. approach following the campaign’s promises on regulation and government holdings. The reaction demonstrated how political expectations could affect both tokens and publicly traded businesses exposed to the sector. It was a repricing of anticipated policy, with the details of appointments, legislation, and administrative action still to be determined as the incoming government prepared to take office. Source: Associated Press, November 6.
2. Bitcoin passes $100,000 for the first time
Bitcoin crossed $100,000 in early December, reaching the landmark on December 5 UTC as the post-election rally continued. Reuters linked the move to expectations of a supportive U.S. administration and strong interest in the newly established spot investment products. The six-figure price became a powerful symbol of the asset’s recovery from the previous cycle’s failures and its deeper integration with conventional financial markets. It remained a market-price event, with subsequent trading still exposed to changes in liquidity, economic conditions, and the gap between political expectations and implemented policy. Source: Reuters, December 5.
3. MiCA’s broader framework begins applying across the EU
The broader Markets in Crypto-Assets framework began applying on December 30, following the stablecoin provisions that had applied since June. The milestone brought covered service providers and issuers into a shared European regulatory structure addressing authorisation, governance, disclosures, and market conduct. It was a major operational step after years of negotiations and legislative preparation. Transitional arrangements remained relevant for some existing providers, so the date marked the start of the wider framework rather than an identical overnight licensing deadline for every firm in every member state. Sources: European Commission, December 19, MiCA application timetable.
4. The court approves FTX’s repayment plan
A U.S. bankruptcy court approved FTX’s plan on October 7, establishing a route toward distributions from assets recovered after the exchange’s collapse. Reuters reported projected recoveries sufficient to repay eligible claims above their dollar value at the November 2022 bankruptcy date. That valuation basis was crucial: a percentage recovery on a dollar claim was different from returning the original number of coins after cryptocurrency prices had risen. The approval was a significant milestone for creditors, while actual payment timing and amounts depended on the plan’s terms and implementation. Source: Reuters, October 7.
5. An appeals court limits sanctions against immutable Tornado Cash contracts
The Fifth Circuit ruled on November 26 in Van Loon v. Department of the Treasury that the immutable smart contracts at issue were not property within the relevant sanctions statute. The court reversed the lower court’s ruling and remanded the case, creating an important boundary in the dispute over sanctions and decentralised software. The decision mattered to developers and privacy advocates because it examined the legal characteristics of code that cannot be altered or controlled. It addressed the statutory question before the court, with subsequent implementation and other proceedings remaining separate matters. Source: Fifth Circuit opinion, November 26.