Bitcoin’s market capitalization increases by $1.1 trillion in 2024
In recent weeks, there has been a lot of discussion about the decline in the valuation of various cryptocurrencies. For instance, in the seven days leading up to December 24th, the valuation of Bitcoin (BTC) collapsed by nearly $200 billion, despite a rally on that day.
However, despite the disappointment caused by the apparent cancellation of the “Santa Claus” rally, 2024 has been an exceptionally strong year overall, with many coins and tokens experiencing significant gains in the last 12 months.
Bitcoin has seen an increase of more than $1 trillion in value in 2024, despite a recent loss of approximately $200 billion. As of December 27th, Bitcoin is still over $1 trillion more valuable compared to its value on January 1st.
Data from CoinMarketCap shows that at the beginning of the year, BTC’s market cap was $828 billion, while it currently stands at $1.91 trillion.
The situation is similar for the entire digital asset market. TradingView data reveals that the total cryptocurrency valuation on January 1st was $1.67 trillion, and as of December 27th, it has reached $3.27 trillion, a difference of $1.6 trillion.
However, the slightly concerning aspect of this chart is that Bitcoin continues to dominate the market, accounting for about two-thirds of the overall growth. On the other hand, this could potentially support the narrative of an “alt season” in 2025, suggesting that other cryptocurrencies are undervalued.
Looking ahead, despite the stagnation in the final month of 2024, predictions for the new year remain highly optimistic. While Bitcoin is still the center of attention, with price targets reaching as high as $800,000, there is a growing consensus that BTC could experience a decline to $70,000 or even $60,000. However, investors are also bullish about other digital assets.
For example, XRP is expected to overcome regulatory obstacles and potentially rally to as high as $48, according to some on-chain analysts, such as Ali Martinez on X. This represents a 2,100% increase from the current price of $2.18.
