Bitcoin’s market capitalization increases by $1.1 trillion in 2024

In recent weeks, there has been much discussion about the decline in value of various cryptocurrencies. For instance, in the seven days leading up to December 24th, Bitcoin’s valuation dropped by nearly $200 billion, despite a rally on that day.

However, despite the disappointment of the “Santa Claus” rally not materializing, the year 2024 has been exceptionally strong for cryptocurrencies overall, with many coins and tokens experiencing significant gains in the past 12 months.

Bitcoin alone has seen its value increase by over $1 trillion in 2024, despite the recent loss of approximately $200 billion. As of December 27th, its market cap stands at $1.91 trillion, compared to $828 billion at the beginning of the year.

This trend is consistent with the broader cryptocurrency market. The total valuation of digital assets on January 1st was $1.67 trillion, and it has now reached $3.27 trillion as of December 27th, representing a $1.6 trillion difference.

However, it is worth noting that Bitcoin still maintains a significant dominance over other coins and tokens, accounting for approximately two-thirds of the overall growth. On the other hand, this could indicate that other cryptocurrencies are undervalued, potentially setting the stage for an “alt season” in 2025.

Looking ahead, despite the stagnation in the final month of 2024, predictions for the new year remain overwhelmingly bullish. While Bitcoin continues to attract attention, with price targets as high as $800,000, there is also optimism surrounding other digital assets. XRP, for example, is expected to overcome regulatory obstacles and potentially rally to as high as $48, representing a 2,100% increase from its current price of $2.18.