In a year marked by geopolitical upheaval, technological breakthroughs, and seismic shifts in financial markets, one company stood tallest among crypto-linked assets in traditional finance: MicroStrategy (MSTR). The software-firm-turned-bitcoin-whale ended 2024 with a jaw-dropping 342% return, even after a dismal December that saw its stock tumble nearly 50% from all-time highs.
MicroStrategy’s moonshot was nearly double that of Nvidia (NVDA), the AI chipmaking powerhouse that posted the best performance among mega-cap tech stocks with a 185% gain. Bitcoin (BTC) itself rose a comparatively modest 100% on the year, fueled by the long-awaited approval of spot ETFs in the U.S. and a supply shock from April’s reward halving.
Geopolitics and Innovation Shape Crypto Markets
But MicroStrategy’s rise to the top of the crypto leaderboard was anything but smooth sailing. The company and its bitcoin-evangelizing CEO Michael Saylor had to navigate a minefield of geopolitical tensions, including:
- Ongoing conflicts in Eastern Europe and the Middle East
- A global wave of high-stakes elections
- The unraveling of the yen carry trade in August
- The meteoric ascent of artificial intelligence
These forces whipsawed traditional and crypto assets alike. Safe havens like gold (+27%) and U.S. Treasuries (10-year yield +15% to 4.5%) attracted significant inflows, even as the Fed began cutting interest rates in September. Meanwhile, Bitcoin’s digital gold narrative gained traction as the dollar soared to multi-decade highs.
Miners Struggle Despite AI and HPC Demand
For most bitcoin mining stocks, however, 2024 was a year to forget. The Valkyrie Bitcoin Miners ETF (WGMI) eked out a mere 30% return, sharply underperforming bitcoin itself. Bright spots like Bitdeer (+151%) and WULF (+131%) were few and far between.
This disappointing showing came despite surging demand for the miners’ computing power and energy resources from booming AI and high-performance computing sectors. Ultimately, the Nasdaq 100’s 28% gain and the S&P 500’s 25% rise eclipsed the miners’ returns.
All Eyes on 2025: Debt, Trump, and the Post-COVID Boom
As we turn the page to 2025, cryptocurrency investors and traditional market participants alike have much to mull heading into the new year:
- Will the U.S. debt ceiling debate roil financial stability?
- Can President Trump’s second term rekindle animal spirits?
- Will the post-pandemic boom finYes, ally lose steam or kick into higher gear?
For MicroStrategy and the rest of the crypto old guard, these questions could determine whether 2024’s wild ride was a prelude to even greater heights – or the start of a long and painful unwind. Either way, one thing is clear: in the high-stakes game of crypto investing, there’s never a dull moment.
