2024 Crypto Recap: The Biggest Moments Explained
2024 was a big year for crypto. Bitcoin reached $100K, fueled by halving, spot ETF approvals, and growing optimism. Ethereum’s Dencun upgrade made transactions cheaper and faster.
At the same time, scams and hacks rose sharply, showing the need for stronger security. On the regulatory side, the IRS announced major tax reporting changes and a pro-crypto SEC chair was nominated.
In this article, we’ll go over the biggest developments of 2024 in crypto space and discuss its implication on the future of the industry.
Bitcoin finally hits $100k
After a brief crypto winter from late 2021 to the end of 2022, Bitcoin and other cryptocurrencies began recovering in 2023. Throughout that year, Bitcoin mostly stayed within the $20,000 to $30,000 range. Things didn’t gain real momentum until 2024.
Bitcoin entered 2024 priced at around $40,000. By March, it had surged past $70,000 and remained in the $60,000 to $70,000 range with occasional dips. However, after the U.S. election results in November, things took off. Following Donald Trump’s election win, Bitcoin prices, along with the broader crypto market, soared. On December 5, Bitcoin crossed the $100,000 mark for the first time, marking a 120% increase since January.
While Trump’s win might seem like the main driver, the price spike was fueled by a mix of factors. A key one was the Bitcoin halving event in April, which historically triggers price surges. Another game changer was the approval of spot Bitcoin ETFs, which significantly boosted investor confidence (more on this later).
Since then, Bitcoin prices have cooled slightly. As of now, it’s trading between $94,000 and $96,000.
SEC approved spot Bitcoin and Ethereum ETFs
Bitcoin futures ETFs have been around for a while, both in the U.S. and other countries. But getting a spot Bitcoin ETF felt almost impossible—until January 2024.
The journey started back in 2013 when the Winklevoss twins filed the first application. The SEC kept rejecting it, citing concerns about market maturity and manipulation. Grayscale and other companies faced the same roadblocks. Things started to change in 2023 after a court ruling favored Grayscale, forcing the SEC to take a second look. BlackRock’s application later that year added even more hope.
After years of rejections, the SEC finally approved 11 spot Bitcoin ETFs on January 10, 2024. It was a huge milestone for the crypto industry. Just a few months later in May, the SEC also approved 8 spot Ethereum ETFs. By July 23, these Ethereum ETFs were officially trading.
Huge Crypto Tax Reporting Changes
Starting January 1, 2025, the IRS is changing how you track the cost basis for cryptocurrency. Instead of grouping all your wallets and exchanges together, you’ll need to track each one separately, as outlined in Revenue Procedure 2024-28. Think of it like this: under the old rules, all your crypto was in one big bucket, so gains and losses were calculated by looking at the entire pool. Now, every wallet or exchange gets its own bucket.
For example, if you bought 1 Bitcoin on Coinbase for $20,000 and another on Kraken for $25,000, you could combine them to calculate an average cost basis of $22,500. But starting in 2025, if you sell Bitcoin from your Coinbase wallet, you can only use the cost basis of the Bitcoin in Coinbase—no mixing and matching with Kraken. This is similar to how stocks are tracked in separate brokerage accounts.
To help with this big shift, the IRS introduced “safe harbor” rules in Revenue Procedure 2024-28. These rules give you protection from audits on past calculations if you properly allocate your crypto holdings by January 1, 2025.
Here’s how you can transition:
- Specific Unit Allocation: Match each piece of crypto to the wallet where it’ll be held. For instance, assign Bitcoin bought on Coinbase in 2023 to your Coinbase wallet.
- Global Allocation: Use a consistent rule, like assigning your oldest assets to one wallet and newer ones to another.
Bitcoin.Tax makes this process easier with its Safe Harbor tool. It helps you reallocate your holdings, keep accurate records, and ensure your balances match your wallets. Features like direct lot editing and bulk reallocation let you organize your assets smoothly, so you’re ready for the new rules—and your records are audit-proof.
Read our step-by-step guide to learn how to implement safe harbor rules and stay compliant.
Regulatory Tussle Between SEC and Crypto Firms
The SEC has been targeting crypto firms for years, accusing them of letting people trade securities without proper registration. Simply put, the SEC has been trying to bring most crypto exchanges—and the entire crypto market—under its control.
In 2024, the SEC went even harder. It slapped crypto companies and executives with $4.7 billion in enforcement actions, a massive 3,000% jump from 2023.
Some key events stood out. In August, Ripple Labs was fined $125 million for selling XRP tokens without proper registration. This followed the SEC’s 2020 lawsuit accusing Ripple of running an unregistered securities offering. In September, Coinbase had a partial win in its legal fight with the SEC. But the court denied Coinbase’s attempt to force SEC Chair Gary Gensler to testify. Read the full story here.
The biggest twist came when Gensler announced he was stepping down on January 20, 2025, after facing heavy criticism for his tough stance on crypto. The news sparked optimism, as President-elect Donald Trump nominated Paul Atkins, a former SEC commissioner known for his pro-crypto stance, to lead the SEC.
Ethereum Dencun Upgrade
The Ethereum Dencun Upgrade, activated on March 13, 2024, is a big step forward for making Ethereum faster, cheaper, and more efficient. It combines two updates—”Deneb” for the consensus layer and “Cancun” for the execution layer—to tackle some of Ethereum’s biggest challenges.
One of the key features is Proto-Danksharding (EIP-4844). This introduces “blobs,” a way to temporarily store data for about 18 days. These blobs make it cheaper for Layer 2 (L2) solutions to handle data, which means lower transaction fees for users.
Other upgrades include:
- EIP-1153: Makes data handling within Ethereum more efficient.
- EIP-4788: Improves staking security and cross-chain compatibility.
- EIP-5656: Speeds up memory processing.
- EIP-6780: Enhances smart contract security by changing how the SELFDESTRUCT function works.
Read more about it here.
For Ethereum users and developers, this upgrade is a game changer. It reduces costs, improves scalability, and opens the door for more decentralized apps (dApps) to thrive. Whether you’re into DeFi, gaming, or trading, the Dencun upgrade makes using Ethereum smoother and more affordable.
Looking ahead, this is a major step toward Ethereum’s goal of handling over 100,000 transactions per second. It’s not just great for Ethereum—it also sets the standard for other blockchains to follow, driving innovation across the crypto space. For everyday users, it means more affordable, faster, and better experiences on the network.
Crypto scams, rug pulls, and hack trends
While complete data for 2024 is still coming in, it’s clear that scams have risen compared to 2023. By September 2024, crypto hacks had caused $2.114 billion in losses, a 72% jump from the same period in 2023. Centralized finance (CeFi) platforms were hit the hardest, with hacks increasing by an unbelievable 984%. Major incidents included:
- DMM Bitcoin Exchange Hack in Japan: $305 million lost.
- WazirX Hack in India: $234.9 million stolen in July, allegedly by North Korea’s Lazarus Group.
On the other hand, DeFi platforms showed some improvement, with losses dropping by 25%.
Scammers have also become more sophisticated. They’re using fake investment platforms and cloned websites, making it harder to spot legitimate projects. One example is Froggy Coin, a meme token that carried out a classic DeFi scam earlier this year. The developers built hype on platforms like X (formerly Twitter) and Reddit, promising quick profits. Then, they abruptly withdrew all funds, leaving investors empty-handed. Read more about this and other scams here.
The sharp rise in attacks on centralized exchanges highlights the urgent need for stronger security and stricter regulations. For investors, this serves as a reminder to stay cautious, research thoroughly, and stick to platforms with a solid security record.
What to Expect in 2025?
Crypto is set for another big year in 2025. Bitcoin’s $100K milestone and Ethereum’s upgrades will likely draw more projects and users. New IRS tax rules will change how people track and report their crypto, while a pro-crypto SEC chair could mean better regulations. Security challenges from 2024 will push for stronger protections. That said, crypto is unpredictable, and anything unexpected could shake things up in ways we can’t speculate—for better or worse.