2024: The Year Bitcoin Took Center Stage—Except in Sweden
Two years ago, most people outside the crypto world thought Bitcoin was experiencing yet another death. Multiple bankruptcies in the crypto lending industry had left the market in turmoil, and Bitcoin was swiftly dismissed as a risky, crime-ridden asset plagued by scams. But in 2024, Bitcoin proved many wrong. It didn’t just bounce back again—it surged, transforming from a niche asset into a global force that's now reshaping the landscape of finance and politics in forward-thinking countries.
It wasn’t just a year of recovery—it was the year Bitcoin became a cornerstone of modern financial strategy. From ETFs to political endorsements, the story of Bitcoin in 2024 is one of legitimacy and momentum.
The rise of Bitcoin ETFs
When the U.S. Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs in January 2024, it changed everything. These ETFs made owning Bitcoin as simple as buying a stock, removing the barriers that kept many investors at bay. In less than 12 months, these funds outpaced U.S. gold ETFs in assets under management, proving the hunger for Bitcoin among institutional and retail investors alike.
I think this accessibility has been the real game-changer. Bitcoin ownership in the United States already stood at 28 million users—about 13.8% of the population. But the ETFs gave a broader range of people a way to join in, whether they were casual investors or massive asset managers like BlackRock and Fidelity. The U.S., while third in the total number of Bitcoin owners, leads the world in Bitcoin trading volume and saw record flows into these ETFs.
Globally, the numbers are even more staggering. India leads the pack with 75 million Bitcoin users, followed by China with 38 million. And smaller nations like the UAE and Vietnam boast the highest percentages of cryptocurrency ownership, at 30.4% and 21.2% of their populations, respectively.
This highlights a crucial trend: Bitcoin is no longer just for tech enthusiasts or the financially elite. It’s becoming a universal asset, though its use and significance differ widely across regions.
Bitcoin entangled with national interests
Here’s a fact that might surprise you: the U.S. government is the largest institutional holder of Bitcoin, with 207,189 BTC—worth over $19 billion at current prices. Most of this comes from seizures related to criminal activity, but it underscores a larger point: Bitcoin is becoming entangled with national interests. Yesterday I heard that even Canada will likely become Bitcoin-friendly with a new administration.
While the U.S. has embraced Bitcoin ETFs and holds the top spot in trading volume, it lags behind countries like India and China in individual ownership. This divide shows how Bitcoin’s adoption is shaped by geography, population size, and local attitudes. For instance, in places like the UAE and Vietnam, Bitcoin’s appeal lies in its ability to provide financial sovereignty in volatile or underbanked economies. In the U.S., it’s more about speculation, investment, and, increasingly, policy.
Donald Trump’s pro-crypto pivot
If someone told me a few years ago that Donald Trump would become Bitcoin’s biggest cheerleader, I’d have called it a joke. Back in 2019, he dismissed crypto as a scam. But in 2024, Trump’s transformation into a crypto advocate has been nothing short of extraordinary—and market-shifting.
Trump ran his 2024 campaign on a boldly pro-crypto platform, vowing to make the U.S. “the crypto capital of the planet.” This wasn’t just talk. His administration-in-waiting features crypto-friendly figures, such as Paul Atkins, tapped to lead the SEC, and Bo Hines, a 29-year-old slated to head a new presidential advisory council on digital assets.
The promises were sweeping: creating a national Bitcoin reserve, opposing a U.S. central bank digital currency (CBDC), and streamlining regulations for crypto trading and token sales. While the details remain murky, the market responded with enthusiasm. Bitcoin surged past $107,000, with a market cap exceeding $2 trillion, while the broader crypto ecosystem soared to $3.7 trillion. Even XRP finally rose over 300% and is looking at a bright future.
What makes Trump’s pivot particularly impactful is the political backing it has resulted in. Crypto-friendly candidates now dominate the House of Representatives, and the industry poured $245 million into the 2024 election. Trump’s embrace of Bitcoin has turned a once-contentious technology into a centerpiece of U.S. economic and financial strategy.
Filling gaps in traditional finance
What’s fascinating about Bitcoin in 2024 is how it’s filling gaps that traditional financial systems can’t. In a world increasingly defined by geopolitical tensions and economic fragmentation, Bitcoin is emerging as a lifeline. For nations, it’s a hedge against sanctions or asset freezes. For individuals in countries with unstable currencies, it’s a way to preserve wealth.
Take India, for example, with 75 million users—the highest globally. For many in India and other emerging markets, Bitcoin isn’t just an investment; it’s a necessity in navigating financial instability. Meanwhile, in the UAE and Vietnam, Bitcoin’s adoption rates reflect a growing desire for digital financial tools in rapidly modernizing economies.
Even in the U.S., where Bitcoin is more about portfolio diversification, the cultural shift is clear. More people are seeing Bitcoin not just as a speculative asset but as a legitimate alternative to traditional stores of value like gold.
Beyond halving events
For years, Bitcoin’s price followed a predictable pattern tied to its halving events—a spike, a crash, and a long recovery. But 2024 showed that the halving event was a non-factor in terms of the price of Bitcoin. Now, it’s real-world forces like institutional adoption, regulatory clarity, and political endorsements that seem to drive the market.
This isn’t without its risks. The influx of institutional money has brought a slight stability, but also the potential for bigger crashes if things go south. Leveraged purchases and speculative euphoria could lead to sharp corrections, especially as the market adjusts to the realities of a pro-Bitcoin administration in the U.S.
Sweden: an outlier in crypto adoption
Despite Stockholm’s reputation as a fintech hub, cryptocurrency adoption in Sweden is relatively low compared to global trends. A recent survey by K33 Research and EY found that only 7% of the adult population—about 550,000 Swedes—have invested in crypto. This adoption skews heavily toward younger demographics, with nearly half of investors under 30 and another 40% between 30 and 50 years old. Urban centers like Stockholm show slightly higher ownership rates at 10%, but the traditional finance sector and government remain hesitant to embrace the technology.
Sweden’s cautious stance is further reflected in its focus on centralized solutions, like the e-krona pilot, while largely ignoring the broader potential of blockchain and decentralized finance. Yes, some industry players in finance, accounting, and real estate have noticed the possibilities of blockchain technology, but this contrasts sharply with countries like the UAE and Vietnam, where Bitcoin adoption is fueled by its promise of financial sovereignty, or the U.S., where pro-crypto policies are reshaping financial markets. Singapore is also embracing the fourth industrial revolution with clearer regulations during 2024.
Yet, I am optimistic: 20% of Swedes expressed interest in acquiring crypto within the next decade, signaling a slow but potential shift in attitudes. For now, though, Sweden stands apart—a cashless society hesitant to dive into cryptocurrency.
Looking ahead to 2025
As we head into 2025, the big question is whether this global momentum can be sustained. Will policies catch up to the hype? Will Bitcoin’s role in national reserves expand? I think so. One thing is clear: 2024 was the year Bitcoin became part of the global fabric—and it’s not going back.