Crypto’s breakthrough: How 2024 reshaped digital asset buying

The year 2024 has been a monumental one for cryptocurrencies, with Bitcoin leading the surge by soaring more than 150% in value. To delve into the key factors that have propelled these record highs and what lies ahead in 2025, CNBC Africa spoke with Tarris Arnold, Business Development Manager at Luno. Arnold highlighted the pivotal role of institutional interest in driving the crypto market to new heights. Notably, the launch of Bitcoin ETF spot 11 in the United States has garnered significant attention, surpassing the popularity of traditional ETFs like gold. The influx of capital and expertise into the market has bolstered confidence in Bitcoin and digital assets, enhancing liquidity and trading volumes. Moreover, political factors, such as the support from the US elections, particularly from former President Donald Trump, have further fueled the excitement surrounding cryptocurrencies. Arnold emphasized the positive impact of regulatory developments, including Luno's recognition as a financial service provider in 2024, on legitimizing digital assets. The endorsement of cryptocurrencies by the Trump administration, with discussions of the US acquiring a strategic reserve, has sparked optimism within the crypto community. Arnold pointed out that such initiatives could lead to increased adoption and confidence among institutional and retail investors, driving value and volume in the market. In addition to institutional interest, Arnold shed light on the evolving landscape of cryptocurrency adoption at Luno. While retail investors have historically been at the forefront, there has been a notable influx of businesses and institutional financial entities entering the space with long-term strategies. The regulatory clarity provided by authorities has instilled confidence in traditional investment managers, banks, and non-financial companies seeking to diversify their treasury holdings. Looking ahead to 2025, Arnold remained cautiously optimistic about the future of Bitcoin and cryptocurrencies in general. While refraining from making specific price predictions, he emphasized the importance of focusing on the utility of cryptocurrencies and their day-to-day usage. Arnold expressed confidence in the continued growth of the crypto market but acknowledged the inherent volatility that comes with it. As the industry navigates the ever-changing landscape of digital assets, 2025 holds promise for further innovation and adoption. With a blend of institutional support, regulatory advancements, and expanding use cases, the cryptocurrency market is poised for continued evolution in the coming year.