In 2024, Bitcoin was the top investment, despite its typical fluctuations.

In 2024, Bitcoin outperformed all other asset classes, thanks to the introduction of exchange-traded funds and the prospect of deregulation under a new administration, leading to unprecedented highs for digital assets.

The unpredictability and dizzying swings of owning cryptocurrency are evident in this month's trading, as Bitcoin's price has more than doubled since the start of the year, trading near $94,000, while Ethereum has scored a nearly 50% year-to-date gain, last trading at around $3,355.

The period of greatest prosperity for the cryptocurrency market happened after the U.S. presidential election, with the price surpassing $108,000 by mid-December. This growth was driven by optimism that President-elect Donald Trump's victory over Vice President Kamala Harris would lead to clearer regulations and bring in more investment.

Despite the initial increase in prices, Bitcoin has been negative for the month due to the anticipation that the Federal Reserve's rate cuts will not come as quickly as expected. Additionally, the market has experienced profit-taking and choppiness leading up to the end of the year.

The introduction of new ETFs in January that hold cryptocurrency provided a strong boost of confidence at the beginning of the year. These funds, marketed by asset managers as a simpler way for investors to access bitcoin, have attracted tens of billions of dollars in investments this year. Specifically, the iShares Bitcoin Trust ETF (IBIT) now has more than $50 billion in assets.

In July, Ether ETFs joined the excitement, although the demand for them has not been as strong as for their bitcoin counterparts, but the category has still attracted more than $2 billion in net inflows in less than six months, according to FactSet.

Record levels for connected stocks were achieved due to strong tail winds for cryptocurrencies. Bitcoin proxy has experienced a more than 360% increase since the beginning of the year, while and have risen approximately 43% and 196%, respectively. MicroStrategy shares have also surged since mid-December, as the company was added to the Nasdaq 100 index.

While some mining stocks have underperformed, with and on track for double-digit year-to-date losses, the drop in mining stocks may be due to this year's bitcoin halving, which reduced block rewards. Miners make most of their money through transaction fees, which are one of the most significant ways they earn.

— CNBC's Jesse Pound contributed reporting.