The rally in Bitcoin (BTC-USD) during the first half of the year clearly indicates the resumption of another bull market for cryptocurrencies. The good news for investors is that the bull market is still at an early stage. As the cryptocurrency market takes a breather, it’s a good time to look at some of the best cryptos to buy on the dip.
Bitcoin halving is an important event that’s due in 2024. With the recent rate hike, it seems likely that no further hikes are on the cards. As inflation is curbed, there is a case for rate cuts in the next 24 months. A weak dollar is positive for risky asset classes, and I expect cryptocurrencies to benefit.
At the same time, blockchain technology is here to stay. As use cases get wider, there will be more attention and investment in the cryptocurrency space. This column discusses some of the top cryptos to buy on the dip. I believe that these crypto assets are poised for multibagger returns in the next 18 to 24 months.
Let’s discuss the reasons to be bullish on these cryptocurrencies.
Bitcoin (BTC-USD)
Bitcoin touched highs of $31,850 earlier this month. With BTC trading near the $29,000 level, the correction seems like a good accumulation opportunity. While Bitcoin has surged by 75% year-to-date, the upside potential is significant in a full-fledged bull market.
Standard Charted believes that Bitcoin will likely hit $50,000 by the end of the year. Further, Bitcoin can potentially surge to $120,000 by the end of 2024. If this projection holds true, the cryptocurrency is poised for multibagger returns in the next 18 months.
It’s also worth noting that Bitcoin halving is due in 2024. Historically, “post-halving periods see the greatest upside in BTC price.” I, therefore, believe that the Standard Chartered projections are not unrealistic.
Another strong argument for the bull case is the fact that Bitcoin supply is limited. With the rising adoption of cryptocurrencies, the blue-chip asset is likely to remain in an uptrend.
Ethereum (ETH-USD)
Ethereum (ETH-USD) touched highs of $2,140 in April. The cryptocurrency currently trades lower by 13.5%. I believe that this is a good accumulation opportunity. Over the next five years, Ethereum is likely to deliver multibagger returns and can potentially outperform Bitcoin.
Last year, Vitalik Buterin opined that Ethereum development will be 55% completed after the merge. This implies significant impending developments for Ethereum in the next few years. From this perspective, Ethereum is attractive as compared to Bitcoin. It also seems that the benefits of the Ethereum merge are yet to be discounted. In particular, the significant decline in energy consumption is likely to attract environmental, social, and corporate governance investors.
I believe that there are two important catalysts for Ethereum surging higher. The first catalyst is the increased transaction speed. Further, the transaction cost is reduced significantly. If this is achieved in the next 24 months, Ethereum can potentially deliver 3x to 5x returns from current levels.
Dogecoin (DOGE-USD)
Dogecoin (DOGE-USD) has been in an extended period of consolidation. In the last 12 months, DOGE has trended higher by 10%.
I believe that the cryptocurrency is poised for a massive breakout on the upside. If Bitcoin touches $120,000 (as predicted by Standard Chartered) by the end of 2024, Dogecoin can easily be higher by 3x from its current levels of eight cents.
Of course, the bullish view on Dogecoin has a lot to do with Elon Musk. The hopes of payment integration with Twitter exists, and that’s a big catalyst for Dogecoin. It’s also worth noting that the cryptocurrency has a significantly lower transaction cost as compared to Bitcoin or Ethereum.
One factor of concern is that Dogecoin is inflationary. However, the cryptocurrency has a large holder base. In a wider adoption scenario for cryptocurrencies, the outlook is likely to remain bullish.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
