Cryptocurrencies have been the place to be in 2023 and the current rally in digital tokens looks set to continue into the new year. News that the U.S. Federal Reserve is planning to cut rates in 2024 is the latest catalyst for crypto, as lower rates give investors the confidence to allocate capital to riskier assets. The price of cryptos large and small grew over the last 12 months on expectations the Securities and Exchange Commission (SEC) will soon approve cryptocurrency-based spot exchange-traded funds (ETFs). That development could lead to billions of dollars worth of inflows and improved investor sentiment. The gains in crypto during 2023 outpaced all other asset classes, including high-flying technology stocks. Here are three cryptos to get rich.
Ethereum (ETH-USD)
Analysts at JPMorgan Chase (NYSE:JPM) just issued a report forecasting Ethereum (ETH-USD) will outperform Bitcoin (BTC-USD) in 2024. JPMorgan says in a new outlook that Ethereum is likely to outperform all other cryptocurrencies in the coming year driven by its EIP-4844 upgrade expected to take place during the first half of next year. The new upgrade will enable Ethereum to process and hold more data, making the second-largest cryptocurrency by market capitalization more efficient.
“We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform,” says JPMorgan in its crypto report. Overall, the company said it is cautiously optimistic for the cryptocurrency market in 2024, noting that venture capital funding in the crypto space remains “tentative.” The price of ETH has risen by 92% so far this year.
Bitcoin (BTC-USD)
Even though it sees Ethereum outperforming, JPMorgan does acknowledge several catalysts looming on the horizon for Bitcoin, including the potential approval of exchange-traded funds (ETFs) and a reduction in interest rates. Indeed, cryptocurrency prices got a boost recently when the U.S. Federal Reserve pivoted away from its monetary tightening regime and said it now expects at least three interest rate cuts in 2024.
The price of Bitcoin, the largest cryptocurrency by market capitalization, is now up almost 160% this year and trading at $43,023.97. U.S. cryptocurrencies have rallied over the past two months on expectations that regulators will soon approve the first Bitcoin ETF. Some analysts see $44,000 as a key support level for Bitcoin and expect the next big run in the largest cryptocurrency to occur once the price breaks above $45,000 — a move that could occur before the end of the calendar year.
Solana (SOL-USD)
As the cryptocurrency rally broadens out, the price of altcoin Solana (SOL-USD) has risen more than 400% over the last six months. Solana is currently trading at $75.62 per token, up almost 250% since October amid an ongoing rally in digital tokens. Solana’s price was also given a boost after well-known investor Cathie Wood praised its functionality and said the altcoin is superior to Ethereum — on which it is based. “Solana is even faster and cost-effective than Ether,” said Wood in an interview on CNBC.
Solana is now the sixth-largest cryptocurrency by market capitalization. Like Wood, many crypto analysts praise it as a faster and more efficient version of Ethereum. Market data shows that trading activity in Solana has been steadily growing throughout 2023. It’s a big reversal for Solana, whose price fell over 90% and traded below $10 in 2022. But now, Solana is one of the best-performing cryptos of 2023, having outpaced the price increases in both Bitcoin and Ethereum.
On the date of publication, Joel Baglole 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.
