The cryptocurrency market has rebounded dramatically throughout 2023. There continue to be multiple reasons for investors to remain positive in December and 2024. One of the biggest factors is the anticipated approval of a Bitcoin ETF. This has led to this list of cryptos to buy.
The continued development of the biggest and most important cryptocurrency will serve to pull the entire market higher. Further, investors continue to focus on utility broadly and simultaneously continue to avoid meme cryptos.
It also appears that we have reached Peak interest rates and the Federal Reserve appears on track to perhaps begin cutting interest rates in early 2024. All of these factors conspire to make the following cryptocurrencies very attractive at the moment.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) continues to be the most important cryptocurrency asset. It has more than doubled in price in 2023, starting at around $16,000. Today, as I write this, Bitcoin trades at $37,768.
Essentially, Bitcoin integrates itself into the greater Financial system step by step. Enterprises began adding Bitcoin to their balance sheets a few years ago. that sent a strong message to the markets that Bitcoin was becoming a greater part of the mainstream financial system.
These days, major financial institutions continue to fight for spot Bitcoin ETF approval. If these ETFs are approved, it is expected that liquidity across the market will increase. Some sources speculate that approval could lead to a $155 billion increase in market capitalization. In theory, that could push prices well beyond the $50,000 threshold. Bitcoin is entering another phase of adoption that promises to increase its value dramatically again.
Solana (SOL-USD)
Solana (SOL-USD) prices are up considerably over the last year while continuing to be lower than their all-time highs.
The crypto burst onto the scene a few years ago because it promised to improve upon Ethereum’s (ETH-USD) weaknesses. Namely, fees and speed. Solana continues to hold considerable potential for those same reasons. This makes it one of those cryptos to buy.
One of the primary reasons investors should keep an eye on Solana is that it offers outside potential for returns. Bitcoin will continue to pull All Ships higher or lower across the cryptocurrency industry. However, it simply is so large that its growth is limited. Bitcoin has grown by a bit more than double over the last year. Meanwhile, Solana has increased much more rapidly. Bitcoin traded near 65,000 at its peak. it now trades for more than half of that price. Solana traded for roughly $250 at its peak but now trades for $60. I think you get my point.
Polkadot (DOT-USD)
Polkadot (DOT-USD) Is focused on connectivity. connectivity is utility. Utility is very much in season and will continue to be across the cryptocurrency space. I believe that neem coins will continue to fail at a rapid pace and that as the sector matures, more and more investors will focus on utility.
Ultimately, that is going to serve to drive more investment into Polkadot. The project’s entire purpose is to connect blockchains throughout the cryptocurrency space. by connecting blockchains, Polkadot will facilitate the transfer and sharing of information on those disparate blockchains. As a result, developers will be able to create greater utility across the space.
Polkadot Is one of many cryptocurrencies that are worth considering because of its utility. Many other similar products are hard at work developing the same kinds of networking. there’s a reasonable case to be made that investors could treat networking cryptocurrencies just as they treat a given stock market sector. In other words, it might make sense to purchase Polkadot and Chainlink (LINK-USD), for example in the same way that one would buy Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT). All in all, it’s one of those cryptos to buy.
On the date of publication, Alex Sirois did not have (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.
