2024 is beginning with continued optimism around cryptocurrency. Bitcoin ETFs officially launched with $4.6 billion of volume in trading on the first day. Many see the launch as a watershed moment for the larger cryptocurrency industry. It points to an increasing acceptance of cryptocurrency as Part of the broad financial system. Investors will eagerly watch for information that points to greater acceptance overall.
Market cyclicality is also shifting in favor of overall crypto growth. Interest rates are set to decline in 2024. That should prompt greater speculation that benefits cryptocurrency. Let’s look at three three top coins at this early point in 2024.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) Is bound to be featured throughout lists of must-buy coins in 2024. Of course, introducing Bitcoin ETFs is vitally important to that narrative.
A lot can be said about Bitcoin ETFs, but one of the most interesting is how big of a win this is for the crypto industry. The Securities and Exchange Commission (SEC) finally acquiesced more than a decade after the first Bitcoin ETF application was filed in July 2013.
From that perspective, the launch of Bitcoin ETFs is indeed a watershed moment. The victory itself speaks to the continued rapid evolution of cryptocurrency overall. Cryptocurrency continues moving away from the realm of Ponzi schemes and into everyday finance.
One of the most interesting things to watch is whether Bitcoin can test former highs in 2024. BTC prices reached $65,000 in late 2021. Then, they plummeted as the Federal Reserve rapidly increased interest rates to battle the inflation period. We are now on the other side of that battle. It is all speculation, but it’s reasonable to anticipate that BTC prices will exceed $65,000 this year.
Solana (SOL-USD)
Solana (SOL-USD) prices have moved up and down in the lead up to the launch of Bitcoin ETFs. The launch of those ETFs has led to speculation that Solana can recover rapidly after losing substantial ground since late December.
These articles rely on technical indicators to substantiate their bullish thesis for future prices. It’s all good and well, and interesting insights can be gained from technical analysis. However, investors should also simply rely on obvious catalysts.
Solana has again passed $100, presumably due to the launch of Bitcoin ETFs. Moving forward, Solana can continue to appreciate due to its fundamental strength. In reality, Solana is more connected to Ethereum than it is Bitcoin.
That’s where it continues to have the most potential to appreciate. The more it can prove its abilities related to speed and efficiency, the more market share it will claw away from Ethereum. A $5 investment resulting in a $500 return is unrealistic, given what that would mean for Solana’s market capitalization. Instead, expect more realistic potential returns in the neighborhood of 50%, which is impressive.
Ethereum (ETH-USD)
Are Ethereum (ETH-USD) ETFs up next? That’s one of the major questions cryptocurrency investors are curious about after Bitcoin ETF launches.
It’s also one of the reasons to consider that Ethereum prices could rise higher. That would be welcome news for Ethereum investors who have already benefited as Ethereum surges higher; during the lead up to the launch of Bitcoin ETFs, Ethereum’s price increased by as much as 12%. That has renewed optimism in the second most valuable cryptocurrency while propelling Ethereum to scale more cryptos.
The SEC is expected to begin handing out decisions about Ethereum ETFs in May. That suggests that speculation over Ethereum prices is likely to rise and increase demand similarly to that for Bitcoin ETFs over the last several months.
Ethereum ETFs are up next, that’s for sure. Investors will likely be able to capitalize on Ethereum ETF launches in the immediate future.
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.
