Even some of the biggest critics are now turning bullish on cryptocurrencies. Case in point, Jim Cramer, the host of the CNBC television show “Mad Money.” After bashing crypto for the past two years, Cramer recently reversed himself, saying on camera of Bitcoin (BTC-USD): “This thing, you can’t kill it… Bitcoin is a technological marvel and I think people need to start recognizing it’s here to stay.” This has led to this list of cryptos to watch.
Cramer’s reversal, which is one of many on Wall Street, comes ahead of what’s expected to be U.S. regulatory approval of a spot Bitcoin exchange-traded fund (ETF), and as the price of Bitcoin gained more than 150% in 2023. The entire crypto market rallied hard over the past year, outpacing equities by a wide margin.
With the rally expected to continue in the coming months, we explain why these three cryptos should be on your radar in 2024.
Bitcoin (BTC)
At the end of December, the Reuters News Agency issued a report saying that the U.S. Securities and Exchange Commission (SEC) is likely to approve a Bitcoin ETF in early January. While that hasn’t happened as of this writing, the anticipation surrounding an ETF and the capital it would attract has been enough to keep the rally in BTC rolling. On the first trading day of 2024, Bitcoin’s price broke above $45,000 and reached its highest level in 21 months. All in all, it’s one of those cryptos to watch.
While the price has since pulled back to $42,500, it remains up 165% from the low of $16,000 it sunk to in December 2022 after the FTX cryptocurrency exchange filed for bankruptcy and amid a broader bear market. While some market observers question the timing of when the SEC will approve a spot Bitcoin ETF, almost all expect it to happen this year. Additionally, Bitcoin is scheduled to undergo a “halving” this year, which is a technical event in which rewards offered to miners of the cryptocurrency are cut in half.
Halving events reduce the existing supply of Bitcoin and have led to sharp price increases in the past. This could prove to be another catalyst for BTC and another reason to keep the crypto on your radar in 2024.
Ethereum (ETH)
While Bitcoin tends to get the lion’s share of the media attention, Ethereum (ETH-USD), the second biggest cryptocurrency by market capitalization, is no slouch either. In the last 12 months, the price of Ethereum has risen 85% to trade at $2,240. It’s definitely one of those cryptos to watch.
Many analysts expect that ETH will continue to rally in 2024 as it strives to catch-up to Bitcoin’s gains. In fact, analysts at JPMorgan Chase (NYSE:JPM) issued a report in December forecasting that Ethereum will outperform Bitcoin in the year ahead.
In fact, JPMorgan predicts that Ethereum will outperform all other cryptocurrencies in 2024 driven by the “EIP-4844 upgrade” that is expected to take place during the first half of this year. The upgrade will enable Ethereum to process and hold more data, making the crypto even more efficient. JPMorgan also warns that the Bitcoin ETF and halving process taking place in 2024 are likely already baked into the price and that these events may actually prompt investors to sell BTC once they occur.
Solana (SOL)
Very few cryptocurrencies beat the rally in Bitcoin during 2023. But altcoin Solana (SOL-USD) did. In the last 12 months, Solana’s price has increased nearly 520%, rising to $101 today from $16.35 at the start of 2023. The price tripled during the month of November alone.
SOL had been rallying along with the broader cryptocurrency market. But it got a huge boost after famed investor Cathie Wood praised its functionality and said that the altcoin is superior to Ethereum, on which it’s based.
Wood went on CNBC to talk up SOL, saying that “Solana is even faster and more cost-effective than Ether.” Her comments sparked a big run in Solana, pushing the altcoin into the ranks of the top five largest cryptocurrencies by market capitalization. The rise in Solana’s price comes after a steep selloff in 2022, when it fell 70% and traded below $10. Many crypto analysts expect the rally in Solana to carry on in 2024, agreeing with Wood’s view that it is a more efficient version of ETH.
On the date of publication, Joel Baglole 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.
