Cryptocurrency enthusiasts, consider the possibilities! The upside potential for Ethereum (ETH-USD) is just as strong, and maybe even stronger, than it is for Bitcoin (BTC-USD). After weighing the positive catalysts, you’ll surely agree that the ETH-USD price is on the cusp of a major breakout.
The financial press focuses on Bitcoin, and I’ll admit that it’s the first and most popular cryptocurrency. Yet, the crypto play of choice right now, I believe, is to buy Ethereum. So stick around, and I’ll tell you exactly why right now.
Bitcoin’s Rising Tide Will Lift Ethereum’s Boat
It’s been said that Ethereum is to Bitcoin like silver is to gold. What does this mean? It means that Ethereum is cheaper and has smaller trading volumes than Bitcoin. Hence, just as silver follows gold but also magnify gold’s price moves, ETH-USD will likely swing even higher when BTC-USD swings high.
Speaking of swinging high, Bitcoin recently made a move toward its previous all-time high of around $69,000. This occurred because of the market’s excitement about the approval of spot Bitcoin exchange traded funds.
Ethereum hasn’t had its spot ETF approval yet. However, Ethereum will very likely be the next cryptocurrency in line to get a spot ETF approval from the Securities and Exchange Commission.
It really should only be a matter of time before the SEC relents and allows some financial firms to create spot Ethereum ETFs. So, don’t be surprised it the same catalyst that boosted Bitcoin in early 2024, produces an even bigger percentage move in Ethereum later this year.
Why April Will Be Epic for Bitcoin and Ethereum
Mark this on your calendar, if you haven’t already done so. The next Bitcoin halving/halvening event should take place on April 19. That’s an estimate, but the halving is definitely expected to happen in April.
Just to recap, the halving is when the reward for mining Bitcoin will be cut in half. This happens approximately once every four years, and it’s intended to control the available, circulating supply of Bitcoin.
Previous halving events have accompanied rallies in Bitcoin. Therefore, April could be an epic month for Bitcoin, but don’t overlook Ethereum.
Granted, it’s the Bitcoin halving, not the Ethereum halving. Still, remember the silver-gold analogy. Bitcoin is a five-digit asset (in dollar terms), and Ethereum is only four digits. The excitement surrounding Bitcoin’s halving event could easily push the lighter and speedier Ethereum faster and further.
Bitcoin Is Good, but Ethereum Might Be Even Better
Don’t get the wrong idea. It makes sense to own Bitcoin now, especially with the halving event coming up and the spot ETF effect still in play.
Yet, it also makes sense to hold some Ethereum, which is likely to make an even bigger move than Bitcoin. Indeed, it’s entirely possible that ETH-USD will break above $5,000 sometime this year. Thus, even while the financial press obsesses over Bitcoin, consider enhancing your crypto holdings with Ethereum.
On the date of publication, David Moadel 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.
