Cryptocurrencies surged after the fourth Bitcoin (BTC-USD) halving, completed on April 19. Bitcoin rose 12%, Ethereum (ETH-USD) 12%, and Solana (SOL-USD) more than 20%. This surge resembles the 2021 crypto boom, where many altcoins soared over 1,000%. Like the third halving in May 2020, the fourth halving triggered a supply crunch and buying frenzy. That said, the ultimate impacts of this halving won’t be felt for some time.
Cryptos remain attractive to many investors despite challenges encountered due to the Federal Reserve’s interest rate stance staying stickier than expected. Bitcoin has also seen some selling pressure. However, with the halving event’s success, it is still a must-have crypto to own.
Let’s dive into why Bitcoin and two other top cryptos are top options long-term investors should consider for significant gains over time.
Bitcoin (BTC-USD)
Bitcoin emerged in 2009 with Satoshi Nakamoto’s white paper, outlining a decentralized currency free from the traditional markets and central bank oversight. Since Bitcoin was a product of the Great Recession, this spoke to many early investors and enthusiasts. Trading for less than a penny at the time, only those who really understood the mission got involved.
Today, Bitcoin has gained mainstream attention. Now sitting at its all-time high of $73,000, Bitcoin has come a long way from its low of $4,000 in 2021. Despite periods of uncertainty, including proposed forks, Bitcoin has maintained its original format.
Bitcoin’s price predictions vary widely. Cathie Wood of Ark Invest projected $1.48 million by 2030, suggesting Bitcoin could hit $1 million over a shorter-term time frame. Analyst Nicholas Sciberras notes Bitcoin’s incredible journey from less than a cent to about $63,000 in April 2024, highlighting the potential for even higher values.
Many focus on Bitcoin’s potential as the key to solving instability in the traditional banking systems. If issues in the U.S. economy pick up, such as the growing narrative around stagflation, this token could have much further room to run. Its fixed supply and surging demand suggest more room for upside over the coming months after this halving.
Ethereum (ETH-USD)
Ethereum’s biggest upcoming catalyst is undoubtedly the proposed spot of Ethereum ETFs in front of regulators. Unfortunately, a decision from the Securities and Exchange Commission (SEC) has been postponed from May to June 11. The SEC is seeking public input on BlackRock’s revised ETF proposal, which now features a cash redemption model that aligns with previous Bitcoin ETFs.
Despite approving spot Bitcoin ETFs in January, the SEC has remained cautious about cryptocurrency ETFs. These Bitcoin ETFs launched earlier attracted a total net inflow of $12.42 billion, offering investors a regulated trading option. Approval of Ethereum ETFs would grant access to the second-largest cryptocurrency, advancing digital assets’ integration into traditional investment portfolios.
There will undoubtedly be an incredible amount of institutional demand for spot Ethereum ETFs if and when the time comes for approval. I think this catalyst alone could drive Ethereum much higher over the next year, with fundamental network effects due to Ethereum’s position as the infrastructure of decentralized finance continuing its rally over the longer-term.
Bittensor (TAO-USD)
During the AI boom, investors sought projects blending AI and crypto. Bittensor (TAO-USD), a decentralized AI marketplace, has attracted significant attention from investors. Venture capital firms like Polychain have waded into Bittensor’s token, TAO. This project powers AI services like model training. With so much attention around innovation in the AI world, it’s no wonder why TAO has been on such a tear this year — investors want in on the combination of AI and blockchain technology.
Previously available only through mining, Bittensor’s TAO token can now be traded on Binance and Crypto.com. This move, among other key catalysts, has boosted the project’s market cap to $3.7 billion.
Bittensor has several notable investors outside of Polychain who believe in this early-stage project. Whether it’s Dao0, which invested $50 million in this project, or Digital Currency Group, which put $100 million into Bittensor, some big-money investors are in this name. In this case, it’s smart to follow the smart money into a project that could provide meaningful long-term upside, particularly if this AI rally continues.
On the date of publication, Chris MacDonald 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.
