The crypto marker remains strong, led by continued strength in the price of Bitcoin (BTC-USD). After a brief downturn in late March, cryptocurrencies have been rising as stocks retreat on growing inflation concerns. The price of Bitcoin increased 2% to $71,000 in the 24 hours after the latest data showed inflation in the U.S. rose at an annualized rate of 3.50% during March. Bitcoin moved higher as the Dow Jones Industrial Average fell more than 400 points amid worries that interest rates will now remain higher for longer.
The fact that Bitcoin’s price shored up as equities fell bolstered the bull case that the largest cryptocurrency is a safe haven asset, often referred to as “digital gold.” Other cryptocurrencies have also been marching higher despite turmoil in equity markets. Prices for Solana (SOL-USD), Ripple (XRP-USD) and Dogecoin (DOGE-USD) each rose while stocks fell after the April 10 inflation report. This shows that, yes, you can play it safe and still buy crypto. Here are three safe cryptocurrencies to buy.
Ethereum (ETH)
There’s a big potential catalyst brewing in Ethereum (ETH-USD). The U.S. Securities and Exchange Commission (SEC) has until the end of May to either approve or reject several applications for spot Ethereum exchange-traded funds (ETFs). Companies ranging from Ark Invest and BlackRock (NYSE:BLK) are hoping to get the greenlight to launch spot Ethereum ETFs. Hopes are running high for the Wall Street regulator to approve the Ether ETFs after it allowed spot Bitcoin ETFs earlier this year.
Recently, analysts at JPMorgan Chase (NYSE:JPM) said in a note to clients that they expect it to take some time for the SEC to ultimately approve Ethereum ETFs. While JPMorgan still foresees the SEC approving Ether ETFs, the bank says it will likely take the SEC facing litigation from the investment firms and losing in court before it approves the new crop of ETFs. This is similar to what happened with the Bitcoin ETF approvals. The price of Ethereum has increased 50% so far in 2024.
Bitcoin (BTC)
Bitcoin’s upcoming halving event that will take place on or around April 20 is a major catalyst for the crypto. In the lead-up to the halving, the price of BTC has moved back above $70,000. The largest crypto’s price has increased as high as $72,000 in recent days as excitement builds around the halving event that will reduce the rate at which new Bitcoin is created, an event that has historically led to a bull market for the cryptocurrency.
When a halving event occurs, the rewards for mining transactions are reduced by 50%, lowering the available supply and pushing the price sharply higher. The current block reward for Bitcoin is 6.25 BTC. After the halving, it will decline to 3.125. Open interest on Bitcoin futures remains at record-high levels above $25 billion. Traders expect more price movements in coming days leading up to the halving. Year to date, Bitcoin’s price is up nearly 60%.
Solana (SOL)
Solana is a smaller cryptocurrency. It currently trades right around $175 per token. However, SOL is mighty. In the last 12 months, its price has increased 644%, crushing the gains seen in both Bitcoin and Ethereum. News recently came that Solana has officially surpassed Ethereum as the top smart-contract blockchain by trading volume. Trading in Solana-based decentralized exchanges (DEX) rose more than 65% in March, climbing above $20 billion a day.
That compares to a trading volume increase in Ethereum of only 3% to $19.4 billion during the same period. The interest in Solana comes as several Solana-based meme coins see their trading volumes and prices rise amid the speculative fever that has gripped retail investors in recent months. Crypto investors are also gravitating to Solana as it has a higher capital efficiency than Ethereum. Also, Solana’s blockchain can support higher trading volumes. With its popularity rising, SOL looks set for further gains, standing out as a safe cryptocurrency to buy.
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.
