Cryptocurrencies, led by Bitcoin (BTC-USD), have slumped recently. After hitting an all-time high of just under $74,000 in March of this year, Bitcoin’s price has trended lower. Some analysts forecast that the price could drop to $60,000 in the coming weeks. Analysts say Bitcoin has also decoupled from the Nasdaq index, having previously positively correlated with the index.
Bitcoin’s price has deteriorated since the crypto underwent a halving event this April when the rewards for mining the digital token were cut in half. Bitcoin has also declined since the U.S. Federal Reserve on June 12 reduced its interest rate cut forecast for this year from three reductions to only one. Other cryptos have declined on the interest rate news, with Solana (SOL-USD) falling more than 10%.
Given crypto’s history of rebounds, the price pullback investors could view it as a buying opportunity. Here are three cryptos to buy that could make early investors rich.
Cardano (ADA-USD)
The Cardano (ADA-USD) cryptocurrency network is expected to undergo the highly anticipated “Voltaire” upgrade later in June. According to recent social media posts by ADA founder Charles Hoskinson, the upgrade will make Cardano a wholly decentralized blockchain ecosystem. Specifically, Cardano’s underlying blockchain network will complete a hard fork that will make it more decentralized moving forward.
Once the upgrade is complete, development firm IOHK will no longer actively manage Cardano’s blockchain; but instead, community members. Going forward, holders of the ADA token will be able to vote on topics and features that benefit Cardano in a more democratic process, said Hoskinson. “We’ll have the wisdom of our entire community to guide us,” wrote Hoskinson on X, formerly Twitter.
The price of the ADA has risen 54% over the last 12 months to trade at $0.41 per token.
Tether (USDT-USD)
Stablecoin developer Tether (USDT-USD) plans to invest more than $1 billion in cryptocurrency deals over the next year, says CEO Paolo Ardoino. In a recent interview with Bloomberg, Ardoino said Tether’s investments would likely focus on financial infrastructure, artificial intelligence (AI) and biotechnology firms. The company has invested $2 billion in those areas over the past two years, a trend Ardoino sees continuing.
Tether currently operates the world’s largest stablecoin, USDT. A stablecoin is a cryptocurrency pegged to the value of an underlying asset, usually the U.S. dollar or gold bullion. Tether created the USDT cryptocurrency to function as the internet’s digital dollar, with each token worth $1 and backed by American currency reserves. Tether invests most of its reserves in U.S. treasury bills and other securities to return billions in profit to its investors.
Binance Coin (BNB)
Binance Coin (BNB-USD), the digital token issued by the world’s biggest cryptocurrency exchange, is trading near an all-time high. The cryptocurrency has risen as high as $716, topping its record high of $686, which it previously held for three years. Binance Coin’s price has nearly doubled this year. Its market capitalization now exceeds $100 billion, making it the fourth-largest cryptocurrency.
The new all-time high comes as Binance founder and former CEO Changpeng Zhao serves a four-month prison sentence in California for violating America’s Bank Secrecy Act. As Changpeng Zhao is known, CZ pled guilty in April to charges of money laundering and operating an illegal exchange within the U.S. Owing to the recent rise in Binance Coin, CZ has doubled his net worth while behind bars.
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.
