The cryptocurrency market has cooled since then bitcoin (CRYPT: BTC) It reached a new all-time high of $73,750 in mid-March, but the growing consensus is that this is just a temporary respite until the next big catalyst emerges. With that in mind, now could be a unique buying opportunity for cryptocurrencies set to rise higher later this year.
Two cryptocurrencies that particularly stand out are Bitcoin and Ethereum (CRYPT: ETH). Both have huge long-term growth potential and both have short-term catalysts. Let's take a closer look at why Bitcoin and Ethereum should be on your radar right now.
bitcoin
No surprises here, but Bitcoin is at the top of my โbuy as soon as possibleโ list. This is because a major event for Bitcoin is quickly approaching: the halving. It is now scheduled for April 19, and when it does, the price of Bitcoin could completely skyrocket. The growing consensus is that the halving could be the big catalyst needed to push Bitcoin above the $100,000 price level.
In fact, many investment analysts are increasing their price forecasts for Bitcoin. Standard Chartered, for example, has raised its 2024 price forecast from $100,000 to $150,000. Investment firm Bernstein recently raised its 2025 price forecast to $150,000. And Ark Invest's Cathie Wood has repeatedly raised her Bitcoin forecast, from $1 million to $1.5 million to $2.3 million and now $3.8 million.
Just keep in mind that there's no guarantee that this year's halving cycle will have as much impact as previous ones. However, it is difficult to ignore Bitcoin's historical track record. There have been three previous halving cycles (in 2012, 2016, and 2020), and each of them has led to new all-time highs for Bitcoin. As a result, there are compelling arguments to buy Bitcoin as soon as possible before the 2024 halving cycle actually begins.
Ethereum
Ethereum It also has a short-term catalyst that makes it a "buy as soon as possible" candidate. This is the possible launch of new spot Ethereum exchange-traded funds (ETFs). According to Bloomberg, there is almost a 35% chance of this happening by the end of May.
If these Ethereum spot ETFs come close to the success of the new detect Bitcoin ETF, then be careful. This is because Bitcoin ETFs have been extraordinarily successful in persuading retail and institutional investors to move their money into cryptocurrencies. At one point in mid-March, net inflows into these ETFs were at a pace of more than $1 billion per day. And that has helped drive up the price of Bitcoin.
The same phenomenon could occur with Ethereum. Simply put, the Securities and Exchange Commission's (SEC) approval of a new investment product could unlock a huge influx of new money into Ethereum. Of course, these Ethereum ETFs may never generate as much investor demand as Bitcoin ETFs, but they will help put a good floor under the price of Ethereum for the foreseeable future. As investors increase their allocations to Ethereum over time, the floor will continue to rise.
Then what could go wrong?
At this point, both Bitcoin and Ethereum probably sound like safe investments. Both have increased in price more than 55% this year. Both have very short-term catalysts. And both have a long historical track record that makes them seem "safer" than other, more speculative cryptocurrency investments.
My only concern is that the SEC could intervene at any time and put a real damper on the current crypto euphoria. The SEC could, for example, decide that it will no longer approve crypto ETFs. Additionally, it could overhaul the entire debate over whether Ethereum is actually a security or not, and that would likely eliminate any chance of seeing an Ethereum ETF before the start of summer. To use a common Wall Street metaphor, the SEC would be putting away the punch bowl before the party really gets started.
That's why I'm also focusing on the long-term appeal of Bitcoin and Ethereum. Together, they represent almost 70% of the value of the entire crypto market, and for good reason. Both are market leaders with real-world use cases and extensive blockchain ecosystems. Their pace of use and growth will only accelerate over time, and as a result, I'm willing to buy them now and hold on to them for the long term.
Should you invest $1,000 in Bitcoin right now?
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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool holds and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
2 Cryptocurrencies I'll Buy ASAP and Hold Long-Term was originally published by The Motley Fool
