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bitcoin (USD-BTC), grayscale Bitcoin confidence (OTC: GBTC), Polygon (MATC-USD) and Presearch (PREUSD) are among Seeking Alpha analysts' top crypto picks for the rest of the year.
After summoning a round table of cryptanalysts last month to assess the impact of the The Federal Reserve's aggressive pause decision on cryptocurrencies, SA asked a panel of six analysts to reflect on the big questions about the state of cryptocurrencies in 2023, as well as the critical issues that will shape its future.
Kicking off the second part of the crypto roundtable, two SA analysts: Logan Kane and john miller – view Bitcoin trust in grayscale (OTC: GBTC), which allows investors to gain indirect exposure to bitcoin (USD-BTC) and avoid the drawbacks of physical custody, as the best crypto option for the next six months.
“I believe that Bitcoin is the only game in town for crypto, and that GBTC's unique circumstances make GBTC the best way to play Bitcoin,” Kane said. Miller shared a similar opinion, favoring “bitcoin-adjacent names with an angle.”
When asked about their year-end predictions for the bitcoin price (USD-BTC), most analysts favored a downward trajectory from the current $30,200 mark as of Friday afternoon, but did not rule out an eventual rally.
clem chambersFor example, he reckons that BTC may go as high as $13K, “but the most likely answer is $25,000. The way Bitcoin is getting out of the regulatory disaster zone, almost any price under $100,000 is possible, but I'm still a bear sitting in this crazy dance."
As for the biggest event for the rest of 2023 that will affect investors, "it's about the" US Securities and Exchange Commission, Chambers said, noting that the lingering question is whether the regulator wants to "regulate cryptocurrencies or kill them." Amid the fallout from high-profile bankruptcies like cryptocurrency exchange FTX and cryptocurrency hedge fund Three Arrows Capital, the SEC has stepped up scrutiny of the emerging space, having sued two of the largest cryptocurrency exchanges: Binance and Coinbase Global (CURRENCY) – last month for violating securities laws. An SEC victory could influence cryptocurrency adoption in the US, as most cryptocurrency exchanges would likely not be able to operate in the country.
Similarly, kennan mell He argued: “The event that would have the biggest impact on my cryptocurrency investment strategy is a verdict in the SEC's lawsuits to clarify what cryptocurrencies are securities. "
Of note, the SEC has long held that most digital tokens qualify as securities rather than currencies. “If Ethereum (ETH-USD) is considered a commodity,” Mell added, “I would feel comfortable allocating more of my portfolio to Ethereum as regulatory risk is the biggest issue I see facing Ethereum today. However, we may not be lucky enough to get a final verdict on this in 2023."
Other SA contributors took note of other big catalysts, including a possible dovish pivot from the Fed, Ripple (USD-XRP) litigation, the problems of Binance and GBTC (OTC: GBTC) conversion case.
Here's the full Q&A roundtable
