Since Bitcoin (CRYPTO: BTC) set a new all-time high of $73,750 in mid-March, the crypto market has cooled off, but many believe this is merely a respite until the next big catalyst. Given that, it may be a good time to acquire cryptos poised to rise later this year.
Bitcoin and Ethereum are notable cryptos. Both have near-term catalysts and huge long-term upside. Let's examine why Bitcoin and Ethereum are worth watching.
Bitcoin No surprise, Bitcoin tops my "buy ASAP" list. This is because Bitcoin's halving is coming up. The event is now slated on April 19, and Bitcoin prices could soar. The halving may be the catalyst needed to send Bitcoin above $100,000.
Indeed, several investment professionals are raising their Bitcoin price expectations. Standard Chartered expects 2024 prices to reach $150,000, up from $100,000. Investment company Bernstein boosted its 2025 price projection to $150,000. Cathie Wood of Ark Invest has raised her Bitcoin projection from $1 million to $1.5 million, $2.3 million, and $3.8 million.
Keep in mind that this year's halving cycle may not be as significant as others. Bitcoin's history is impossible to ignore. Bitcoin has reached record highs after three halving cycles in 2012, 2016, and 2020. Thus, buying Bitcoin before the 2024 halving cycle makes sense.
Ethereum A near-term catalyst makes Ethereum a "buy ASAP" candidate. New spot Ethereum ETFs may launch. Bloomberg says this is roughly 35% certain by May.
Watch out if these spot Ethereum ETFs succeed like the new spot Bitcoin ETFs. Because Bitcoin ETFs have been extremely successful in attracting retail and institutional investors to crypto. In mid-March, these ETFs had daily net inflows of over $1 billion. Bitcoin prices have risen as a result.
Similar things could happen with Ethereum. Long story short, SEC approval of a new investment product might unleash a massive infusion of money into Ethereum. These Ethereum ETFs may never attract as many investors as Bitcoin ETFs, but they will help keep Ethereum's price stable. As Ethereum investors increase their holdings, the floor will rise.
So what could go wrong? Bitcoin and Ethereum seem like surefire investments. These prices have risen over 55% this year. Both have near-term catalysts. Both have long histories that make them "safer" than more speculative crypto ventures.
My main worry is that the SEC could intervene at any time and derail the crypto mania. For instance, the SEC may reject all crypto ETFs. It might also reopen the issue over whether Ethereum is a security, eliminating any hope of introducing Ethereum ETF before summer. In a Wall Street metaphor, the SEC would take away the punch bowl before the party begins.
So I'm also focusing on Bitcoin and Ethereum's long-term appeal. They make up over 70% of the crypto market, and for good reason. They lead markets with real-world use cases and large blockchain ecosystems. I'm willing to buy them now and hold on since their utilization and growth will accelerate.
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