Since then, the cryptocurrency market has cooled down. Bitcoin (Cryptocurrency: BTC) Although it hit an all-time high of $73,750 in mid-March, there is a growing consensus that this is just a temporary respite until the next big move. With that in mind, this could be a unique buying opportunity for cryptocurrencies that are poised to soar later this year.
Two cryptocurrencies that particularly stand out are Bitcoin and Ethereum (Crypto: ETH). Both have strong long-term upside potential, and short-term catalysts are also in place. Let's take a closer look at why Bitcoin and Ethereum are worth your attention right now.
Bitcoin
No surprise here, Bitcoin is at the top of my “buy ASAP” list. That's because a major event for Bitcoin is approaching: the halving. Currently, it is scheduled to take place on April 19th, and if that happens, the price of Bitcoin could definitely skyrocket. There is a growing consensus that the halving could be the big catalyst needed to push Bitcoin's price level above $100,000.
In fact, many investment analysts are currently inching up their Bitcoin price predictions. Standard Chartered, for example, 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.
Please note that there is no guarantee that this year's halving cycle will have as much of an impact as previous halving cycles. However, Bitcoin's historical track record cannot be ignored. To date, he has had three halvings (2012, 2016, and 2020), each of which set a new all-time high for Bitcoin. As a result, there is a strong case to buy Bitcoin as soon as possible before the 2024 halving cycle begins in earnest.
Ethereum
Ethereum also has near-term catalysts that make it a “buy ASAP” candidate. This is the possible launch of a new Spot Ethereum Exchange Traded Fund (ETF). According to Bloomberg, there is a nearly 35% chance of this happening by the end of May.
If these Spot Ethereum ETFs come even remotely close to the success of the new Spot Bitcoin ETFs, take note. That's because Bitcoin ETFs have been extremely successful in convincing both retail and institutional investors to move their money into the cryptocurrency. At one point in mid-March, net inflows into these ETFs were trending at more than $1 billion per day. And that helped send the price of Bitcoin soaring.
A similar phenomenon may occur with Ethereum. Simply put, the approval of a new investment product by the Securities and Exchange Commission (SEC) could allow for a large influx of new capital into Ethereum. Admittedly, these Ethereum ETFs may not attract as much investor demand as Bitcoin ETFs, but they will help keep the price of Ethereum at a reasonable lower bound for the foreseeable future. The floor will continue to rise as investors gradually increase their allocation to Ethereum over time.
So what could possibly go wrong?
At this point, both Bitcoin and Ethereum probably sound like slam-dunk investments. Both prices have soared by more than 55% this year. Both have very near-term catalysts. And both have long track records and appear to be “safer” than other more speculative crypto investments.
My only concern is that the SEC could step in at any time and seriously put a damper on the current crypto hype. For example, the SEC may decide not to approve future crypto ETFs. Additionally, the entire debate about whether Ethereum is actually a security could be revisited, which could kill any chance of an Ethereum ETF appearing before the start of summer. To use a common Wall Street metaphor, the SEC will pick up the punch bowl before the party can really get started.
That's why I'm also focused on the long-term appeal of Bitcoin and Ethereum. Together, they account for almost 70% of the value of the entire crypto market, and for good reason. Both companies are market leaders with real-world use cases and extensive blockchain ecosystems. I intend to buy now and hold for the long term, as the pace of their use and growth will only accelerate over time.
Should you invest $1,000 in Bitcoin right now?
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Dominique Basurto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
2 Cryptocurrencies I'm Buying ASAP and Holding for the Long Term Originally published by The Motley Fool
