After months of stagnation, the crypto market has experienced a notable resurgence in recent weeks, propelled largely by positive indications that US regulators are poised to greenlight the inaugural spot Bitcoin exchange-traded fund (ETF).
As the curtain falls on 2023, crypto investors are gearing up for the new year with a heightened sense of optimism, anticipating numerous catalysts that could further propel the ongoing bull run.
Against this backdrop, on December 11, Finbold identified three cryptocurrencies worth considering as investors navigate the landscape leading up to the advent of 2024.
Bitcoin (BTC)
Bitcoin (BTC), the flagship cryptocurrency characterized by the strongest liquidity, remains the paramount market-moving asset.
After a rollercoaster ride in 2023, BTC is currently facing a more favorable outlook for 2024, due to a combination of factors.
Notably, there are increasing signs that the regulatory landscape for the crypto market is changing for the better, with many investors confident that the US Securities and Exchange Commission (SEC) will approve the much-awaited spot Bitcoin ETF in the coming months.
Additionally, BTC is set to undergo its next halving, which is expected to occur in April 2024. This event typically acts as a catalyst for the cryptocurrency’s price because it reduces the rate at which new Bitcoins are generated, diminishing the overall supply.
Bitcoin was down over 3.9% in the past 24 hours at $42,213. The maiden crypto asset gained over 13.6% over the past month and around 154% year-to-date.
Ethereum (ETH)
After trading in a tight price range for most of the year, the latest bull run propelled Ethereum (ETH) above the psychological $2,000 level recently, and to a new 52-week high.
Although Bitcoin remains by far the most dominant cryptocurrency, ETH is still the king of altcoins. Together, these two assets represent around two-thirds of the total crypto market cap.
BTC proponents are anxiously waiting for the approval of the first spot Bitcoin ETF, and if that happens, it should not be long before the first Ethereum spot ETF gets the green light as well. Just like with BTC, approval of that investment fund would likely lead to a significant increase in demand for the world’s second-biggest cryptocurrency.
Additional upside in Ethereum next year depends on other factors such as macroeconomic conditions, further clarity on the crypto regulation front, and ETH’s ability to show scalability as the number of decentralized applications (dApps) continues to rise.
ETH was sitting at $2,243 at the time of writing, down 4.32% on the day. The largest altcoin surged over 9.2% on the month and around 87% since the start of 2023.
Chainlink (LINK)
The broader crypto market’s performance remains largely contingent on Bitcoin’s performance and given that the flagship cryptocurrency is expected to continue trending higher in 2024, many predict that altcoins will follow suit.
However, there are some more specific factors that could help certain altcoins outperform their peers.
One such prospect is Chainlink (LINK), a crucial smart contract facilitator. Notably, the project launched this month a staking feature that will substantially reduce the available LINK supply, and in turn, the bearish pressure.
The latest upgrade to its native staking mechanism saw “overwhelming demand” during the early-access period.
The cryptocurrency was trading at $14.98 at publication time, down 6.32% in the past 24 hours. Over the past month, LINK is down 1.1%, but its year-to-date performance remains strong with a 170% surge.
While there are promising prospects for the aforementioned cryptocurrencies in 2024, their actual performance hinges on many factors that are hard to predict. As such, investors must conduct thorough research and stay informed about the latest market events to navigate this dynamic landscape wisely.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
