3 Cryptos to Buy to Ride Bitcoin’s Rally Past $50K
The cryptocurrency sector’s staggering rise continues, leaving investors pondering its future rationality. Despite uncertainties, excitement may persist. Factors like the upcoming Bitcoin (BTC-USD) halving event, the Security and Exchange Commission’s approvals of spot Bitcoin ETFs, and the Federal Reserve’s shifting monetary policy stance all bode well for Bitcoin. But the question many investors have is – are there better ways to play this rally?
Indeed, Bitcoin has been on a tear, breaking through the $52,000 level this past weekend. This comes as the stock market remains strong, and risk assets are pricing in a potential return to an easy money era in short order.
While risks certainly abound with respect to this crypto rally, there’s plenty of reason why some investors continue to hold a bullish stance on this space. For those looking to ride cryptos that can rally on Bitcoin’s strength, here are my top picks for cryptos to buy right now.
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Ethereum (ETH-USD)
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Ethereum (ETH-USD) has also been on a tear in recent months, up more than 22% since the beginning of the year alone. The project’s recent EIP-4844 upgrade promises scalability improvements, reducing roll-up gas fees. Additionally, Vitalik Buterin’s gas limit hike revived Ethereum’s valuation. And an anticipated spot ETF approval in the coming months could propel ETH-USD to $4,000 (according to analysts), making it an appealing investment over multiple time durations.
Franklin Templeton, a significant asset management firm, has joined others in applying for an Ethereum spot ETF. Such ETFs offer a regulated way to invest in cryptocurrencies without direct ownership. The SEC approved spot Bitcoin ETFs from major firms like Franklin Templeton on Jan. 10, attracting significant institutional capital to this asset class. With $1.5 trillion in assets, Franklin Templeton’s move aligns with filings from other industry giants. The SEC has until May 23 to approve Ethereum ETF applications, potentially fueling further market growth.
Overall, Ethereum’s catalysts could be stronger than Bitcoin’s, at least for 2024. Thus, for those looking for a mega-cap crypto to buy in this environment, it remains a top pick of mine.
Bitcoin Cash (BCH-USD)
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Bitcoin Cash (BCH-USD) is a crypto I don’t really cover, as it is essentially an alternative blockchain to Bitcoin, focused on payments. However, for investors who feel as though the real utility in this space will eventually come from payments, Bitcoin Cash could see upside if the narrative shifts toward projects with real-world value.
Bitcoin Cash has seen rather stable price action since the middle of last year. The token has found support near $260 and its 100 simple moving average. Thus, for technical investors, this is a token with some strong tailwinds that could be poised to ride a wave of momentum higher, making this a top pick for a crypto to buy.
This is a top-20 token in terms of market capitalization, and I believe it’s relatively overlooked. Thus, any sort of momentum-driven rally based on a core catalyst could propel Bitcoin Cash much higher from here. The question is what that catalyst will be, and when it will materialize.
Solana (SOL-USD)
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Ranked fourth in the crypto world in terms of market capitalization, Solana (SOL-USD) is a massive player in the layer-1 blockchain realm. Solana’s recent rally, fueled by the Uptober phenomenon, signals the potential for further gains.
With an astounding surge of more than 400% over the past year, Solana’s momentum can’t be doubted. Investors continue to flock to this project as a way to play a surge in DeFi transactions. Given Solana’s lighting-fast speed and throughput levels, this network has become a central point of commerce in terms of digital assets, such as NFTs, in recent years.
I have no idea whether momentum will reach peak hype, as it did in 2021. But for those betting on a resurgence of NFTs and other digital assets, Solana’s blockchain infrastructure is worth a look as a crypto to buy. The Solana team has worked out various security kinks, which led to outages in recent years. Accordingly, so long as we don’t get hit with another major outage on the network, Solana’s momentum could continue for some time.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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