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Navigating the complicated world of cryptocurrencies can be difficult, given their various applications from financial transactions to blockchain smart contracts. The first half of 2023 witnessed impressive rebounds for industry giants like Bitcoin and Ethereum. However, this Q4 crypto rally spells big things for several cryptos. Despite notable successes, caution remains key, especially amid concerns such as the legal problems faced by figures such as Sam Bankman-Fried.
Here are three best cryptos to buy as you anticipate a Q4 crypto rally.
Bitcoin (BTC-USD)
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Bitcoin (BTC-USD) doubled from $16,000 in December 2022 to $37,500, driven by expectations of SEC-approved Bitcoin ETFs and a pause in Federal Reserve interest rates. Despite the growth, Bitcoin is below its peak of $68,000 in November 2021. Analysts predict a target of $150,000 by 2025, anticipating the approval of an ETF to direct 10% of the circulating supply. Although ambitious, more traders are betting on a near-term price of $40,000 BTC.
The recent growth of Bitcoin is driven by expectations of SEC approving the first Bitcoin ETF, attracting significant investments. At the same time, with the belief that the Federal Reserve will not raise rates, investors are increasingly attracted to riskier assets, including cryptocurrencies.
In 2023, Bitcoin increased more than 120%, surpassing the return of the S&P 500 by nine times. While some view it as a potential long-term investment, JPMorgan analysts argue that the recent rally is overblown. They believe that upcoming events such as spot ETFs and the 2024 halving will not significantly affect the price of Bitcoin, as investors are likely to shift within ETFs, and the halving effect is already taken into account. Despite these considerations, Bitcoin remains an outstanding choice for long-term investments. .
Ethereum (ETH-USD)
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Investors are buzzing about Ethereum (ETH USD) price predictions after BlackRock’s registration of a crypto ETF called iShares Ethereum Trust in Delaware. The world’s largest asset management firm, BlackRock, previously followed a similar pattern with its Bitcoin ETF, filing and launching it soon after.
Analysts are expressing optimism for Ethereum’s future, with Standard Chartered projecting a fivefold price increase by 2026, citing its expanding role in blockchain smart contracts and gaming. The forecast predicts that Ethereum will reach $8,000 in the next two years, signaling significant long-term potential.
Bulls rule based on the Money Flow Index (MFI), signaling buying control. Ethereum’s potential game changer is trading above $2,000, triggering an expected bullish run. A drop below support levels may trigger a sell-off towards $1,550 unless Ethereum maintains positions above moving averages.
Avalanche (AVAX-USD)
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Avalanche (AVAX USD) is a high-speed cryptocurrency competing with Ethereum in the smart contract realm. With lightning-fast performance, processing up to 6,500 transactions per second, it uses a unique architecture with three chains (X-Chain, C-Chain, P-Chain) adapted for specific purposes, distinguished from the validation of Bitcoin and Ethereum.
The token showed remarkable performance with a 32% increase in the past week, grabbing attention despite a subsequent 7% correction. However, according to TipRanks, Avalanche’s fundamentals appear unchanged, with modest net growth of 0.29% and a notable decline of 0.55% in large holdings.
AVAX has strengthened its position in the crypto space through strategic partnerships, transactional growth and continued innovation. Redefining industry standards with advanced security and unique subnets for public and private blockchains, its collaboration with Amazon’s cloud computing division enhances its reach, even amid market downturns. The successful real-world applications underscore Avalanche’s significant role in the DeFi sector, consolidating its reputation with a $5.48 billion market capitalization.
As of the date of publication, Chris MacDonald has a LONG position in ETH-USD. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
Chris MacDonald’s love of investing has led him to pursue an MBA in Finance and take on a number of executive roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, combined with his zeal to find undervalued growth opportunities, contributes to his conservative, long-term investment outlook.
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