Cryptocurrency markets are buzzing with excitement as Bitcoin (BTC-USD) recently surpassed $38,000, ushering in a fresh wave of investors eager to ride the crypto wave. The prospect of a Bitcoin ETF going live in 2024 has ignited renewed optimism, signaling a potential bull run. Beyond the ETF, Bitcoin is gearing up for major catalysts, including a mining reward halving in mid-2024. As these events unfold, macroeconomic factors are aligning in favor of Bitcoin, making it a prime candidate for sustained growth.
However, for newcomers seeking less risky crypto ventures with long-term potential, a diversified portfolio is essential. Let’s explore three significant cryptocurrencies that could thrive in the upcoming bull market, particularly if the Bitcoin ETF receives approval.
Bitcoin (BTC-USD): The Pioneer and Digital Gold
Undoubtedly, Bitcoin takes the spotlight as the primary choice for any crypto portfolio. With major catalysts lined up in 2023 and 2024, Bitcoin is poised to kickstart the next significant bull run. As the pioneer cryptocurrency and often referred to as digital gold, BTC boasts built-in scarcity and a capped supply of 21 million coins. Despite its slower network and inefficiencies for payments compared to newer cryptos, Bitcoin remains a foundational token for a well-balanced portfolio.
Considering the improved macroeconomic backdrop in 2024, Bitcoin’s chances of a significant downturn seem unlikely. With its final bear market bottom potentially around $15,000-$17,000 and a new floor near $25,000 anticipated post-ETF launch, Bitcoin stands as a cornerstone investment in the evolving crypto landscape.
Ethereum (ETH-USD): Dominating Smart Contracts and Web 3.0
Ethereum, the second-largest cryptocurrency by market cap, offers a unique value proposition. Serving as the leader in smart contracts and Web 3.0, Ethereum’s Ethereum Virtual Machine (EVM) enables decentralized apps and services to run on its network. While lacking Bitcoin’s hard cap on supply, Ethereum has turned deflationary post-Merge, with more ETH removed from circulation than issued as staking rewards. Ethereum’s unlimited supply is counteracted by network activity and burn dynamics, ensuring controlled inflation.
As Web 3.0 and crypto adoption accelerate, Ethereum’s expansive ecosystem positions it for future growth. Correlated with Bitcoin, Ethereum may witness significant gains in the later stages of a speculative frenzy, akin to the 2017-2018 bull market.
Litecoin (LTC-USD): Bitcoin’s Smaller Sibling with a Twist
Litecoin, often considered Bitcoin’s smaller sibling, presents higher risk and reward potential. Operating as a faster Bitcoin fork with lower fees and slight modifications, Litecoin mirrors Bitcoin’s capped supply, with 84 million LTC available. While closely correlated with Bitcoin’s price action, Litecoin tends to amplify BTC’s moves in both directions, offering a more volatile yet potentially rewarding investment.
As one of the oldest and established crypto projects, Litecoin, with its smaller market cap of $5.3 billion, stands out as a speculative play. If Bitcoin initiates a new bull market in 2024, Litecoin could outperform, providing investors with a smaller-cap alternative to traditional blue-chip cryptos.
While the prospect of a Bitcoin ETF going live is a pivotal event, diversifying your crypto portfolio with Bitcoin, Ethereum, and Litecoin offers a strategic approach to potential gains in the evolving cryptocurrency landscape. These three cryptocurrencies represent varied opportunities, catering to different risk appetites and investment objectives. As the crypto market continues to evolve, staying informed and adapting your portfolio accordingly can lead to a more resilient and rewarding investment journey.
