Bitcoin (CRYPTO: BTC) rose significantlyby over 150% last year, making it the market leader. There were also vast gains of over 100% in many other popular coins. Which digital assets could see another significant rise of 100% or more this year?
XRP (CRYPTO: XRP) is one of the top candidates to go against Bitcoin. Let’s look more closely at why each is true.
Bitcoin
Even though the price of Bitcoin has dropped almost 10% in the last 30 days, and people aren’t as excited about the newly approved spot Bitcoin exchange-traded funds (ETFs), the future looks bright for Bitcoin.
The Securities and Exchange Commission’s (SEC) acceptance of Bitcoin ETFs is a significant development. Individual and institutional investors can now put some of their money into Bitcoin. Most people agree that many big institutional players may start small, with just 1%, when they enter the crypto world for the first time.
Bitcoin Historical Market Value Instabilities
This number is likely to go up over time. According to Cathie Wood of Ark Invest, big investors could put anywhere from 2.5% to 6.5% of their money into cryptocurrency. This could lead to an enormous flood of new money into Bitcoin. Notably, in their first few days of trading, the two newly launched Bitcoin ETFs drew an extensive $1 billion in new investor funds.
The upcoming split event in April is a major factor that could cause Bitcoin’s value to double by the end of the year. During a halving event, Bitcoin miners are given half as many rewards for confirming transactions on the blockchain. This slows the rate at which Bitcoin’s supply is growing.
In the past, these regular changes in the Bitcoin environment, which happen about every four years, have been followed by huge market rallies. Morgan Stanley (NYSE: MS), a big name on Wall Street, looked at past half events (2012, 2016, and 2020) and saw that bullish cycles lasted between 12 and 18 months. During these times, Bitcoin’s price has shown that it can rise quickly.
On Wall Street, there is growing agreement that Bitcoin could hit $100,000 by the end of 2024. This would be a big jump from its current level of around $40,000.
XRP
XRP has shown that it can quickly double in value. This means that its value could grow significantly soon. For 24 hours last summer, it went from $0.48 to $0.95. It’s currently trading close to $0.50, and some people think it could hit $1.
However, XRP is hard to understand because Ripple, the company that made the token, is legally fighting with the SEC. The SEC wants to label XRP as a security instead of a digital asset. This argument has been going on for more than three years. The ups and downs of this court case significantly affect the price of XRP.
Investing in XRP vs Bitcoin
The latest rise in the value of XRP happened this summer after the court ruled in favor of Ripple. But when the SEC said it would keep fighting in court, the price of XRP dropped sharply and finally came back to $0.50.
The legal framework for XRP seems to be changing in a good way, which is good news. The fact that the SEC approved new spot Bitcoin ETFs shows that they may come to see cryptocurrencies as usual. There’s also hope in the crypto community for a more crypto-friendly regulatory setting after the election since the election season is still going on.
If I had to choose between Bitcoin and XRP, I would probably select Bitcoin. I believe Bitcoin has the best long-term growth potential, and it’s the kind of cryptocurrency I would hold on to forever. Putting money into XRP, on the other hand, seems more like buying a lottery ticket.
Both cryptocurrencies could see significant gains of 100% or more in 2024, which is something to keep in mind. If you want to increase the overall returns on your portfolio, you might want to give either of these investment choices a lot of thought.
Is it a good time to invest $1,000 into Bitcoin?
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