Bitcoin (BTC-USD) rallied to new records this year, allowing investors to assess which cryptos to buy. The upside has been supported by institutional inflows into exchange-traded funds (ETFs) and expectations that the Fed’s rate cuts will weigh on U.S. yields later in the year. While the path has not been directly higher, recent pullbacks have resulted from profit-taking. This has left the door open to consider some cryptos to buy as the altseason commences.
The known dynamic of altcoins following Bitcoin’s lead has been maintained. During Tuesday’s correction, the analyst who predicted it stated that it is poised for a breakout. Based on the lead-lag analogy, other cryptocurrencies may be pulled to record highs if Bitcoin accelerates higher.
Recent ISM Manufacturing PMI returned to expansion, too. This suggests that the Federal Open Market Committee (FOMC) may have more flexibility before cutting rates. However, even the Fed acknowledges that interest rates are too high and will need to come down at some point. If lower rates and the expected halving drive the cryptocurrency market higher, then an impending increase is a matter of time.
Let’s explore three crypto to buy that are well-positioned to benefit from this forecasted uptrend in Bitcoin.
Litecoin (LTC-USD)
Litecoin (LTC-USD) is the third-largest cryptocurrency by market cap. It aims to improve on Bitcoin by offering faster transaction speeds and a higher supply cap than BTC. Experts say it could be one of the reasonably solid cryptos to buy for seasoned cryptocurrency investors.
Recently, LTC has seen increased attention following the Commodity Futures Trading Commission (CFTC) ‘s classification as a commodity. Over the past month, it has risen 32% in response to news that conferred upon it the second-strongest performance thus far in the present year. After the surge, analysts have adopted a more bullish outlook, projecting a potential upside to $400.
In addition, Coinbase (NASDAQ:COIN) plans to launch Litecoin futures contracts in April. This could attract institutional capital and drive LTC’s price higher. A short while ago, Litecoin’s hash rate hit a record high of 1.244 Peta-hash per second, indicating higher mining activity and confidence ahead of Bitcoin’s halving.
Uniswap (UNI-USD)
Uniswap (UNI-USD) is one of those cryptos to buy on its own merits.
It is a decentralized cryptocurrency exchange built on Ethereum (ETH-USD) that allows users to swap tokens directly from a non-custodial wallet. It uses an automated liquidity protocol and pools to facilitate such trades while removing the need for order books. With smart contracts automating trading and reducing fees, Uniswap V3 aims to provide concentrated liquidity across smaller price ranges to improve liquidity utilization.
Uni continues to lead the decentralized exchange (DEX) space in trading volume, remaining one of the top cryptos to buy in this bull run. It recently adjusted its fee structure to account for rising Ethereum network costs ahead of an upgrade, which may offer scalability.
In the wake of the FTX collapse due to the alleged fraudulent activities of Sam Bankman-Fried, Uniswap’s transparent model and lack of central control have drawn renewed interest. Given its network effects and real-world trading activity on Ethereum, Uniswap remains integral to the evolving decentralized finance (DeFi) ecosystem.
Internet Computer (ICP-USD)
The Internet Computer (ICP-USD) is the final pick of the cryptos to buy. It is a decentralized network that aims to provide an alternative infrastructure for the Internet, challenging Internet giants like Facebook, Google, and Amazon Web Services. Most websites and applications hosted on big tech firms’ servers give them control over the data and content. ICP promises no control over data.
Specifically, ICP enables limitless smart contracts to replace cloud services. Its technology uses subnets to shard smart contracts and improve scalability, which act like processes that handle HTTP requests and have timers. They are more efficient, scalable, secure and cheaper than Ethereum, with near-instant transactions at a fraction of a cent cost.
Last week, ICP saw a 62% increase after adopters pledged $80 million in decentralized applications (DApps) on its network. The rise followed a recent announcement of planned integration with Bitcoin. Analysts expect additional gains as ICP aims to transform the Internet industry over the next decade if it can effectively scale its underlying technology and achieve broad implementation.
On the date of publication, Stavros Tousios 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.
