Cryptocurrency bulls recently cheered when Bitcoin (BTC-USD) formed a “golden cross,” which is a technical indicator that signals the current rally is likely to continue over the near-term. The golden cross officially formed when Bitcoin’s 50-day moving average overtook its 200-day moving average, signaling momentum in the rally that has taken the largest cryptocurrency’s price up 125% year to date. Bitcoin has been rallying on rising hopes that the U.S. Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded fund (ETF).
However, it’s not just BTC that’s on the rise. The current rally is lifting all boats in the crypto sector. There was even a recent report that money is flowing into stablecoins, the U.S. dollar-pegged digital tokens, for the first time in 18 months. As momentum builds, we look at three cryptos you’ll regret not buying soon.
Ripple (XRP)
The price of cryptocurrency Ripple (XRP-USD) has gained 30% in the last month to become one of the top-performing digital tokens, rivaling the movements seen in both Bitcoin and Ethereum (ETH-USD). The price of XRP has jumped higher, with daily trading volumes exceeding $2 billion, on reports of greater adoption of Ripple, the decentralized finance (DeFi) system associated with the XRP cryptocurrency. XRP token is currently trading at 64 cents and is the fourth-largest cryptocurrency by market capitalization.
In recent weeks, Ripple has won approvals to offer services in Georgia and Dubai. The Dubai Financial Services Authority (DFSA) has approved XRP under its virtual asset regime, allowing licensed firms in the country to offer XRP as part of their crypto services. At the same time, Ripple said it would start working with the National Bank of Georgia (NBG) on the Digital Lari (GEL) pilot project, which will use the firm’s central bank digital currency (CBDC) platform.
Year-to-date, XRP is up 89%, with more gains likely as Ripple’s DeFi system grows in popularity.
Ethereum (ETH)
Ethereum (ETH-USD), the second largest crypto by market capitalization, recently got a big bounce higher on reports that BlackRock (NYSE:BLK), the world’s largest money manager, is planning to apply with U.S. regulators to launch an Ethereum exchange-traded fund (ETF). Specifically, BlackRock has registered an Ethereum Trust with regulators, a similar step to one the company took before applying to launch a Bitcoin ETF earlier this year. The investment company is the world leader in ETFs with more than $2.3 trillion under management.
The SEC is currently considering BlackRock’s Bitcoin ETF application, along with 11 others it has received from investment firms ranging from Fidelity to Grayscale. The SEC is expected to decide on whether to approve Bitcoin ETFs shortly. Analysts speculate that if the SEC allows Bitcoin ETFs, then Ethereum funds will follow. News that BlackRock is preparing to apply for an Ethereum ETF sent the crypto’s price up 7%, pushing it above $2,000 for the first time since April. ETH is now up 70% on the year.
Bitcoin (BTC)
Can anything slow the current momentum in Bitcoin (BTC-USD)? The largest cryptocurrency has seen its price more than double from a low of $16,000 reached in December 2022 to $37,500 today. With approval of Bitcoin ETFs looming on the horizon, it looks as though the price of BTC is likely to continue its march higher. And there is more room to run given that the current price of Bitcoin is well below the all-time high of $68,000 it reached in November 2021.
An analyst at U.S. investment firm Bernstein made headlines a few weeks back with his prediction that the price of BTC will reach $150,000 by 2025. That bullish outlook is based on approval of Bitcoin ETFs, which will likely shift up to 10% of the crypto’s circulating supply toward exchange-traded funds as it will allow individual investors to gain Bitcoin exposure directly from their portfolios. While the Bernstein forecast might seem aggressive, a growing number of traders are betting that BTC will reach $40,000 in the near-term.
On the date of publication, Joel Baglole 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.
