The new year began with analysts scrambling to revise their forecasts for the price of cryptocurrencies in 2024 and several of the best cryptos to buy. With the price of Bitcoin (BTC-USD) topping $45,000 for the first time since April 5, 2022, analysts were lifting their targets on the largest crypto by market cap. Famed investor Mark Mobius forecasts that Bitcoin will be at $60,000 by year’s end, while cryptocurrency mining firm Bit Mining (NYSE:BTCM) predicts the price will reach $75,000. Several forecasts have Bitcoin reaching $100,000 by the end of the year.
Even CNBC host Jim Cramer threw in the towel and declared that Bitcoin is likely “here to stay.” Forecasts for several other cryptocurrencies have also been revised to start the year. Analysts at JPMorgan Chase (NYSE:JPM) call for Ethereum (ETH-USD) to outperform BTC in the year ahead. As the rally in digital assets continues, here are the three best cryptos to buy in January 2024.
Bitcoin (BTC)
All eyes are on Jan. 10, the U.S. Securities and Exchange Commission (SEC) deadline to decide whether to approve the spot Bitcoin exchange-traded fund (ETF) applications of ARK Invest and 21Shares. Approval of those ETFs could open the floodgates to several other spot Bitcoin ETFs from Fidelity and BlackRock (NYSE:BLK). Traders and investors have been bidding the price of BTC up since October of last year in anticipation of the spot Bitcoin ETFs being approved this month.
The price of Bitcoin has gained 160% in the last 12 months and is now trading at $44,000. As mentioned, analysts expect Bitcoin’s price to rise a lot higher in the coming months, especially if the ETFs win regulatory approval. Bitcoin ETFs would allow retail investors to track the cryptocurrency’s price movements without owning the digital asset physically and are expected to attract billions of dollars worth of new capital.
While some market observers have warned that the SEC could reject all the spot Bitcoin ETF applications it has received and that the ETFs’ approval could result in a “sell the news” event, those commentators appear to be in the minority.
Ethereum (ETH)
Bitcoin isn’t the only cryptocurrency that continues to rally higher. Ethereum, the second-largest cryptocurrency, is trading at $2,250, gaining more than 90% in 2023. As mentioned, analysts at JPMorgan are among those who expect ETH to grab the limelight in the coming year. JPMorgan and others see Ethereum benefitting from the upcoming “EIP-4844” upgrade expected to take place during the first half of this year.
The new upgrade will enable Ethereum to process and hold more data, making the second-largest cryptocurrency by market capitalization more efficient. Many analysts view ETH as the superior digital asset, noting that it has more functionality than Bitcoin when facilitating decentralized finance (DeFi) transactions and smart contracts. Some analysts call for Ethereum’s price to double to $5,000 in 2024. Some bulls see the price hitting $10,000.
Bonk (BONK)
Investors with a risk appetite might want to check out cryptocurrency Bonk (BONK-USD). A dog-themed meme coin based on Solana (SOL-USD), Bonk has risen 300% since mid-November and is up more than 1,000% since September of last year. It currently trades at a fraction of one cent. While lacking functionality, Bonk has been the best-performing digital token over the past year, running laps around the gains in both BTC and ETH. Other meme coins have also risen sharply in recent months.
It’s hard to pinpoint the reasons for Bonk’s rally, as the trading of meme coins is speculative. However, the listing of Bonk on several crypto exchanges, such as Coinbase (NASDAQ:COIN) and Crypto.com, appears to have been a catalyst for the digital token. Bonk’s 24-hour trading volume rose above $1 billion in December, making it one of the most widely traded cryptos. Bonk’s growth is also due to a resurgence of interest in the cryptocurrency Solana, on which it is based. SOL gained more than 400% in 2023.
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.
