2023 has been a successful year for the cryptocurrency sector, especially its end. Many digital assets have recorded triple- and even quadruple-digit gains, leaving us to wonder what might happen in 2024.
According to a popular AI chatbot – Perplexity – there are several altcoins, alongside Bitcoin, that stand out as ones to look out for in the next 12 months.
Will 2024 be the Year of Bitcoin?
The primary cryptocurrency has outperformed almost all traditional financial assets in 2023, currently standing with triple-digit gains of around 150%. The indications for next year are similarly bullish. With numerous companies’ rejections of spot Bitcoin ETFs, the US Securities and Exchange Commission is expected to finally greenlight such a product, particularly given the applications of huge companies like BlackRock, Fidelity, VanEck, and WisdomTree.
Though some have warned that this could be a sell-the-news moment, mostly in the first few months, the implications of spot exchange-traded funds operating on the largest financial market in the world are highly bullish. It is believed that the ETFs will result in market inflows of around $30 trillion in advised wealth in the following years.
The fourth-ever BTC halving is set to take place in the spring of 2024. Each previous halving has been a catalyst for the beginning of a bull market. Though history should not be seen as an indicator of future price performances, the implications of reduced production rates should not be underestimated.
Perplexity listed Bitcoin as the first digital asset to watch in 2024: “Bitcoin (BTC): As the original cryptocurrency, Bitcoin continues to hold the top spot in market capitalization and is considered the best crypto by many.”
Sol, XRP, ETH, and SHIB
Ethereum was named the second-largest digital asset to watch in the upcoming year. Though it has underperformed BTC in 2023, rising only 84%, the Ethereum blockchain is home to many projects, tokens, and digital asset niches. The team behind the protocol, including the co-founder Vitalik Buterin, is constantly working on improving the network, which could ultimately benefit ETH holders in 2024.
Solana was mentioned next, having been the top performer from the larger-cap altcoins, soaring by 670% YTD. The price briefly passed $100 in December and even reached $130 at one point, before retracing.
Ripple’s own token, XRP, was also listed as a cryptocurrency to watch in 2024. XRP surged after Ripple’s two court victories in 2023 against the US SEC, currently standing with YTD gains of around 80%. The battle with the US securities regulator is expected to come to an end somewhere in 2024, making XRP an asset to watch out for.
Shiba Inu (SHIB) and Terra’s LUNC were mentioned as honorable mentions by Perplexity.
