Smart investors will capitalize on the current decline and keep an eye on long-term crypto picks as enduring assets in the digital economy
Could we be headed for another crypto crash? Despite double-digit growth in… Bitcoin (BTC USD), following its halving on April 19, the crypto benchmark indicator has fallen more than 6% this month. Additionally, we have seen strong selling pressure from ETF holders, including the largest asset managers BlackRock And loyalty. Given these developments, the savvy investor will want to settle for long-term crypto picks.
Bitcoin ETF holders are selling in droves, experiencing a 20% decline since March. This trend accelerated in May when Bitcoin ETFs in the US experienced their largest outflow to date. worth $564 million. Still, the overall market maintains significant holdings of Bitcoin ETFs despite selling pressure and some critics calling Bitcoin a Ponzi scheme. Therefore, BTC and other long-term crypto picks are here to stay and represent the future of finance.
Bitcoin (BTC USD)
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Bitcoin remains a polarizing investment, but the bottom line is that it has been the best-performing asset over the past decade. That’s not to say it isn’t prone to exceptional volatility. However, BTC’s risk-adjusted returns have been astounding by any measure, making it a natural investment in recent years.
Year-to-date, BTC is up an impressive 52%, outperforming S&P 500 7.5% profit. If we limit our view to 6 months, this is a digital asset is up 83% despite multiple headwinds making risky investments difficult. The approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) earlier this year was crucial. Following approval, some of the biggest fish in the investment space can now invest directly in BTC, making it easier to access the crypto giant.
Additionally, the recent Bitcoin halving has restricted supply, which has likely led to a large imbalance between demand and supply. Therefore, it is difficult for those with a long-term horizon to bet against BTC.
Ethereum (ETH-USD)
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Far from standing in Bitcoin’s shadow, ether (ETH-USD) has forged his own path in the crypto space. Its strong positioning in the blockchain space is supported by its extensive list of use cases. The Ethereum blockchain is the basis for DeFi projects, NFTs and smart contracts.
Additionally, the blockchain sectors supported by Ethereum are extensive and positioned for rapid long-term expansion. For example, Fortune Business Insights estimates the smart contract market alone grow by 24.7% from 2024 to 2032 to a whopping $12.55 billion. Such high growth is expected for NFTs, DeFi projects and other areas where Ethereum plays a fundamental role.
Although Bitcoin ruled the roost last year, The maverick investor Cathie Wood claims that Ethereum may be preferable. Wood believes Ethereum’s market-leading potential lies in its ability to increase utility and drive greater adoption.
Solana (SOL-USD)
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Solana (SOL USD) is often referred to as the “Ethereum killer” and excels in almost every area that Ethereum covers, but with greater efficiency and effectiveness. Its fast transaction capabilities continue to generate buzz in the developer community while significantly reducing costs, making it a remarkably popular choice.
These unique competencies have allowed Solana to effectively secure a large share in busy sectors like NFTs and decentralized finance. As network congestion continues to be a challenge for Ethereum, Solana is poised for excellent long-term growth thanks to its optimized and low-cost framework.
SOL has not only outperformed but outperformed BTC and ETH over the past six months. delivers a staggering 251% profit. Despite market fluctuations, the price of SOL has seen incredible bullish momentum due to a number of positive developments, including the upcoming cross-chain bridge between Solana and Bitcoin through the Zeus Network. The release is scheduled for later this year and could further strengthen the optimistic outlook for SOL.
At the time of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.
