Miranda Marquit, MBA, is a freelance contributor to Newsweek’s private finance team. She has a master’s degree in journalism from Syracuse University and has been writing and podcasting about cash since 2006. Passionate about monetary wellness, Miranda has written thousands of articles on monetary control and investing. Miranda is founded in Idaho, where she enjoys spending time outdoors and volunteering with local nonprofits.
Robert is an editor at Newsweek and specializes in a variety of non-public finance topics, including credit cards, lending, and banking. Prior to Newsweek, he worked at Bankrate as a small business loan editor and as a credit card editor and editor. He has also written and edited for CreditCards. com, The Points Guy and The Motley Fool Ascent.
After peaking at over $64,000 in late 2021, Bitcoin (BTC) initiated a dip that bottomed out in early 2023, with the value of a single Bitcoin falling below $17,000. This is a low that hasn’t been noticed since just before the sharp rise in expired 2020 to 2021 high.
But as of May 5, 2024, BTC reached $64,000. Similarly, Ethereum (ETH) is also up over $3,000, representing a year-over-year increase of about 58% and a 1,200% increase over the past five years.
Although the hype has passed, it turns out that some cryptocurrencies may also continue their quiet comeback, even if they may not reach the heights that were once predicted for them.
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After peaking at over $73,000 in March, BTC ended up just above $60,000 in late April. This represents a decline of just over 8% in April and is likely due in part to repositioning from all-time highs. Since the end of April, BTC has had an ascending end, with BTC up roughly 44% year-to-date.
Similarly, ETH experienced a pullback in April, ending the month below $3,000. Following the approval of Bitcoin spot ETFs in January, there was some buzz around the option of Ethereum spot ETFs going into late May, causing ETH to surpass $4,000 in March. There was some cooling in sentiment in April, with BTC falling similarly to just over 8%. However, ETH is up approximately 31% so far this year.
Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalization, with Tether (USDT) being the third-largest cryptocurrency, according to CoinMarketCap, an industry site that tracks cryptocurrency values and other information. Tether is a stablecoin pegged to the U. S. dollar, so its value functionality varies within a very narrow range. Tether is used in cross-blockchain transactions to reduce issues such as value volatility when converting from one token to another. As a result, the increase in USDT’s value during the month of April was negligible.
There have been some headlines recently about cryptocurrencies that may have an effect on cryptocurrency forecasts in the future, and this might lead you to wonder what are the most productive cryptocurrencies to buy.
Bitcoin’s most recent halving took place on April 19. Halving refers to halving praise for validating a Bitcoin block of transactions. This halving happens every time 210,000 blocks of transactions are added to the blockchain. This is a measure of Bitcoin’s maximum source of 21 million. Once 21 million bitcoins have been produced, no more new BTC will be added to the source.
Some Bitcoin enthusiasts point to the limited source as an explanation for why BTC will see its costs increase over time. The new praise for Bitcoin miners verifying transactions is 3. 125 BTC, up from 6. 25 BTC previously.
At the time of the halving, a new protocol was launched to create and trade memecoins on the Bitcoin blockchain. These are a bit different from the non-fungible tokens (NFTs) that were so popular a few years ago. Instead, many of those same currencies are interchangeable and fungible. While the launch has excited some crypto enthusiasts that it may simply mean true access to the on-chain decentralized finance (DeFi) space, others are concerned about the higher fees that increased use of the Bitcoin blockchain may entail. .
Once the enthusiasm subsides and prices stabilize, Runes is expected to step up in DeFi, helping to keep crypto prices on the rise.
The enthusiasm for potential Ethereum spot ETFs has cooled somewhat, and this was reflected in the price in April. Reportedly, the SEC is unlikely to approve the first wave of these applications, even though Bitcoin spot ETFs have been available since January. 2024, following a court challenge. Fears that ETFs won’t be approved may simply weigh on crypto values, even though ETH values would be more likely to experience a bigger negative impact than BTC values.
Payment processor Visa collaborated with Allium Labs, a blockchain knowledge provider, to create a dashboard designed to track solidcoin usage. Although the volume of solidcoin usage is increasing, the effects are not without controversy. At first glance, it turns out that solid coins like USDT are used more in payment transactions, but it turns out that only about 10% of solid transactions are organic.
While this doesn’t have an impact on the value of stablecoins, which are pegged to fiat currencies, it is a testament to the point of adoption by mainstream users. Some are concerned about the value of cryptocurrencies, while their widespread and stable adoption remains elusive. .
One of the biggest issues related to the long-term of cryptocurrencies is how the SEC will view cryptocurrencies. In 2015, the Commodity Futures Trading Commission (CFTC) ruled that virtual currencies are considered commodities and should be regulated in accordance with the Commodity Exchange Act. (CEA).
However, in the years since, there have been many hypotheses about how crypto assets are regulated and viewed.
For example, the IRS takes into account how you received the cryptocurrency and how it deserves to be reported on taxes. If you earned cryptocurrency as payment for the borrowed facilities, this is considered income. However, if you buy a cryptocurrency on an exchange, it is treated as property, similar to how an inventory would be treated. Short-term and long-term capital gains regulations apply when the cryptocurrency is sold.
It is also conceivable that the SEC would classify other cryptocurrencies based on the type of function they perform. In 2020, the SEC filed a lawsuit against the cryptocurrency Ripple (XRP), alleging that it served as collateral, and the most recent salvo is expected on May 6. Some expect an agreement until fall 2024.
The SEC has been busy filing other law enforcement moves in cases similar to crypto assets. Many of the moves come with accusations from crypto players, adding the Kraken exchange, of acting as an unregistered inventory exchange. Many of those moves seem to imply that the SEC is siding with cryptocurrencies that are regulated more strictly than securities.
Forecasts on cryptocurrencies can be influenced simply by whether increased regulation is seen as positive or negative in the long term for the crypto landscape.
On the one hand, some might argue that regulation is smart, as it can bring cryptocurrency closer to mainstream adoption, rather than being a passing fad. With regulation, there is a sure respectability that indicates that an investment may be legitimate. Some might understand this as a smart thing to do overall for cryptocurrencies that can face scrutiny, while virtual assets that can’t fail, leaving greater options possible for normal investors and ultimately supporting the costs of established cryptocurrencies like BTC and ETH.
The other side argues that regulation could potentially stifle blockchain and crypto innovation, slowing progress and ultimately stifling those virtual assets before they can take hold. There are still fears that regulation could lead to a reduction in interest in crypto assets and lead to minimizing prices.
Finally, economic considerations can have a potential effect on predictions of the value of cryptocurrencies. When the economy is perceived to be doing well, some investors are willing to experiment with assets that are considered riskier, such as BTC and ETH. When restrictions arise, those who own crypto assets could be susceptible to selling them for more money.
On the other hand, some are starting to see BTC, in particular, as a hedge against inflation. If the inflation figures reported in May are disappointing, it’s conceivable that increased demand for assets like BTC could simply help prices, and even push them higher. Many other people will also be watching the Federal Reserve’s long-term moves to determine if the environment will be conducive to increased demand for crypto assets.
There’s a lot of uncertainty right now, which adds to the crypto space. Overall, cryptocurrencies have quietly made a comeback, without the buzz that was noted in 2021, and it remains to be seen whether this comeback will be sustained in the future.
There is no real way to calculate the value of an asset, however, a study conducted by Spot On Chain, Vertex AI, expects a 63% chance of BTC reaching $100,000 by 2025.
Like many other assets, the costs of cryptocurrencies depend on a number of factors, including demand, market conditions, and confidence in the economy. There are also other cryptocurrencies, each with its own price. adding cryptocurrency.
The most productive crypto for you depends on your portfolio strategy. In general, BTC and ETH are considered the “blue chips” of cryptocurrencies. They have the highest market share in the cryptocurrency market and the two highest market caps. Other cryptocurrencies with major market caps include Binance Coin (BNB) and Solana (SOL). Stablecoins like USDT and USDollar Coin (USDC) also have higher market caps, but they are pegged to the dollar and don’t see a price increase.
There is no real way to calculate the value of an asset, however, a study conducted by Spot On Chain, Vertex AI, expects a 63% chance of BTC reaching $100,000 by 2025.
Like many other assets, the costs of cryptocurrencies depend on a number of factors, including demand, market conditions, and confidence in the economy. There are also other cryptocurrencies, each with its own price. adding cryptocurrency.
The most productive crypto for you depends on your portfolio strategy. In general, BTC and ETH are considered the “blue chips” of cryptocurrencies. They have the highest market share in the cryptocurrency market and the two highest market caps. Other cryptocurrencies with major market caps include Binance Coin (BNB) and Solana (SOL). Stablecoins like USDT and USDollar Coin (USDC) also have higher market caps, but they are pegged to the dollar and don’t see a price increase.
Miranda Marquit, MBA, is a freelance contributor to Newsweek’s private finance team. She has a master’s degree in journalism from Syracuse University and has been writing and podcasting about cash since 2006. Passionate about monetary wellness, Miranda has written thousands of articles on monetary control and investing. Miranda is founded in Idaho, where she enjoys spending time outdoors and volunteering with local nonprofits.