Everyone knows about thehalvingthat will soon hit the marketplace. If you didn’t already know, these cycles tend to be timed along with the broader trends in other asset classes, such as stocks or bonds. The old-school Wall Street professionals do not accept this reality, but the datadoesn’t lie.
When you study the price of different cryptocurrencies across history, the more they get accepted by the public and the investment ‘professionals,’ the more correlated they become with broader macro forces such as interest rates and other moretraditional investments. For reasons that will become clear in just a second, three cryptocurrencies could soon bring you into a newbull run, so do yourself – and your portfolio – a favor and get your notepad out.
Writing on the wall
The United States FED has proposed a round of interest rate cuts for this year. According to theFedWatchtool at theCME Group(NASDAQ:CME), traders are pricing in these cuts to come as soon as May or June of this year. Remember what all cryptos did in the 2020-2021 period? You can’t name a single one that didn’t at least double in price; that is the strength of a cut in interest rates, even in this asset class.
Ethereum (ETH-USD)
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Ethereum(USD-ETH) is now considered one of the only altcoins that could be soon accepted asthe safestdue to its ability to not only provide a blockchain that decentralizes payments and transactions but one that could also expand its capabilities into air-tight decentralizedfinancial contractsthat are free from term tampering.
In the fast-changing world of finance, the nature of this coin couldstart to expandinto areas like CFDs (contracts for difference) and other ‘bets’ such as more flexible options, swaps, or even forward contracts. You may have heard about these; they are better known on Main Street as ‘Smart Contracts.’
Why wait for the underlying exchange to settle your orders and transfer your financial assets when you can instantly count on one of the most prominent blockchains available today to pay for you? With a roughly$351 billionmarket capitalization, size can be translated into the currentlyperceived trustin the coin itself.
Bitcoin (BTC-USD)
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Ahh, the king to command all of the retailer’s attention in today’s market,Bitcoin(BTC-USD) becomes themajor driverfor the rest of the asset class, acting as a sort ofS&P 500index for all other cryptocurrencies.
If the two leaders of their respective kingdoms, the S&P 500 and Bitcoin, are as closely related today as they have been in the past. You can rest assured in the newall-time highsbeing made over in stocks, in hopes that not only the halving to be had in Bitcoin but also the push coming from the FED itself could send Bitcoin’s prices to new all-time highs.
After all, its price is making new 52-week highs after reaching prices not seen since late 2022. This time, many more players areproviding liquidityto the space, and the faster the news spread regarding the halving, the more aggressive the new turn could become.
Next Big Cryptos: Request (REQ-USD)
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One more worthy mention has got to beRequest(REQ-USD), as it is built on top of the Ethereum blockchain due to its already mentioned payment capabilities with air-tight confidentiality, it became theperfect targetfor places like KPMG and Deloitte tostart dabblingwith.
This coin trades at a ridiculous price of only $0.10 today, but there are plenty of reasons to believe that it could be the next “I wish I had bought it” name in the comingbull run.
Because accounting frauds and distrust of investing overseas can make a significant dent in commerce, transparently analyzing and recording balances and transactions will be of extreme value to businesses globally, especially investment banks likeThe Goldman Sachs Group(NYSE:GS) and others like it.
As of this writing, Gabriel Osorio-Mazzilli 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 writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
