With the US Federal Reserve contemplating a potential decrease in interest rates, the cryptocurrency world could undergo notable transformations. Monetary policy adjustments frequently result in a surge in borrowing and investments with higher risk, creating a favorable time to assess potential digital assets that show potential. Keeping an eye on these cryptocurrencies could prove beneficial as the economic environment evolves.
What Are The Top Cryptocurrencies To Look Out For in 2024
Bitcoin (BTC)
If the US Federal Reserve lowers interest rates, Bitcoin (BTC), popularly known as the largest digital currency by market capitalization, could benefit substantially. Easier borrowing could result in increased interest in riskier investments such as Bitcoin. The projected influx of new capital could push up its price. This is particularly important now, with the introduction of spot Bitcoin ETFs in early 2024. Bitcoin ETFs provide regular investors with an easy way to invest in BTC without having to cope with the complications of holding it.
Solana (SOL)
Solana (SOL) has experienced an enormous rise over the last year, temporarily exceeding $200 for the first time since December 2021. Solana’s ecosystem is growing, with Defi Llama reporting over $4.8 billion in total value locked up and on-chain trading volumes approaching $1 billion in recent months. Its faster transaction speeds and minimal fees attract a large number of regular investors, placing Solana at a significant advantage if the interest rate decreases and the risk-on market increases.
Ethereum (ETH)
Ethereum (ETH), popularly known as the second-largest cryptocurrency by market value, is also worth keeping an eye on if the Fed changes its policies. In the past, its price has risen when inflation in the US appeared to be under control or interest rates didn’t go up. For example, ETH has increased by about 10% since May 15, when the latest Consumer Price Index (CPI) data revealed inflation at 3.4%, as expected.
FAQs
What crypto has the most potential in 2024?
Some of the Crypto projects with the highest potential in 2024 include Coindexer (COINDEX), Gala (GALA), and Orchid (OXT), amongst others.
What cryptocurrencies are tied to USD?
The symbol “USDT” represents Tether, a cryptocurrency linked to the US dollar. This means USDT is a stablecoin whose value fluctuates with the US dollar and is backed by Tether’s dollar reserves.
Which crypto is expected to boom in 2024?
Top Cryptos anticipated to boom in 2024 include;
Coin Market Capitalization Current Price
Solana (SOL) $72 billion $162
Ripple (XRP) $28 billion $0.51
Dogecoin (DOGE) $22 billion $0.15
What cryptocurrency is backed by the US dollar?
Stablecoins, such as USD Coin (USDC), are digital currencies backed by US dollars or assets denominated in US dollars, such as Treasury securities. The reserve assets of USDC are held by regulated US financial institutions in segregated accounts.
Which coin has potential like Bitcoin?
Ethereum is the highest-valued altcoin. This means it’s an alternative to Bitcoin in the crypto language.
What are the four types of cryptocurrency?
The main types of cryptocurrencies include Payment cryptocurrency, Central Bank Digital Currencies (CBDC), Utility Tokens, and Stablecoins.
How many types of cryptocurrencies exist today?
According to CoinMarketCap, there are more than 23,000 cryptocurrencies.
Takeaways
If the US Federal Reserve lowers interest rates, Bitcoin, Solana, and Ethereum are the cryptocurrencies to watch because of their strong market positions and potential for increased investment. These digital assets could benefit from an influx of capital, as lower interest rates frequently drive investors to higher-risk alternatives.
