Bitcoin (BTC-USD) never ceases to surprise investors and analysts. From bearish sentiments and outlook in 2022, the cryptocurrency has surged by 80% for year-to-date. The rally confirms the next bull market for cryptocurrencies. With excesses being weeded out during the bear market, the next rally can be bigger and stronger. It’s therefore a good time to consider exposure to some of the best cryptos to buy for the next few years.
It’s worth noting that 35% investors believe that the fed will star cutting rates in Q1 2024. Further, 56% believe that rate cuts are likely in the second half of 2024. I believe that a dovish fed will trigger a rally in risky asset classes. Of course, with Bitcoin halving due next year, there is a strong reason to be bullish.
My focus in this column is on three quality cryptos to buy that have multibagger returns potential.
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Bitcoin (BTC)
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For investors bullish on cryptocurrencies, Bitcoin (BTC-USD) should be a default portfolio holding. From current levels of $30,000, I believe that the cryptocurrency can deliver 5x to 10x returns in the next five years. Standard Chartered believes that Bitcoin can touch $100,000 by the end of 2024. If this holds true, it would already imply 3x returns in 18 months.
There are multiple reasons to be bullish. A dovish fed would translate into a relatively weaker dollar and this would be positive for Bitcoin and other risky assets. Further, Bitcoin halving is due in 2024. Going by historical records, the digital asset is likely to rally next year and potentially into 2025.
Wider adoption of cryptocurrency is also a strong point in the bull case thesis. Bitcoin has a limited supply and it’s expected that the number of cryptocurrency holders can swell past one billion in 2025. A tight supply scenario would push the cryptocurrency higher.
Ethereum (ETH)
Source: shutterstock.com/BT Side
Ethereum (ETH-USD) is another blue-chip cryptocurrency that’s worth holding through the decade. I strongly believe that ETH is likely to outperform Bitcoin in the next five years. Therefore, 5x or 10x returns seem very probable.
One reason to be bullish is the point that Ethereum still has several developments on the cards. Also, the cryptocurrency has still not discounted the benefits of Ethereum merge. To put things into perspective, the shift from proof-of-work (PoW) to proof-of-stake (PoS) is likely to reduce energy consumption by 99.95%. This is a big reason to be bullish as Ethereum is unlikely to be impacted by sustainability regulations. This make it one of those cryptos to buy.