Famous investment consultancy firm Motley Fool shared 2 crypto currency preferences for long-term investments. He gave details about the potential returns and growth opportunities of these cryptocurrencies, which attracted the attention of investors.
Cryptocurrency projects on the list of new investors, according to the Motley Fool
In a recent article, Motley Fool has featured 2 cryptocurrencies that are attractive to long-term investors. The first of these was Bitcoin (BTC) due to factors such as its limited supply, institutional acceptance, and strong market liquidity. Ethereum (ETH) is in second place as a platform for smart contracts and decentralized applications (dApps).
Fool.com emphasizes that these two cryptocurrencies should be followed regularly and used to provide diversification in portfolios. Long-term investors are advised to take a strategic and patient approach considering the volatility of the cryptocurrency market. In the continuation of the article, let’s take a detailed look at why analysts prefer BTC and ETH…
Bitcoin (BTC)
Bitcoin is the world’s largest cryptocurrency by market cap, and for good reason. During the decade from 2011 to 2021, it led one of the best performing markets in the world. Bitcoin’s annual return stands at 230%, which is 10x higher than the second best performing market class, the Nasdaq 100 Index.
However, as knowledgeable investors know, past performance is no guarantee of future performance. The good news, though, is Bitcoin is just getting started. Institutional investors are now embracing Bitcoin. Countries like El Salvador are experimenting with Bitcoin as an alternative to the US dollar. Plus, new use cases appear regularly. For example, this year witnessed the launch of Bitcoin Ordinals, a new NFT class for Bitcoin. At the same time, countries around the world are updating their regulatory frameworks to make Bitcoin a legitimate cryptocurrency.
On the basis of these promising developments, future price targets for Bitcoin are becoming more and more aggressive. Some of these price targets are set by crypto enthusiasts and supporters, while others have the authority of Wall Street. For example, Goldman Sachs set a price target of $100,000 for Bitcoin. Cathie Wood of Ark Investment Management has proposed a price target of $1.48 million for Bitcoin. Bitcoin is currently at $26,000, so there is still opportunity for long-term investors. However, keep in mind that the market is extremely volatile.
Ethereum (ETH)
Ethereum is the second largest cryptocurrency in the world. In particular, it is a pioneer in everything from decentralized finance to NFTs. The Ethereum ecosystem is incredibly diverse. It includes everything from decentralized exchanges for trading cryptocurrencies to Web3 gaming platforms and metaverse worlds. Probably, Ethereum is the most diverse cryptocurrency you can have right now. Fool analysts are of the opinion that these features will be enough for the long term.
Just like Bitcoin, Ethereum has provided some dizzying returns for long-term investors. One of them was the Merge update, in which PoW abandoned mining. Also, Fortune 500 companies are using Ethereum solutions to improve their supply chains. However, Wall Street banks are experimenting with using Ethereum as a way to optimize trading. For example, VanEck recently set a price target of $50,000 for Ethereum. As a result, analysts emphasize that Ethereum is largely supported by the institutional side.
