Bitcoin and Fetch.ai stand out as two cryptos that could skyrocket in value in the second half of 2024.
With new signs that a crypto bull market has arrived, it could be time to look for new coins to add to your portfolio. Of course, the most promising crypto investments are those with new catalysts in place that can help them soar in value throughout 2024.
With that in mind, there are two cryptocurrency coins on my radar right now: Bitcoin (BTC -0.67%) and Fetch.ai (FET -2.08%). Both have new catalysts in place and the potential to skyrocket in value over both the near and long term. Let's take a closer look.
Bitcoin
The obvious no-brainer crypto investment is Bitcoin, which is already up nearly 60% for the year. On the strength of investor inflows into the new spot Bitcoin ETFs, this crypto continues to lead the market higher. Nearly five full months into the year, the new spot Bitcoin ETFs now have more than $30 billion in assets under management.
While investor inflows slowed at the end of April and early May, they now appear to be picking up again, and that's good news for Bitcoin investors. As large institutional investors continue to disclose their Bitcoin ETF holdings from the first quarter of the year, it will only lead to new momentum. Risk-averse institutional investors -- think pension funds, endowments, and sovereign wealth funds -- could be ready to get into the mix. This steady buying is going to continue to push up the price of Bitcoin.
The added bonus for crypto investors is the recent Bitcoin halving event, which took place on April 19. Historically, each halving has kicked off a bull market rally in Bitcoin. There have been three previous Bitcoin halving cycles (in 2012, 2016, and 2020), and each one has led to a spectacular rally. In the previous halving cycle, for example, Bitcoin went from just under $10,000 in May 2020 to $69,000 just 18 months later.
Of course, past performance is no guarantee of future performance. And thus far, the halving has been a bit of a nothing-burger. Since April 19, Bitcoin is up only 4%. But plenty of investors think that the long-anticipated, halving-fueled rally in Bitcoin is still incoming; it's just taking a while to arrive. So May could be an opportune time to invest, in order to capture as much of this anticipated upside as possible.
Fetch.ai
Artificial Intelligence (AI) crypto tokens have been some of the top-performing cryptos of the year. The top AI crypto token on my watch list is Fetch.ai, which has soared by a staggering 237% in 2024, and now ranks as one of the top 50 cryptocurrencies in the world based on market cap. For that, you can thank the tremendous enthusiasm behind the AI investment thesis.
Several factors make Fetch.ai an attractive investment option right now. First of all, Fetch.ai is steadily adding new AI partners in the corporate world, including both Bosch and Deutsche Telekom. In February, Fetch.ai partnered with these two German giants on an innovative new AI platform. As both Bosch and Deutsche Telekom move to advance their own corporate AI initiatives, it could help to make the Fetch.ai token even more valuable.
Image source: Getty Images.
And second, there's talk of an upcoming "Artificial Superintelligence Alliance" featuring Fetch.ai that could be finalized by the end of May. This AI alliance will also include SingularityNETand Ocean Protocol, both of which are also top AI crypto tokens. The three tokens plan to combine forces to form a new AI super-token called ASI (for "Artificial Superintelligence").
Holders of Fetch.ai will be able to exchange their tokens on a 1:1 basis for the new AI super-token. What that means is that you'll be getting enhanced value for your Fetch.ai token. Instead of having access to the potential upside of just one AI crypto token, you will soon have access to the potential upside of three!
Of course, things move fast in the AI space, and it's unclear who the ultimate winners are going to be. So there's always a chance that this new AI alliance fizzles out, or that Fetch.ai gets passed by other competitors. But I like Fetch.ai's chances of making a serious splash.
Long-term outlook
For both Bitcoin and Fetch.ai, the long-term outlook is just as attractive as the short- and medium-term outlook. In fact, I would argue that the long-term outlook for both is more attractive. Plenty of investors -- including Cathie Wood of Ark Invest -- think Bitcoin is still on a path to $1 million or more. And plenty of investors think AI is the most important new investment thesis of the current era.
So, if you are thinking about investing in either Bitcoin or Fetch.ai, keep your focus on the future as much as the immediate present. If things go as planned, investments in these two cryptocurrencies could pay off big.
Dominic Basulto has positions in Bitcoin and Fetch. The Motley Fool has positions in and recommends Bitcoin and Fetch. The Motley Fool has a disclosure policy.
