Crypto
This Cryptocurrency Is Set to Soar in 2024: 3 Reasons to Buy It Now and Hold Forever | The Motley Fool
Bitcoin is poised for a major run in 2024. But it might only be a sign of things to come.
In a crypto bull market like the one we find ourselves in, it can be difficult to discern which asset is best for your portfolio. Perhaps the old saying “If it ain’t broke, don’t fix it” could apply here.
While dozens of new cryptocurrencies have launched since Bitcoin (BTC -3.89%) became the world’s first crypto, there is a compelling case to be made that it remains the best, thanks to tailwinds forming in 2024 and beyond. Here are three reasons Bitcoin is set to soar this year and is worth holding forever.
Image source: Getty Images.
1. Bitcoin’s fourth halving
The first reason to hold Bitcoin now and forever is its recent fourth halving, which took place in April. The halving event is when the reward for mining new Bitcoin blocks is cut in half. As mining is the primary means by which new bitcoins are minted, reducing the reward for miners essentially cuts Bitcoin’s inflation rate in half. This process will continue to occur until 2140, when the last Bitcoin is mined.
The halving occurs approximately every four years and has historically had a significant effect on Bitcoin’s price. By altering the supply-and-demand dynamics, the halving often triggers a bull run and creates a scarcity effect that typically drives up the price. On average, Bitcoin jumps more than 120% in the year a halving takes place. If historical averages hold true this time around, we could see Bitcoin hit nearly $100,000 by year-end.
2. Post-halving performance
The second reason to hold Bitcoin lies in its performance in the years following a halving, which have historically been particularly explosive. While the immediate aftermath of a halving often sees significant price gains, it typically takes some time for the full effect to materialize in the market. This delay occurs as the reduced supply gradually meets increasing demand, leading to substantial upward pressure on the price.
Historically, Bitcoin gains more than 400% in the years following a halving. If history repeats itself, this would be enough to put its price at nearly $500,000 by the end of 2025. While past performance is not always indicative of future results, it is reasonable to expect that the most recent halving’s effects have yet to be fully realized. In other words, the best may still be ahead for Bitcoin during this bull market, making it a compelling investment even at today’s prices.
3. Long-term catalysts abound
While Bitcoin has short-term catalysts stemming from the halving that should make the next year and a half productive, the cryptocurrency really begins to shine when you evaluate its potential over the long haul. There are several catalysts that are forming and that support the case for a long-term investment in Bitcoin.
Increasing institutional adoption is one such catalyst. More and more institutions are recognizing Bitcoin’s value. Over half of the top 25 most valuable hedge funds currently have exposure to Bitcoin through the recent launch of spot Bitcoin exchange-traded funds (ETFs). Deep-pocketed institutional investors were previously sidelined from joining in on the Bitcoin game, but their arrival signals a major shift in the playing field, which was primarily dominated by smaller retail investors for the last decade and a half.
In addition, there is a clear effort to introduce more supportive legislation. As regulatory clarity encourages broader participation in Bitcoin and in the crypto market overall, adoption will likely continue to grow as the rules of the fame become clearer.
Then there is the gradual coming of age of a new generation of investors. Older generations like baby boomers are less likely to invest in digital assets. But younger investors are far more comfortable with them and likely to seek them out. As the most valuable cryptocurrency, Bitcoin will surely benefit from this trend.
Yet these aren’t even my top reasons for a long-term investment in Bitcoin. On a granular level, Bitcoin’s core fundamentals of decentralization, security, and finiteness are the most attractive aspects it offers. In an uncertain economic landscape where government deficits continue to balloon, fiat currencies are debased, and overall trust in the powers that be is waning, Bitcoin offers economic sovereignty. You could call it way out.
As more halvings pass and it moves closer to reaching its limited supply of 21 million coins, there is an obvious trajectory where Bitcoin comes under exponentially greater pressure as demand increases, creating a scenario where the price could reach seven figures.
Keeping a measured approach
While there is reason to be optimistic about Bitcoin in the short term, it is imperative that investors approach it with a long-term perspective. The recent halving and historical performance post-halving present strong cases for significant price appreciation in the near future. However, the real value of Bitcoin lies in its long-term potential, driven by institutional adoption, supportive legislation, and a shift in investor preferences toward digital assets.
Bitcoin’s core attributes of decentralization, security, and limited supply make it a robust investment in a world of growing economic uncertainty. As more investors recognize these strengths, Bitcoin’s demand should continue to rise, potentially leading to substantial price increases. Therefore, whether you are looking at the short-term catalysts or the long-term potential, Bitcoin remains a worthy addition to your investment portfolio. Holding Bitcoin now and forever could be one of the most strategic financial decisions you make.
Kraken Valued at $13 Billion After Deutsche Börse Stake
Deutsche Börse has taken a minority stake in crypto exchange Kraken, marking one of the clearest signs yet of Europe’s largest market operator deepening its exposure to digital assets.
The German exchange group said it invested $200 million in Payward, Kraken’s parent company, securing roughly a 1.5% fully diluted ownership. The transaction values Kraken at about $13.3 billion, according to reporting by Bloomberg.
The move builds on an existing relationship between the two firms and signals a broader push to integrate traditional financial infrastructure with crypto markets. The partnership is expected to focus on regulated offerings, including tokenized assets and derivatives, while improving liquidity for institutional clients.
As part of the collaboration, Kraken will integrate with 360T, Deutsche Börse’s foreign exchange trading platform. The connection is designed to provide Kraken users with access to bank-grade foreign exchange liquidity, potentially streamlining the conversion between fiat currencies and digital assets.
The companies also plan to expand the use of Kraken Embed, a service that allows institutions to offer crypto trading and custody under their own brands. The initiative targets banks, fintech firms, and asset managers seeking to enter the digital asset space without building infrastructure from scratch.
Further developments are expected, subject to regulatory approval. These include enabling trading of derivatives listed on Eurex, Deutsche Börse’s derivatives exchange, through Kraken’s platform.
The investment underscores a growing convergence between established financial institutions and the crypto sector. For Kraken, the backing from Deutsche Börse provides capital and strategic alignment with one of Europe’s most influential financial market operators. For Deutsche Börse, the stake offers a direct foothold in a global crypto platform at a time when competition for digital asset infrastructure is intensifying.
The deal also reflects a broader trend of legacy financial firms moving beyond exploratory partnerships toward equity investments in crypto companies. By combining trading, custody, and tokenization capabilities, both firms are positioning themselves to capture a larger share of institutional flows into digital assets.
Key Takeaways:
- Alameda moved $16 million worth of SOL to a wallet linked with repayment efforts, signaling ongoing FTX creditor payouts.
- Alameda still holds 3.5 million SOL ($294 million), meaning supply overhang may impact solana markets.
- FTX-era asset releases since 2022 suggest continued distributions could shape liquidity next.
Alameda Unstakes SOL, Signals Ongoing Creditor Distributions
Alameda Research has transferred roughly $16 million worth of solana ( SOL) tokens after unstaking the assets, in a move that points to continued creditor repayments tied to the collapse of FTX.
Blockchain data tracked by Arkham Intelligence shows the tokens were sent to an address previously associated with distribution efforts. The transaction follows a similar pattern observed in recent months, where unstaked assets were routed to wallets linked to reimbursing creditors.
While there has been no official confirmation that the latest transfer will be distributed immediately, the repetition of this process suggests it forms part of a structured repayment strategy rather than a one-off movement.
Unstaking allows previously locked tokens in proof-of- stake networks to be withdrawn and made liquid. In this case, it enables Alameda to free up assets that can be redirected toward obligations stemming from FTX’s bankruptcy proceedings.
The latest transfer comes about a month after a comparable transaction, when Alameda moved a similar tranche of SOL to the same destination address. That earlier move reinforced expectations that such transfers are tied to ongoing creditor payouts.
Despite the asset sales, Alameda retains a substantial position in solana. The firm still holds approximately 3.5 million SOL, valued at around $294 million, according to Arkham data.
Solana remains one of the largest digital assets by market value, with a capitalization of about $47 billion. The token has traded near $82 in recent sessions, significantly below its peak of $293 reached early last year.
Alameda, founded in 2017 by Sam Bankman-Fried, was once a dominant trading firm in the crypto market. It played a central role in providing liquidity across exchanges and operated extensively in spot and derivatives markets.
Its fortunes shifted dramatically following the collapse of FTX in late 2022, which triggered a wave of insolvencies and legal proceedings. Since then, asset recovery and creditor repayment have been central to the restructuring process.
The steady movement of funds such as SOL highlights the scale and complexity of unwinding Alameda’s positions. Each transfer offers a signal, albeit indirect, of progress in returning value to creditors.
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