Best Cryptocurrencies to Buy in December

The fact that the cryptocurrency market is expected to roughly double its market capitalization by 2023 to a total of just under $1.6 trillion (as of this writing) is an encouraging sign of the growing optimism surrounding the asset class. Investors are probably currently looking at digital tokens as a place to allocate some capital.

When I see what I think is the best cryptocurrency If you decide to buy in December, the decision is very simple. Bitcoin (BTC -0.66%)And it’s not even close.

Bitcoin’s huge rally in 2023

The world’s most valuable digital asset, which currently has a market value of over $800 billion, is set to perform fantastically in 2023. The price of Bitcoin has risen 148% this year, outperforming major stock market indices as well as the broader cryptocurrency market.

Bitcoin is everythingMagnificent Seven“Except stocks nvidia and meta platform. This is a clear sign that risk trading is fully active among investors. With interest rates rising sharply and inflation soaring in 2022, markets have rewarded technology-related assets this year.

But more importantly, how does Bitcoin fare compared to what many consider to be two of the safest assets out there? The price of one ounce of gold this year rose only 10.7%. With economic and geopolitical uncertainty and inflation rising, as we have recently, you would think gold would fare better than it does now.

We also S&P Global US Treasury Bond Index. This safe asset financial product rose 2.2% as of December 12, 2023.

It is difficult to draw firm conclusions about price movements of various assets over short periods of time. However, Bitcoin’s performance against what is considered the most conservative asset class this year signals great confidence that investors view the cryptocurrency in an extremely positive light.

Reasons for Optimism

Now may be one of the best times to buy Bitcoin. Three upcoming catalysts could push digital assets much higher over the next 12 months.

First, Bitcoin is unique in that it has a set supply schedule, i.e. a predetermined inflation rate. Approximately every four years, the amount of newly created Bitcoins miners receive for validating transactions and securing the blockchain is halved. And the months leading up to this so-called “halving” event were very optimistic times for Bitcoin. The next halving is scheduled for April 2024.

Perhaps the catalyst receiving the most attention these days is the possibility of a number of asset managers approving Bitcoin spot exchange-traded funds (ETFs). Investors are waiting for the Securities and Exchange Commission’s decision. If approved, which many experts believe is inevitable, it would legitimize Bitcoin in the financial services industry while also bringing in a lot of new capital. This may cause prices to rise.

Finally, here is the latest inflation data: consumer price index, once again showing that the situation in the United States is improving. This could lead to the Fed not only pausing interest rate increases but also deciding to begin lowering rates in the near future. For risky assets like Bitcoin, this could be a huge tailwind.

Investors do not need to complicate the situation by trying to find hidden cryptocurrencies to invest in. The oldest and most valuable digital asset has many advantageous characteristics, which means it is the best cryptocurrency to buy right now.