2 Cryptocurrencies Other Than Bitcoin to Buy Before Halving

Crypto investors are lined up to buy Bitcoin two weeks before the next halving. This makes logical given the past association between Bitcoin price gains and halving occurrences, which cut mining rewards in half. In three previous halving rounds, Bitcoin prices rose, and investors forecast the same in 2024.  

Thus, buying Bitcoin before the halving is a no-brainer. Can other cryptocurrencies have a price increase following the halving? Using a few metrics, you can identify a few investment prospects. Let's dig.  

Favorites of institutional investors We need a simple technique to limit down possible investment objectives to a few high-quality names since there are over 20,000 cryptocurrencies. We want cryptos with substantial institutional investor interest.  

Since most institutional investors don't like cryptos under $2 billion, you can narrow down your investing targets. That reduces 20,000 potential cryptocurrencies to 50. Despite their lesser-known names, all of these cryptos have substantial upside potential if institutional investors buy them.  

Next, we can examine institutional investors' money movements. CoinShares publishes a Weekly Crypto Asset Flows analysis on key cryptocurrency inflows and outflows. Weekly, monthly, and year-to-date flows show which cryptos are gaining or losing investor momentum.  

The latest CoinShares figures show that only five cryptocurrencies beyond Bitcoin are generating attention this year: Ethereum, Solana, Litecoin, XRP, and Polkadot. Institutional investors' top five.  

BTC correlations Next, we'll check a cryptocurrency correlations matrix to identify which of these five cryptocurrencies is highly connected with Bitcoin. The idea is simple: If we expect Bitcoin's price to soar following the halving, we want cryptocurrencies that can ride with and maximize upside. They should capture greater upside with stronger correlation.  

Since all cryptocurrencies are part of the same asset class, several have traditionally correlated strongly with Bitcoin. Ethereum, Solana, and Polkadot stand out among our five prospective cryptocurrencies. Ethereum has a 0.82 connection with Bitcoin, Polkadot 0.73, and Solana 0.67. Litecoin has a 0.61 correlation, while XRP has 0.44.  

The two winners are... We'll finish with Layer 1 blockchain networks, the foundation of the blockchain universe. We only include Ethereum and Solana among the three remaining cryptos. The two Layer 1 blockchains are well-diversified, handling NFTs, gambling, and decentralized finance. Thus, mainstream crypto acceptance benefits them most.  

Unfortunately, crypto fans call Polkadot a Layer 0 blockchain, which connects other blockchains rather than building on them. Polkadot has always been a way to hedge your bets if you're confident about blockchain technology's future but not confident enough to predict a winner. Ethereum and Solana are my winners. Ethereum is best if you want consistency and a 2015 track record. If you value innovation and long-term growth, choose Solana. Both cryptos should be considered investments before Bitcoin halving.  

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