Which currency to buy in december 2024

Answered at Nov 19, 2024

Currency Investment Insights for December 2024

Bitcoin: A Strong Contender

Bitcoin has been a standout performer in 2023, with its value more than doubling and currently sitting just below $38,000. This surge is attributed to several factors, including positive sentiment in U.S. financial markets and the anticipation of a Bitcoin "halving" event in April 2024 (source). The approval of Bitcoin ETFs by the SEC in January 2024 has further bolstered its appeal, making it easier for institutional investors to enter the market. With 11 Bitcoin ETFs now available, they saw a trading volume of $4.6 billion on the first day (source).

Key Points:

  • Institutional Support: Increased interest from institutional investors.
  • ETF Approval: SEC's approval of Bitcoin ETFs enhances accessibility.
  • Market Dominance: Bitcoin accounts for nearly 52% of the crypto market value.

Japanese Yen: A Cautious Approach

The Japanese Yen (JPY) has experienced significant fluctuations over the years, influenced by economic factors and monetary policies. Recently, the Yen has weakened, reaching a new low of 64 points in April 2024. This depreciation is due to concerns over Japan's fiscal sustainability, inflation expectations, and geopolitical tensions (source).

Key Points:

  • Economic Concerns: Fiscal sustainability and inflation are major issues.
  • Geopolitical Tensions: Ongoing tensions impact investor sentiment.
  • Market Dynamics: Shifting dynamics contribute to Yen's volatility.

Ethereum: A Promising Alternative

Ethereum, alongside Bitcoin, has played a significant role in the cryptocurrency market's growth. As of late December 2023, Bitcoin and Ethereum together accounted for 67% of the crypto market's value (source). The approval of Ethereum ETFs is expected to further boost its market presence in 2024.

Key Points:

  • Market Share: Significant contributor to the crypto market's value.
  • ETF Approval: Expected to enhance investment opportunities.
  • Growth Potential: Poised for strong performance in 2025.

Conclusion

For December 2024, Bitcoin stands out as a strong investment option due to its institutional support, ETF approval, and market dominance. While the Japanese Yen presents challenges due to economic and geopolitical factors, it remains a key player in the forex market. Ethereum also offers promising growth potential, especially with the anticipated approval of Ethereum ETFs. Investors should consider these factors when making currency investment decisions.