While 2023 was the year of AI, the new year brings the opportunity for a new investment idea to take the lead. One potential leader this year is the cryptocurrency space. 2023 ended with the view that the SEC would soon approve a bitcoin ETF.
Add in this year’s halving activity, and there could be a massive supply shock that sends bitcoin prices soaring. And where bitcoin goes, other cryptos will follow. That’s why many cryptos soared in the final weeks of last year.
But that trend could just be getting started. While it’s getting a little overheated in the short run, crypto-related plays could soar in 2024.
One crypto play is MicroStrategy (MSTR). The data intelligence company is better known for holding most of its assets in bitcoin.
They even added $615 million in holdings at the end of 2023, a year in which their share price nearly quadrupled. But with bitcoin prices set to move even higher, shares could move past heir all-time high over $1,000 set in early 2021.
Action to take: Investors may want to buy a small position at current prices, and add to it on any drop of 10 percent or more. Given the volatility in cryptos, that should allow investors to accumulate a position at a reasonable price.
For traders, shares may be volatile enough for trading, especially as call option premiums have soared in recent weeks. Use a down day or series of down days to buy a call option like the July $880 calls, which recently traded for about $91.50.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.