Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), the world’s two most valuable cryptocurrencies, have both declined about 40% this year.
Investors avoided both tokens amid fears of rate hikes, geopolitical conflicts, and other macro headwinds
Big IPOs, such as SpaceX (NASDAQ: SPCX), also likely drew more investors away from the cryptocurrency market. I believe both cryptocurrencies are still solid long-term investments. Bitcoin is a viable hedge against expansionary monetary policies, and Ethereum remains the largest developer-oriented blockchain.
However, I’m more bullish on Ether than Bitcoin today for three simple reasons. 1. Its staking yields Ether can be staked (locked up) on Ethereum’s blockchain to earn interest-like rewards. Investors can currently earn yields of 3%-4% on staked Ether, making it a compelling (but more volatile) alternative to CDs, high-yield savings accounts, T-bills, and dividend stocks.