Bitcoin
3 Crypto Stocks to Buy for Bitcoin’s Long-Term Outlook
Cryptocurrencies have been struggling lately, with Bitcoin (BTC) briefly falling below $60,000 on June 24. Although Bitcoin has pared some of its losses and was trading just above $61,000, it has fallen sharply from its all-time high of $73,750.07 reached on March 14.
The cryptocurrency is down 6% over the past seven days amid massive selling pressure due to the continued outflow of ETFs due to upcoming bankruptcy bailouts from Mt. However, several other factors have been weighing on Bitcoin, which has had a 2023 year. and a solid first quarter.
Bitcoin’s rally gained momentum in January after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs), in a revolutionary move aimed at allowing retail and institutional investors to have a regulated and affordable way to invest in cryptocurrency. .
The rally was halted in April with the Bitcoin halving event, which occurs every four years and reduces the block reward by 50%, with the aim of capping the total supply of Bitcoin at 21 million coins. This reduction in the rate of supply of new Bitcoins typically increases demand for cryptocurrencies, often causing an increase in prices.
Now that the Bitcoin halving event has concluded, there is widespread speculation that the reduced supply will increase prices due to short-term scarcity.
Furthermore, on June 12, Federal Reserve Chairman Jerome Powell, in his post-FOMC meeting statement, mentioned that the Fed expects only one rate cut this year. Bitcoin’s recent decline can also be attributed to Powell’s comments.
Needless to say, Bitcoin’s drop is temporary. The cryptocurrency is up 43.5% year-to-date after gaining 157% in 2023.
Furthermore, a single rate cut of 25 basis points in 2024 would benefit the cryptocurrency market and the broader economy, especially as many market participants already do not anticipate any rate cuts this year. Low interest rates are advantageous for growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
At this point, investors should take a long-term perspective.
Our choices
We’ve narrowed down our research to three crypto-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see The complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation NVDA is the world leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming, and virtual reality platforms.
The story continues
NVIDIA has an expected earnings growth rate of 106.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.1% over the past 60 days. NVDA currently sports a Zacks Rank #1.
Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquid marketplace for institutional transactions of crypto assets, and technology and services for developers to create crypto-based applications and securely accept cryptocurrencies as payment.
Coinbase Global’s expected earnings growth rate for the current year is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 219.1% over the past 60 days. Coinbase currently sports a Zacks Rank #1.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. The IBKR commodity futures trading desk also offers clients the opportunity to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.3% over the past 90 days. IBKR currently has a Zacks Rank #2.
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