Bitcoin
4 Solid Crypto Stocks to Buy Ahead of Bitcoin’s Next Rally
The cryptocurrency rally came to an abrupt halt after a solid 15 months in which Bitcoin (BTC) reached an all-time high earlier this year. However, Bitcoin’s price has been range-bound and is currently trading below 69,000.
This comes despite renewed optimism that the Federal Reserve may soon begin its interest rate cuts.
Bitcoin reached an all-time high of $73,750 in March. Since then, its price has fallen by more than 16%. However, the recent decline is temporary as Bitcoin had a dream come true last year. Year-to-date, Bitcoin has gained 56.2% after rising more than 207% in 2023.
Bitcoin’s rally gained momentum in early January after the SEC approved 11 spot Bitcoin ETFs. The cryptocurrency fell in April with the start of the halving event.
The halving event, which occurs once every four years, reduces the block reward by 50%, with the aim of capping the total supply of Bitcoin at 21 million coins.
Demand for cryptocurrencies typically increases in response to this decrease in the rate of supply of new Bitcoins, which often increases their price.
However, the halving event is over and Bitcoin is expected to regain momentum. Furthermore, weak manufacturing data and the decline in inflation in April have once again raised hopes that the Federal Reserve may soon begin its rate cuts. Higher interest rates have a negative impact on growth assets such as cryptocurrencies, consumer discretionary stocks and technology companies.
Our choices
We’ve narrowed down our research to four crypto-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). 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.
NVIDIA has an expected earnings growth rate of 107.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12% 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.
The story continues
Coinbase Global’s expected earnings growth rate for the current year is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 305.7% 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 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. IBKR currently has a Zacks Rank #2.
Robinhood Markets, Inc. HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ expected earnings growth rate for the current year is 200%. The Zacks Consensus Estimate for current-year earnings has improved 165.2% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.
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