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4 Bitcoin Stocks to Boost Your Portfolio Before the Next Rally
The cryptocurrency market has suffered over the past three months, with the price of Bitcoin (BTC) taking a nosedive after hitting an all-time high in March. On July 3, the price of Bitcoin was hovering around $58,600, a sharp decline from the all-time high of $73,750.07 hit on March 14.
Bitcoin has had a solid rally in 2023, where the cryptocurrency has gained 157%. This year has started on a high. The Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January in an effort to allow both retail and institutional investors a regulated and accessible way to invest in the cryptocurrency.
The historic decision has added fuel to the rally. Since approval, ETFs have attracted net inflows of about $14.41 billion to date, according to a recent report from CCData.
However, the rally came to a halt in April with the start of the once-every-four-year halving event. Bitcoin’s halving reduces the block reward by 50% in an attempt to limit the total supply of Bitcoin to 21 million coins. The reduction in the rate of new supply of Bitcoin increases demand for the cryptocurrency, resulting in a price surge.
The recent decline is temporary, as the effects of the halving event have yet to fully wear off. Additionally, Federal Reserve Chairman Jerome Powell announced after the June FOMC meeting that the Fed expects only one rate cut this year, down from three cuts it had planned in March.
However, even a single rate cut of 25 basis points was welcomed, especially since many market participants had previously not expected any rate cuts in 2024.
Furthermore, the latest FOMC dot plot projects a cumulative 1% decrease in interest rates by 2025. According to this projection, the federal funds rate could potentially fall to 4.1% by the end of 2025. This outlook is seen as beneficial for sectors such as manufacturing and the economy as a whole.
Markets are pricing in a September rate cut, which is likely to boost the cryptocurrency market. Low interest rates have a positive impact on growth assets such as technology stocks, consumer discretionary stocks, and cryptocurrencies.
Our choices
We’ve narrowed our search to three cryptocurrency-oriented stocks that have strong potential for 2024. Each of our picks carries a Zacks Rank of #1 (Strong Buy) or 2 (Buy). You can see See the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Company 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 solutions that now power 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 carries a Zacks Rank #1.
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’s current-year earnings growth rate is above 100%. The Zacks Consensus Estimate for current-year earnings has improved 93.1% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.
Interactive Brokerage Firm IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the ability to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 16.2% for the current year. The Zacks Consensus Estimate for current year earnings has improved 1.4% over the past 60 days. IBKR currently has a Zacks Rank #2.
Coinbase Global, Inc.COIN provides financial infrastructure and technology to support the global cryptocurrency economy. It provides a primary financial account for consumers in the cryptocurrency space, a liquidity marketplace for institutional cryptocurrency transactions, and technology and services for developers to build cryptocurrency-based applications and securely accept cryptocurrency as payment.
Coinbase Global’s current-year earnings growth rate is above 100%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 60 days. COIN currently carries a Zacks Rank #1.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report