The cryptocurrency market had a solid 2023 and the rally gathered steam this year, with Bitcoin (BTC) hitting an all-time high earlier this month. Bitcoin, the world’s most popular cryptocurrency, hit an all-time high of $73,083 on Mar 13.
However, it has fallen more than 10% in less than a week and traded at $67,304 on Mar 15. The sudden decline has raised concerns among investors but the dop is temporary as Bitcoin still has several upsides.
The recent decline can be attributed to profit booking and the latest inflation data that has slightly unsettled markets but the cryptocurrency has so far had a great year. Bitcoin has gained more than 59% year to date after rallying 157% in 2023.
The much-awaited reformation in the cryptocurrency space happened in early January as the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs).
This could be a game-changing move as the decision was taken to integrate cryptocurrencies into mainstream finance and provideconsistent support to the sector in the foreseeable future.
Also, the next Bitcoin halving event will be taking place in April. During this event, the mining reward for new blocks will be halved. Historically, this event has heightened scarcity, making it more challenging for miners to produce a net increase in Bitcoins. Typically, Bitcoin’s value tends to increase during these periods of reduced supply.
So, the recent decline can be treated as temporary. Several economists and research organizations believe that the approval of the spot Bitcoin ETFs has started bearing fruit and the cryptocurrency has a lot more potential and is expected to continue its upward trajectory.
Standard Chartered anticipates Bitcoin to reach $100,000 by the end of 2024, while Hedge fund SkyBridge predicts Bitcoin to touch $170,000 by April 2025.
Stocks to Watch
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either 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 a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 81.3%. The Zacks Consensus Estimate for current-year earnings has improved 17.7% over the last 60 days. Currently, NVIDIA has a Zacks Rank #1
CleanSpark Inc. CLSK operates as a bitcoin miner in the Americas. CLSK owns and operates data centers that primarily run on low-carbon power. CLSK’s infrastructure supports Bitcoin, a digital commodity, and a tool for financial independence and inclusion.
CleanSpark’s expected earnings growth rate for the current year is 89.2%. The Zacks Consensus Estimate for current-year earnings has improved 89.9% over the last seven days. CLSK presently carries a Zacks Rank #2.
Coinbase Global, Inc. COIN offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 313.5%. The Zacks Consensus Estimate for current-year earnings has improved 368.4% over the last 60 days. Coinbase currently sports 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’ expected earnings growth rate for the current year is 137.7%.The Zacks Consensus Estimate for current-year earnings has improved 53.3% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report