There’s no stopping the Bitcoin (BTC) rally as the world’s most popular cryptocurrency topped the $70,000 mark for the first time on Mar 8 to hit an all-time high. Although it remained above $70,000 briefly before hovering around $69,350, Bitcoin has maintained its all-time high and is poised to rally further.
The recent rally is being driven by a surge in demand for spot bitcoin exchange-traded funds (ETFs) and optimism surrounding the likely drop in interest rates globally in the near term.
The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in early January has played a pivotal role in boosting the broader cryptocurrency market.
The green light to the spot Bitcoin ETF was given with the aim of integrating cryptocurrencies into mainstream finance and providing consistent backing to the crypto sector in the foreseeable future. The move has been bearing fruit as billions of dollars have flowed into ETFs over the past two months.
The market is receiving additional support from a perspective that involves an upgrade to the Ethereum blockchain platform, which is the home of the second-largest cryptocurrency, Ether.
The optimism surrounding Bitcoin has spilled over to other major cryptocurrencies, such as Ethereum (ETH) and Dogecoin (DOGE). Ethereum was last hovering around $3,893, while Dogecoin was trading at $0.17.
Another reason behind the ongoing rally is the upcoming Bitcoin halving event scheduled for April, which will cut the mining reward for new blocks in half. Historically, this occurrence has intensified scarcity, posing a challenge for miners to generate a net increase in Bitcoins. Traditionally, Bitcoin’s value tends to rise during these periods of restricted supply.
Stocks to Watch
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 79.2%. The Zacks Consensus Estimate for current-year earnings has improved 16.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CME Group Inc.’s CME options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange’s cash-settled standard and micro-Bitcoin and Ethereum futures contracts.
CME Group’s expected earnings growth rate for the current year is 3.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the last 60 days. CME presently has a Zacks Rank #3 (Hold).
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 (Buy).
Iris Energy Ltd. IREN is a Bitcoin mining company. IREN builds, owns and operates data center infrastructure with a focus on entry into regions where it can access abundant and underutilized renewable energy to power its operations.
IREN has an expected earnings growth rate of 100.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 385.7% over the last 60 days. IREN currently has a Zacks Rank #3.
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CME Group Inc. (CME) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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