The cryptocurrency rally has abruptly halted after a solid 15-month period that saw Bitcoin (BTC) hitting an all-time high earlier this year. However, Bitcoin price has been rangebound and is presently trading below 69,000.
This comes despite renewed optimism that the Federal Reserve could soon start its interest rate cuts.
Bitcoin hit an all-time high of $73,750 in March. Its price has since fallen more than 16%. However, the recent decline is temporary, as Bitcoin has had a dream run over the past year. Year to date, Bitcoin has gained 56.2% after rallying more than 207% in 2023.
The Bitcoin rally gathered steam in early January after the SEC approved 11 spot Bitcoin ETFs. The cryptocurrency dipped in April with the start of the halving event.
The halving event, which occurs once every four years, lowers the block reward by 50%, with the goal of limiting the total supply of Bitcoin to 21 million coins.
The demand for cryptocurrencies typically increases in response to this decrease in the rate of new Bitcoin supply, which frequently drives up their price.
However, the halving event is over now, and Bitcoin is expected to regain momentum. Also, weak manufacturing data and a decline in inflation in April have once again raised hopes that the Federal Reserve could soon start its rate cuts. Higher interest rates have a negative impact on growth assets, such as cryptocurrency, consumer discretionary equities, and technology companies.
Our Choices
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 the worldwide leader in visual computing technologies and the inventor of the graphic 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 last 60 days. NVDA presently sports a Zacks Rank #1.
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 the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 305.7% over the last 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 in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance 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 last 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 last 60 days. Robinhood Markets currently has a Zacks Rank #2.
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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