Bitcoin Breaks Records: What’s Next for Crypto and Related Stocks?
Key Insights
- Bitcoin’s price has surged past $109,000, marking an all-time high.
- Experts predict that Bitcoin might reach $125,000 soon, partly due to Donald Trump’s pro-crypto policies.
- Companies like Robinhood Markets, NVIDIA, Coinbase Global, and Interactive Brokers may benefit from these Bitcoin highs.
On Monday, just before Donald Trump’s inauguration, Bitcoin (BTC) set a new record by exceeding $109,000. This excitement was followed by a slight decline of over 5%, with prices stabilizing around $102,000 later that night.
Despite this recent dip, Bitcoin has experienced significant growth in past months, and experts suggest it could soon rise to $125,000, driven by Trump’s favorable stance on cryptocurrency.
With positive market sentiment, investing in stocks related to Bitcoin such as Robinhood Markets, Inc. (HOOD), NVIDIA Corporation (NVDA), Coinbase Global, Inc. (COIN), and Interactive Brokers Group, Inc. (IBKR) appears promising. These companies show strong potential for growth through 2025, and all have seen improvements in their earnings estimates recently.
Bitcoin’s Remarkable Rise Amidst Political Change
Bitcoin had an impressive 2024, climbing over 100% in value. The upward trend intensified after Trump’s victory in the U.S. Presidential election on November 5. Each time Trump hinted at supporting the crypto industry, Bitcoin’s price responded positively.
Following this trend, Bitcoin reached $106,533 on December 22. During his campaign, Trump expressed a desire to establish the U.S. as the “crypto capital of the world” by creating a Bitcoin reserve and appointing regulatory officials who favor digital assets.
Analysts believe that loosening regulations on cryptocurrency will further fuel Bitcoin’s growth, promising an exciting year ahead. This latest all-time high coincided with Trump’s inauguration as the 47th U.S. President, a move that many investors view as a sign of impending regulatory clarity supporting crypto markets.
Historically, Bitcoin has set new all-time highs every four years, with substantial price increases in previous bullish cycles since 2017, boasting gains of 2300% and 1700%, along with subsequent corrections of 70% to 80%. After hitting a low of $16,000 in early 2023, Bitcoin has surged over 600%, indicating considerable growth potential in the coming two years.
Stocks to Watch in the Crypto Space
Robinhood Markets
Robinhood Markets, Inc. offers a financial platform in the U.S. allowing users to trade stocks, ETFs, options, gold, and cryptocurrencies. The company facilitates trading in popular digital currencies such as Bitcoin and Ethereum through its Robinhood Crypto platform.
Robinhood expects to see more than 100% earnings growth this year, and its earnings forecast has improved by 23% in the last 60 days, earning a Zacks Rank of #1 (Strong Buy).
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NVIDIA Corporation
NVIDIA Corporation has established itself as a leader in the semiconductor sector. Known for producing graphic processing units (GPUs), NVIDIA’s stock often rises alongside a booming crypto market due to GPUs being essential for data centers, artificial intelligence, and cryptocurrency mining.
The company also anticipates over 100% earnings growth this year, with a 3.5% increase in its earnings forecast over the past two months, and has a Zacks Rank of #2 (Buy).
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Coinbase Global
Coinbase Global, Inc. provides technology and infrastructure to foster the global cryptocurrency economy. The firm offers a comprehensive financial account for consumers, a marketplace for institutional transactions, and developer tools for creating crypto applications.
Similar to others, Coinbase expects more than 100% earnings growth this year, with an 11.4% improvement in earnings estimates recently, and holds a Zacks Rank of #1.
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Interactive Brokers Group, Inc.
Interactive Brokers Group, Inc. serves as a global automated electronic broker that actively engages in cryptocurrency trading, allowing customers to also trade cryptocurrency futures.
The company expects a 21.6% increase in earnings this year, with a modest 1.7% improvement in its earnings estimate recently, currently holding a Zacks Rank of #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
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
