Bitcoin Soars to New Heights Amid Political Buzz
Market Insights
- Stocks like NVDA, IBKR, BLK, ACN, and CME are poised for growth as cryptocurrencies gain momentum.
- Following Donald Trump’s election victory, Bitcoin reached a record trading high of over $75,000.
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On Wednesday morning, Bitcoin (BTC) surged to an all-time high, coinciding with Donald Trump’s significant gains in the U.S. Presidential election. Just hours after the polls closed to select the nation’s 47th president, Bitcoin crossed the $75,000 threshold.
This recent rally has been fueled by a growing interest in cryptocurrencies, particularly after the Federal Reserve implemented its first interest rate cut in four years. Many investors anticipate further cuts during the upcoming policy meeting on Thursday, which could provide additional support for the crypto market.
Investing in Bitcoin-related stocks such as NVIDIA Corporation (NVDA), Interactive Brokers Group, Inc. (IBKR), BlackRock, Inc. (BLK), Accenture plc (ACN), and CME Group Inc. (CME) appears to be a strategic move, given their potential for growth in the near future.
Bitcoin Breaks Records
On Wednesday, Bitcoin reached a new record price of $75,011.06, surpassing its previous peak of $73,770 set in March. The cryptocurrency was trading at $74,802, marking an increase of 8.2% within the last 24 hours. The surge occurred as millions of Americans participated in the presidential election.
Other notable cryptocurrencies such as Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) also saw significant increases on Tuesday. Ethereum rose by 6.6%, Cardano by 8.8%, and Dogecoin by 18.8%. The overall market cap for cryptocurrencies climbed to nearly $1.5 trillion shortly after voting commenced.
Momentum in the Bitcoin Market
Bitcoin has seen impressive performance, attributed to institutional investments and rising mainstream adoption. Bitcoin ETFs have drawn in over $50 billion, solidifying the support for Bitcoin’s price upticks.
Trump’s campaign is often associated with Bitcoin, thanks to his strong promotion for digital assets and his ambitious goal of making the United States a global cryptocurrency center.
The Federal Reserve’s decision to cut interest rates by 50 basis points in September provided a significant boost to cryptocurrencies. The expectation of another 25 basis-point cut during the upcoming November meeting could further accelerate Bitcoin’s upward trend.
Market analysts foresee Bitcoin possibly exceeding $80,000 by the end of November, regardless of the electoral outcomes.
Promising Bitcoin-Related Stocks
NVIDIA Corporation
NVIDIA Corporation is a key player in the semiconductor industry and has excelled in 2023. Known for designing graphic processing units (GPUs), NVDA stock typically rises during a robust crypto market due to the essential role of GPUs in data centers, artificial intelligence, and cryptocurrency mining.
The anticipated earnings growth rate for NVIDIA this year is over 100%, with Zacks estimating a 0.7% increase in current-year earnings over the past 60 days. NVIDIA holds a Zacks Rank of #2 (Buy).
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Interactive Brokers Group, Inc.
Interactive Brokers Group, Inc. operates as a global automated electronic broker, executing trades in cryptocurrencies. Their commodities futures trading desk also accommodates cryptocurrency futures trading. IBKR is rated #2 by Zacks.
The expected earnings growth rate for IBKR this year is 20%, with a 1.2% upgrade in earnings estimates over the last 60 days. IBKR holds a Zacks Rank of #2.
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BlackRock
BlackRock is one of the largest investment management firms globally and was an early entrant into the Bitcoin ETF market back in June 2023.
BlackRock’s expected earnings growth rate for this year is 13.7%, and recent consensus estimates have increased by 3.6% over the past 60 days, placing BLK at a Zacks Rank of #1.
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Accenture plc
Accenture plc provides consulting and technology services worldwide. The company promotes Ethereum-based blockchain solutions, aiming to enhance payment processing.
Accenture’s projected earnings growth for this year stands at 6.9%, with a recent earnings estimate increase of 1.5% over the past two months. ACN currently holds a Zacks Rank of #2.
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CME Group
CME Group Inc. provides options for cryptocurrency futures contracts, allowing buyers the right to buy or sell at specific prices in the future. CME’s offerings include Bitcoin and ether options, alongside micro-Bitcoin and Ethereum futures contracts.
CME Group anticipates a 9.5% growth rate in earnings for the current year, with a 3.1% improvement in recent earnings estimates. CME is ranked #2 by Zacks.
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CME Group Inc. (CME) : 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.
