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Bitcoin Boom: Top 5 Stocks to Ride the Crypto Wave

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The cryptocurrency market is on a whirlwind upward trajectory, fueled by a multitude of factors, including the possibility of a Bitcoin ETF approval by the SEC and a series of legal wins for the crypto industry. On Nov 30, the SEC sought public opinion on a rule change proposal for Fidelity Investments to list and trade shares of the Fidelity Ethereum Fund.

Stoking the Fire

Institutional investors are driving the momentum, with BlackRock Inc.’s plan to launch a Bitcoin ETF and The Charles Schwab Corp.-led consortium’s creation of a new crypto exchange called EDX Markets. The entry of PayPal Holdings Inc. into the realm of crypto, by offering its own dollar-pegged stablecoin known as PayPal USD, further cements the industry’s potential.

Market Dynamics

The growing optimism surrounding a possible halt in Federal Reserve rate hikes and an impending Bitcoin Halving event in the first half of 2024 are also significant drivers of the market fervor.

Crypto Giants

The price surge is evident across major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and BNB. On Dec 3, Bitcoin crossed the $42,000 mark for the first time since April 2022, recording a spectacular 142% year-over-year increase.

Top Contenders

As interest in crypto stocks soars, five top picks stand out with a Zacks Rank #2 (Buy). These companies are poised to benefit from the crypto upswing, making them potential game-changers in 2023. Each of these contenders boasts a positive earnings growth outlook and has witnessed an improvement in their Zacks Consensus Estimate.

NVIDIA Corp.

NVIDIA is a behemoth in the semiconductor industry, experiencing rapid growth due to the booming crypto sector. The company’s expected earnings growth rate for the current year is more than 100%, with a recent 0.8% improvement in the consensus estimate.

Coinbase Global Inc.

Coinbase provides financial infrastructure and technology for the crypto economy, offering a range of crypto-based services. The company has an anticipated earnings growth rate of 91.7% for the current year, with a substantial 44.9% increase in the Zacks Consensus Estimate over the last 30 days.

Block Inc.

Block is a significant player in the digital and mobile payment sector, reaping the benefits of integrating crypto services into its platform. The company’s expected earnings growth rate for the current year stands at 90%, with a 16.6% improvement in the Zacks Consensus Estimate over the last 30 days.

Interactive Brokers Group Inc.

As a global automated electronic broker, Interactive Brokers Group is a key player in the cryptocurrency trading arena. The company has an anticipated earnings growth rate of 41.7% for the current year, with a 2.1% improvement in the Zacks Consensus Estimate.

Hut 8 Mining Corp.

Hut 8 Mining, which recently merged with US Bitcoin Corp, is set to substantially boost its hash rate, positioning itself for significant growth. The company has a projected earnings growth rate of over 100% for the current year, with a remarkable improvement of over 100% in the Zacks Consensus Estimate over the last 30 days.

If you’re looking for hot stock picks, check out the potential early price gainers recommended by the Zacks #1 Strong Buys, delivering an average gain of +24.0% annually since 1988.

To explore these top contenders and for the latest stock recommendations from Zacks Investment Research, don’t miss this free report.

For further details, click here.

Source: Zacks Investment Research

The opinions expressed are those of the author and may not reflect those of Nasdaq, Inc.

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