The cryptocurrency market is experiencing an eventful start to 2024, following a remarkable rally in the previous year. The much-anticipated shift in the cryptocurrency space occurred on Jan 10, with the U.S. Securities and Exchange Commission (SEC) approving rule changes to permit the creation of spot bitcoin exchangetraded funds (ETFs).
The approval led to the launch of 11 spot bitcoin ETFs, propelling the price of bitcoin (BTC) above the technical barrier of 47,000 to reach 47,893.70. However, the subsequent weeks saw a sharp decline in Bitcoin’s price, reaching its lowest level since December 2023 on Jan 22.
Despite this setback, Bitcoin has shown resilience, with a 6% price increase over the last seven trading days. The crypto giant is still viewed as having enormous potential, particularly after the SEC’s decision, which is expected to solidify the entire crypto space as a core element of mainstream finance.
Another development on the horizon is the upcoming Bitcoin halving, set to take place in the first half of 2024. This event historically results in increased scarcity and drives up the value of Bitcoin due to reduced supply, potentially leading to a further surge in its price.
Stocks in the Spotlight
NVIDIA Corp. NVDA, known for its position as a semiconductor industry giant, is intricately connected to the crypto market. The company’s stock typically experiences an upswing during a booming crypto market, given its pivotal role in data centers, artificial intelligence, and crypto asset creation.
NVDA’s expected earnings growth rate for the current year is an impressive 63.1%, with the Zacks Consensus Estimate for its current-year earnings showing a 1.8% improvement over the last 30 days. NVDA currently holds a Zacks Rank #2 (Buy).
CME Group Inc. provides options for buying and selling cryptocurrency futures contracts, including Bitcoin and ether. The company is expected to witness a 2.3% earnings growth rate for the current year, with a 0.4% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days. CME currently carries a Zacks Rank #2.
Coinbase Global Inc. offers financial infrastructure and technology for the crypto economy, both domestically and internationally. The company’s expected earnings growth rate for the current year is 49.1%, and the Zacks Consensus Estimate for current-year earnings has improved by 36.4% over the last 30 days. COIN currently carries a Zacks Rank #3 (Hold).
Robinhood Markets Inc. operates a financial services platform in the U.S., allowing users to invest in various assets, including cryptocurrencies. The company is expected to witness an astonishing earnings growth rate of over 100% for the current year, with a 0.7% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days. HOOD currently holds a Zacks Rank #3.
Block Inc. SQ provides an online digital and mobile payment platform and is the parent company of Square and Cash App. In the crypto space, users of Cash App can buy, sell, send, and receive Bitcoin. SQ is also one of the largest Bitcoin investors. The company has an expected earnings growth rate of 53.1% for the current year, with the Zacks Consensus Estimate for current-year earnings improving by 1.4% over the last seven days. SQ currently holds a Zacks Rank #3.
When examining the price performance of these five stocks over the past three months, it is evident that they are closely intertwined with the performance of Bitcoin and the broader cryptocurrency market.
Image Source: Zacks Investment Research
(We are reissuing this article to correct a mistake. The original article, issued on February 07, 2024, should no longer be relied upon.)
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
CME Group Inc. (CME) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
