The cryptocurrency market is recovering well, with Bitcoin (BTC) poised to reach $70,000 after a dip below $60,000 last month. The Federal Reserve’s significant rate cut announcement in September, coupled with the upcoming U.S. election, has sparked interest in riskier assets, particularly tech stocks and cryptocurrencies.
In light of this, investing in Bitcoin-related stocks like Robinhood Markets, Inc. HOOD, NVIDIA Corporation NVDA, and CME Group Inc. CME could be beneficial as these companies show promising growth potential in the near future.
Bitcoin’s Strong Recovery
Bitcoin was trading at $67,249.66 on Thursday, having peaked at $68,376 on Wednesday. This momentum positions Bitcoin well to reach new highs as enthusiasm around riskier assets grows following the Fed’s 50-basis-point rate cut last month and with the U.S. Presidential election approaching in less than a month.
The rally has also been supported by increased global liquidity and economic stimulus from China. Bitcoin last exceeded $70,000 in July, reaching an all-time high of $73,750 on March 14. Recently, the cryptocurrency reported an 11% increase for the week, marking its largest gain since April and the highest in ten weeks.
Stocks Poised for Growth
Since the Fed’s dovish stance began with its first rate cut in over four years last month, market participants are optimistic about two more potential 25-basis-point rate cuts this year, which could further fuel the rally in cryptocurrencies.
Lower interest rates boost the attractiveness of growth assets like cryptocurrencies by lowering the opportunity cost of holding non-yielding investments. In a low-interest environment, many investors turn to assets with higher potential returns, despite the associated risks.
Three Promising Bitcoin-Related Stocks
Robinhood Markets
Robinhood Markets offers a financial services platform in the U.S. that enables users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. Through its Robinhood Crypto platform, HOOD allows buying and selling of Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies.
The expected earnings growth rate for Robinhood Markets for the current year exceeds 100%, with the Zacks Consensus Estimate for current-year earnings improving by 38.2% in the last 90 days. Robinhood currently holds a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NVIDIA
NVIDIA is a leading company in visual computing technologies and the inventor of the graphics processing unit (GPU). Over time, NVDA has shifted from focusing solely on PC graphics to developing AI-based solutions that encompass high-performance computing, gaming, and virtual reality platforms.
NVIDIA’s expected earnings growth rate also exceeds 100% for the current year, with the Zacks Consensus Estimate for current-year earnings increasing by 4.5% over the last 60 days. NVDA maintains a Zacks Rank of #2.
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CME Group Inc.
CME Group Inc. provides options that allow the buyer to buy or sell cryptocurrency futures contracts at a specific price on a future date. CME offers options for both Bitcoin and Ethereum based on its cash-settled standard and micro futures contracts.
CME Group anticipates an earnings growth rate of 7.9% for the current year, with the Zacks Consensus Estimate for current-year earnings improving by 3.2% over the past 90 days. CME also holds a Zacks Rank of #2.
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