HomeMarket NewsThe Rise of Crypto-Centric Stocks: Capitalizing on the Bitcoin Surge

The Rise of Crypto-Centric Stocks: Capitalizing on the Bitcoin Surge

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Cryptocurrency Market Momentum

Bitcoin (BTC), the pioneering cryptocurrency, has resumed its upward trajectory after a brief hiatus. Closing at 68,411.81 on Mar 4, Bitcoin reached its highest level since November 2021, when it hit an all-time high of 68,982.20.

Entering 2024 on a positive note, the crypto market continues its bullish trend following a robust rally in the previous year. A significant milestone was achieved on Jan 10 when the U.S. Securities and Exchange Commission (SEC) authorized the establishment of spot Bitcoin exchange-traded funds (ETFs), resulting in the launch of 11 such ETFs in January.

Bitcoin’s Potential and Impact

With a remarkable 157% surge in 2023, Bitcoin has already climbed over 21% year-to-date. The recent SEC decision is poised to be transformative, solidifying the crypto realm as a crucial player in mainstream finance.

Furthermore, the upcoming Bitcoin halving scheduled for April 2024 is expected to enhance the digital asset’s scarcity and value, historically leading to a surge in demand.

Exploring Top Crypto-Centric Stocks

Identifying the immense potential in the crypto realm for 2024, we have curated a selection of five stocks with a strong outlook. Notably, each of our picks boasts a Zacks Rank #1 (Strong Buy) or (Buy).

Refer to the graph below for the year-to-date price performance of our recommended stocks:

Zacks Investment Research
Image Source: Zacks Investment Research

NVIDIA Corp. (NVDA), a giant in the semiconductor industry, had a remarkable 2023 and is a pivotal player in the crypto market due to its GPUs’ significance in various sectors. NVDA has a Zacks Rank #1, with an expected earnings growth rate of 79.2% for the current year.

Coinbase Global Inc. (COIN) provides essential financial infrastructure for the crypto economy, catering to both individual consumers and institutions. With a Zacks Rank #1, COIN is forecasted to experience a more than 100% earnings growth rate this year.

CleanSpark Inc. (CLSK), operating as a bitcoin miner, emphasizes sustainability by utilizing low-carbon power sources. Holding a Zacks Rank #2, CLSK is expected to achieve an earnings growth rate of 89.2% this year.

Block Inc. (SQ), an online payment platform, enables Bitcoin transactions through its Cash App. With a Zacks Rank #2, SQ is projected to have a 62.2% earnings growth rate for the current year.

BlackRock Inc. (BLK), a renowned investment management firm, made significant strides by entering the Bitcoin ETF arena in 2023. With a Zacks Rank #2, BLK anticipates a 4.9% earnings growth rate for the current year.

Seizing the Opportunities

These crypto-centric stocks present investors with a unique opportunity to capitalize on the ongoing Bitcoin surge and the broader developments in the digital asset space. With the right blend of innovation, market positioning, and growth prospects, each company stands to benefit from the ever-evolving crypto landscape.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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