Bitcoin Surges Past $100,000: What It Means for Investors

Key Insights

• Bitcoin has surpassed $100,000 again after reaching an all-time high of $106,533 in December.
• Investing in stocks of companies linked to Bitcoin offers investors potential gains aligned with the cryptocurrency.
• Companies like Nvidia, Robinhood Markets, Shopify, Interactive Brokers, and Coinbase are poised to benefit from increasing Bitcoin prices.

The year 2024 started strong for stocks, though market volatility crept back by December’s end. In contrast, the cryptocurrency market has shown resilience. Bitcoin (BTC) recently resumed its upward trajectory after a minor setback following its record high in December.

On Wednesday, Bitcoin once again crossed the $100,000 threshold. This surge came after the release of December’s consumer price index (CPI) data, which indicated a slight easing of inflation by year-end. The excitement around cryptocurrencies has ramped up following Donald Trump’s victory in the U.S. Presidential election, with many anticipating his pro-crypto initiatives will help Bitcoin reach new records.

In light of this positive sentiment, investors may find opportunities in Bitcoin-centric stocks such as NVIDIA Corporation (NVDA), Robinhood Markets, Inc. (HOOD), Shopify Inc. (SHOP), Interactive Brokers Group, Inc. (IBKR), and Coinbase Global, Inc. (COIN). These companies exhibit promising growth potential for 2025, bolstered by favorable earnings revisions over the past two months.

Bitcoin Climbs Back Above $100,000

Following a peak of $106,533 on December 22, Bitcoin experienced a dip of more than 12% at the start of January. Nevertheless, it surpassed $100,000 again recently, buoyed by encouraging inflation data and regulatory developments viewed as positive for the cryptocurrency market.

By Friday morning, Bitcoin had climbed past $102,000, although it was hovering around $101,600 while this article was being prepared.

This surge was fueled by fresh data revealing that the consumer price index (CPI) had increased by 0.4% month-over-month in December, slightly above the anticipated rise of 0.3%. On the year-over-year front, CPI grew 2.9%, aligning with the consensus projection.

The core CPI, which excludes volatile items such as food and energy, increased by 0.2% month-over-month in December, 0.1% under the consensus forecast, and 3.2% compared to the previous year, faring slightly better than the anticipated 3.3% rise.

Optimism Grows Ahead of Trump Inauguration

Bitcoin’s price surge arrived just days before Trump’s inauguration, a move attributed to his anticipated crypto-friendly policies. Many expect that his administration will create an environment supportive of cryptocurrency.

Trump has appointed several pro-crypto figures to significant regulatory and cabinet roles. During his campaign, he pledged to position the United States as the “crypto capital of the world,” outlining plans for a strategic Bitcoin reserve and appointing favorable regulators.

Industry experts predict that loosening cryptocurrency regulations could have a positive impact on Bitcoin, suggesting that 2025 could see record-setting performance. Historically, Bitcoin has reached new heights every four years throughout its two most recent bullish cycles. In these periods, it achieved astonishing gains of 2300% and 1700%, followed by corrections of 70% to 80%.

From its low of $16,000 in early 2023, Bitcoin has escalated by nearly 600%, showcasing significant potential for ongoing growth over the upcoming two years.

Top 5 Crypto-Related Stocks to Watch

NVIDIA Corporation

NVIDIA Corporation has emerged as a leading player in the semiconductor market, achieving remarkable success in 2023. As a top designer of graphic processing units (GPUs), NVDA’s stock typically rises with the cryptocurrency market, driven by the essential role GPUs play in data centers, artificial intelligence, and crypto mining.

NVIDIA’s expected earnings growth rate for the current year exceeds 100%. The Zacks Consensus Estimate for its current-year earnings has risen 3.5% in the last 60 days, with NVIDIA holding a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Robinhood Markets

Robinhood Markets, Inc. operates a financial services platform that allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. Through its Robinhood Crypto feature, HOOD facilitates transactions of Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies.

Robinhood Markets is also expected to see earnings grow by more than 100% this year. The Zacks Consensus Estimate for its current-year earnings has increased by 26.4% in the past 60 days, leading to a Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

Shopify

Shopify Inc. is an e-commerce giant offering a platform that enables merchants to accept cryptocurrencies. The company has partnered with CoinPayments, allowing it to process cryptocurrency transactions seamlessly.

Shopify expects a 70.3% earnings growth rate for the current year, and the Zacks Consensus Estimate for its earnings has improved by 12.5% in the last 90 days. SHOP currently boasts a Zacks Rank #1.

Image Source: Zacks Investment Research

Interactive Brokers Group, Inc.

Interactive Brokers Group, Inc. stands as a global automated electronic broker, facilitating cryptocurrency trading. The IBKR commodities futures trading desk offers clients an opportunity to trade cryptocurrencies.