Markets
3 Crypto Stocks to Buy Amid Continued Market Volatility
The cryptocurrency recovery has come to a sudden halt since April after 15 months of a solid run. The price of Bitcoin (BTC) has fallen below $68,500 since reaching an all-time high of $73,750 in March.
Bitcoin has fallen more than 15% since then. However, the cryptocurrency still has a lot of potential and experts believe that the recovery will resume soon. Year to date, Bitcoin has gained 54.3% after gaining 207% in 2023.
This year’s rally was largely fueled by the approval of 11 spot Bitcoin ETFs in January. It has gained more than 50% since approval.
The recent decline is temporary as several factors, including the Bitcoin halving event, are responsible for it. The halving event, which occurs once every four years, reduces the block reward by 50%, with the aim of capping Bitcoin’s total supply at 21 million coins.
This reduction in the rate of issuance of new Bitcoins generally increases demand for the cryptocurrency, often leading to an increase in its price.
However, the halving event is over and Bitcoin is expected to regain momentum. Furthermore, Wall Street’s recovery was briefly interrupted in April as concerns about rising inflation and interest rate hikes grew.
Inflation rose in the first quarter, raising fears that the Fed could keep interest rates higher for a longer period of time. Higher interest rates negatively affect growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, inflation eased in April, raising hopes of a rate cut soon, which led to stocks rallying in May. The consumer price index (CPI) rose 0.3% month over month in April, below the consensus estimate of a 0.4% increase. Year over year, the CPI rose 3.4%.
Our choices
We’ve narrowed down our research to four crypto-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). You can see The complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation NVDA is the world leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming, and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 93.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the past 60 days. NVDA currently sports a Zacks Rank #1.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. The IBKR commodity futures trading desk also offers clients the opportunity to trade cryptocurrency futures.
The story continues
Interactive Brokers Group has an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. IBKR currently has a Zacks Rank #2.
Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquid marketplace for institutional transactions of crypto assets, and technology and services for developers to create crypto-based applications and securely accept cryptocurrencies as payment.
Coinbase Global’s expected earnings growth rate for the current year is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 357.3% over the past 60 days. Coinbase currently sports a Zacks Rank #1.
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