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3 Crypto Stocks to Buy on Bitcoin’s Long-Term Outlook
Cryptocurrencies have been struggling lately, with Bitcoin (BTC) briefly dipping below $60,000 on June 24. Although Bitcoin recovered some of its losses and traded just above $61,000, it fell sharply from its all-time high of $73,750.07 reached on March 14.
The cryptocurrency has fallen 6% over the past seven days due to heavy selling pressure from continued ETF outflows due to upcoming Mt. Gox bankruptcy redemptions. However, many other factors weighed on Bitcoin, which had a solid 2023 and first quarter.
Bitcoin’s rally picked up pace in January after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in a groundbreaking move aimed at giving both retail and institutional investors a way regulated and accessible to invest in cryptocurrency.
The rally came to a halt in April with Bitcoin’s halving event, which occurs every four years and reduces the block reward by 50%, with the aim of limiting Bitcoin’s total supply to 21 million coins. This reduction in Bitcoin’s new supply rate typically increases demand for cryptocurrencies, often causing a surge in prices.
Now that the Bitcoin halving has concluded, there is widespread speculation that the reduction in supply will cause prices to rise due to short-term scarcity.
Additionally, on June 12, Federal Reserve Chair Jerome Powell, in his post-FOMC meeting statement, said that the Fed expects only one rate cut this year. Bitcoin’s recent decline can also be attributed to Powell’s comments.
It goes without saying that Bitcoin’s decline is temporary. The cryptocurrency has rallied 43.5% year to date after gaining 157% in 2023.
Furthermore, a single 25 basis point rate cut in 2024 would benefit the cryptocurrency market and the overall economy, especially since many market participants had already predicted that there would be no rate cut this year. Low interest rates are beneficial for growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
At this point, investors should take a long-term perspective.
Our choices
We’ve narrowed our search to three cryptocurrency-oriented stocks that have strong potential for 2024. Each of our picks has a Zacks Rank #1. 1 (Strong Buy) or 2 (Buy). 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 AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
The story continues
NVIDIA has an expected earnings growth rate of 106.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.1% over the past 60 days. NVDA currently sports a Zacks Rank #1.
Coinbase Global, Inc. COIN offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquidity marketplace for institutional transactions of crypto assets, and technology and services for developers to build cryptocurrency-based applications and securely accept cryptocurrencies as payment.
Coinbase Global’s forecast earnings growth rate for the current year is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 219.1% over the past 60 days. Coinbase currently sports a Zacks Rank of #1. 1.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the ability to trade cryptocurrency futures.
Interactive Brokers Group expects an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.3% over the past 90 days. IBKR currently carries a Zacks Rank #2.
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Interactive Brokers Group, Inc. (IBKR) – Free Stock Analysis Report
NVIDIA Corporation (NVDA) – Free stock analysis report
Coinbase Global, Inc. (COIN) – Free stock analysis report