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4 Solid Cryptocurrency Stocks to Buy
Cryptocurrencies have been struggling lately, especially Bitcoin (BTC), after a solid first quarter preceded by a robust 2023. However, analysts believe that Bitcoin still has a lot of potential and that the bull run will resume soon.
On May 6, Bitcoin was trading above $64,000. Last month the cryptocurrency fell below $60,000. In March, Bitcoin reached an all-time high of $73,750.
However, comments from Federal Reserve Chair Jerome Powell last week helped Bitcoin recover.
Powell said a further increase in interest rates was unlikely. While he did not provide a timeline for the first rate cut, the Federal Reserve expects at least three rate cuts by the end of this year, with the first likely to occur in June.
Optimism about rate cuts increased following the release of weaker-than-expected employment data.
Several factors have been responsible for the recent decline in the price of Bitcoin. Among these is the ongoing geopolitical tension in the Middle East. Cryptocurrencies, being traded continuously and on a global scale, often show rapid and sometimes more significant reactions than stocks.
Given their decentralized nature, cryptocurrencies can respond quickly to geopolitical events, as traders readily buy or sell digital assets to manage uncertainty.
With Bitcoin’s halving event now over, the cryptocurrency is expected to resume its rally.
Our choices
We have narrowed our search to four cryptocurrency-oriented stocks that have strong potential for 2024. Each of our picks has a Zacks Rank #1. 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 a major player in the semiconductor industry and has been one of the biggest success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA stock value tends to rise in a thriving cryptocurrency market . This is mainly due to the crucial role that GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA’s forecast earnings growth rate for the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. NVIDIA currently has a Zacks Rank of #1. 2.
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 12.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.4% over the past 60 days. IBKR currently carries a Zacks Rank #1.
The story continues
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 expected earnings growth rate for next year is 632.4%. The Zacks Consensus Estimate for current-year earnings has improved 168.3% over the past 60 days. Coinbase currently sports a Zacks Rank #1. 1.
Robinhood Markets, Inc. HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ forecast earnings growth rate for the current year is 147.5%. The Zacks Consensus Estimate for current-year earnings has improved 45% over the past 60 days. Robinhood Markets currently has 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
Robinhood Markets, Inc. (HOOD) – Free stock analysis report