3 Crypto Stocks to Watch as Bitcoin Stages a Comeback

08/12/2024 23:29

Stocks like Robinhood Markets, Inc. (HOOD), NVIDIA Corporation (NVDA) and Interactive Brokers Group, Inc. (IBKR) are poised to gain once the crypto rally resumes.

The broader market bloodbath last week also saw cryptocurrencies suffering. Bitcoin, which is trying to stage a rebound after slowing down over the past couple of months, saw prices falling below $55,000.

However, fresh economic data released last week eased some of the fears from the minds of investors, and Bitcoin is once again trying to rebound, with its price surpassing $60,000 on Aug 8.

On Aug 11, Bitcoin was hovering around $58,700. Although Bitcoin is still more than 13% down from last week, the cryptocurrency has had a bull run for most of this year after a solid 2023.

Bitcoin hit an all-time high of $73,750 on Mar 14. This year's surge gained momentum after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The approval was done with the aim of helping both individual investors and large institutions to invest in Bitcoin through a regulated and accessible platform.

However, the rally stalled in April, and even the Bitcoin halving event failed to lift the price.

The halving event, which reduces the reward for mining new blocks by half to cap the total supply of Bitcoins at 21 million, typically increases demand and drives up prices. Despite this, Bitcoin saw a significant drop, with its price falling below $59,000.

The rally resumed once again in July but came to an abrupt halt last week. Bitcoin price might remain rangebound for some more time as volatility in the broader market is still far from over.

However, Bitcoin is poised to gain in the near term as the Federal Reserve is expected to start its rate cuts from September. This is likely to give Bitcoin a boost, as lower interest rates generally benefit growth-oriented assets, such as technology stocks, consumer discretionary goods and cryptocurrencies.

Stocks in Focus

We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either 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.

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’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 10.9% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3.

NVIDIA Corporation NVDA is the worldwide leader in visual computing technologies and the inventor of the graphic 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 more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. NVDA presently has a Zacks Rank #3.

Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.

Interactive Brokers Group has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the last 60 days. IBKR currently sports a Zacks Rank #1.

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