4 Crypto-Centric Stocks With Upside on Bitcoin's Expected 2025 Rally

12/23/2024 22:16

Teaser: Invest in Bitcoin-centric stocks like NVIDIA (NVDA), BlackRock (BLK), Shopify (SHOP) and Robinhood Markets (HOOD) with strong growth potential for 2025.

The cryptocurrency rally has slowed over the past few days, with Bitcoin (BTC) recording its first weekly decline since Donald Trump’s win in the Presidential election in early November. Bitcoin fell nearly 10% for the week ending Dec. 22 after hitting an all-time high on Dec. 16.

The recent decline came after the Federal Reserve gave a hawkish outlook for rate cuts in 2025. However, the cryptocurrency still has a lot of potential and is poised to rally in the near term as expectations continue to build on Trump’s crypto-friendly policies.

Investing in Bitcoin-centric stocks like NVIDIA Corporation NVDA, BlackRock BLK, Shopify Inc. SHOP and Robinhood Markets, Inc. HOOD would thus be a smart choice. These stocks have a strong growth potential for 2025. Each of these stocks has seen positive earnings estimate revision in the past 60 days and 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.

Bitcoin started 2024 on a high after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The cryptocurrency hit an all-time high for the first time this year in March, with its price hitting $73,750. However, the rally fizzled out soon after that as the Federal Reserve delayed its rate cuts and even the halving event in April failed to lift the cryptocurrency.

The rally returned in September after the Federal Reserve slashed interest rates for the first time in over four years with a jumbo 50-basis-point cut. The rally gathered further steam after Trump’s election victory, jumping nearly 50% in a month, to hit an all-time high of $106,533 on Dec. 22.

However, Bitcoin has declined slightly over the past few sessions after the Federal Reserve last week said that it sees a maximum of two rate cuts next year. Bitcoin was trading over $95,320 on Sunday evening but is still in a comfortable space.

The recent comments from the Federal Reserve have somewhat unsettled Bitcoin and the broader market but investors are still holding a lot of hope from the incoming President, who is known for his crypto-friendly environment.

The President-elect has already appointed several pro-crypto people to key cabinet and regulatory positions. During his campaign, Trump promised to transform the United States into the "crypto capital of the world," revealing plans to create a strategic Bitcoin reserve and choose regulators supportive of digital assets.

Also, the Federal Reserve, despite its hawkish comments, slashed interest rates by 25 basis points in its December policy meeting, the third rate cut this year, which bodes well for the cryptocurrency going in 2025.

NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.

NVIDIA’s expected earnings growth rate for next year is 41.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. Currently, NVIDIA has a Zacks Rank #2.

BlackRock is one of the world’s largest investment managers and is publicly owned. BLK was among the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.

BlackRock’s expected earnings growth rate for next year is 14.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. BLK currently has a Zacks Rank #3.

Shopify Inc. is an e-commerce corporation that provides a platform for merchants to accept cryptocurrencies as a form of payment. Additionally, SHOP has established integration with CoinPayments, a processor for cryptocurrency payments.

Shopify’s expected earnings growth rate for next year is 18.4%. The Zacks Consensus Estimate for its current-year earnings has improved 11.6% over the past 60 days. SHOP currently has a Zacks Rank #2.

Robinhood Markets, Inc. 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 next year is 22.5%.The Zacks Consensus Estimate for current-year earnings has improved 8.1% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3.

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