News
3 Crypto Stocks to Buy Amid Continued Market Volatility
The cryptocurrency rally has suddenly taken a break since April, after 15 months of solid run. The price of Bitcoin (BTC) has fallen below $68,500 after hitting an all-time high of $73,750 in March.
Since then, Bitcoin has fallen by more than 15%. However, the cryptocurrency still has a lot of potential and experts believe that the rally 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 are responsible, including the Bitcoin halving event. The halving event, which occurs once every four years, reduces the block reward by 50%, with the aim of limiting the total supply of Bitcoin to 21 million coins.
This reduction in the rate of issuance of new Bitcoins usually increases the 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. Additionally, Wall Street’s rally suffered a brief setback in April as concerns about rising inflation and interest rate hikes mounted.
Inflation rose in the first quarter, raising concerns that the Fed could keep interest rates higher for a longer period of time. Higher interest rates negatively impact growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, inflation eased in April, fueling hopes of an upcoming rate cut, which pushed stocks higher 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 consumer price index increased by 3.4%.
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 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.
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. IBKR’s commodity futures trading desk also offers clients the ability to trade cryptocurrency futures.
The story continues
Interactive Brokers Group expects 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 carries a Zacks Rank #2.
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 357.3% over the past 60 days. Coinbase currently sports a Zacks Rank of #1. 1.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click to get this free report
Interactive Brokers Group, Inc. (IBKR) – Free stock analysis report
NVIDIA Corporation (NVDA) – Free stock analysis report
Coinbase Global, Inc. (COIN) – Free stock analysis report