Bitcoin
3 Crypto Stocks to Watch Closely as Bitcoin Rises
The price of Bitcoin (BTC) gained momentum in 2021 due to institutional adoption, but took a beating in 2022 amid regulatory and environmental concerns. However, Bitcoin has had a prodigious 2023, with the price of the leading cryptocurrency rising 157%. The bullish momentum continued into 2024, with the price of Bitcoin surpassing the $60,000 mark in early March and rising above the $71,000 threshold early on May 21.
Recent Federal Reserve official concerns about price pressures, with many remaining hesitant to cut interest rates soon, regrettably dampened the price of Bitcoin on May 22. Bitcoin is trading slightly above the $69,000 mark, but crypto market aficionados expect the bull run to continue as long as the price does not breach this level.
The price of Bitcoin has already risen more than 50% this year, easily outpacing stocks and bonds. And the upward trajectory is expected to last mainly due to the regulatory approval of 10 spot Bitcoin ETFs in January. Morningstar Direct confirmed that the 10 spot Bitcoin ETFs witnessed a net inflow of $7 billion by the end of February.
Thanks to regulatory approvals, institutional and retail investors have gained exposure to the world’s leading cryptocurrency through brokerage accounts. This legitimized Bitcoin’s status as a credible asset class, which should help its price rise in the near future. The probability of spot ether ETF is also expected to boost Bitcoin’s recovery. The SEC has asked exchanges intending to list ether ETFs to update their 19b-4 filings.
Additionally, strong bipartisan support recently helped the House of Representatives pass a historic encryption bill. Nearly all Republicans and 71 Democrats voted in favor of the crypto legislation, a telling sign that Washington has confidence in the reliability of the digital asset sector. The Biden administration’s change in stance undoubtedly bodes well for the price of Bitcoin and other digital currencies.
So, with things looking great for Bitcoin, astute investors should keep an eye on stocks that can make the most of Bitcoin’s relentless bull run. Some of the notable names are Block, Inc.. Square, Coinbase Global, Inc. CURRENCY and NVIDIA Corporation NVDA.
Digital Payment Company Block generates revenue from products such as Cash App. On this platform, Bitcoin is bought and sold. Block can substantially increase its customer base and increase profit margins. Block currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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The Zacks Consensus Estimate for Block’s current-year earnings has moved 2% higher over the past 60 days. Block’s expected earnings growth rate for the current year is 73.9%. Its estimated revenue growth rate for the current year is 15.1%.
Coin base is a crypto trading platform where various digital assets including Bitcoin are traded. Coinbase currently has a Zacks Rank #1.
The Zacks Consensus Estimate for Coinbase’s current-year earnings has increased 357.3% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,840.5%. Its estimated revenue growth rate for the current year is 83.5% (read more: 2 stocks in Cathie Wood’s portfolio to watch now).
Semiconductor giant NVIDIA is designing GPUs for mining cryptocurrencies like Bitcoin. NVIDIA recently released earnings results for the first quarter ending April 28, 2024, which shattered Wall Street expectations. NVIDIA currently has a Zacks Rank #1.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has moved 2.5% higher over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 89.2%. Its estimated revenue growth rate for the current year is 77.7%.
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