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4 Solid Crypto Stocks to Buy Before the Next Bitcoin Rally
The cryptocurrency rally came to an abrupt end after a solid 15-month period that saw Bitcoin (BTC) hit an all-time high earlier this year. However, the price of Bitcoin has remained capped and is currently trading below 69,000.
This comes despite renewed optimism that the Federal Reserve may soon begin interest rate cuts.
Bitcoin reached an all-time high of $73,750 in March. Since then its price has fallen by more than 16%. However, the recent decline is temporary, as Bitcoin has achieved a dream over the past year. Year-to-date, Bitcoin has gained 56.2% after rallying more than 207% in 2023.
The Bitcoin rally gained steam in early January after the SEC approved 11 spot Bitcoin ETFs. The cryptocurrency dropped in April as the halving event began.
The halving event, which occurs once every four years, reduces the block reward by 50%, with the aim of limiting Bitcoin’s total supply to 21 million coins.
Demand for cryptocurrencies typically increases in response to this decrease in Bitcoin’s new supply rate, which often causes its price to rise.
However, the halving event is now over and Bitcoin is expected to regain momentum. Furthermore, weak manufacturing data and falling inflation in April have once again fueled hopes that the Federal Reserve may soon begin rate cuts. Higher interest rates negatively impact growth assets, such as cryptocurrency, consumer discretionary stocks, and technology companies.
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 107.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12% over the past 60 days. NVDA currently sports a Zacks Rank #1.
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.
The story continues
Coinbase Global’s forecast earnings growth rate for the current year is over 100%. The Zacks Consensus Estimate for current-year earnings has improved 305.7% over the past 60 days. Coinbase currently sports a Zacks Rank of #1. 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.
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.
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 200%. The Zacks Consensus Estimate for current-year earnings has improved 165.2% 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