Cryptocurrencies have been struggling lately, particularly Bitcoin (BTC), after a solid first quarter preceded by a robust 2023. However, analysts believe that Bitcoin still has a lot of potential left and the bull run will soon resume.
Bitcoin was trading above $64,000 on May 6. The cryptocurrency had fallen below $60,000 last month. In March, Bitcoin hit an all-time high of $73,750.
However, comments from Federal Reserve Chairman Jerome Powell last week helped Bitcoin bounce back.
Powell said that it is unlikely that there will be any further interest rate hike. Although he didn’t give a timeline for the first rate cut, the Federal Reserve plans at least three rate cuts by the end of this year, with the first likely to come in June.
The optimism surrounding rate cuts rose following the release of softer-than-expected jobs data.
Several factors have been responsible for the recent decline in Bitcoin price. The ongoing geopolitical tension in the Middle East is among them. Cryptocurrencies, being traded continuously and on a global scale, often display rapid and sometimes more significant reactions compared to stocks.
Given their decentralized nature, cryptocurrencies can swiftly respond to geopolitical events, as traders promptly buy or sell digital assets to manage uncertainty.
With the Bitcoin halving event now over, the cryptocurrency is expected to resume its rally.
Our Choices
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.
NVIDIA Corporation NVDA 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 the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2.
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 12.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.4% over the last 60 days. IBKR currently has a Zacks Rank #1.
Coinbase Global, Inc. COIN offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications, and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 632.4%. The Zacks Consensus Estimate for current-year earnings has improved 168.3% over the last 60 days. Coinbase currently sports a Zacks Rank #1.
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 147.5%.The Zacks Consensus Estimate for current-year earnings has improved 45% over the last 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
