The cryptocurrency rally has come to a sudden halt, with Bitcoin (BTC) retreating sharply from its earlier highs. Over the past couple of days, Bitcoin has lost more than 15%, triggered by a huge selloff of digital assets amid growing fears of a trade war, following President Donald Trump’s announcement of hefty tariffs.
There are a large number of factors weighing on Bitcoin but the decline is temporary as experts believe that the cryptocurrency still has a lot of potential and the rally will resume once the ongoing concerns ease.
Given this scenario, it would be ideal to adopt the buy-the-dip approach. It would thus be ideal to add bitcoin-centric stocks like NVIDIA Corporation NVDA, Interactive Brokers Group, Inc. IBKR Visa Inc. V and Robinhood Markets, Inc. HOOD to your portfolio. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revision in the last 60 days.
The Bitcoin price fell more than 10% on Monday and the decline continued into Tuesday as Trump’s tariffs on Canada and Mexico went into effect. Bitcoin was hovering around $85,500 on Monday night, a sharp decline from its all-time high of $106,533 on Dec. 22.
Over the past couple of months, Bitcoin remained rangebound between $95,000 and $98,000. The sharp decline came in the last two weeks after a wide selloff of digital assets. The selloff came after an initial surge over the weekend after Trump shared his plans to create a national strategic cryptocurrency reserve.
The strategy involves the government accumulating digital assets, mainly from confiscated holdings tied to legal cases or sanctioned entities and businesses. Trump named Bitcoin, Ethereum, XRP, Cardano and Solana as the potential reserve assets.
The idea initially struck a chord with investors, pushing Bitcoin’s price up, but the enthusiasm soon faded as the plan appeared far from reality, with investors questioning whether congressional approval would be given to such a fund.
The biggest drag from cryptocurrencies has been fears surrounding Trump’s tariffs, sparking a global trade war. Since returning to the White House, Trump has threatened several U.S. trading partners with hefty tariffs.
Bitcoin and other cryptocurrencies are expected to take a further hit as Trump’s 25% tariffs on Canadian and Mexican goods, which were paused for a month, came into effect on Tuesday. Canada and Mexico also announced retaliatory tariffs on Monday night. Besides, Trump has also threatened the European Union with hefty tariffs in the coming days.
However, Bitcoin still has a lot of potential. The cryptocurrency had a stellar 2024, surging over 89.7%, and experts predict Bitcoin to hit $150,000 this year. Moreover, Bitcoin has historically reached record highs every four years, following bullish cycles since 2017. In previous cycles, it gained 2,300% and 1,700% before undergoing corrections of 70% to 80%. From its early 2023 low of $16,000, Bitcoin has soared nearly 600%, signaling strong growth potential in the near term.
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 the current year is 42.1%. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group, Inc. 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 6.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 60 days. IBKR currently has a Zacks Rank #1.
Visa Inc. is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa Inc.’s expected earnings growth rate for the current year is 12.4%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 60 days. V 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 the current year is 38.5%.The Zacks Consensus Estimate for current-year earnings has improved 54.1% over the last 60 days. Robinhood Markets currently has a Zacks Rank #1.
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