Bitcoin
4 Solid Crypto Stocks to Bet Before the Next Bitcoin Rally – May 24, 2024
The cryptocurrency rally came to a sudden halt in April after a robust 2023 and first quarter. The first quarter saw Bitcoin (Bitcoin), the most popular cryptocurrency in the world, reaching an all-time high of $73,750.
However, Bitcoin has retreated sharply since then, with its price hovering around $68,000 on May 23. In fact, Bitcoin is down 15% since reaching an all-time high on March 14.
One of the main reasons behind the decline is the recently concluded halving event, which occurs once every four years. The halving event reduces the block reward by half, aiming to limit Bitcoin’s total supply to 21 million coins. As a result, the reduced rate of issuance of new Bitcoins typically leads to increased demand for the cryptocurrency, which in turn tends to increase its price.
Furthermore, Wall Street suffered in April after a rebound in the first quarter as concerns about rising inflation grew. This caused optimism around rate cuts to quickly fade, as investors feared that the Federal Reserve might keep interest rates higher for a longer period.
High interest rates have a negative impact on growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, Bitcoin still has a lot of potential. Year to date, Bitcoin has gained 54% after increasing 207% in 2023. The halving event has also concluded.
Furthermore, the cryptocurrency has jumped more than 50% since the launch of the first Bitcoin ETFs in early January.
The minutes of the Federal Reserve’s FOMC meeting, from April 30 to May 1, revealed that several officials are in favor of raising interest rates if necessary, as inflation is still above its objective of two%.
However, recent economic data showed that inflation declined in April, after rising in the first quarter. The consumer price index (CPI) increased 0.3% month-on-month in April, which was lower than economists’ expectations of a 0.4% increase. Year over year, the CPI rose 3.4%.
Furthermore, UJS GDP grew by just 1.6% in the first quarter after expanding by 3.4% in the last quarter of 2023. Additionally, retail sales remained stable in April after increasing by 0.3%. % in March, while industrial and services activity also slowed last month.
These signs of a slowing economy have raised hopes that the Federal Reserve could soon initiate interest rate cuts, which would help the cryptocurrency market.
Our choices
We’ve narrowed down our research to four crypto-focused stocks with strong potential for 2024. Each of our picks carries 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 – Free report) is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA’s stock value is likely to rise in a thriving crypto market. This is mainly due to the crucial role that GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA’s expected earnings growth rate for the current year is 89.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. NVIDIA currently sports a Zacks Rank #1.
Robinhood Markets, Inc. (HOOD – Free report) 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 198.4%. The Zacks Consensus Estimate for current-year earnings has improved 160.9% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.
Coinbase Global, Inc. (COIN – Free report) provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquid marketplace for institutional transactions of crypto assets, and technology and services for developers to create crypto-based applications and securely accept cryptocurrencies as payment.
Coinbase Global’s expected 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 #1.
Interactive Brokers Group, Inc. (IBKR – Free report) is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. The IBKR commodity futures trading desk also offers clients the opportunity to trade cryptocurrency futures.
Interactive Brokers Group has 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 has a Zacks Rank #2.
Where will the shares go…
If Biden wins? If Trump wins?
The answers may surprise you.
Since 1950, even after negative interim years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost relentlessly optimistic, regardless of which party wins!
Now’s the time to download Zacks’ free Special Report on 5 Stocks Offering Extreme Advantage for Democrats and Republicans…
1. Medical Manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its industry.
3. Energy power plans to increase its already large dividend by 25%.
4. Aerospace and Defense Spotlight has just closed a potentially $80 billion contract.
5. Giant chip maker is building huge factories in the USA