Bitcoin
Bitcoin Price Struggles at $66K, But These 4 Crypto Stocks Shine
After strong performance in 2023 and early 2024, major cryptocurrencies, especially Bitcoin (BTC), faced a recession. Bitcoin, the leading cryptocurrency, reached an all-time high of $73,750 in March, with the price rising unprecedentedly following the launch of the ETF. However, it has since suffered a significant setback.
Bitcoin Price Metrics
Throughout May, Bitcoin remained well below $70,000, and June didn’t see much improvement. On June 14, Bitcoin fell below $65,000 before recovering slightly to $66,000. Several factors have contributed to the recent decline in Bitcoin’s price. An important event was the Bitcoin Halving in April, which reduced the block reward by 50%.
This event occurs every four years to limit Bitcoin’s total supply to 21 million coins. Typically, halving events boost demand and prices, but this year, Bitcoin price failed to regain its momentum after the halving. The halving forced miners to sell their BTC block rewards to avoid losses, thus catalyzing the downtrend.
Furthermore, another factor affecting the price of Bitcoin has been the broader economic environment. In April, concerns about rising inflation and potential interest rate hikes caused a pause in Wall Street’s recovery. Although inflation eased in April and May, the Federal Reserve’s uncertain stance on rate cuts kept investors nervous.
Additionally, Fed Chairman Jerome Powell has indicated just one rate cut this year, down from the three projected in March. He cited persistent inflation above the Fed’s 2% target, which affected this decision. Additionally, high interest rates negatively impact growth assets, including technology stocks and cryptocurrencies.
Despite these challenges, experts believe that Bitcoin’s price decline is temporary. Year-to-date, Bitcoin is up 45.5%, following a 207% surge in 2023. Therefore, analysts believe that a recovery could be witnessed soon if BTC does not lose control of crucial support levels.
Read too: Why is the price of Bitcoin (BTC) falling rapidly today?
4 Crypto Stocks to Watch
As Bitcoin’s price struggles, certain crypto stocks have shown strong potential for 2024. Four notable picks, each with a favorable Zacks Rank, include Coinbase Global, Inc.) and Interactive Brokers Group, Inc.
Coinbase Global: The company provides financial infrastructure for the cryptocurrency economy, including a primary financial account for consumers, a marketplace for institutional transactions, and tools for developers. Coinbase’s earnings are expected to grow more than 100% this year, with a 219.1% improvement in the Zacks Consensus Estimate for current-year earnings over the past 60 days. O Coin Stock holds a Zacks Rank of “Strong Buy.”
Robinhood Markets: The company offers a financial services platform for trading stocks, ETFs, options, gold and cryptocurrencies. Robinhood’s earnings growth rate for this year exceeds 100%, with the Zacks Consensus Estimate for current-year earnings improving 110.3% over the past 60 days. Furthermore, HOOD stock is rated “Buy” by Zacks.
NVIDIA Corporation: A leader in visual computing and GPU technology, it has shifted its focus to AI-based solutions for high-performance computing, gaming and VR platforms. NVIDIA’s earnings are expected to grow 106.2% this year, with the Zacks Consensus Estimate for current-year earnings improving 12.6% over the past 60 days. NVDA has a Zacks “Strong Buy” rating.
Interactive Brokers Group: A global automated electronic brokerage that facilitates cryptocurrency trading. Its earnings are forecast to grow 14.6% this year, with a 2% improvement in the Zacks Consensus Estimate for current-year earnings over the past 60 days. IBKR has a Zacks Rank of “Buy.”
Read too: 20,000 Bitcoin Options Expiration Positions Maximum Pain Price at $68,500, What’s Next?