Markets
3 Crypto Stocks to Buy Amid Current Market Volatility
The cryptocurrency rally has suddenly taken a break since April, after 15 months of solid progress. The price of Bitcoin (BTC) has fallen below $68,500 since hitting an all-time high of $73,750 in March.
Since then, Bitcoin has fallen more than 15%. However, the cryptocurrency still holds a lot of potential and experts believe that the rally will resume soon. Year to date, Bitcoin has gained 54.3% after gaining 207% in 2023.
This year’s rally was largely fueled by the approval of 11 spot Bitcoin ETFs in January. It has gained more than 50% since approval.
The recent decline is temporary as several factors, including the Bitcoin halving, are responsible for it. The halving event, which occurs every four years, reduces the block reward by 50%, with the aim of capping Bitcoin’s total supply at 21 million coins.
This reduction in the rate of new issuance of Bitcoin generally increases demand for the cryptocurrency, often causing its price to rise.
However, the halving event is over and Bitcoin is expected to regain momentum. Additionally, Wall Street’s rally took a brief pause in April as concerns about rising inflation and interest rates grew.
Inflation rose in the first quarter, raising concerns that the Fed could keep interest rates higher for a longer period. Higher interest rates negatively affect growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, inflation eased in April, raising hopes of an upcoming rate cut, which sent stocks higher in May. The Consumer Price Index (CPI) rose 0.3% month over month in April, below the consensus estimate of a 0.4% increase. Year over year, the CPI increased 3.4%.
Our choices
We 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 Company NVDA is the global leader in visual computing technology and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA forecasts an earnings growth rate of 93.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.7% over the past 60 days. NVDA currently sports a Zacks Rank #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 opportunity to trade cryptocurrency futures.
The story continues
Interactive Brokers Group forecasts an 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.
Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a marketplace with liquidity for institutional transactions of crypto assets, and technology and services enabling developers to create crypto-based applications and accept cryptocurrencies securely 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.
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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