Markets
3 Crypto Stocks to Buy for Bitcoin’s Long-Term Perspective
Cryptocurrencies have suffered lately, with Bitcoin (CRYPTO:BTC) briefly fell below $60,000 on June 24. Although Bitcoin pared some losses and was trading just above $61,000, it declined sharply from its all-time high of $73,750.07 reached on March 14.
The cryptocurrency has fallen 6% over the past seven days due to heavy selling pressure from continued ETF outflows due to impending Mt. Gox buybacks. However, several other factors have weighed on Bitcoin, which has had a strong 2023 and first quarter.
Bitcoin’s rally accelerated in January after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs), in a groundbreaking move to give retail and institutional investors a regulated way and accessible to invest in cryptocurrency.
The rally came to a halt in April with the Bitcoin halving event, which occurs every four years and reduces the block reward by 50%, aiming to cap the total supply of Bitcoin at 21 million coins. This reduction in the rate of supply of new Bitcoins typically increases demand for the cryptocurrency, often causing prices to spike.
Now that the Bitcoin halving event is over, there is widespread speculation that the reduced supply will cause prices to rise due to the short-term shortage.
Additionally, on June 12, Federal Reserve Chairman Jerome Powell, in his post-FOMC meeting statement, mentioned that the Fed only expects one rate cut this year. Bitcoin’s recent decline can also be attributed to Powell’s comments.
It goes without saying that the fall of Bitcoin is temporary. The cryptocurrency has gained 43.5% since the start of the year, after gaining 157% in 2023.
Additionally, a one-time rate cut of 25 basis points in 2024 would benefit the cryptocurrency market and the economy as a whole, especially since many market participants had already predicted no rate cuts this year . Low interest rates are beneficial for growth assets like technology stocks, consumer discretionary stocks and cryptocurrencies.
At this point, investors should take a long-term perspective.
Our choices
We narrowed our search to three crypto-focused stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).
NVIDIA Company (NASDAQ: NVDA) is the world leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-powered solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA forecasts earnings growth of 106.2% for the current year. The Zacks consensus for current-year earnings has increased 12.1% over the past 60 days. NVDA currently has a Zacks Rank #1.
Coinbase Global, Inc. (NASDAQ: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, as well as technologies and services enabling developers to create crypto-based applications and d ‘accept cryptocurrencies securely as a means of 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 by 219.1% over the past 60 days. Coinbase currently sports a Zacks Rank #1.
Interactive Brokers Group, Inc. (NASDAQ: 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.
Interactive Brokers Group forecasts earnings growth of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has increased 7.3% over the past 90 days. IBKR currently sits at a Zacks Rank #2.
To read this article on Zacks.com click here.