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3 Crypto Stocks to Watch Closely for Bitcoin’s Bull Run
The price of Bitcoin (BTC) gained momentum in 2021 due to institutional adoption, but took a hit in 2022 due to regulatory and environmental issues. However, Bitcoin had a prodigious 2023, with the price of the flagship cryptocurrency up 157%. The bullish momentum continued in 2024, with the Bitcoin price surpassing the $60,000 mark in early March and surpassing the $71,000 threshold in early May 21.
Recent concerns from Federal Reserve officials over price pressures, with many hesitant to cut interest rates anytime soon, unfortunately dampened Bitcoin’s price on May 22. Bitcoin is trading slightly above the $69,000 mark, but crypto market aficionados expect the uptrend to continue. as long as the price does not exceed this level.
The price of Bitcoin has already soared more than 50% this year, easily outpacing stocks and bonds. And the upward trajectory is poised to last, primarily due to the regulatory approval of 10 spot Bitcoin ETFs in January. Morningstar Direct confirmed that the 10 spot Bitcoin ETFs saw a net inflow of $7 billion through the end of February.
With regulatory approvals, retail and institutional investors have gained exposure to the world’s number one cryptocurrency through brokerage accounts. This has legitimized Bitcoin’s status as a credible asset class, which is expected to contribute to its price rise in the near future. The likelihood of an ether spot ETF is also expected to boost Bitcoin’s rally. The SEC has asked exchanges aiming to list ether ETFs to update their 19b-4 filings.
Additionally, strong bipartisan support recently helped the House of Representatives pass a landmark crypto bill. Nearly all Republicans and 71 Democrats voted in favor of the crypto legislation, a telling sign of Washington’s confidence in the reliability of the digital asset sector. The Biden administration’s change in stance undoubtedly bodes well for the price of Bitcoin and other digital coins.
So while things look good for Bitcoin, savvy investors should keep an eye on stocks that can make the most of Bitcoin’s relentless uptrend. Some of the notable names are Block, Inc.. S.Q., Coinbase Global, Inc. COIN and NVIDIA Company NVDA.
Digital payment company Block generates revenue from products like Cash App. On this platform, Bitcoin is bought and sold. Block can significantly increase its customer base and increase its profit margins. Block currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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The Zacks Consensus Estimate for Block’s current year earnings has increased 2% over the past 60 days. Block’s expected earnings growth rate for the current year is 73.9%. Its estimated revenue growth rate for the current year is 15.1%.
Coinbase is a cryptocurrency trading platform where several digital assets, including Bitcoin, are traded. Coinbase currently has a Zacks Rank #1.
The Zacks Consensus Estimate for Coinbase’s current year earnings has increased 357.3% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,840.5%. Its estimated revenue growth rate for the current year is 83.5% (read more: 2 Cathie Wood Portfolio Stocks to Watch Now).
Semiconductor giant Nvidia designs GPUs for mining cryptos such as Bitcoin. NVIDIA recently released its first quarter results, ended April 28, 2024, which shattered Wall Street’s expectations. NVIDIA currently has a Zacks Rank #1.
The Zacks Consensus Estimate for NVIDIA’s current year earnings has increased 2.5% over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 89.2%. Its estimated revenue growth rate for the current year is 77.7%.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
Block, Inc. (SQ): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report