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4 targeted actions in a context of volatility in the cryptocurrency market
The cryptocurrency market started 2024 on a positive note after closing last year on a positive note. On January 10, the most anticipated moment arrived, when the United States Securities and Exchange Commission (“SEC”) finally gave the green light to 11 Bitcoin spot ETFs.
The move, considered one of the most important events in the history of the cryptocurrency market, fueled the Bitcoin (BTC) rally. This approval will now allow retail investors to trade the world’s largest cryptocurrency without actually owning it.
Bitcoin prices rose above $47,500 following the announcement. However, the price of Bitcoin has since fallen sharply. On January 18, Bitcoin fell almost 3.5% to $41,364.33. Previously, it fell to $40,601.37, hitting its lowest level since December 18.
Although last week’s positive news raised hopes that Bitcoin and other cryptocurrencies will continue their dream run, the rally has somewhat stalled. Bitcoin entered the correction zone after the ETF launch.
Experts believe that Bitcoin continues to hold great potential and the launch of ETFs will only boost the market in the long term. Despite the inherent volatility and risks associated with cryptocurrencies, the move to bring them into the mainstream has been highly anticipated.
The move is expected to facilitate closer oversight of the digital coin market, a move the industry has historically resisted.
However, since approval, Bitcoin has lost 12% of its value as several investors flocked to institutional investment products to avoid risks. Additionally, the flow of Bitcoin to derivatives exchanges has stopped growing, a trend that previously indicated impending bear markets or price corrections.
However, the correction phase is temporary and last week’s approval of 11 spot Bitcoin ETFs will only boost the crypto market.
has improved by 3.1% over the past 60 days. Coinbase currently sports a Zacks Rank #1.
Stocks to watch
BlackRock, Inc. BLK is one of the world’s largest investment managers and is a public company. BLK was one of the first companies in the traditional market to join the Bitcoin ETF race in June 2023.
BlackRock’s expected earnings growth rate for the current year is 3.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. BlackRock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
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Coinbase Global’s expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the past 60 days. Coinbase currently has a Zacks Rank #2.
Marathon Digital Holdings, Inc. MARA is a digital asset technology company. MARA mines cryptocurrencies, with a focus on the blockchain ecosystem and digital asset generation.
Marathon Digital Holdings’ expected earnings growth rate for the current year is 95.1%. The Zacks Consensus Estimate for current-year earnings has improved 47.1% over the past 90 days. Marathon Digital Holdings currently carries a Zacks Rank #2.
NVIDIA Company NVDA is a major player in the semiconductor industry and has been one of the most notable success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA’s stock value has been trending to rise in a thriving crypto market. This is mainly due to the crucial role GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA’s expected earnings growth rate for the current year is 268.6%. The Zacks Consensus Estimate for current-year earnings has improved 12.9% over the past 60 days. Currently, NVIDIA has a Zacks Rank #1.
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