3 Crypto Stocks to Invest in as Bitcoin Rally Gathers Steam

After the halving event in April, the Bitcoin (BTC) rally that suddenly stopped and entered the correction zone has started to show a steady recovery. The cryptocurrency started a fresh bounce above the $66,500 resistance and reached a 30-day high around $67,000 on July 29.

Bitcoin reached a new all-time high of $73,750 on March 14. However, the bull run that started in 2023 came to a halt in April, so much so that even the halving event could not provide a boost to its price.

The Bitcoin halving event halves the reward for mining new blocks, with the aim of limiting the total supply of Bitcoins to 21 million. This reduction in the rate of creation of new Bitcoins usually increases their demand, which usually results in an increase in their price.

However, this did not happen and the price of Bitcoin went into free fall, falling below $59,000.

The recovery that began last week has put the cryptocurrency on track to surpass $70,000 and set it up for a new rally.

This recovery is being fueled by a series of recent political events in the United States. President Joe Biden’s decision to withdraw from the 2024 presidential race has increased the likelihood that Donald Trump will win the November election. Trump is believed to be more supportive of the cryptocurrency industry and has even been taking Bitcoin donations for his presidential campaigns.

Additionally, in January, the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs), a significant step that will simplify the process for both individual investors and large institutions to invest in Bitcoin through a regulated and accessible platform.

Additionally, the Federal Reserve is set to lower interest rates after raising them to a record 23-year high in an effort to combat skyrocketing inflation. This bodes well for Bitcoin, as lower interest rates are favorable for growth-oriented assets like tech stocks, consumer discretionary, and cryptocurrencies.

Our Choices

We narrowed down our search to three crypto-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA Corporation NVDA is a global 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-based solutions that now support high-performance computing, gaming, and virtual reality platforms.

The story continues

NVIDIA’s expected earnings growth rate for the current year is 106.9%. The Zacks Consensus Estimate for current-year earnings has improved by 1.5% in the past 60 days. NVDA currently has a Zacks Rank of #2.

Block Inc. SQ is an online digital and mobile payments platform for consumers and merchants and is the parent company of Square and Cash App. Cash App users can buy, sell, send and receive Bitcoin. Additionally, SQ’s decentralized tbd platform allows developers to create decentralized finance applications that run on programmable blockchains. SQ is also one of the largest investors in Bitcoin.

Block’s expected earnings growth rate for the current year is 72.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% in the past 60 days. SQ currently has a Zacks Rank #2.

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.

Interactive Brokers Group’s expected earnings growth rate for the current year is 17.6%. The Zacks Consensus Estimate for current year earnings has improved by 4.2% in the past 60 days. IBKR is currently holding a Zacks Rank #1.

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