3 Crypto Stocks to Watch as Bitcoin Stages a Comeback

Cryptocurrencies have also suffered in the broader market bloodbath over the past week, with Bitcoin prices falling below $55,000 as it struggles to recover after slowing in the past few months.

However, new economic data released last week calmed some of the fears in investors’ minds, and Bitcoin attempted to recover once again, with the price surpassing $60,000 on August 8.

On Aug. 11, Bitcoin was trading around $58,700. While Bitcoin is still down more than 13% from last week, the cryptocurrency has been on a bull run for most of this year, following a solid 2023.

Bitcoin reached an all-time high of $73,750 on March 14. This year’s rally gained momentum after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in January. The approval was made with the aim of helping both individual investors and large institutions invest in Bitcoin through a regulated and accessible platform.

However, the rally stalled in April, and even Bitcoin’s halving event was not enough to push the price higher.

The halving event, which cuts the reward for mining new blocks in half and limits the total supply of Bitcoins to 21 million, typically increases demand and pushes up prices. However, Bitcoin has seen a significant drop, falling below $59,000.

The rally resumed once again in July but came to an abrupt halt last week. Bitcoin price may remain rangebound for some time to come as volatility in the broader market is yet to subside.

However, Bitcoin is set to gain in the near term as the Federal Reserve is expected to begin cutting interest rates starting in September. This will provide a boost to Bitcoin as lower interest rates generally benefit growth-oriented assets such as tech stocks, consumer discretionary goods, and cryptocurrencies.

Stocks in Focus

We narrowed down our search to four crypto-focused stocks with strong potential for 2024. Each of our picks carries 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.

Robinhood Markets, Inc. HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using the Robinhood Crypto platform.

Robinhood Markets’ current-year expected earnings growth rate is above 100%. The Zacks Consensus Estimate for current-year earnings has improved by 10.9% in the past 60 days. Robinhood Markets currently has a Zacks Rank of #3.

The story continues

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.

NVIDIA’s expected earnings growth rate for the current year is above 100%. The Zacks Consensus Estimate for current year earnings has improved by 0.4% in the past 60 days. NVDA currently has a Zacks Rank of #3.

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 18.4%. The Zacks Consensus Estimate for current year earnings has improved by 4.9% in the past 60 days. IBKR is currently holding a Zacks Rank #1.

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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report

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