The Bitcoin (BTC) rally, which came to a sudden halt after the halving event in April and entered correction territory, has started making a steady rebound. The cryptocurrency started a fresh jump above the $66,500 resistance and was hovering around $67,000 on Jul 29, hitting a 30-day high.
Bitcoin hit an all-time high of $73,750 on Mar 14. However, the bull run that started in 2023 came to a scratching halt in April, so much so that even the halving event failed to give its price a boost.
The Bitcoin halving event cuts the reward for mining new blocks in half, with the aim of limiting the total supply of Bitcoins to 21 million. This reduction in the creation rate of new Bitcoins typically increases their demand, which often results in a rise in their price.
However, that didn’t happen and Bitcoin started having a freefall, with prices hitting below $59,000.
The rebound that started last week has brought the cryptocurrency back on track to surpass $70,000 and makes it poised for a fresh pump.
The rebound is being fueled by a spate of recent political events in the United States. President Joe Biden's decision to withdraw from the 2024 presidential race has heightened the likelihood of Donald Trump winning the upcoming election in November. Trump is believed to be more in favor of the cryptocurrency industry and has even been receiving donations in Bitcoins for his presidential campaigns.
Also, in January, the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs), marking a major move that will simplify the process for both individual investors and large institutions to invest in Bitcoin via a regulated and accessible platform.
Besides, the Federal Reserve is gearing up to cut interest rates after hiking it to a record 23-year high in its bid to combat sky-high inflation. It bodes well for Bitcoin as lower interest rates are favorable for growth-focused assets, such as technology stocks, consumer discretionary and cryptocurrencies.
Our Choices
We have narrowed our search to three crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either 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 the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 106.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. NVDA presently has a Zacks Rank #2.
Block Inc. SQ is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 72.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. SQ currently carries a Zacks Rank #2.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers Group has an expected earnings growth rate of 17.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. IBKR currently sports a Zacks Rank #1.
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