On Feb 26, Bitcoin (BTC), reclaimed the $57,000 level for the first time in more than two years. The cryptocurrency market, which rebounded last year, has carried the rally into 2024. It is poised to continue the rally in the near term.
The world’s most popular cryptocurrency jumped as much as 4.4% on Monday to hit $57,039 before paring some of the gains to settle at around $56,400. Bitcoin’s price has surged 32% year to date, primarily driven by investor demand through exchange-traded funds (ETF).
Needless to say, the January approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), in a major reform, has been one of the most important events in the history of cryptocurrencies.
The approval of the spot Bitcoin ETF was intended to propel cryptocurrencies into mainstream finance, providing a sustained boost to the cryptocurrency sector in the long run. Cryptocurrency prices saw a recline in the days following the SEC approval but it appears that the aim with which it was approved is finally bearing fruit.
Moreover, the halving event for Bitcoin will likely happen in April, which is expected to reduce the mining reward for the new blocks by half. Historically, this occurrence has intensified scarcity, posing challenges for miners to obtain a net increase in Bitcoins. Usually, Bitcoin’s value typically jumps because of the constrained supply.
Our Choices
NVIDIA Corporation NVDA is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 63.4%. The Zacks Consensus Estimate for current-year earnings has improved 7.6% over the last 60 days. Currently, NVIDIA has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coinbase Global, Inc. COIN offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for next year is 173%. The Zacks Consensus Estimate for current-year earnings has improved 253% over the last 60 days. Coinbase currently sports a Zacks Rank #1.
CME Group Inc.’s CME options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.
CME Group’s expected earnings growth rate for the current year is 2.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. CME presently has a Zacks Rank #2.
BlackRock, Inc. BLK is one of the world’s largest investment managers and is publicly owned. BLK was one of the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.
BlackRock’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the last 60 days. BlackRock currently carries a Zacks Rank #2.
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