In this video today Brian takes another look at Bitcoin. The recent weakness in the market has sent many of the bitcoin stocks much lower and the question is if this presents a buying opportunity or not.
Brian starts off with a look at an ETF that tracks Bitcoin, but since it doesn’t have a Zacks Rank we are really left with technical analysis to help predict the movements in the underlying security.
When people mention Bitcoin and want to trade it in the equity markets they often look at MicroStrategy MSTR. This stock also does not have a Zacks Rank as there are no analysts submitting estimates to the Zacks Consensus. Investors that are looking for leverage when investing in Bitcoin can use MSTX or MSTU for 2x the impact of the stock. The leverage can really help in a bull market for crypto, but it can also be rather painful in a bear market.
Next up if Coinbase COIN which is also a Zacks Rank #1 (Strong Buy). This company is a crypto trading platform that has seen a big pull back from the $300 level and the end of January to the $180 price range as the markets have weakened of late. COIN serves as the custodian for a lot of large financial services platforms and that takes a lot of risk out of the equation.
The bitcoin miners have really been left by the side of the road over the last few months as AI took the pole position. There was a lot of talk about the bitcoin miners switching their compute power over to AI and while I don’t like that idea, it serves as a potential alternative revenue source. We look at two bitcoin miners, Hive Digital (HIVE) and Cipher Mining (CIFR). Of those two, Cipher Mining (CIFR) has a Zacks Rank #1 (Strong Buy)
Finally we look Blockchain Innovators, a service run by David Bartosiak. David has been tasked with leveraging the Zacks Rank to help find the best Bitcoin / Blockchain. One of his many nicknames is “Buy and Hold” Bartosiak and we can see what kind of returns you can get with you hold a stock for five and a half years. Dave has an absurd 2,400% gain on Nvidia NVDA and a cost basis of $4.33 after all the splits.
Be sure to check out this great service at Zacks.com.
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Free: See Our Top Stock And 4 Runners UpNVIDIA Corporation (NVDA) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Cipher Mining Inc. (CIFR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
