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5 Crypto-Centric Stocks in Focus Following Fed's Rate Pause
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The cryptocurrency market is likely to remain buoyant in the last two months of this year. The space regained momentum in the first seven months after a disappointing 2022. However, the crypto market remained rangebound from mid-September to mid-October as market participants remain concerned about the Fed’s policy prescriptions.
The Fed kept the benchmark lending rate unchanged in the range of 5.25-5.5% in the last two FOMC meetings of September and November. Although Fed Chairman Jerome Powell said that there is still long way to reach the 2% target inflation rate. He acknowledged that higher interest rate regime is getting the desired results.
The Fed remains open for another round of 25 basis points of interest rate hike in December depending of economic data. However, CME FedWatch has currently assigned a just 14% chance of another round of rate hike.
A higher interest rate is detrimental to growth sectors like technology, consumer discretionary and cryptocurrency. Therefore, the Fed’s rate pause decision should be fruitful for the crypto space.
Of late, the cryptocurrency market has gathered pace as Bitcoin (BTC) climbed to its highest in nearly a year-and-a-half, buoyed by mounting speculation that a spot bitcoin ETF is imminent. The rally started on Oct 16 after the Securities and Exchange Commission decided not to appeal its loss against Grayscale Investments in the D.C. Circuit court. This rekindled optimism that the approval of a bitcoin ETF may be on the horizon.
On Oct 31, research firm, Bernstein estimated that the price of Bitcoin could rise to $150,000 by 2025 if the Bitcoin ETF gets the SEC nod. Bernstein also expects that the approval would shift up to 10% of Bitcoin’s circulating supply toward ETFs. Moreover, retail investors will get Bitcoin exposure directly from their investment portfolios. Consequently, prices of other major cryptocurrencies such as Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) also spiked recently.
Stocks in Focus
Block Inc. (SQ - Free Report) 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 69% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. SQ currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group Inc. (IBKR - Free Report) 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 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days. IBKR currently carries a Zacks Rank #2.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 85.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days. COIN currently carries a Zacks Rank #3 (Hold).
CME Group Inc.’s (CME - Free Report) 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 BTC and ETH futures contracts.
CME Group has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. CME currently carries a Zacks Rank #3.
Visa Inc. (V - Free Report) is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa has an expected earnings growth rate of 12.5% for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days. V currently carries a Zacks Rank #3.
The chart below shows the ptice performance of five above-mentioned stocks in the past month.
Image Source: Zacks Investment Research
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5 Crypto-Centric Stocks in Focus Following Fed's Rate Pause
The cryptocurrency market is likely to remain buoyant in the last two months of this year. The space regained momentum in the first seven months after a disappointing 2022. However, the crypto market remained rangebound from mid-September to mid-October as market participants remain concerned about the Fed’s policy prescriptions.
The Fed kept the benchmark lending rate unchanged in the range of 5.25-5.5% in the last two FOMC meetings of September and November. Although Fed Chairman Jerome Powell said that there is still long way to reach the 2% target inflation rate. He acknowledged that higher interest rate regime is getting the desired results.
The Fed remains open for another round of 25 basis points of interest rate hike in December depending of economic data. However, CME FedWatch has currently assigned a just 14% chance of another round of rate hike.
A higher interest rate is detrimental to growth sectors like technology, consumer discretionary and cryptocurrency. Therefore, the Fed’s rate pause decision should be fruitful for the crypto space.
Of late, the cryptocurrency market has gathered pace as Bitcoin (BTC) climbed to its highest in nearly a year-and-a-half, buoyed by mounting speculation that a spot bitcoin ETF is imminent. The rally started on Oct 16 after the Securities and Exchange Commission decided not to appeal its loss against Grayscale Investments in the D.C. Circuit court. This rekindled optimism that the approval of a bitcoin ETF may be on the horizon.
On Oct 31, research firm, Bernstein estimated that the price of Bitcoin could rise to $150,000 by 2025 if the Bitcoin ETF gets the SEC nod. Bernstein also expects that the approval would shift up to 10% of Bitcoin’s circulating supply toward ETFs. Moreover, retail investors will get Bitcoin exposure directly from their investment portfolios. Consequently, prices of other major cryptocurrencies such as Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) also spiked recently.
Stocks in Focus
Block Inc. (SQ - Free Report) 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 69% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. SQ currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group Inc. (IBKR - Free Report) 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 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% over the last seven days. IBKR currently carries a Zacks Rank #2.
Coinbase Global Inc. (COIN - Free Report) provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 85.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 30 days. COIN currently carries a Zacks Rank #3 (Hold).
CME Group Inc.’s (CME - Free Report) 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 BTC and ETH futures contracts.
CME Group has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last seven days. CME currently carries a Zacks Rank #3.
Visa Inc. (V - Free Report) is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa has an expected earnings growth rate of 12.5% for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days. V currently carries a Zacks Rank #3.
The chart below shows the ptice performance of five above-mentioned stocks in the past month.
Image Source: Zacks Investment Research