Bitcoin made a solid comeback in recent times following a brutal selloff in May. The world’s biggest digital coin bounced back sharply to reach $39,000 on Jul 26. Citing a
MarketWatch article, according to CoinDesk data, the price of bitcoin rallied over the weekend and is now trading above the 50-day moving average for the first time since the beginning of May. Especially in the last five days, the price of bitcoin jumped 26%, a tell-tale sign of positive momentum.
Following the sharp rebound, bitcoin’s market capitalization has now hit $718 billion, quoting an
indiatoday article. Incidentally, the bitcoin price is up 30% so far this year, while it actually jumped 21% over the past month. In fact, many analysts were, in reality, expecting the bitcoin price to move northward when it dipped below its support level of $30,000 some days back.
Nonetheless, the bitcoin price defied a series of odds to climb up lately. Particularly, heightened regulations in the United States and in some parts of the world, including China, had a negative impact on the price of bitcoin. Not long ago, the People’s Bank of China (PBOC) implemented stricter regulations on cryptocurrency trading. To make matters worse, China’s State Council agreed to tighten restrictions on both producers and traders of cryptocurrencies, including bitcoin (read more:
Get Over Bitcoin, Buy These 5 S&P 500 Stocks for Big Gains).
So, now what’s driving the price of bitcoin? The price of the cryptocurrency leader started its upward journey on news that Amazon.com, Inc. (
AMZN Quick Quote AMZN - Free Report) may plan to accept bitcoin for payment purposes by the end of 2021. Citing an insider source, City A.M., a business newspaper, stated that the e-commerce giant may not only start to accept the digital currency as a form of payment but also launch its own token by the end of next year, as mentioned in a fxstreet article.
Interestingly, City A.M. further reported that Amazon had posted a job advertisement over the weekend for a cryptocurrency executive. The job title – Digital Currency and Blockchain Product Lead – led to market pundits believing that the e-commerce giant could accept bitcoin and other cryptocurrencies as payment.
Last week, the price of bitcoin also got a boost from some of the business moguls, including Tesla’s CEO Elon Musk, ARK Invest’s founder Cathie Wood, and Twitter CEO Jack Dorsey. Musk, in particular, disclosed in the online event “The B Word.” that he owns some of the cryptocurrencies, including bitcoin.
At the same time, technical indicators pointed out that there are more gains for bitcoin in the near future. Managing partner at Fairlead Strategies, Katie Stockton, said that bitcoin recently was in a “coiled spring” formation in the technical charts, which indicated a surge in price levels, as mentioned in a
Therefore, with the price of bitcoin scaling upward, from an investors’ standpoint, it’s imperative to keep an eye on stocks that stand to gain from the bullish bitcoin trend as well as technology that supports it – blockchain. We have, thus, highlighted three such stocks that deserve your attention at the moment.
PayPal Holdings, Inc. ( PYPL Quick Quote PYPL - Free Report) has emerged as one of the largest online payment solution providers on the back of its strong product portfolio and two-sided platform that enables it to offer smooth and secure transaction facility to both customers and merchants.
PayPal also adopted bitcoin. In fact, the company has allowed its customers as well as merchants to make and receive payments via virtual currency, including bitcoin. The company currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for its current-year earnings has moved up 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 22.2%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Intel Corporation ( INTC Quick Quote INTC - Free Report) is the world’s largest semiconductor company and primary supplier of microprocessors and chipsets. Intel has collaborated with customers as well as industries to enhance blockchain technologies.
Intel’s Software Guard Extensions (SGX) is designed to help in blockchain transactions as well as AI applications. The company currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for its current-year earnings has moved up 2.6% over the past 60 days. The company’s expected earnings growth rate for the next five-year period is 7.5%.
JPMorgan Chase & Co. ( JPM Quick Quote JPM - Free Report) is one of the biggest global banks with assets valued at $3.68 trillion and stockholders’ equity worth $286.4 billion, as of Jun 30, 2021.
With the help of blockchain technology, JP Morgan had designed a digital coin – JPM Coin – to make payments instantaneously. The company currently has a Zacks Rank #3.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 58.3%.