In the past month, bitcoin has made a terrific comeback, especially after a brutal selloff in the month of May after China escalated its regulations on cryptocurrency trading. In fact, the price of bitcoin rose past the coveted $50,000 on Aug 23 for the first time since mid-May.
Even though the world’s biggest digital coin eventually finished yesterday’s trading session at $49,201, it had still climbed a whopping 82% from its yearly low of $27,700 in January, as mentioned in a
Bitcoin price was actually hovering between $30,000 and $40,000 in recent times but now the virtual currency has started to advance as mainstream financial services firms began to show interest in the world’s largest cryptocurrency.
First, online payment behemoth
PayPal Holdings, Inc. ( PYPL Quick Quote PYPL - Free Report) recently mentioned that it is launching a cryptocurrency service in the U.K. In reality, the company will now allow British customers to buy, hold and sell cryptocurrencies beginning this week. The company has already allowed American customers to do the same early this year. Notably, for the first time, PayPal has launched its cryptocurrency services outside the United States.
The online payment giant, no doubt, has taken a bold decision to venture into the highly unregulated world of cryptocurrencies, which is currently marred with price volatility as well as consumer protection issues. Similarly, other major companies like Tesla, Facebook and Mastercard, to name a few, have shown keen interest in the world of cryptocurrencies lately.
Nonetheless, the second reason behind the sharp rise in bitcoin price is due to Coinbase Global Inc’s latest announcement. The cryptocurrency exchange platform stated that the company will buy $500 million in crypto on its balance sheet, citing a
news18 article. The company further added that it will assign 10% of their quarterly profit into a crypto asset portfolio, per the news18 article.
By the way, bitcoin’s price had already received a boost from the e-commerce giant Amazon last month. There was speculation that Amazon.com, Inc. (
AMZN Quick Quote AMZN - Free Report) may start to accept bitcoin for payment purposes by the end of this year.
Moreover, Amazon had posted a job offer for a blockchain product lead, sending the price of bitcoin up. This is because investors started to believe that the tech companies in the future may show interest in cryptocurrencies and that may lead to legitimizing the digital currency segment.
Last month, the bitcoin price also received a boost from Twitter and Tesla chief executive officers Jack Dorsey and Elon Musk, respectively, after they revealed their plan to incorporate digital currencies into their businesses. Elon Musk, in fact, had disclosed that he does own some cryptocurrencies, including bitcoin. Additionally, Ark Investment Management LLC’s Cathie Wood too said that corporations should add bitcoin to their balance sheets.
Separately, Katie Stockton, managing partner at Fairlead Strategies, some time back had said that bitcoin was in a “coiled spring” formation in technical charts, which indicated that its price levels will increase in the near term, as mentioned in a
Thus, with the price of bitcoin scaling northward, it’s prudent for investors to focus on stocks that can make the most of bitcoin’s bullish trend and the blockchain technology that supports it. We have, thus, highlighted three such stocks that deserve your attention at present.
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. JP Morgan has successfully designed JPM Coin with the help of blockchain technology, which is in reality a digital coin to make payments promptly.
The company currently has a Zacks Rank #3 (Hold). 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 58.2%. 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, in order to help in blockchain transactions as well as AI applications, has designed Software Guard Extensions (SGX).
The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 3.7% over the past 60 days. The company’s expected earnings growth rate for the next five-year period is 7.5%.
PayPal has emerged as one of the largest online payment solution providers on the back of its strong product portfolio and two-sided platform. As mentioned above, PayPal has allowed its customers in the United States as well as abroad to make payments with the help of virtual currency, including bitcoin.
The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 90 days. The company’s expected earnings growth rate for the current year is 21.9%.