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3 Crypto Stocks to Buy as Bitcoin Attempts Another Rebound
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The cryptocurrency market staged a solid rebound this year after a disappointing 2022 as the Federal Reserve’s monetary tightening campaign, which saw aggressive interest rate hikes to combat multi-decade high inflation, weighed on cryptocurrencies.
However, cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB), have been rangebound over the past three months as investors are yet to get a clear picture about the Fed’s future course of action with its interest rate hikes.
Bitcoin particularly had been on a rally till July, with its price hitting $31,500. However, the Fed has since hiked interest rates once in July, following which cryptocurrencies took a hit once again. In fact, Bitcoin has been falling since hitting its 52-week high in early July.
However, it has also solidified its position over the past few weeks and is now hovering around $26,900 after falling as much as $25,400 in late August and September.
The rebound has been taking place since the Fed kept its benchmark policy rate unchanged in its September FOMC meeting to its current range of 5.25-5.25%.
A higher market interest rate has a negative impact on high-growth sectors such as technology, consumer discretionary and cryptocurrencies. The Fed’s aggressive monetary tightening policy has also raised worries that the economy might slip into a recession.
Fed Chair Jerome Powell, in his first post-FOMC comment, said that inflation remains elevated, which might require the central bank to hike interest rates by another 25 basis points before it starts cutting interest rates in 2024.
Following Powell’s hawkish comments, the yield on the 10-year U.S. Treasury Note surged to its highest level since 2007. The 10-year Treasury yield holds immense significance as it mirrors market participants' outlook on the nation's economic situation, influencing consumers, businesses and government entities.
However, cryptocurrencies are once again trying to rebound from their recent lows as investors’ sentiments have been upbeat following dovish comments from a number of Fed officials. These officials believe that the recent tightening of credit conditions may make the central bank decide not to go for another interest rate hike in its November FOMC meeting.
Our Choices
NVIDIA Corporation (NVDA - Free Report) 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 221.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 60 days. NVIDIA presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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’s expected earnings growth rate for the current year is 14.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CME presently has a Zacks Rank #2.
Coinbase Global, Inc. (COIN - Free Report) 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 the current year is 84.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the last 60 days. Coinbase currently has a Zacks Rank #2.
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3 Crypto Stocks to Buy as Bitcoin Attempts Another Rebound
The cryptocurrency market staged a solid rebound this year after a disappointing 2022 as the Federal Reserve’s monetary tightening campaign, which saw aggressive interest rate hikes to combat multi-decade high inflation, weighed on cryptocurrencies.
However, cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB), have been rangebound over the past three months as investors are yet to get a clear picture about the Fed’s future course of action with its interest rate hikes.
Bitcoin particularly had been on a rally till July, with its price hitting $31,500. However, the Fed has since hiked interest rates once in July, following which cryptocurrencies took a hit once again. In fact, Bitcoin has been falling since hitting its 52-week high in early July.
However, it has also solidified its position over the past few weeks and is now hovering around $26,900 after falling as much as $25,400 in late August and September.
The rebound has been taking place since the Fed kept its benchmark policy rate unchanged in its September FOMC meeting to its current range of 5.25-5.25%.
A higher market interest rate has a negative impact on high-growth sectors such as technology, consumer discretionary and cryptocurrencies. The Fed’s aggressive monetary tightening policy has also raised worries that the economy might slip into a recession.
Fed Chair Jerome Powell, in his first post-FOMC comment, said that inflation remains elevated, which might require the central bank to hike interest rates by another 25 basis points before it starts cutting interest rates in 2024.
Following Powell’s hawkish comments, the yield on the 10-year U.S. Treasury Note surged to its highest level since 2007. The 10-year Treasury yield holds immense significance as it mirrors market participants' outlook on the nation's economic situation, influencing consumers, businesses and government entities.
However, cryptocurrencies are once again trying to rebound from their recent lows as investors’ sentiments have been upbeat following dovish comments from a number of Fed officials. These officials believe that the recent tightening of credit conditions may make the central bank decide not to go for another interest rate hike in its November FOMC meeting.
Our Choices
NVIDIA Corporation (NVDA - Free Report) 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 221.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last 60 days. NVIDIA presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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’s expected earnings growth rate for the current year is 14.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CME presently has a Zacks Rank #2.
Coinbase Global, Inc. (COIN - Free Report) 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 the current year is 84.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the last 60 days. Coinbase currently has a Zacks Rank #2.