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4 Stocks to Watch as Bitcoin Makes a Solid Rebound
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Bitcoin (BTC) is rebounding again after losing sheen somewhat over the past couple of months. The rally started on Oct 16 after the Securities and Exchange Commission (SEC) 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. This sent Bitcoin and other major cryptocurrencies like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) on a rally.
Bitcoin Rebounding Again
This week has particularly been good for Bitcoin. Following the SEC decision, Bitcoin’s price surpassed the $28,000 mark and was trading above $28,500 on Oct 19. Apart from the SEC’s decision in favor of Bitcoin, Members of Congress are working on new legislation to introduce stricter anti-money laundering regulations for cryptocurrencies.
This move comes in response to a Wall Street Journal report last week, following the surprise attack on Israel earlier this month. The report stated that Hamas and the Palestinian Islamic Jihad had received up to $134 million in cryptocurrencies since 2021.
Bitcoin made a solid turnaround this year after a dull 2022. The cryptocurrency was on a rally till July, when its price hit a 52-week-high of $31,500. However, the price has since fallen and hit a low of $24, 500 in late August and September.
Prices of cryptocurrencies have since been rangebound, but a rebound started again last month after the Fed kept its benchmark policy rate unaltered 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 and cryptocurrencies. The Fed’s monetary tightening campaign has also raised worries that the economy might slip into a recession.
However, the Fed has hinted at going for one more 25-basis point hike this year before going for two rate cuts in 2024. Cryptocurrencies are making an attempt to recover from their recent lows, with investors expressing more positive sentiments. This renewed optimism follows the dovish comments from several Federal Reserve officials.
Stocks in Focus
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 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 stocks here.
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 85.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 60 days. Coinbase currently has a Zacks Rank #2.
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 #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’s expected earnings growth rate for the current year is 14.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. CME presently has a Zacks Rank #2.
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4 Stocks to Watch as Bitcoin Makes a Solid Rebound
Bitcoin (BTC) is rebounding again after losing sheen somewhat over the past couple of months. The rally started on Oct 16 after the Securities and Exchange Commission (SEC) 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. This sent Bitcoin and other major cryptocurrencies like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) on a rally.
Bitcoin Rebounding Again
This week has particularly been good for Bitcoin. Following the SEC decision, Bitcoin’s price surpassed the $28,000 mark and was trading above $28,500 on Oct 19. Apart from the SEC’s decision in favor of Bitcoin, Members of Congress are working on new legislation to introduce stricter anti-money laundering regulations for cryptocurrencies.
This move comes in response to a Wall Street Journal report last week, following the surprise attack on Israel earlier this month. The report stated that Hamas and the Palestinian Islamic Jihad had received up to $134 million in cryptocurrencies since 2021.
Bitcoin made a solid turnaround this year after a dull 2022. The cryptocurrency was on a rally till July, when its price hit a 52-week-high of $31,500. However, the price has since fallen and hit a low of $24, 500 in late August and September.
Prices of cryptocurrencies have since been rangebound, but a rebound started again last month after the Fed kept its benchmark policy rate unaltered 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 and cryptocurrencies. The Fed’s monetary tightening campaign has also raised worries that the economy might slip into a recession.
However, the Fed has hinted at going for one more 25-basis point hike this year before going for two rate cuts in 2024. Cryptocurrencies are making an attempt to recover from their recent lows, with investors expressing more positive sentiments. This renewed optimism follows the dovish comments from several Federal Reserve officials.
Stocks in Focus
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 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 stocks here.
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 85.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 60 days. Coinbase currently has a Zacks Rank #2.
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 #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’s expected earnings growth rate for the current year is 14.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. CME presently has a Zacks Rank #2.