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3 Stocks to Buy as Bitcoin Hits 18-Month High on Fresh Optimism
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The Bitcoin (BTC) rally, which had stalled two months back after making a solid turnaround earlier this year, once again rebounded on Oct 24. The cryptocurrency jumped nearly 6% to $34,872 to hit its highest level in almost one-and-a-half years on growing speculation that Blackrock’s spot bitcoin exchange-traded fund (ETF) will soon be a reality.
Tuesday’s rally followed a 10% surge in Bitcoin on Oct 23, when it crossed the $35,000 mark. The enthusiasm surrounding Bitcoin sent other related stocks and major cryptocurrencies like Ethereum (ETH) on a rally. Ethereum prices jumped 4.5% on Oct 23 to $1,786.30, hitting its highest level since August.
Investors Optimist about Bitcoin ETF
The approval of a Bitcoin-backed exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) is expected to boost demand as it would enable more conservative investors to own Bitcoin and other cryptocurrencies via traditional stock markets.
The approval is also likely to attract new investments into the crypto sector, which could further boost demand.
Cryptocurrencies made a solid rebound in 2023 after suffering majorly last year as the Federal Reserve launched an aggressive monetary tightening campaign to curb multi-decade high inflation, which saw the central bank hiking interest rates by 525 basis points since March 2022.
Moreover, a couple of unfortunate events, the Terra Luna crash and a major fraud leading to the bankruptcy of FTX, saw a slump in the crypto market.
Cryptocurrencies staged a solid rebound this year, with Bitcoin hitting $31,000 in early July before the rally came to a halt. Bitcoin price has since been rangebound and hovering around the $25,000 mark as investors struggled to gauge the Fed’s next move with its interest rate hike policy.
However, renewed optimism among investors sent Bitcoin prices up last week after the Securities and Exchange Commission (SEC) decided not to appeal its loss against Grayscale Investments in the D.C. Circuit court.
Speculation is now rife that the modification made to the Registration Statement for the Ishares Bitcoin Trust, submitted to the SEC on Oct 18, suggests that Blackrock might buy Bitcoin this month to provide initial capital for its upcoming spot Bitcoin ETF.
This definitely bodes well for the crypto market.
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 2.7% 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.
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).
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.
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3 Stocks to Buy as Bitcoin Hits 18-Month High on Fresh Optimism
The Bitcoin (BTC) rally, which had stalled two months back after making a solid turnaround earlier this year, once again rebounded on Oct 24. The cryptocurrency jumped nearly 6% to $34,872 to hit its highest level in almost one-and-a-half years on growing speculation that Blackrock’s spot bitcoin exchange-traded fund (ETF) will soon be a reality.
Tuesday’s rally followed a 10% surge in Bitcoin on Oct 23, when it crossed the $35,000 mark. The enthusiasm surrounding Bitcoin sent other related stocks and major cryptocurrencies like Ethereum (ETH) on a rally. Ethereum prices jumped 4.5% on Oct 23 to $1,786.30, hitting its highest level since August.
Investors Optimist about Bitcoin ETF
The approval of a Bitcoin-backed exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) is expected to boost demand as it would enable more conservative investors to own Bitcoin and other cryptocurrencies via traditional stock markets.
The approval is also likely to attract new investments into the crypto sector, which could further boost demand.
Cryptocurrencies made a solid rebound in 2023 after suffering majorly last year as the Federal Reserve launched an aggressive monetary tightening campaign to curb multi-decade high inflation, which saw the central bank hiking interest rates by 525 basis points since March 2022.
Moreover, a couple of unfortunate events, the Terra Luna crash and a major fraud leading to the bankruptcy of FTX, saw a slump in the crypto market.
Cryptocurrencies staged a solid rebound this year, with Bitcoin hitting $31,000 in early July before the rally came to a halt. Bitcoin price has since been rangebound and hovering around the $25,000 mark as investors struggled to gauge the Fed’s next move with its interest rate hike policy.
However, renewed optimism among investors sent Bitcoin prices up last week after the Securities and Exchange Commission (SEC) decided not to appeal its loss against Grayscale Investments in the D.C. Circuit court.
Speculation is now rife that the modification made to the Registration Statement for the Ishares Bitcoin Trust, submitted to the SEC on Oct 18, suggests that Blackrock might buy Bitcoin this month to provide initial capital for its upcoming spot Bitcoin ETF.
This definitely bodes well for the crypto market.
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 2.7% 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.
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).
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.