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Bitcoin Soars More Than Double This Year: 4 Must-Buy Stocks

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The cryptocurrency rally, which had abruptly stalled over the past couple of months, has regained momentum this month, with Bitcoin (BTC) trading above $36,600 on Nov 8. The rally comes amid a spate of developments and soaring optimism around the overall crypto market.

The bullish trend is expected to continue in the last two months of the year as well. The cryptocurrency market staged a solid turnaround in the first seven months of the year after a disappointing 2022.

However, the rally stalled in early August, and prices have been rangebound since then. The fresh rally comes on the heels of some positive news and upbeat investor sentiment following the Fed’s decision to keep interest rates unchanged in the range of 5.25-5.5% in its September and November FOMC meetings back-to-back.

Although the Fed said that inflation is still way above its 2% target, which has kept it open for another 25-basis-point interest rate hike this year, fresh jobs data hinted at a cooling labor market.

This has raised expectations that the Federal Reserve may be done with its monetary tightening campaign.

Higher interest rates typically have a negative impact on growth sectors such as technology, consumer discretionary and cryptocurrency. Hence, the Federal Reserve's decision to pause rate hikes bodes well for the cryptocurrency space.

This was all major cryptocurrencies like Bitcoin, Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) rebounding this month.

Another factor behind the rally is soaring expectations among investors that the Securities and Exchange Commission (SEC) is just on the anvil of approving a Bitcoin exchange-traded fund (ETF).

The expected approval by the SEC for a Bitcoin ETF is likely to boost demand, allowing conventional investors to access Bitcoin and other cryptocurrencies through regular stock markets.

Additionally, it's expected to attract new investments into the crypto industry, potentially resulting in heightened demand.

In fact, Bitcoin has now more than doubled this year, and the rally is expected to continue. Year to date, Bitcoin price has soared more than 121.6%.

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 currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Interactive Brokers Group, Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.

Interactive Brokers Group has an expected earnings growth rate of 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.1% over the last seven days. IBKR currently has a Zacks Rank #2 (Buy).

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 65% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the last 60 days. SQ currently carries 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 91.5%. The Zacks Consensus Estimate for current-year earnings has improved 42.6% over the last 60 days. Coinbase currently carries a Zacks Rank #2.

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