Since its inception, Bitcoin (
BTC) has been the leading light in the world of cryptocurrency. It has dominated the markets and has been the market-leading cryptocurrency by a country mile. However, since reaching the $60,000 price mark in 2021, it was on a freefall till it hit rock bottom at $20,000. The good news is it is making rapid strides again and breached the $44,000 mark on Tuesday, Dec 5.
This optimism about BTC has been centered around many top investment firms from the traditional marketplace starting to file for U.S. Securities Exchange Commission (“SEC”) approval of their Bitcoin ETFs. Investors are currently anticipating a spot Bitcoin ETF approval by the SEC as early as the first half of 2024. Many believe this could pave the way for a surge in institutional investment in the crypto sector.
The focus has also shifted to what the Fed's monetary policy will be in 2024. Currently, it is highly anticipated that the Fed will hold the interest rates at their current level in its Dec 13 meeting and start bringing it down sometime in first-quarter 2024. With interest rates coming down and investors getting more speculative, riskier asset classes like cryptocurrencies are well-positioned to benefit. In addition, the scheduled Bitcoin “halving” in April 2024 will slash the number of mined Bitcoins in what is expected to be a booming market for the benchmark crypto coin, thereby raising its price even further.
As of date, the price of the crypto behemoth has risen more than 150% in 2023 and constitutes 51.3% of the entire crypto market. Currently, it is on a steady march to cross the $50,000 level, and because of the factors mentioned above, it is expected to get further traction. In such an environment, it might be prudent to track stocks that are exposed to or directly linked to Bitcoin. Here are our choices.
Cboe Global Markets, Inc. ( CBOE Quick Quote CBOE - Free Report) is an options exchange marketplacethat also engages in the business of digital currency, including Bitcoin. As a digital asset trader, it operates as an exchange and futures marketplace. CBOE’s expected earnings growth rate for the current year is 9.4%. The Zacks Consensus Estimate for its current-year earnings has improved 3.7% over the past 60 days. CBOE currently carries a Zacks Rank #1 (Strong Buy). NVIDIA Corporation ( NVDA Quick Quote NVDA - Free Report) is a semiconductor industry giant and one of the biggest success stories of 2023. Being leading designers of graphic processing units (GPUs), Nvidia stocks usually soar with a booming crypto market because GPUs are pivotal for data centers, artificial intelligence and Bitcoin and altcoin mining.NVDA’s expected earnings growth rate for the current year is 264.4%. The Zacks Consensus Estimate for its current-year earnings has improved 13.3% over the past 60 days. NVDA currently carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here Block Inc. ( SQ Quick Quote SQ - Free Report) is an online digital and mobile payment platform for consumers and merchants. Users of Block’s platforms can buy, sell, send and receive Bitcoin. In addition, SQ’s platforms allow developers to build decentralized finance applications to run on programmable blockchains.SQ’s expected earnings growth rate for the current year is 90%. The Zacks Consensus Estimate for its current-year earnings has improved 17.3% over the past 60 days. SQ currently carries a Zacks Rank #2.