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3 Stocks to Watch as Bitcoin Remains Above the $40k Mark

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Over the last couple of days, Bitcoin (BTC) prices have seen a bit of correction after scaling multi-year highs in the last two months. Since October, Bitcoin shares have surged 70%, and a “flash crash” on Sunday evening saw its price dropping nearly 10% in a matter of minutes from the $44,000 level. Currently, with the broader market recovering on optimism over the Fed’s expected monetary policy decisions, it is expected that the price of the benchmark crypto might fall a bit further, settling just below the $40,000 mark.

However, that does not take away from the fact that cryptocurrencies, led by BTC, have had a stellar year and staged a big comeback since the 2021 slump. As of date, the price of Bitcoin has risen more than 151% in 2023, and the recent optimism 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.

Also, with a Bitcoin halving scheduled for April 2024, the price of the crypto behemoth is bound to go up, with the number of mined coins getting slashed in half. It will be safe to infer that the recent drop is a temporary phenomenon, and it might actually be prudent to buy the dip. On cue, we believe the following stocks should be tracked because of their heavy exposure to Bitcoin, and should do well in the months ahead.

Cboe Global Markets, Inc. (CBOE - Free Report) is an options exchange marketplace that 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).

Interactive Brokers Group Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies, which include Bitcoin. IBKR’s expected earnings growth rate is 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the past 60 days. IBKR currently carries a Zacks Rank #3 (Hold).

NVIDIA Corporation (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 268%. The Zacks Consensus Estimate for its current-year earnings has improved 14.4% 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.

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