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3 Crypto Stocks to Buy as Bitcoin Climbs to Kick-Off 2024
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Bitcoin (BTC) had a prodigious 2023, with the price of the world’s numero uno cryptocurrency soaring 157%. Many expect the momentum to continue in 2024.
Bitcoin kicked off this year on a solid note, with the price of the digital coin surpassing $45,000 on Jan 2 for the first time since April 2022, per CoinDesk data. What’s more, Bitcoin has more room to run as it is still over 30% below its record high of $68,990 reached in 2021.
So, what’s behind Bitcoin’s remarkable surge? The price of the cryptocurrency is primarily driven by the excitement among crypto market aficionados that the regulator is about to approve the first Bitcoin ETF as soon as possible. The agency is expected to respond to the application filed by ARK Investments and 21Shares by Jan 10, while financial bigwig BlackRock, Inc.’s (BLK - Free Report) proposal is expected to be addressed by Mar 15.
Now, once the supervisory body accepts the proposals, retail participation will improve and lead to more institutional backing. Investors will be in a position to acquire products that track the price of Bitcoin without directly owning the cryptocurrency, which undoubtedly should appeal to large institutions.
Thanks to such optimism, analysts at AllianceBernstein are now projecting the price of Bitcoin to end the year at around $80,000. They also expect institutional inflows to increase this year and propel the price of Bitcoin higher. Around $5 billion in inflows is expected in the first half of 2024, while about $10 billion is estimated for the latter half.
The price of Bitcoin is booming partly because of the Federal Reserve’s initiative to keep interest rates unchanged in its latest policy meeting, while projecting rate cuts this year. This is because higher interest rates have always been a headwind for Bitcoin, as it weighed on high-risk assets like digital coins (read more: 5 Top Stocks to Gain From Lower Interest Rates in 2024).
By the way, the price of Bitcoin is further expected to scale northward shortly after spring due to the Bitcoin halving event. During this event, the supply of Bitcoin will be lowered, eventually leading to an uptick in price. Thus, it makes all the more sense to invest in stocks that are well-poised to capitalize on Bitcoin’s present upsurge.
First on the list is the digital payments company, Block (SQ - Free Report) . The company, in recent times, has been doing well mostly due to revenues generated from its key product, Cash App, where Bitcoin is purchased and sold.
The Zacks Consensus Estimate for its current-year earnings has moved up 11.1% over the past 60 days. SQ’s expected earnings growth rate for the current year is 90%.
Second on the list is one of the prominent cryptocurrency exchange platform operators, Coinbase Global (COIN - Free Report) . The company trades around 50 different digital assets, including Bitcoin.
The Zacks Rank #2 (Buy) company has successfully maintained its competitive edge over its peers through effective marketing strategies. The Zacks Consensus Estimate for its current-year earnings has moved up 41.7% over the past 60 days. COIN’s expected earnings growth rate for the current year is almost 92%.
Lastly, NVIDIA (NVDA - Free Report) appears to be an attractive company at the moment. The semiconductor giant has forayed into the crypto space by designing GPUs for mining cryptos, including Bitcoin.
The Zacks Rank #2 company recently launched its Cryptocurrency Mining Processor card, which is in high demand at present. The Zacks Consensus Estimate for its current-year earnings has moved up 14.4% over the past 60 days. NVDA’s expected earnings growth rate for the current year is nearly 268%.
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3 Crypto Stocks to Buy as Bitcoin Climbs to Kick-Off 2024
Bitcoin (BTC) had a prodigious 2023, with the price of the world’s numero uno cryptocurrency soaring 157%. Many expect the momentum to continue in 2024.
Bitcoin kicked off this year on a solid note, with the price of the digital coin surpassing $45,000 on Jan 2 for the first time since April 2022, per CoinDesk data. What’s more, Bitcoin has more room to run as it is still over 30% below its record high of $68,990 reached in 2021.
So, what’s behind Bitcoin’s remarkable surge? The price of the cryptocurrency is primarily driven by the excitement among crypto market aficionados that the regulator is about to approve the first Bitcoin ETF as soon as possible. The agency is expected to respond to the application filed by ARK Investments and 21Shares by Jan 10, while financial bigwig BlackRock, Inc.’s (BLK - Free Report) proposal is expected to be addressed by Mar 15.
Now, once the supervisory body accepts the proposals, retail participation will improve and lead to more institutional backing. Investors will be in a position to acquire products that track the price of Bitcoin without directly owning the cryptocurrency, which undoubtedly should appeal to large institutions.
Thanks to such optimism, analysts at AllianceBernstein are now projecting the price of Bitcoin to end the year at around $80,000. They also expect institutional inflows to increase this year and propel the price of Bitcoin higher. Around $5 billion in inflows is expected in the first half of 2024, while about $10 billion is estimated for the latter half.
The price of Bitcoin is booming partly because of the Federal Reserve’s initiative to keep interest rates unchanged in its latest policy meeting, while projecting rate cuts this year. This is because higher interest rates have always been a headwind for Bitcoin, as it weighed on high-risk assets like digital coins (read more: 5 Top Stocks to Gain From Lower Interest Rates in 2024).
By the way, the price of Bitcoin is further expected to scale northward shortly after spring due to the Bitcoin halving event. During this event, the supply of Bitcoin will be lowered, eventually leading to an uptick in price. Thus, it makes all the more sense to invest in stocks that are well-poised to capitalize on Bitcoin’s present upsurge.
First on the list is the digital payments company, Block (SQ - Free Report) . The company, in recent times, has been doing well mostly due to revenues generated from its key product, Cash App, where Bitcoin is purchased and sold.
The Zacks Rank #1 (Strong Buy) company can constantly expand its customer base, which should boost its profit margins in the long run. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its current-year earnings has moved up 11.1% over the past 60 days. SQ’s expected earnings growth rate for the current year is 90%.
Second on the list is one of the prominent cryptocurrency exchange platform operators, Coinbase Global (COIN - Free Report) . The company trades around 50 different digital assets, including Bitcoin.
The Zacks Rank #2 (Buy) company has successfully maintained its competitive edge over its peers through effective marketing strategies. The Zacks Consensus Estimate for its current-year earnings has moved up 41.7% over the past 60 days. COIN’s expected earnings growth rate for the current year is almost 92%.
Lastly, NVIDIA (NVDA - Free Report) appears to be an attractive company at the moment. The semiconductor giant has forayed into the crypto space by designing GPUs for mining cryptos, including Bitcoin.
The Zacks Rank #2 company recently launched its Cryptocurrency Mining Processor card, which is in high demand at present. The Zacks Consensus Estimate for its current-year earnings has moved up 14.4% over the past 60 days. NVDA’s expected earnings growth rate for the current year is nearly 268%.