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4 Stocks to Track as Bitcoin Price Roars Past $50,000

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The cryptocurrency rally, which had somewhat stalled over the past month, is showing signs of a rebound, with Bitcoin (BTC) racing past $50,000 on Feb 12 for the first time in more than two years.

Bitcoin, the world’s most popular cryptocurrency at one point jumped to $50,334, its highest level since December 2021. Other cryptocurrencies like Ethereum (ETH) also jumped to $2,638.62 at one point, its highest level since Jan 12.

Although Bitcoin’s price declined marginally after reaching the milestone and hovered around $49,000, it goes without saying that the positive sentiment has returned after a brief halt.

In early January, the U.S. Securities and Exchange Commission (SEC), in a major reform, approved 11 spot Bitcoin exchange-traded funds (ETFs), marking a historic event in the crypto space.

The decision was widely expected and Bitcoin price hit $47,000 after that. However, Bitcoin prices started declining, largely as investors’ sentiment was somewhat dented owing to outflows from the Grayscale and Bitcoin ETF.

By the end of January, Bitcoin saw a sharp decline, with the price falling to nearly $39,000. However, the positive sentiment is back, driven by several positive factors.

The Federal Reserve kept interest rates steady over the past five months and has indicated multiple rate cuts in 2024 after inflation declined sharply over the past year. Lower interest rates typically have a favorable impact on growth-oriented sectors, including technology, consumer discretionary industries, and cryptocurrencies.

Also, the recent decision by the SEC to approve Bitcoin ETFs is expected to provide a long-term boost to the cryptocurrency space as it will push cryptocurrencies into mainstream finance.

Moreover, the upcoming Bitcoin halving is expected to take place in the first half of 2024 and is projected to halve the mining reward for new blocks. Historically, this event has increased scarcity, making it more difficult for miners to obtain net Bitcoins, leading to a jump in Bitcoin's value due to stringent supply.

Also, the broader market is performing well, with the S&P 500 hitting 5,000 for the first time in history. Both the S&P 500 and the Dow hit new intra-day highs on Feb 12, which added to the positive sentiment.

Stocks to Watch

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 268.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BlackRock, Inc. (BLK - Free Report) is one of the world’s largest investment managers and is publicly owned. BLK was one of the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.

BlackRock’s expected earnings growth rate for the current year is 5%. The Zacks Consensus Estimate for current-year earnings has improved 5% over the last 60 days. BlackRock currently carries a Zacks Rank #2.

CME Group Inc.’s (CME - Free Report) options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.

CME Group’s expected earnings growth rate for the current year is 15.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 60 days. CME presently 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 next year is 93.1%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the last 60 days. Coinbase currently carries a Zacks Rank #3 (Hold).

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