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3 Crypto-Focused Stocks to Grab as Bitcoin Rally Gathers Steam

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Key Takeaways

  • Bitcoin hit $124,000 before retreating, with optimism for further highs in coming months.
  • Slowing inflation and a possible Fed rate cut are boosting Bitcoins momentum.
  • Trump order could allow Bitcoin in 401(k) plans, aiding wider crypto adoption.

The cryptocurrency rally is on, with Bitcoin (BTC) hitting a new all-time high on Tuesday. Bitcoin, the world’s most popular cryptocurrency, surpassed $124,000 for the first time on Tuesday, before giving up some of the gains.

Although Bitcoin fell to $120,000 on Wednesday, the rally is far from over, with experts projecting the cryptocurrency to hit new highs in the coming months.

Given the fresh round of optimism surrounding Bitcoin, it would be an ideal opportunity to invest in crypto-focused stocks. We have selected four stocks, namely Interactive Brokers Group (IBKR - Free Report) , Robinhood Markets, Inc. (HOOD - Free Report) and PayPal Holdings (PYPL - Free Report) . Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 90 days.

Bitcoin Rally Continues

Bitcoin declined 2% on Thursday following the release of a hotter-than-expected producer price index (PPI) report, raising doubts over the chances of a rate cut by the Federal Reserve in September. PPI increased 0.9% month over month in July, sharply higher than the consensus estimate of a rise of 0.2%.

However, hopes of a rate cut haven’t faded completely as a batch of positive economic data still suggests that the Fed could cut interest rates in its meeting next month. Before giving up some of the gains on Thursday, Bitcoin hit an all-time high on Tuesday after the consumer price index (CPI) report showed that inflation increased at a slower-than-expected pace.

CPI rose just 0.2% sequentially in July, lower than the expectations of a rise of 0.3%. Markets are still pricing in a 92.6% chance of a 25-basis-point rate cut in September.

Slowing inflation, along with several other factors, is boosting Bitcoin. Earlier this month, Trump issued an executive order that could pave the way for including alternative assets like Bitcoin and private equity in 401(k) retirement plans for millions of Americans.

Bringing Bitcoin into 401(k) accounts is seen as a significant milestone toward broader crypto adoption. The U.S. retirement market is currently worth about $43 trillion, with nearly $9 trillion in 401(k) plans, while the global cryptocurrency market is approaching $4 trillion.
If implemented, adding Bitcoin to Americans’ retirement portfolios could embed it into the country’s financial framework and encourage long-term investment in the digital asset.

3 Crypto-Centric Stocks With Upside Potential

Interactive Brokers Group, Inc.

Interactive Brokers Group 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 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the last 60 days. IBKR currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Robinhood Markets

Robinhood Markets, Inc. operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.

Robinhood Markets’ expected earnings growth rate for the current year is 39.5%.The Zacks Consensus Estimate for current-year earnings has improved 23.6% over the past 60 days. HOOD currently has a Zacks Rank #1.

PayPal Holdings

PayPal Holdings provides digital wallet services that enable users to purchase, transfer and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through PYPL, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal’s mobile wallet platform, Venmo, allows users to engage in cryptocurrency buying and selling activities.

PayPal Holdings’ expected earnings growth rate for the current year is 10.8%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy).


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Interactive Brokers Group, Inc. (IBKR) - free report >>

PayPal Holdings, Inc. (PYPL) - free report >>

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