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3 Crypto-Centric Stocks to Grab Before the Next Bitcoin Rally

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Key Takeaways

  • Bitcoin fell 5% after hitting a new record, pressured by inflation data and rate cut uncertainty.
  • PayPal, Robinhood and Interactive Brokers each saw earnings estimate upgrades in recent months.
  • Analysts expect the Bitcoin dip to be temporary, with macro shifts likely to reignite momentum.

The cryptocurrency market has been giving up gains lately, with Bitcoin (BTC) pulling back sharply after hitting a new all-time high last week. Several macro concerns, including uncertainty over a rate cut in September, have been denting investors’ sentiment.

However, the decline is temporary, and the cryptocurrency is poised to resume its northbound journey, given that it has already had a great year so far and a rate cut in the coming months is expected to give it a further push.

It would thus be an ideal time to invest in crypto-focused stocks. We have selected three stocks, namely PayPal Holdings (PYPL - Free Report) , Interactive Brokers Group (IBKR - Free Report) and Robinhood Markets, Inc. (HOOD - 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 Retreats But Has More Room to Grow

Bitcoin has declined 5% over the past week and was trading at $113,772.65 on Wednesday morning after hitting an all-time high of $124.496, its fourth record high this year. The high came following the release of the consumer price index (CPI) report. CPI for July rose less than expected, raising hopes that the Federal Reserve would go for a rate cut in September.

However, the euphoria was short-lived after higher-than-expected wholesale inflation data raised fresh doubts over a September rate cut.

Investor sentiment was further dented after Treasury Secretary Scott Bessent said last week that President Donald Trump’s strategic bitcoin reserve, which was created in March, would only consist of bitcoin seized by the federal government, while officials look into “budget-neutral pathways to acquire more Bitcoin.”

However, experts believe that the decline in Bitcoin is temporary and once these macro concerns ease, the cryptocurrency will resume its rally. Although the Federal Reserve hasn’t suggested any timeline for the next rate cut, markets are pricing in an 85% chance of a 25-basis-point rate cut in September, according to the CME FedWatch Tool.

3 Bitcoin-Centric Stocks With Upside

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).

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. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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.


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