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4 Crypto-Centric Stocks to Grab Before Bitcoin's Next Rally

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Key Takeaways

  • Bitcoin retreated over 10% from its July peak but is expected to rebound as economic uncertainty eases.
  • Robinhood, PayPal, Interactive Brokers and CME offer crypto exposure with rising earnings estimates.
  • All four stocks show strong 2025 growth prospects amid positive revisions in the past 60 days.

The cryptocurrency market has been struggling over the past couple of weeks, with the broader market experiencing volatility. Bitcoin (BTC), which hit an all-time high in July, has sharply retreated amid uncertainty over the economy’s health and profit-taking.

The ongoing volatility could see Bitcoin and other cryptocurrencies decline further. However, the recent decline is temporary, and the cryptocurrency is expected to rebound once investors grow more confident about the economy’s future.

Given this situation, it would be ideal to take the buy-the-dip approach and invest in crypto-focused stocks. We have selected four stocks: Robinhood Markets, Inc. (HOOD - Free Report) , Interactive Brokers Group (IBKR - Free Report) , PayPal Holdings (PYPL - Free Report) and CME Group (CME - Free Report) . Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.

Bitcoin Rally Stalls

Bitcoin has retreated sharply over the past month after hitting an all-time high of $124.496 in July. On Tuesday, the cryptocurrency was rangebound at $112,000, after retreating more than 10% from its all-time high over the past month.

Several factors have been weighing on the cryptocurrency market that have been denting investor sentiment. The Federal Reserve cut interest rates by a quarter percentage point last week, which was expected to give growth assets like cryptocurrencies a boost. However, that didn’t happen immediately.

The Federal Reserve went ahead with a rate cut primarily to boost the economy following a weak jobs report that suggested a shrinking labor market. Inflation is still high and the Federal Reserve, despite cutting interest rates, has been maintaining a hawkish stance.

However, Bitcoin still has considerable potential, and the recent decline is temporary. The cryptocurrency is expected to resume its rally once the uncertainty over the economy’s health eases. Also, the Federal Reserve has hinted at two more interest rate cuts of 25 basis points each by the end of this year. This is expected to give Bitcoin and the broader market a boost.

4 Crypto-Centric Stocks With Upside

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 41.3%.The Zacks Consensus Estimate for current-year earnings has improved 17.6% over the past 60 days. HOOD currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank 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 1.6% over the last 60 days. IBKR currently has a Zacks Rank #2.

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, cryptocurrencies can be used 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 12.5%.The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy).

CME Group

CME Group Inc.’s 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 BTC and ETH futures contracts.

CME Group’s expected earnings growth rate for the current year is 8.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CME presently has a Zacks Rank #2.

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