3 Crypto Stocks to Buy From Bitcoin’s Long-Term Perspective

Cryptocurrencies have been struggling lately, with Bitcoin (BTC) briefly falling below $60,000 on June 24. Although Bitcoin recouped some losses and traded just above $61,000, it has fallen sharply from its all-time high of $73,750.07 reached on March 14.

Cryptocurrency, upcoming Mt. Gox is down 6% in the last seven days due to major selling pressure from the ongoing ETF exodus due to bankruptcy redemptions. However, many other factors are also putting pressure on Bitcoin, which has had a solid first quarter of 2023.

Bitcoin’s rally gained momentum in January after the Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds (ETFs) in a game-changing move aimed at providing both retail and institutional investors with a regulated and accessible way to invest in the cryptocurrency. .

The rise paused in April with the Bitcoin halving event, which occurs every four years and reduces the block reward by 50%, aiming to limit the total Bitcoin supply to 21 million coins. This decrease in the rate of new Bitcoin supply generally increases demand for cryptocurrencies, often resulting in price increases.

Now that the Bitcoin halving event is over, there is widespread speculation that reduced supply will increase prices due to scarcity in the near term.

Additionally, on June 12, Federal Reserve Chairman Jerome Powell stated in his statement after the FOMC meeting that the Fed expects only one interest rate cut this year. The recent decline in Bitcoin can also be attributed to Powell’s comments.

It goes without saying that the decline in Bitcoin is temporary. The cryptocurrency is up 43.5% to date, after gaining 157% in 2023.

Moreover, a single 25 basis point rate cut in 2024 would benefit the cryptocurrency market and the economy more broadly; especially since many market participants predict no rate cuts this year. Low interest rates are advantageous for growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.

At this point, investors need to have a long-term perspective.

Our choices

We narrowed our search down to three crypto-focused stocks with strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA Corporation NVDA is a global leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.

The story continues

NVIDIA has an earnings growth expectation of 106.2% for this year. The Zacks Consensus Estimate for current-year earnings has moved 12.1% higher over the past 60 days. NVDA is currently sporting a Zacks Rank of #1.

Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a marketplace with liquidity for institutional cryptoasset transactions, and technology and services for developers to build crypto-based applications and securely accept cryptocurrencies as payment.

Coinbase Global’s expected earnings growth rate for this year is over 100%. The Zacks Consensus Estimate for current-year earnings has moved 219.1% higher over the past 60 days. Coinbase is currently sporting a Zacks Rank of #1.

Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR operates, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the chance to trade cryptocurrency futures.

Interactive Brokers Group has an earnings growth expectation of 14.6% for this year. The Zacks Consensus Estimate for current-year earnings has moved 7.3% higher over the past 90 days. IBKR currently carries a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today you can download the Top 7 Stocks of the Next 30 Days. Click to get this free report

Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

Click here to read this article on Zacks.com.

Zacks Investment Research