Analysis: Bitcoin Struggles Amidst Potential for Bull Run Resumption – Top Crypto Stocks for 2024
After a strong first quarter and a robust 2023, Bitcoin (BTC) has been struggling lately, with the price falling below $60,000 last month. However, analysts are optimistic that the cryptocurrency still has a lot of potential left and the bull run will soon resume.
Bitcoin was trading above $64,000 on May 6, after hitting an all-time high of $73,750 in March. The recent bounce back in Bitcoin’s price can be attributed to comments from Federal Reserve Chairman Jerome Powell, who indicated that there is unlikely to be any further interest rate hike. The Federal Reserve plans at least three rate cuts by the end of this year, with the first likely to come in June.
The optimism surrounding rate cuts increased following softer-than-expected jobs data, which helped boost Bitcoin’s price. However, several factors have been responsible for the recent decline in Bitcoin price, including ongoing geopolitical tensions in the Middle East.
With the Bitcoin halving event now over, the cryptocurrency is expected to resume its rally. In light of this, investors are looking at crypto-oriented stocks that have strong potential for 2024. Some of the top picks include:
1. NVIDIA Corporation (NVDA): A major player in the semiconductor industry, NVIDIA’s stock tends to surge in a thriving crypto market due to the crucial role GPUs play in data centers and cryptocurrency mining. NVIDIA has a Zacks Rank #2 and an expected earnings growth rate of 84.7% for the current year.
2. Interactive Brokers Group, Inc. (IBKR): A global automated electronic broker, IBKR executes, processes, and trades in cryptocurrencies. IBKR has a Zacks Rank #1 and an expected earnings growth rate of 12.4% for the current year.
3. Coinbase Global, Inc. (COIN): COIN offers financial infrastructure and technology to support the global cryptocurrency economy. With an expected earnings growth rate of 632.4% for next year, Coinbase currently sports a Zacks Rank #1.
4. Robinhood Markets, Inc. (HOOD): Operating a financial services platform in the United States, Robinhood allows users to invest in stocks, ETFs, options, gold, and cryptocurrencies. Robinhood Markets has a Zacks Rank #2 and an expected earnings growth rate of 147.5% for the current year.
As the crypto market continues to evolve, these stocks are poised to benefit from the resurgence of Bitcoin and the overall growth of the cryptocurrency industry. Investors looking to capitalize on this trend may want to consider adding these stocks to their portfolios.
