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4 Cryptocurrency Stocks to Watch Amid a Dip in Bitcoin Price
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The cryptocurrency rally of 2023, which extended into this year, has somewhat come to a halt. Bitcoin (BTC) particularly has taken a hit over the past two weeks, or since Jan 10, when the U.S. Securities and Exchange Commission (SEC) gave the green light to 11 spot Bitcoin exchange-traded funds (ETFs).
The approval was anticipated and the decision added further fuel to the Bitcoin rally that saw it surpass the $49,000 mark. However, the price has been on a decline since then. The market fell more than 18% over the weekend and on Jan 24, Bitcoin hovered around $40,000, a new year-to-date low.
The SEC’s approval adds a new dimension to Bitcoin trading now. It is expected to boost the overall cryptocurrency market as it will now allow retail investors to trade Bitcoin without actually owning it. However, the rally has stalled.
Understandably, Bitcoin has entered correction territory after the ETF approval. Experts see immense potential in Bitcoin, and the launch of an ETF is expected to contribute to the long-term growth of the market.
Part of the recent selling pressure on Bitcoin has been linked to sales from the FTX bankruptcy estate. The estate has reportedly sold approximately 22 million shares of Grayscale's GBTC in the past few weeks, contributing to the downward pressure on the cryptocurrency, according to a CoinDesk report.
Also, several experts believe the fluctuations in Bitcoin's price to selling by Bitcoin holders, specifically short-term traders and large holders, who decided to cash in on profits following the surge in prices last year. They believe that the approval of the ETF might be seen as a "sell-the-news" event.
Nevertheless, the current correction phase is viewed as temporary, and the recent approval of 11 spot Bitcoin ETFs earlier this month is expected to have a positive impact on the overall cryptocurrency market.
Stocks in Focus
NVIDIA Corporation (NVDA - Free Report) is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 268.6%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coinbase Global, Inc. (COIN - Free Report) offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the last 60 days. Coinbase currently has a Zacks Rank #2.
BlackRock, Inc. (BLK - Free Report) is one of the world’s largest investment managers and is publicly owned. BLK was one of the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.
BlackRock’s expected earnings growth rate for the current year is 4.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the last 60 days. BlackRock presently carries a Zacks Rank #3 (Hold).
Robinhood Markets, Inc. (HOOD - Free Report) 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 45.3%.The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3.
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4 Cryptocurrency Stocks to Watch Amid a Dip in Bitcoin Price
The cryptocurrency rally of 2023, which extended into this year, has somewhat come to a halt. Bitcoin (BTC) particularly has taken a hit over the past two weeks, or since Jan 10, when the U.S. Securities and Exchange Commission (SEC) gave the green light to 11 spot Bitcoin exchange-traded funds (ETFs).
The approval was anticipated and the decision added further fuel to the Bitcoin rally that saw it surpass the $49,000 mark. However, the price has been on a decline since then. The market fell more than 18% over the weekend and on Jan 24, Bitcoin hovered around $40,000, a new year-to-date low.
The SEC’s approval adds a new dimension to Bitcoin trading now. It is expected to boost the overall cryptocurrency market as it will now allow retail investors to trade Bitcoin without actually owning it. However, the rally has stalled.
Understandably, Bitcoin has entered correction territory after the ETF approval. Experts see immense potential in Bitcoin, and the launch of an ETF is expected to contribute to the long-term growth of the market.
Part of the recent selling pressure on Bitcoin has been linked to sales from the FTX bankruptcy estate. The estate has reportedly sold approximately 22 million shares of Grayscale's GBTC in the past few weeks, contributing to the downward pressure on the cryptocurrency, according to a CoinDesk report.
Also, several experts believe the fluctuations in Bitcoin's price to selling by Bitcoin holders, specifically short-term traders and large holders, who decided to cash in on profits following the surge in prices last year. They believe that the approval of the ETF might be seen as a "sell-the-news" event.
Nevertheless, the current correction phase is viewed as temporary, and the recent approval of 11 spot Bitcoin ETFs earlier this month is expected to have a positive impact on the overall cryptocurrency market.
Stocks in Focus
NVIDIA Corporation (NVDA - Free Report) is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 268.6%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coinbase Global, Inc. (COIN - Free Report) offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a main financial account for consumers in the crypto space, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment.
Coinbase Global’s expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the last 60 days. Coinbase currently has a Zacks Rank #2.
BlackRock, Inc. (BLK - Free Report) is one of the world’s largest investment managers and is publicly owned. BLK was one of the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.
BlackRock’s expected earnings growth rate for the current year is 4.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the last 60 days. BlackRock presently carries a Zacks Rank #3 (Hold).
Robinhood Markets, Inc. (HOOD - Free Report) 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 45.3%.The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3.