We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Bitcoin-Centric Stocks Set to Gain Big From Fed's Recent Rate Cut
Read MoreHide Full Article
The cryptocurrency rally that had stalled for some time has started showing signs of a solid rebound. Bitcoin (BTC), which surged above $60,000 ahead of the Federal Reserve’s rate cut announcement, was trading above $63,600 on Monday.
The Federal Reserve interest rate cut announced last week has been helping Bitcoin bounce back from its recent lows. Experts had predicted that Bitcoin still has a lot of potential and the recent decline was temporary. Given this scenario, it would be ideal to invest in Bitcoin-centric stocks such as Robinhood Markets, Inc. (HOOD - Free Report) , Interactive Brokers Group, Inc. (IBKR - Free Report) , NVIDIA Corporation (NVDA - Free Report) and BlackRock, Inc. (BLK - Free Report) .
Bitcoin Rebounds on Rate Cut Announcement
On Monday, Bitcoin was trading at $63,658.52 after surpassing the $60,000 mark for the first time in more than a month ahead of the Federal Reserve’s rate cut announcement.
Bitcoin’s price declined substantially after hitting an all-time high of $73,750 on Mar 14. The cryptocurrency saw its price falling below $55,000 in early August after a broader market bloodbath on fears of a slowing economy.
Prior to that, the halving event also failed to boost Bitcoin. The halving event, which usually reduces the reward for mining new Bitcoin blocks by 50% to cap the total supply at 21 million, often leads to higher demand and prices.
However, following the latest halving, Bitcoin’s value saw a significant decline.
Rate Cuts to Boost Bitcoin
The rate cut was highly anticipated to boost Bitcoin and did so. Market participants had expected that the Federal Reserve would go for a 25-basis point rate cut. However, the Fed cut interest rates by 50 basis points in its bid to help boost the health of the broader economy.
Bitcoin has since been on a rally. Lower interest rates typically help growth assets like cryptocurrencies because it lowers the opportunity cost of holding non-yielding assets. In a low-interest-rate setting, investors are more likely to seek out assets with higher potential returns, even if they come with increased risk.
Also, the rate cut cycle has just begun. Market participants are hopeful about another 50 basis-point rate cut in total this year, which bodes well for the cryptocurrency market.
4 Crypto-Centric Stocks With Scope for Upside
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets
Robinhood Markets 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 more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 38.2% over the past 60 days. Robinhood Markets currently sports a Zacks Rank #1.
Interactive Brokers Group
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 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. IBKR currently carries a Zacks Rank #2.
NVIDIA
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days. NVDA presently carries a Zacks Rank #3.
BlackRock
BlackRock 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 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. BlackRock currently carries a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Bitcoin-Centric Stocks Set to Gain Big From Fed's Recent Rate Cut
The cryptocurrency rally that had stalled for some time has started showing signs of a solid rebound. Bitcoin (BTC), which surged above $60,000 ahead of the Federal Reserve’s rate cut announcement, was trading above $63,600 on Monday.
The Federal Reserve interest rate cut announced last week has been helping Bitcoin bounce back from its recent lows. Experts had predicted that Bitcoin still has a lot of potential and the recent decline was temporary. Given this scenario, it would be ideal to invest in Bitcoin-centric stocks such as Robinhood Markets, Inc. (HOOD - Free Report) , Interactive Brokers Group, Inc. (IBKR - Free Report) , NVIDIA Corporation (NVDA - Free Report) and BlackRock, Inc. (BLK - Free Report) .
Bitcoin Rebounds on Rate Cut Announcement
On Monday, Bitcoin was trading at $63,658.52 after surpassing the $60,000 mark for the first time in more than a month ahead of the Federal Reserve’s rate cut announcement.
Bitcoin’s price declined substantially after hitting an all-time high of $73,750 on Mar 14. The cryptocurrency saw its price falling below $55,000 in early August after a broader market bloodbath on fears of a slowing economy.
Prior to that, the halving event also failed to boost Bitcoin. The halving event, which usually reduces the reward for mining new Bitcoin blocks by 50% to cap the total supply at 21 million, often leads to higher demand and prices.
However, following the latest halving, Bitcoin’s value saw a significant decline.
Rate Cuts to Boost Bitcoin
The rate cut was highly anticipated to boost Bitcoin and did so. Market participants had expected that the Federal Reserve would go for a 25-basis point rate cut. However, the Fed cut interest rates by 50 basis points in its bid to help boost the health of the broader economy.
Bitcoin has since been on a rally. Lower interest rates typically help growth assets like cryptocurrencies because it lowers the opportunity cost of holding non-yielding assets. In a low-interest-rate setting, investors are more likely to seek out assets with higher potential returns, even if they come with increased risk.
Also, the rate cut cycle has just begun. Market participants are hopeful about another 50 basis-point rate cut in total this year, which bodes well for the cryptocurrency market.
4 Crypto-Centric Stocks With Scope for Upside
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets
Robinhood Markets 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 more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 38.2% over the past 60 days. Robinhood Markets currently sports a Zacks Rank #1.
Interactive Brokers Group
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 18.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. IBKR currently carries a Zacks Rank #2.
NVIDIA
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to artificial intelligence-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.5% over the past 60 days. NVDA presently carries a Zacks Rank #3.
BlackRock
BlackRock 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 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. BlackRock currently carries a Zacks Rank #2.