Bitcoin Price Struggles At $66K But These 4 Crypto Stocks Shine

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As a seasoned crypto investor, I’ve witnessed the ups and downs of this volatile market. After an exceptional start to the year with Bitcoin (BTC) reaching an all-time high in March, it’s disheartening to see the recent downturn. The pullback below $65,000 was particularly concerning, but I remain hopeful that this isn’t a long-term trend.

As a crypto investor, I’ve seen some impressive gains in the first few months of 2024. Bitcoin (BTC), the market leader, reached an astounding all-time high of $73,750 back in March, following the successful launch of a Bitcoin ETF which fueled an unprecedented price rally. However, since then, things have taken a turn for the worse. Bitcoin has experienced a substantial correction and is currently dealing with a downturn.

Bitcoin Price Metrics

As a crypto investor, I’ve noticed that Bitcoin stayed quite low during May, barely reaching $70,000. So far in June, there hasn’t been significant progress in price recovery. On the 14th of this month, Bitcoin took a dip beneath $65,000 before bouncing back slightly to $66,000. Several factors have played a role in the recent decrease in Bitcoin’s value. One significant occurrence was the Bitcoin Halving that took place in April, which cut down the block reward by half.

Every four years, an occurrence known as the Halving takes place in the Bitcoin world to restrict the circulation of Bitcoins to a maximum of 21 million coins. Normally, these events spark increased demand and higher prices. However, following this latest Halving, Bitcoin’s price was unable to recover its upward trajectory. As a result, miners were compelled to sell their newly earned Bitcoins as rewards to mitigate losses, which in turn fueled the downward trend.

As an analyst, I’ve observed that Bitcoin’s price has been influenced by the larger economic landscape as well. In April, there were growing worries about rising inflation and the possibility of interest rate hikes, which caused a halt in the stock market rally on Wall Street. Fortunately, inflation receded in April and May. However, the Federal Reserve’s hesitance to confirm rate cuts has kept investors anxious.

Jerome Powell, the Federal Reserve chairman, revised his earlier prediction of three rate cuts in 2021 to just one. This change was due to the ongoing inflation that remains above the Fed’s desired 2% mark, affecting their decision-making process. Furthermore, high-interest rates can adversely impact various growth assets like tech stocks and cryptocurrencies.

As a crypto investor, I’ve faced my fair share of market volatility lately, but the experts reassure me that the recent Bitcoin price decline is merely temporary. So far this year, Bitcoin has seen an impressive rise of 45.5%, building upon its monumental 207% surge in 2023. Based on this trend and analysts’ insights, I believe we could witness a recovery soon if Bitcoin manages to hold onto crucial support levels.

4 Crypto Stocks To Watch

I, as an analyst, have identified four cryptocurrency-related stocks that have shown promising potential despite the volatile Bitcoin market. These companies, each with a favorable Zacks rating, are Coinbase Global, Inc. (COIN), Robinhood Markets, Inc. (HOOD), NVIDIA Corporation (NVDA), and Interactive Brokers Group, Inc. (IBKR).

Coinbase Global: This company offers financial foundations for the digital currency marketplace, featuring a personal wallet for retail clients, an exchange platform for large-scale transactions, and resources for programmers. Coinbase’s profits are projected to surge by more than 100% this year, representing a notable increase of 219.1% in the estimated earnings for the current year according to Zacks Consensus as per the previous 60 days. The COIN stock carries a “Strong Buy” recommendation from Zacks.

As a crypto investor, I’m excited about Robinhood Markets because it provides me with a user-friendly platform for investing in various assets, including stocks, ETFs, options, gold, and cryptocurrencies. The company’s earnings growth rate has been impressive this year, exceeding 100%, as indicated by the Zacks Consensus Estimate. This estimate has improved by an impressive 110.3% over the last 60 days. Additionally, the HOOD stock is currently recommended as a “Buy” by Zacks.

NVIDIA Corporation, renowned for its expertise in visual computing and graphics processing units (GPUs), is now prioritizing artificial intelligence (AI) applications in the fields of high-performance computing, gaming, and virtual reality (VR). The financial projections suggest that NVIDIA’s earnings will surge by an impressive 106.2% this year. Over the last two months, the Zacks Consensus Estimate for NVIDIA’s current-year earnings has seen a noteworthy enhancement of 12.6%. According to Zacks, NVDA holds a strong “Buy” recommendation.

Interactive Brokers Group: This global brokerage firm specializes in automated and electronic trading, including cryptocurrencies. According to Zacks projections, its earnings are anticipated to increase by 14.6% this year, representing a 2% rise in the estimated current-year earnings over the past two months. IBKR currently holds a “Buy” recommendation from Zacks.

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2024-06-15 11:08