Bitcoin
5 Bitcoin-Centric Stocks to Buy Amid the Recent Meltdown
The cryptocurrency market was dealt a severe blow in April after a strong recovery in the previous 15 months. On March 14, the largest cryptocurrency, Bitcoin (BTC), recorded an all-time high of 73,750.07. However, it dropped almost 15% after that. Bitcoin gained over 67% in the first quarter of 2024 after jumping 157% in 2023.
One of the main reasons behind the decline in Bitcoin price was the halving event that took place last month. The Bitcoin halving event happens once every four years. Furthermore, US equity markets fell in April due to market participants’ concern that the Fed would maintain the higher interest rate for longer in light of the sticky inflation rate and a resilient labor market. A higher interest rate is detrimental to high-growth sectors such as technology, consumer discretionary and cryptocurrency.
However, with April’s Bitcoin halving event now complete, there is widespread speculation that the reduction in Bitcoin supply will result in a scarcity-driven price increase for the digital asset in the coming months.
Miners who validate and record transactions receive Bitcoin network rewards and transaction fees. Halve the block reward, aiming to cap Bitcoin’s global circulation at 21 million. Consequently, the demand for new Bitcoins increases, driving up prices.
Meanwhile, Wall Street recovered in early May following a sharp decline in April job additions, a notable deterioration in the US GDP growth rate in the first quarter of 2024, the contraction of the manufacturing and services PMI in April and a less-than-aggressive statement by Fed Chairman Jerome Powell following the May FOMC meeting. Consequently, investor expectations for the number of interest rate cuts in 2024 have increased.
Optimistic estimates
Several research firms have said that this is just the beginning of Bitcoin’s recovery. Standard Chartered expects Bitcoin to reach $100,000 by the end of 2024. Research firm Fundstrat has provided a target of $116,000 to $137,000 for this year. Hedge fund SkyBridge predicts Bitcoin will reach $170,000 by April 2025.
Furthermore, VanEck estimated a medium-term target of $350,000 for Bitcoin. Connors’ firm estimated that Bitcoin’s base case will reach $110,000 in 2024 and $140,000 next year. However, according to the company’s best-case scenario, the cryptocurrency will reach $180,000 in 2024 and $450,000 in 2025.
Our Top Picks
We’ve narrowed down our research to five bitcoin-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see The complete list of today’s Zacks #1 Rank stocks here.
The story continues
The chart below shows the price performance of our five picks over the past three months.
Zacks Investment Research
Image source: Zacks Investment Research
NVIDIA Corp. NVDA is a giant in the semiconductor industry and one of the biggest success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA shares often soar in a booming crypto market. This is because GPUs are essential for data centers, artificial intelligence, and crypto asset creation.
Zacks Rank #2 NVIDIA’s expected earnings growth rate for the current year is 84.7% (ending January 2025). The Zacks Consensus Estimate for its current year earnings has improved 0.4% over the past 30 days.
Coinbase Global Inc. COIN provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. COIN offers the leading financial account in the crypto space for consumers, a marketplace with a liquidity pool for crypto asset transactions for institutions; and technology and services that enable developers to create cryptographically-based applications and securely accept cryptographic assets as payment.
Zacks Rank #1 Coinbase Global has an expected earnings growth rate of over 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the past seven days.
Robinhood Markets Inc. HOOD 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.
Zacks Rank #2 Robinhood Markets has an expected earnings growth rate of over 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 16% over the past 30 days.
CleanSpark Inc. CLSK operates as a Bitcoin miner in the Americas. CLSK owns and operates data centers that run primarily on low-carbon energy. The CLSK infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion.
Zacks Rank #2 CleanSpark has an expected earnings growth rate of 89.2% for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved more than 100% in the past 60 days.
Interactive Brokers Group Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. The IBKR commodity futures trading desk also offers clients the opportunity to trade cryptocurrency futures.
Zacks Rank #1 Interactive Brokers Group has an expected earnings growth rate of 12.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the past 30 days.
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Bitcoin
Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens
Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.
Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.
In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.
On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.
The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.
“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.
Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.
The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.
“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.
That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.
July 24, 2024, 5:30 p.m.
Updated July 24, 2024, 5:35 p.m.
(Benjamin Cheng/Unsplash)
Fuente
Bitcoin
India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report
“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”
Ether, the second-largest token, fueled a slide in digital assets after a stock rout spread unease across global markets.
Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.
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