5 Crypto Stocks to Gain From as Bitcoin Soars Past $65,000

 

On March 4th, Bitcoin (BTC) surged beyond $65,000, reaching a two-year peak and approaching its previous all-time high from 2021 when it hit a record of $68,999.99 in November. The cryptocurrency market had a robust performance in 2023, and this positive trend has carried into the current year, raising the possibility of Bitcoin reaching a new all-time high soon. Year-to-date, Bitcoin has witnessed a remarkable surge of over 54.5%, and in the past week alone, it has seen a 21% increase.

The recent upswing in cryptocurrency prices can be attributed to the U.S. Securities and Exchange Commission's (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) in early January. The green signal for 11 spot Bitcoin ETFs has attracted larger investors, reigniting their interest and contributing to the positive momentum in the market.

The SEC's approval of spot Bitcoin ETFs is a significant step toward integrating cryptocurrencies into mainstream finance, providing sustained backing to the crypto space in the long run. Despite a temporary decline in cryptocurrency prices following the SEC's decision, the intended impact seems to be materializing.

According to data from LSEG, in the week ending March 1st, the net inflow into the 10 largest U.S. spot bitcoin funds amounted to $2.17 billion, with over 50% of the total going to BlackRock's iShares Bitcoin Trust.

Additionally, the upcoming Bitcoin halving event scheduled for April will result in a 50% reduction in the mining reward for new blocks. Historically, this event has increased scarcity, posing a challenge for miners to achieve a net increase in Bitcoins. Typically, Bitcoin's value experiences an upward surge during such periods of constrained supply.

Stocks to Watch

NVIDIA Corporation NVDA 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 79.2%. The Zacks Consensus Estimate for current-year earnings has improved 17.5% over the last 60 days. Currently, NVIDIA has a Zacks Rank #1 (Strong Buy). 

BlackRock, Inc. BLK 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 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the last 60 days. BlackRock currently carries a Zacks Rank #2.

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.

Robinhood Markets’ expected earnings growth rate for the current year is 132.8%. The Zacks Consensus Estimate for current-year earnings has improved 42.9% over the last 60 days. Robinhood Markets currently has a Zacks Rank #3 (Hold).

CME Group Inc.’s CME options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers Bitcoin and ether options based on the exchange's cash-settled standard and micro-Bitcoin and Ethereum futures contracts.

CME Group’s expected earnings growth rate for the current year is 2.8%. The Zacks Consensus Estimate for current-year earnings has improved by 1.5% over the last 60 days. CME presently has a Zacks Rank #3.

Visa Inc. V is taking a significant step toward modernizing the cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.

Visa Inc.’s expected earnings growth rate for the current year is 12.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. V currently has a Zacks Rank #3.