4 Crypto Stocks in Focus as Bitcoin Rallies Past $35,000
Cryptocurrencies rebounded in November after remaining rangebound over the past couple of months. Bitcoin (BTC) particularly staged a solid comeback as it neared $38,000 last week. On Nov 14, the cryptocurrency traded above $35,490.
Bitcoin has hit new yearly highs in each of the past three weeks and is on track to hit the $40,000 mark after having more than doubled by 119.9% year to date. Experts believe this could happen anytime in the last two months of the year.
Last week, Bitcoin hit $37,900 as news that the Securities and Exchange Commission (SEC) is set to approve a Bitcoin exchange-traded fund (ETF) once again raised investors’ optimism.
The expected approval of a Bitcoin ETF by the SEC is likely to boost demand by providing traditional investors with a pathway to access Bitcoin and other cryptocurrencies through regular stock markets. Moreover, this development is expected to attract new investments into the crypto industry, potentially leading to increased overall demand.
Also, the Fed’s decision to keep interest rates unchanged in its current range of 5.25-5.5% has made market participants believe that the central bank may be done with its interest rate hikes.
Market participants now expect the Federal Reserve to start cutting interest rates next year. Higher interest rates often exert a negative influence on growth sectors like technology, consumer discretionary and cryptocurrency.
The decision by the Federal Reserve to pause rate hikes is viewed positively for the cryptocurrency space. The pause in rate increases is expected to mitigate potential adverse effects on cryptocurrencies, fostering a more favorable environment for their growth and performance.
Our Choices
Coinbase Global, Inc. COIN 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 91.7%. The Zacks Consensus Estimate for current-year earnings has improved 45.6% over the last 60 days. Coinbase currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Interactive Brokers Group, Inc. IBKR 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 41.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.1% over the last seven days. IBKR currently has a Zacks Rank #2.
PayPal Holdings, Inc. PYPL provides digital wallet services that enable users to purchase, transfer, and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Through PYPL, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal’s mobile wallet platform, Venmo, also allows users to engage in cryptocurrency buying and selling activities.
PayPal Holdings’ expected earnings growth rate for the current year is 20.3%. Shares of PYPL have gained 0.4% in the past 30 days. PayPal presently carries a Zacks Rank #3.
Block Inc. SQ is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 88% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 16.8% over the last 60 days. SQ currently carries a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
