“Amidst Bitcoin’s electrifying surge, keep a close eye on these 4 stocks as they ride the wave, offering potential opportunities for investors.”
The price of Bitcoin (BTC) has been on a steady rise over the past two weeks, increasing by more than 25%. In the last week alone, it has gone up by over 14% and briefly surpassed the $35,000 mark. Currently, it is holding strong above the $34,000 support level.
This recent rally in BTC has coincided with mixed earnings numbers from big tech companies in the stock market. Investors are increasingly shifting their focus towards Bitcoin as they flee the stock market and apply buy-side pressure on the cryptocurrency. There is speculation that BTC might soon breach the $40,000 mark.
Bitcoin has solidified its position as the most well-known and “reliable” digital coin. In uncertain times, investors tend to turn less speculative and seek safety. While the crypto market itself is not considered stable or safe, investors often turn to BTC during crypto rallies.
With growing institutional acceptance of cryptocurrencies across different regions, Bitcoin may be entering a period of less volatility and sustained growth. The fact that traditional financial institutions are applying for Bitcoin ETFs further supports this trend. This rally is particularly significant as it shows that investors are considering Bitcoin as a viable option when the stock market is experiencing prolonged declines. It would be wise to keep an eye on stocks that are exposed to Bitcoin in this light.
Some notable Bitcoin-exposed stocks to watch include:
1. Block Inc. (SQ): SQ is an online digital and mobile payment platform that allows users to buy, sell, send, and receive Bitcoin. The company has a strong expected earnings growth rate for the current year, and its Zacks Consensus Estimate for earnings has improved over the past 60 days. SQ currently carries a Zacks Rank #2 (Buy).
2. BlackRock, Inc. (BLK): BLK is one of the world’s largest investment managers and was one of the first traditional companies to join the Bitcoin ETF race. While its expected earnings growth rate for the current year is moderate, the Zacks Consensus Estimate for earnings has improved over the past 60 days. BLK currently carries a Zacks Rank #3 (Hold).
3. Interactive Brokers Group Inc. (IBKR): IBKR is a global automated electronic broker that executes, processes, and trades in cryptocurrencies, including Bitcoin. The company has a strong expected earnings growth rate for the current year, and its Zacks Consensus Estimate for earnings has improved over the last seven days. IBKR currently carries a Zacks Rank #2.
4. Cboe Global Markets, Inc. (CBOE): CBOE is collaborating with Coinbase to launch a Bitcoin exchange-traded fund. The company has a moderate expected earnings growth rate for the current year, and its Zacks Consensus Estimate for earnings has improved over the past 60 days. CBOE currently carries a Zacks Rank #3.
Investors interested in these stocks can download the latest recommendations from Zacks Investment Research, including the “7 Best Stocks for the Next 30 Days.”
In summary, the recent rally in Bitcoin indicates a shift in investor sentiment, with more focus on cryptocurrencies as a safe and viable option during stock market declines. The growing institutional acceptance of crypto and the pursuit of Bitcoin ETFs by traditional financial institutions further support this trend. Keep an eye on Bitcoin-exposed stocks for potential opportunities in this evolving market.