Top 5 Crypto Stocks to Buy Before Bitcoin’s Next Rally

Published in

GamingArena

8 min readJun 22, 2024

Bitcoin’s recent performance has been a rollercoaster ride, reflecting the volatile nature of the cryptocurrency market. After a robust performance in 2023, where Bitcoin surged by 157%, the momentum continued into the early months of 2024. The rally, driven by increasing adoption and regulatory approvals, saw Bitcoin reaching an all-time high of $73,750.07 on March 14. However, since April, the cryptocurrency has faced significant turbulence, with its price dropping more than 18% to $64,860.25 by June 19. This decline halted the rally and introduced uncertainty among investors, highlighting the inherent risks and volatility associated with digital assets.

Despite the recent setbacks, it’s crucial for investors to maintain a long-term perspective. The fundamentals of the cryptocurrency market, including growing institutional adoption and favorable regulatory developments, remain strong. The approval of multiple Bitcoin ETFs by the U.S. SEC has enhanced market liquidity and stability, providing a more accessible investment route for both retail and institutional investors. Additionally, macroeconomic factors, such as potential interest rate cuts by the Federal Reserve, are likely to benefit growth assets, including cryptocurrencies. Therefore, while short-term fluctuations are inevitable, the long-term outlook for Bitcoin and the broader cryptocurrency market remains promising, making it essential for investors to stay focused on their long-term investment goals.

Current Bitcoin Market Analysis

As of June 19, Bitcoin was trading at $64,860.25, which is significantly lower than its all-time high of $73,750.07 reached on March 14. This substantial drop of more than 18% over the past two and a half months underscores the volatility that has become synonymous with the cryptocurrency market. The decline began in April and has introduced a period of uncertainty for investors who had witnessed a robust performance from Bitcoin earlier in the year.

Despite the recent turbulence, Bitcoin’s year-to-date performance remains strong, with the cryptocurrency gaining 53.8% in 2024. This follows an impressive 157% surge in 2023, driven by increased adoption and significant market developments. The strong performance in 2023 set a high benchmark, creating a sense of optimism among investors. However, the recent decline serves as a reminder of the cyclical and often unpredictable nature of the cryptocurrency market, emphasizing the need for a well-thought-out investment strategy.

Cryptocurrency development involves creating digital currencies and blockchain platforms, focusing on security, efficiency, and scalability. This includes blockchain development, smart contracts, and integrating crypto payment systems to enhance transaction processes and enable decentralized financial applications.

Factors Influencing Bitcoin and Crypto Market

One of the pivotal factors influencing Bitcoin’s market dynamics has been the approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). This development is considered a game-changer for the cryptocurrency market as it enhances liquidity and provides a regulated and accessible avenue for both retail and institutional investors to invest in Bitcoin. The approval of these ETFs has not only increased market participation but has also contributed to greater price stability, which is crucial for long-term market health.

Another significant factor is the Bitcoin halving event, which occurred in April. This event, which takes place every four years, reduces the block reward for mining Bitcoin by 50%, thereby reducing the rate at which new Bitcoins are generated. Historically, halving events have led to an increase in Bitcoin’s price due to the decreased supply and the anticipation of increased scarcity. While the immediate aftermath of the halving event has been marked by price turbulence, there is widespread speculation that the reduced supply will eventually drive up the price as demand remains steady or increases.

Additionally, macroeconomic factors, such as the Federal Reserve’s rate cut projections, play a crucial role in shaping the cryptocurrency market. On June 12, Federal Reserve Chairman Jerome Powell indicated that the Fed anticipates only one rate cut this year, down from the three cuts projected in March. This dovish stance is seen as positive for growth assets, including cryptocurrencies, as lower interest rates typically lead to increased investment in riskier assets. If macroeconomic conditions remain favorable, a potential rate cut by the end of the year could provide an additional boost to the cryptocurrency market, reinforcing the long-term bullish outlook for Bitcoin.

Investment Strategy for Crypto Stocks

✧ Emphasis on Adopting a Long-Term Perspective Given the Nearing End of the Higher Rate Regime

Investors in the cryptocurrency market should focus on a long-term strategy, particularly as we approach the end of the current higher interest rate regime. Historically, higher interest rates have tended to suppress growth assets, including cryptocurrencies, by making traditional fixed-income investments more attractive. However, the potential shift towards lower rates presents a unique opportunity for long-term investors. Cryptocurrencies, like Bitcoin, have demonstrated significant growth over extended periods despite short-term volatility. By maintaining a long-term perspective, investors can ride out the market’s fluctuations and capitalize on the overall upward trend of digital assets. The fundamentals driving the cryptocurrency market, such as increased adoption, technological advancements, and regulatory support, continue to strengthen, suggesting a favorable outlook for long-term investments.

✧ Potential Benefits of a Rate Cut by the End of the Year on Growth Assets, Including Cryptocurrencies

The prospect of a rate cut by the end of the year holds several potential benefits for growth assets, particularly cryptocurrencies. Lower interest rates generally reduce the cost of borrowing, encouraging both consumer spending and business investments. For the cryptocurrency market, this environment can lead to increased liquidity as investors seek higher returns in riskier assets. Additionally, lower rates typically weaken the national currency, making cryptocurrencies more attractive as alternative stores of value. This can lead to increased demand and potentially higher prices. Furthermore, the anticipation of a rate cut can boost investor sentiment, driving more capital into the market. As the Federal Reserve signals a more accommodative monetary policy, the favorable conditions for growth assets, including cryptocurrencies, are likely to improve, presenting a strategic opportunity for investors to increase their exposure to digital assets ahead of potential market rallies.

Top Crypto-Oriented Stocks to Consider

☛ Interactive Brokers Group, Inc. (IBKR)

Interactive Brokers Group, Inc. (IBKR) is a global automated electronic broker that has carved a significant niche in the cryptocurrency trading space. IBKR offers clients the ability to execute, process, and trade cryptocurrencies, in addition to providing a commodities futures trading desk that includes cryptocurrency futures. The company has an expected earnings growth rate of 14.6% for the current year, reflecting robust business expansion and operational efficiency. The Zacks Consensus Estimate for IBKR’s current-year earnings has improved by 7.3% over the last 90 days, signaling positive market sentiment and strong financial performance. IBKR currently holds a Zacks Rank #2, indicating a solid buy recommendation based on its growth prospects and market position.

☛ Coinbase Global, Inc. (COIN)

Coinbase Global, Inc. (COIN) is a leading financial infrastructure provider for the global cryptocurrency economy. It offers a comprehensive suite of services including a primary financial account for consumers in the crypto space, a marketplace with high liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and accept cryptocurrencies securely as payment. Coinbase’s expected earnings growth rate for the current year is over 100%, underscoring its rapid expansion and market leadership. The Zacks Consensus Estimate for its current-year earnings has surged by 219.1% over the last 60 days, reflecting significant upward revisions. Coinbase currently sports a Zacks Rank #1, highlighting its strong buy potential.

☛ NVIDIA Corporation (NVDA)

NVIDIA Corporation (NVDA) is the global leader in visual computing technologies and the inventor of the graphics processing unit (GPU). Over the years, NVIDIA has expanded its focus from PC graphics to artificial intelligence (AI)-based solutions that support high-performance computing, gaming, and virtual reality platforms. This strategic evolution has positioned NVIDIA at the forefront of the tech industry. The company boasts an expected earnings growth rate of 106.2% for the current year, driven by its innovation and market demand for its advanced computing solutions. The Zacks Consensus Estimate for NVIDIA’s current-year earnings has improved by 12.1% over the last 60 days, reflecting strong investor confidence. NVIDIA presently holds a Zacks Rank #1, indicating it as a top buy.

☛ Robinhood Markets, Inc. (HOOD)

Robinhood Markets, Inc. (HOOD) operates a financial services platform in the United States that democratizes finance for all. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. Robinhood Crypto, a component of its platform, facilitates buying and selling of popular cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. The company’s expected earnings growth rate for the current year exceeds 100%, showcasing its significant growth trajectory. The Zacks Consensus Estimate for Robinhood’s current-year earnings has increased by 110.3% over the last 60 days, indicating strong earnings potential. Robinhood Markets currently holds a Zacks Rank #2, suggesting it as a promising buy.

☛ Hut 8 Mining Corp. (HUT)

Hut 8 Mining Corp. (HUT) is a North American cryptocurrency mining company that provides computing power to mining pools and receives digital assets in return. The company serves a diverse range of commercial clients in sectors such as finance, healthcare, government, and digital assets, leveraging its mining capabilities to support blockchain and Web 3.0 applications. Hut 8 Mining has an expected earnings growth rate of 50% for the current year, reflecting its expanding operations and market presence. The Zacks Consensus Estimate for the company’s current-year earnings has improved by an impressive 311.9% over the last 60 days, highlighting significant upward revisions and investor confidence. Hut 8 Mining currently carries a Zacks Rank #2, marking it as a strong investment option.

Collaborate with Crypto Development Agency for Success

Collaborating with a Crypto Development Agency can significantly enhance your success in the rapidly evolving cryptocurrency market. These agencies provide specialized expertise and technical knowledge that can help navigate the complexities of blockchain technology and digital asset management. By partnering with a reputable agency, businesses can access a wide range of services including blockchain development, smart contract creation, and integration of cryptocurrency payment systems. This collaboration can streamline operations, ensure robust security measures, and improve the overall efficiency of crypto-related projects. Moreover, these agencies stay abreast of the latest industry trends and regulatory developments, offering strategic insights that can help businesses remain competitive and compliant in a dynamic environment.

In addition to technical support, Crypto Development Agencies can assist with marketing and community engagement strategies crucial for building a strong presence in the crypto space. They can help create compelling narratives and promotional campaigns that resonate with target audiences, driving adoption and user engagement. Furthermore, these agencies often have extensive networks within the cryptocurrency ecosystem, facilitating valuable partnerships and collaborations that can open new avenues for growth and innovation. By leveraging the expertise and resources of a Crypto Development Agency, businesses can accelerate their entry into the cryptocurrency market, enhance their technological capabilities, and position themselves for long-term success in the digital economy.

Conclusion

In conclusion, the cryptocurrency market, led by Bitcoin, continues to showcase its volatility and potential for substantial growth. Despite recent setbacks, the long-term outlook remains positive, driven by increased institutional adoption, favorable regulatory developments, and macroeconomic factors. Investors should adopt a long-term perspective, focusing on the potential benefits of anticipated rate cuts and the ongoing expansion of digital assets. Strategic investments in crypto-oriented stocks like Interactive Brokers, Coinbase, NVIDIA, Robinhood, and Hut 8 Mining can provide significant returns. Additionally, collaborating with Crypto Development Agencies can offer specialized expertise and enhance success in this dynamic market.