After a strong performance in 2023 and early 2024, top cryptocurrencies, particularly Bitcoin (BTC), have faced a downturn. Bitcoin, the leading cryptocurrency, achieved an all-time high of $73,750 in March as the price rallied unprecedentedly after the ETF launch. However, it has since experienced a significant pullback.
Bitcoin Price Metrics
Throughout May, Bitcoin remained well below $70,000, and June hasn’t seen much improvement. On June 14, Bitcoin dipped below $65,000 before rebounding slightly to $66,000. Several factors have contributed to the recent decline in the Bitcoin price. One major event was the Bitcoin Halving in April, which reduced the block reward by 50%.
This event occurs every four years to limit Bitcoin’s total supply to 21 million coins. Typically, Halving events boost demand and prices, but this year, the Bitcoin price failed to regain its momentum post-halving. The Halving forced miners to sell their BTC block rewards to avoid losses, thereby catalyzing the bearish trend.
Furthermore, another factor affecting Bitcoin’s price has been the broader economic environment. In April, concerns over rising inflation and potential interest rate hikes caused a pause in the Wall Street rally. While inflation eased in April and May, the Federal Reserve’s uncertain stance on rate cuts has kept investors on edge.
In addition, Fed Chairman Jerome Powell indicated only one rate cut this year, down from the three projected in March. He cited the persistent inflation above the Fed’s 2% target, which affected this decision. Moreover, high interest rates negatively impact growth assets, including tech stocks and cryptocurrencies.
Despite these challenges, experts believe the Bitcoin price decline is temporary. Year-to-date, Bitcoin has risen by 45.5%, following a 207% surge in 2023. Hence, analysts believe that a recovery could be witnessed soon if BTC doesn’t lose hold on crucial support levels.
Also Read: Why Is Bitcoin (BTC) Price Falling Rapidly Today?
4 Crypto Stocks To Watch
As the Bitcoin price struggles, certain crypto stocks have shown strong potential for 2024. Four notable picks, each with a favorable Zacks rating, include Coinbase Global, Inc. (COIN), Robinhood Markets, Inc. (HOOD), NVIDIA Corporation (NVDA), and Interactive Brokers Group, Inc. (IBKR).
Coinbase Global: The firm provides financial infrastructure for the cryptocurrency economy, including a main financial account for consumers, a marketplace for institutional transactions, and tools for developers. Coinbase’s earnings are expected to grow by over 100% this year, with a 219.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days. The COIN stock holds a “Strong Buy” Zacks rating.
Robinhood Markets: The company offers a financial services platform for trading stocks, ETFs, options, gold, and cryptocurrencies. Robinhood’s earnings growth rate for this year exceeds 100%, with the Zacks Consensus Estimate for current-year earnings improving by 110.3% over the last 60 days. Moroever, the HOOD stock is rated a “Buy” by Zacks.
NVIDIA Corporation: A leader in visual computing and GPU technology, has shifted its focus towards AI-based solutions for high-performance computing, gaming, and VR platforms. NVIDIA’s earnings are expected to grow by 106.2% this year, with the Zacks Consensus Estimate for current-year earnings improving by 12.6% over the past 60 days. NVDA holds a Zacks “Strong Buy” rating.
Interactive Brokers Group: A global automated electronic broker, facilitates cryptocurrency trading. Its earnings are projected to grow by 14.6% this year, with a 2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days. IBKR has a Zacks “Buy” rating.
Also Read: 20,000 Bitcoin Options Expiry Positions Max Pain Price At $68,500, What’s Next?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
