The cryptocurrency market bounced back on Thursday, with Bitcoin (BTC) rallying past $116,000 after having given up some of the gains over the past two weeks. Thursday’s rally came on the news that Bitcoin and other digital currencies could soon be included in retirement accounts or 401 (k) plans.
Cryptocurrencies have come under pressure lately due to the uncertainty over President Donald Trump’s tariffs and a delay in rate cuts by the Federal Reserve. However, Bitcoin has still held its ground and managed to remain above $110,000 after hitting an all-time high in June.
Given the fresh round of optimism surrounding Bitcoin, it would be an ideal opportunity to invest in crypto-focused stocks. We have selected four stocks, namely Robinhood Markets, Inc. HOOD, PayPal Holdings PYPL and Interactive Brokers Group IBKR. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 90 days.
Bitcoin Rallies on Renewed Optimism
Bitcoin jumped more than 1% on Thursday to surpass $116,000 for the first time since July 31. Thursday’s rally came after Trump signed an executive order that could allow alternative investments such as Bitcoin and private equity to be added to the 401 (k) retirement plans of millions of Americans.
The integration of Bitcoin into 401 (k) retirement plans has been viewed as a major step for mainstream crypto adoption. Currently, the U.S. retirement market is valued at $43 trillion, of which nearly $9 trillion is held in 401(k) plans, while the total cryptocurrency market is nearing $4 trillion.
Bitcoin’s integration into the retirement accounts of Americans could make it a core part of the nation’s financial system and promote long-term investment in the asset.
Bitcoin Poised to Soar
Bitcoin had a rough ride over the past month. The cryptocurrency hit an all-time high of $123,153.22 in June but later gave up some of those gains. For most of July, it stayed relatively stable, fluctuating around $119,000. However, in the final days of the month, it dropped below $116,000, entering a short-term bearish zone.
The decline came as investors remained uncertain about how Trump’s tariffs would impact inflation. Although the White House said that it has reached trade deals with several nations, Trump announced hefty tariffs on several trading partners of the United States, including Brazil, Canada, India and Taiwan.
Also, the Federal Reserve left interest rates unchanged at 4.25–4.5% in its July policy meeting. Although the move was expected, some investors had hoped for a 25-basis-point rate cut. Higher interest rates tend to hurt growth-driven sectors such as technology, consumer discretionary, and cryptocurrencies. Investors, however, are still optimistic that the Fed will implement two 25-basis-point rate cuts later this year.
However, Bitcoin still has a lot of potential. Also, the Trump administration’s pro-crypto policy stance is further boosting confidence in the digital asset market.
3 Crypto-Centric Stocks With Upside Potential
Robinhood Markets
Robinhood Markets, Inc. 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 39.5%.The Zacks Consensus Estimate for current-year earnings has improved 22.6% over the past 60 days. HOOD currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal Holdings
PayPal Holdings 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, allows users to engage in cryptocurrency buying and selling activities.
PayPal Holdings’ expected earnings growth rate for the current year is 12%.The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy).
Interactive Brokers Group, Inc.
Interactive Brokers Group 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 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the last 60 days. IBKR currently has a Zacks Rank #1.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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