The cryptocurrency market has been volatile, with Bitcoin (BTC) falling to a seven-week low earlier this week before recovering marginally on Thursday. The decline came after Bitcoin hit an all-time high earlier last month.
The cryptocurrency has had an impressive year so far and still has potential to resume the rally. The recent decline is temporary and has been triggered by several macro concerns.
It would thus be ideal to take the "buy-the-dip" approach and invest in crypto-focused stocks. We have selected three stocks: Interactive Brokers Group IBKR, Robinhood Markets, Inc. HOOD and PayPal Holdings PYPL. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.
Bitcoin Declines After Rally
Bitcoin recovered slightly on Thursday and was hovering around $110,011, well below its all-time high of $124.496 last month, its fourth record high this year. Several factors have been weighing on Bitcoin and the overall investor sentiment.
Investors are less willing to make risky investments after President Donald Trump said on Monday that he plans to fire Federal Reserve Governor Lisa Cook from the board. This raised concerns over the independence of the central bank. On Wednesday, Cook’s attorney said that she plans to file a lawsuit against the President.
However, there have been some positive developments around rate cuts lately. After remaining unclear about the Federal Reserve’s monetary policy for a long time, investors finally got a signal when Chairman Jerome Powell said last week that the central bank might consider cutting interest rates in September.
The broader market has been on a rally since then. A rate cut in September is expected to give cryptocurrencies a boost, which is likely to help Bitcoin resume its rally.
3 Crypto-Focused Stocks With Potential to Grow
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 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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 42.2%.The Zacks Consensus Estimate for current-year earnings has improved 26% over the past 60 days. HOOD currently has a Zacks Rank #1.
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, cryptocurrencies can be used 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 12.3%.The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy).
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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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