The cryptocurrency market has been giving up gains over the past two weeks, with Bitcoin (BTC) hitting a seven-week low in late August. The cryptocurrency recovered from falling as low as $107,000 after hitting an all-time high in July.
Since then, Bitcoin has remained rangebound between $110,000 and $112,000 and has occasionally risen above $115,000. There are several factors behind the ongoing volatility as investors remain concerned about the economy’s health. However, once investors get more clarity on the economy’s position, the cryptocurrency is expected to resume its rally.
Investors should thus make the most of this opportunity and take the buy-the-dip approach and invest in crypto-centric stocks. We have selected four stocks: PayPal Holdings PYPL, Interactive Brokers Group IBKR, Robinhood Markets, Inc. HOOD and NVIDIA Corporation NVDA. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.
Bitcoin Pulls Back
Bitcoin was trading around $110,492 on Wednesday night after falling to nearly $107,000 earlier in the week. The cryptocurrency has hit four all-time highs this year, with the last being $124.496 in July.
Bitcoin has declined nearly 15% over the past month, occasionally paring some of the losses, but remains sharply lower than its all-time high. Several factors have raised concerns in the minds of investors, who are skeptical about making investments in risky assets.
Although the unemployment rate is still very low, a weak jobs report has raised concerns over a struggling labor market. Also, investors are yet to understand the real impact of President Donald Trump’s tariffs. The new set of tariffs has already been pushing prices of goods higher, igniting fears of inflation climbing back again.
This saw consumer confidence declining to 97.4 in August from 98.7 in July, a 1.3% drop. However, the ongoing decline is temporary. Bitcoin and other cryptocurrencies are likely to get a boost in the coming days once the Federal Reserve starts easing its monetary policy. The Fed has hinted at a possible rate cut in September, which bodes well for growth-oriented assets, including cryptocurrencies. Markets are now pricing in a 97.6% chance of a 25 basis point rate cut in September, according to the CME Group’s FedWatch Tool.
4 Crypto-Centric Stocks With Potential to Grow
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 2.8% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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 10.7% over the last 60 days. IBKR currently has a Zacks Rank #1.
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 sports a Zacks Rank #1.
NVIDIA Corporation
NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphics processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is 46.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the last 60 days. Currently, NVIDIA has a Zacks Rank #2.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report NVIDIA Corporation (NVDA): 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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