The cryptocurrency market is steadily recovering after giving up its earlier gains last month. Bitcoin (BTC), which hit an all-time high in July before giving up nearly 15% of its gains last month, rebounded to a seven-week high on Wednesday night.
Markets have been volatile over the past month due to concerns over a shrinking labor market and a slowing economy. This has also been impacting the crypto market. However, the volatility is temporary and Bitcoin is expected to resume its rally once investors get a clearer picture of the economy’s health.
Given this situation, it would be ideal to take the buy-the-dip approach and invest in crypto-focused stocks. We have selected four stocks: PayPal Holdings PYPL, Robinhood Markets, Inc. HOOD, Interactive Brokers Group IBKR and Visa Inc. V. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.
Bitcoin Making a Rebound
Bitcoin rebounded on Wednesday night and was trading at a seven-week high of $118,481, to hit a seven-week high. Bitcoin hit an all-time high of $124.496 before giving up most of its gains in September on growing uncertainty over the impact of President Donald Trump’s tariffs and concerns of a weakening economy.
Wednesday’s jump came after the U.S. government partially shut down. According to reports cited by investing.com, the threat of a government shutdown could end up pushing extra liquidity into the markets.
Experts believe that Bitcoin still has ample room to grow as demand remains robust. According to an on-chain analytics firm CryptoQuant report, cited by The Block, Bitcoin could hit $160,000 to $200,000, this year if demand continues to remain high.
Also, the Federal Reserve cut interest rates by 25 basis points last month and hinted at two more quarter percentage point rate cuts this year. This is expected to boost Bitcoin further.
4 Crypto-Centric Stocks With Upside
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 12.5%.The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. PYPL currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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 47.7%.The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days. HOOD currently has a Zacks Rank #1 (Strong 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 2.1% over the last 60 days. IBKR currently has a Zacks Rank #2.
Visa Inc.
Visa is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa’s expected earnings growth rate for the current year is 13.7%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. V currently has a Zacks Rank #2.
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Visa Inc. (V): Free Stock Analysis Report 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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