Cryptocurrencies have been suffering lately, with Bitcoin (BTC) witnessing a sharp decline last week from its all-time high. Bitcoin, the world’s most popular cryptocurrency, has declined more than 22% in the past month as broader market volatility has pushed investors to reassess their risk appetite.
Several macroeconomic factors have been weighing on investors’ sentiment, which has forced them to shun riskier assets like cryptocurrencies. However, these concerns are temporary, and Bitcoin is expected to rebound once these tensions ease.
Given this situation, it would be ideal to take the buy-the-dip approach and invest in crypto-focused stocks. We have selected three stocks: NVIDIA Corporation NVDA, Robinhood Markets, Inc. HOOD and Interactive Brokers Group, Inc. IBKR. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the past 60 days.
Bitcoin Takes Massive Hit
Bitcoin fell below $81,000 on Friday before recovering some ground over the weekend. The cryptocurrency was hovering around $86,800 on Monday morning. Bitcoin has lost more than $40,000 since hitting an all-time high of around $125,000 on Oct. 6. Currently, the cryptocurrency is down 30% from its all-time high and has lost $1.2 trillion in market value since Oct. 6, according to a Reuters report.
Bitcoin has now given up all its year-to-date gains and is down 12%. Several factors have been impacting Bitcoin’s decline lately. The recent government shutdown has left investors deprived of any economic data. This has seen volatility return to the broader market as investors over the past month failed to assess the economy’s health.
Additionally, a lack of clarity regarding the Federal Reserve’s future course of action and uncertainty over a potential rate cut in December have been eroding investors’ sentiment. Markets have been expecting another 25-basis-point rate cut in December, following the Federal Reserve's rate cuts in September and October. However, the Fed has cast worries that aggressive rate cuts could pose a challenge in its fight to tame inflation.
Also, President Donald Trump’s tariffs have raised fears that higher prices could further trigger inflation. However, Bitcoin’s recent decline is temporary, and once these concerns ease, the cryptocurrency is expected to resume its rally.
3 Crypto-Centric Stocks With Upside
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 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 54.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. Currently, NVIDIA 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 78.9%.The Zacks Consensus Estimate for current-year earnings has improved 26.6% over the past 60 days. HOOD currently has a Zacks Rank #1.
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 17.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.1% over the last 60 days. IBKR currently 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 Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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