Cryptocurrencies had a turbulent November, despite historically being one of the best months. Bitcoin (BTC), especially, has suffered the most, with the cryptocurrency falling below $84,000 on Monday, a step decline from its all-time high attained less than two months back.
Several factors have kept investors on edge, leading to a massive selloff over the past month. However, market experts believe that the decline is temporary and there are still many positives that can propel Bitcoin back to its earlier high.
The cryptocurrency started showing signs of a rebound on Tuesday, following some positive news and is expected to resume its northbound journey.
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 Rebounds After Sharp Decline
Bitcoin fell below $84,000 on Monday, declining more than 32% from its all-time high of nearly $125,000 attained on Oct. 6. Monday’s decline follows a sharp selloff that started in mid-October.
The massive decline on Monday came after the People’s Bank of China warned over the weekend about illegal activities linked to digital assets, especially cryptocurrencies. However, the cryptocurrency has since recovered and was trading above $93,000 on Tuesday, after a spate of new developments lifted investors’ confidence.
On Tuesday, the Federal Reserve decided to pause its Quantitative Tightening (QT) program and pumped in fresh liquidity into the market, giving short-term stability a lift. The fresh wave of liquidity, coupled with the ongoing decline in Bitcoin reserves in exchanges, can create an opportunity for upward price momentum.
Several other factors have also been denting investors’ sentiment lately. Uncertainty around what the Federal Reserve plans to do next — especially whether it will actually go through with a possible rate cut in December — has been weighing on investor confidence. The market has been counting on another 25-basis-point cut after the Fed lowered rates in both September and October. But officials have warned that cutting rates too aggressively could make it harder to rein in inflation.
Also, President Donald Trump’s tariffs have sparked concerns that rising costs could trigger inflation. However, analysts believe that Bitcoin’s recent dip is only temporary.
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 54.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.8% over the past 60 days. Currently, NVDA 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 78.9%.The Zacks Consensus Estimate for current-year earnings has improved 12.7% 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 5.6% 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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