The cryptocurrency market started 2024 on a positive note after ending last year at a high. On January 10, the most anticipated moment came when the U.S. Securities and Exchange Commission (“SEC”) finally gave the green light to 11 spot Bitcoin ETFs.
This move is considered one of the most significant events in the history of the cryptocurrency market and gave additional impetus to the Bitcoin (BTC) rally. This approval now allows retail investors to trade the world's most popular cryptocurrency without actually owning it.
Following the announcement, Bitcoin prices rose above $47,500. However, the Bitcoin price has fallen sharply since then. On January 18, Bitcoin was trading almost 3.5% lower at $41,364.33. It previously fell to $40,601.37, its lowest level since December 18.
Although last week's positive news raised hopes that Bitcoin and other cryptocurrencies would continue their dream run, the rally has stalled somewhat. After the ETF launch, Bitcoin has entered the correction zone.
Experts believe that Bitcoin continues to hold great potential and the introduction of the ETF will only boost the market in the long term. Despite the inherent volatility and associated risks of cryptocurrencies, the move to bring them into the mainstream has been highly anticipated.
This shift is expected to allow for closer monitoring of the digital coin market, a development that the sector has resisted in the past.
However, since approval, Bitcoin has lost 12% of its value as several investors switched to institutional investment products due to risk concerns. Bitcoin flows on derivatives exchanges have also stopped growing, a trend that previously suggested bear markets or impending price corrections.
However, the correction phase is only temporary and the approval of 11 spot Bitcoin ETFs last week will only boost the crypto market.
has improved 3.1% over the last 60 days. Coinbase currently sports a Zacks Rank #1.
The story goes on
Stocks to keep an eye on
BlackRock, Inc. BLK is one of the world's largest investment managers and is publicly owned. BLK was one of the first companies from the traditional market to join the Bitcoin ETF race back in June 2023.
BlackRock's expected earnings growth rate for the current year is 3.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. BlackRock currently has a Zacks Rank #3 (Hold). You can see You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for crypto consumers, a marketplace with liquidity for institutional crypto asset transactions, and technology and services for developers to build crypto-based applications and securely accept cryptocurrencies as payment.
Coinbase Global's expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the past 60 days. Coinbase currently has a Zacks Rank #2.
Marathon Digital Holdings, Inc. MARA is a digital asset technology company. MARA mines cryptocurrencies with a focus on the blockchain ecosystem and digital asset generation.
Marathon Digital Holdings' expected earnings growth rate for the current year is 95.1%. The Zacks Consensus Estimate for current-year earnings has improved 47.1% over the past 90 days. Marathon Digital Holdings currently holds a Zacks Rank #2.
NVIDIA Corporation NVDA is a major player in the semiconductor industry and is one of the standout success stories of 2023. As a leading developer of graphics processing units (GPUs), NVDA stock tends to rise in value in a thriving crypto market. This is primarily due to the critical role GPUs play in data centers, artificial intelligence, and cryptocurrency mining/production.
NVIDIA's expected earnings growth rate for the current year is 268.6%. The Zacks Consensus Estimate for current-year earnings has improved 12.9% over the past 60 days. Currently, NVIDIA has a Zacks Rank #1.
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