Bitcoin Surpasses $100,000 Mark Again
Bitcoin has once again crossed the significant $100,000 threshold, reaching a peak of $106,533 in December. This resurgence has sparked investor interest, particularly in stocks of companies closely associated with Bitcoin, providing a means for investors to capitalize on the cryptocurrency’s growth. Firms such as Nvidia, Robinhood Markets, Shopify, Interactive Brokers, and Coinbase stand to benefit from this Bitcoin rally.
Despite a remarkable performance in the stock market throughout 2024, volatility has returned in the closing weeks of December. Nevertheless, the cryptocurrency market has shown resilience, with Bitcoin (BTC) continuing its upward trajectory after a brief setback following its record high in December. On Wednesday, Bitcoin reclaimed the $100,000 level again, fueled by the release of consumer price index (CPI) data for December, which indicated a slight easing of inflation as the year drew to a close.
The recent surge in cryptocurrency enthusiasm has been amplified by Donald Trump’s victory in the U.S. Presidential election, as many anticipate that his pro-crypto stance will propel Bitcoin to new heights. Given the prevailing positive sentiment, investing in Bitcoin-related stocks like NVIDIA Corporation, Robinhood Markets, Shopify, Interactive Brokers Group, and Coinbase Global appears to be a prudent strategy, particularly as these stocks showcase promising growth potential for 2025. Notably, all these companies have experienced upward revisions in earnings estimates over the past two months.
After peaking at $106,533 on December 22, Bitcoin experienced a decline of over 12% in early January. However, it rebounded above the $100,000 mark again on Wednesday, driven by favorable inflation data and regulatory developments perceived as beneficial for the cryptocurrency market. By Friday morning, Bitcoin had surpassed $102,000 and was trading around $101,600.
The increase coincided with the release of CPI data revealing a 0.4% month-over-month rise in December, slightly above analysts’ expectations of a 0.3% increase. Year-over-year, CPI rose 2.9%, aligning with consensus estimates. Excluding volatile food and energy prices, the core CPI rose by 0.2% month-over-month, slightly below the expected 0.3% increase, while it rose 3.2% year-over-year, outperforming the anticipated jump of 3.3%.
Bitcoin’s price increase occurred just days before Trump’s inauguration, with numerous factors contributing to this recent bullish trend. Trump’s anticipated crypto-friendly policies and his appointments of pro-crypto individuals to key government positions are expected to foster a supportive environment for the cryptocurrency sector. During his campaign, the president-elect pledged to position the United States as the “crypto capital of the world,” with plans to establish a strategic Bitcoin reserve and appoint regulators favoring digital assets.
Experts suggest that the deregulation of cryptocurrencies could further boost Bitcoin, making 2025 another landmark year for the asset. Historically, Bitcoin has reached new all-time highs every four years during its previous bullish cycles since 2017, achieving gains of 2,300% and 1,700%, respectively, followed by corrections of 70% to 80%. Since hitting a low of $16,000 in early 2023, Bitcoin has surged nearly 600%, indicating substantial potential for continued growth in the coming years.
NVIDIA Corporation: A Key Player in Crypto Growth
NVIDIA Corporation has emerged as a significant player in the semiconductor sector, becoming one of the standout performers of 2023. As a leading designer of graphic processing units (GPUs), NVIDIA’s stock tends to thrive during prosperous periods for the cryptocurrency market, largely due to the essential functions GPUs serve in data centers, artificial intelligence, and cryptocurrency mining. The company’s projected earnings growth for the current year exceeds 100%, with the Zacks Consensus Estimate for earnings having risen by 3.5% in the last 60 days. Currently, NVIDIA holds a Zacks Rank of #2 (Buy).
Robinhood Markets: A Financial Platform for Crypto Enthusiasts
Robinhood Markets, Inc. operates a financial services platform in the U.S., enabling users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. Through its Robinhood Crypto platform, users can buy and sell cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. Robinhood Markets is also expected to achieve over 100% earnings growth this year, with the Zacks Consensus Estimate for current-year earnings having improved by 26.4% in the last two months. The company currently holds a Zacks Rank of #1 (Strong Buy).
Shopify: Embracing Cryptocurrency Payments
Shopify Inc. is an e-commerce corporation providing a platform for merchants to accept cryptocurrencies as payment. The company has integrated with CoinPayments, a cryptocurrency payment processor, enhancing its ability to facilitate crypto transactions. Shopify’s anticipated earnings growth rate for the current year stands at 70.3%, with the Zacks Consensus Estimate for earnings improving by 12.5% over the past 90 days. Shopify currently holds a Zacks Rank of #1.
Interactive Brokers: A Leader in Crypto Trading
Interactive Brokers Group, Inc. is a global automated electronic broker that processes and executes trades in cryptocurrencies. Its commodities futures trading desk also provides customers with the opportunity to trade cryptocurrency futures. The company has an expected earnings growth rate of 20% for the current year, with the Zacks Consensus Estimate for earnings having increased by 1.3% over the last two months. Interactive Brokers currently has a Zacks Rank of #2.
Coinbase: Infrastructure for the Cryptocurrency Economy
Coinbase Global, Inc. provides essential financial infrastructure and technology to support the cryptocurrency economy globally. It offers a primary financial account for consumers engaging with crypto, a marketplace facilitating liquidity for institutional transactions, and services for developers to create crypto-based applications. Coinbase’s expected earnings growth rate for the current year exceeds 100%, with the Zacks Consensus Estimate for earnings having increased by 11.4% in the past two months. Coinbase currently carries a Zacks Rank of #1.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
