The price of Bitcoin (BTC) entered correction territory following its halving event in April that weighted on the cryptocurrency market. However, Bitcoin rebounded earlier this week and hit a 30-day high of $68,477.85 on Jul 22.
The price of Bitcoin is currently hovering around $66,000 and is on track to surpass $70,000. A number of factors are responsible for Bitcoin’s rebound in the past few days.
The political events seen in the United States over the past 10 days have been driving the Bitcoin rally. President Joe Biden’s withdrawal from the 2024 presidential race has increased the chances of Donald Trump winning the election in November.
Trump is in favor of the cryptocurrency industry and has accepted donations in Bitcoins for his presidential campaigns.
Also, the Securities and Exchange Commission gave the green light to 11 spot Bitcoin exchange-traded funds (ETFs) in January, a groundbreaking decision that will make it easier for both everyday investors and large institutions to invest in Bitcoin through a regulated and accessible platform.
Besides, in June, Federal Reserve Chairman Jerome Powell revealed that the central bank now aims to lower interest rates just once this year, instead of the three cuts that were initially anticipated.
However, even this single 25 basis point reduction has been positively received, especially since many had expected no rate cuts at all in 2024. According to the latest FOMC “dot plot,” interest rates are expected to decrease by 1% by 2025, possibly taking the Fed funds rate to 4.1% by the end of next year.
Markets are anticipating a rate cut in September, which could be advantageous for the cryptocurrency market. Lower interest rates typically support growth-focused assets, such as technology stocks, consumer discretionary and cryptocurrencies.
Our Choices
We have narrowed our search to four crypto-oriented stocks that have strong potential for 2024. Each of our picks carries either a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Robinhood Markets, Inc. HOOD 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 more than 100%.The Zacks Consensus Estimate for current-year earnings has improved 89.7% over the last 90 days.
Source:- yahoo.finance
