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Cryptocurrencies have been on a rally again, thanks to some encouraging economic data and easing trade tensions, which have given a boost to investors’ confidence. Earlier this week, Bitcoin (BTC) surpassed the $100,000 mark for the first time in nearly five months.
Bitcoin seems to be on track to surpass its all-time high of $106,533 attained on Dec. 22. Bitcoin had a stellar 2024, and experts had predicted that the cryptocurrency could cross $140,000 once global tensions ease.
Given this, it may be ideal to invest in crypto-focused stocks. We have selected three stocks, namely Visa Inc. (V – Free Report) , NVIDIA Corporation (NVDA – Free Report), and PayPal Holdings (PYPL – Free Report). These stocks all maintain strong growth potential, and each of these names have witnessed positive earnings estimate revisions in the last 90 days.
Bitcoin on Track to Hit New High
Bitcoin surpassed $104,000 on Thursday night on renewed optimism that easing trade tensions and cooling inflation will save the U.S. economy from slipping into a recession. The Commerce Department said earlier this week that inflation is cooling steadily.
The consumer price index (CPI) rose 0.2% sequentially in April and 2.3% from the year-ago levels, the lowest since February 2021. The monthly reading was in line with expectations, while the 12-month inflation came in below economists’ expectations.
Core CPI, which excludes the volatile food and energy prices, also increased 0.2% month-over-month in April, lower than the forecast of 0.3%. Year-over-year, core CPI grew 2.8%, which came in line with analysts’ expectations. Inflation now looks to be on track to meet to Fed’s 2% target.
Trade Tensions Ease
The broader market rallied this week as investors breathed a sigh of relief after the United States and China announced a trade truce following talks over the previous weekend. Both countries decided to temporarily halt tariffs for 90 days and work out a deal.
Investors are expecting more trade deals with other countries to be worked out soon. Easing trade tensions and signs of cooling inflation have alleviated fears of a weakening U.S. economy.
Investors are also hopeful that the easing inflation will give the Federal Reserve the confidence to resume its rate cuts in the near-term. This is likely to further help the crypto market as higher interest rates for a longer period can have a negative impact on cryptocurrencies by dampening investor interest in high-risk assets, increasing the cost of holding non-interest-bearing assets like Bitcoin, and strengthening the U.S. dollar, which are often considered a headwind for the crypto market.
3 Crypto-Centric Stocks With Upside
Presented below is a brief rundown of the previously-mentioned stocks.
Visa Inc.
Visa Inc. is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, Visa is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of Visa includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa Inc.’s expected earnings growth rate for the current year is 12.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 90 days. The stock currently has a Zacks Rank #3 (Hold) rating.
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 graphic processing units (GPUs), the value of the company’s stock tends to surge in a thriving cryptocurrency 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 43.5%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the last 90 days. Currently, NVIDIA has a Zacks Rank #3 (Hold) rating.
PayPal Holdings
PayPal Holdings, Inc. provides digital wallet services that enable users to purchase, transfer, and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Through PayPal, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal’s mobile wallet platform, Venmo, allows users to engage in cryptocurrency buying and selling activities.
PayPal Holdings’ expected earnings growth rate for the current year is 9%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 90 days. The stock currently has a Zacks Rank #3 (Hold) rating.
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