4 Crypto-centric Stocks With Bitcoin Rally Expected in 2025

December 24, 2024

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4 Crypto-centric Stocks With Bitcoin Rally Expected in 2025

The cryptocurrency’s rise has slowed over the past few days, with Bitcoin (BTC) recording its first weekly decline since Donald Trump won the presidential election in early November. Bitcoin fell nearly 10% for the week ending December 22 after reaching an all-time high on December 16.

The latest decline came after the Federal Reserve gave a hawkish outlook for interest rate cuts in 2025. However, the cryptocurrency still has a lot of potential and is poised to rise in the near term as expectations continue to build on Trump’s cryptocurrency-friendly policies.

Investing in Bitcoin-focused stocks such as Nvidia company ran out, Black Rock Black, Shopify company Shop and Robinhood Markets, Inc So HOOD would be a smart choice. These stocks have strong growth potential for 2025. Each of these stocks has seen a positive earnings estimate revision within the past 60 days and carries a Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold). You can see The complete list of today’s Zacks #1 Rank stocks is here.

Bitcoin started 2024 on a high note after the Securities and Exchange Commission approved 11 spot exchange-traded funds (ETFs) in January. The cryptocurrency reached an all-time high for the first time this year in March, when its price reached $73,750. However, the rally faded soon after as the Federal Reserve delayed interest rate cuts and even the April halving event failed to lift the cryptocurrency.

The rally returned in September after the Fed cut interest rates for the first time in more than four years with a significant 50 basis point cut. The rise gained further strength after Trump won the election, jumping nearly 50% in one month, reaching an all-time high of $106,533 on December 22.

However, Bitcoin has fallen slightly over the past few sessions after the Federal Reserve said last week that it expects a maximum of two interest rate cuts next year. Bitcoin traded at more than $95,320 on Sunday evening but remains in a comfortable place.

Recent comments from the Federal Reserve have destabilized Bitcoin and the broader market somewhat, but investors still hold out a lot of hope from the incoming president, who is known for his crypto-friendly environment.

The president-elect has already appointed several pro-crypto people to key cabinet and regulatory positions. During his election campaign, Trump promised to turn the United States into the “cryptocurrency capital of the world,” unveiling plans to create a strategic bitcoin reserve and choosing regulatory backers for the digital asset.

Also, the Fed, despite its hawkish comments, cut interest rates by 25 basis points at its policy meeting in December, the third rate cut this year, which bodes well for the cryptocurrency in 2025.

Nvidia company It is a major player in the semiconductor industry and has been one of the notable success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA stock tends to rise in value in the booming cryptocurrency market. This is primarily due to the critical role that GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.

NVIDIA’s expected earnings growth rate for next year is 41.5%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. Currently, NVIDIA has a Zacks Rank #2.

Black Rock It is one of the largest investment management companies in the world and is publicly owned. BLK was among the first companies from the traditional market to join the Bitcoin ETF race in June 2023.

BlackRock’s expected earnings growth rate for next year is 14.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. BLK currently has a Zacks Rank of #3.

Shopify company It is an e-commerce company that provides a platform for merchants to accept cryptocurrencies as payment. Additionally, SHOP has created integration with CoinPayments, a cryptocurrency payments processor.

Shopify’s expected earnings growth rate for next year is 18.4%. The Zacks Consensus Estimate for current-year earnings has improved 11.6% over the past 60 days. SHOP currently has a Zacks Rank of #2.

Robinhood Markets, Inc It 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 next year is 22.5%. The Zacks Consensus Estimate for current-year earnings has improved 8.1% over the past 60 days. Robinhood Markets currently has a Zacks Rank of #3.

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