Bitcoin Hits New High for 2023; Cryptocurrency Rally Picks Up Pace
Bitcoin (BTC) reached a new high for 2023, hitting $38,000 for the first time on November 24. This is the first time the cryptocurrency has traded past the $38,000 mark since May 2022. After starting the month on a dip, the cryptocurrency market has made a solid turnaround this year.
Cryptocurrency Resurgence
Bitcoin closed just above $37,400, marking a significant resurgence for cryptocurrencies. Ethereum (ETH) also made gains, closing above $2,070 on Friday. Ethereum has surged 74.2% year-to-date. Similarly, Cardano (ADA) and Dogecoin (DOGE) have jumped 57.5% and 10.3%, respectively, year-to-date.
Factors Contributing to the Rally
One major factor contributing to the cryptocurrency rally has been the resolution of the legal issues faced by Binance. The CEO of Binance, the world’s largest cryptocurrency exchange, has reportedly agreed to plead guilty to federal criminal charges. This resolution has restored confidence among investors, alleviating concerns about the exchange’s future and helping the broader cryptocurrency market stabilize.
The Path for Bitcoin ETF Approval
Many now believe that with the Binance investigation resolved, the path for a Bitcoin exchange-traded fund (ETF) approval will be clear. Market participants believe that the approval of a Bitcoin ETF is likely to play a major catalyst in driving the cryptocurrency market to new highs.
Federal Reserve’s Hawkish Approach
Separately, the Federal Reserve has maintained its hawkish approach. The minutes of the November Federal Open Market Committee (FOMC) meeting suggest that officials are still open to more hikes, although they are currently inclined toward maintaining a cautious approach. However, investors are confident that the Federal Reserve will refrain from hiking interest rates in December, as inflation declined further in October.
Stocks to Consider
Based on the positive outlook for the cryptocurrency market, investors may consider the following stocks:
1. Coinbase Global, Inc. (COIN)
Coinbase offers financial infrastructure and technology to support the global cryptocurrency economy. The company’s expected earnings growth rate for the current year is 91.7%. The Zacks Consensus Estimate for current-year earnings has improved 45.6% over the last 60 days. Coinbase currently carries a Zacks Rank #2 (Buy).
2. Interactive Brokers Group, Inc. (IBKR)
Interactive Brokers is a global automated electronic broker that executes, processes, and trades in cryptocurrencies. The company has an expected earnings growth rate of 41.7% for the current year, and its Zacks Rank is currently #2.
3. NVIDIA Corporation (NVDA)
NVIDIA is a major player in the semiconductor industry and a leading designer of graphic processing units (GPUs). The company’s expected earnings growth rate for the current year is 229.6%. NVIDIA currently carries a Zacks Rank #1.
4. Block Inc. (SQ)
Block, Inc. is an online digital and mobile payment platform for consumers and merchants and a large Bitcoin investor. The company has an expected earnings growth rate of 90% for the current year and carries a Zacks Rank #2.
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I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
