The cryptocurrency market is on a boom at the moment. There are both technical and fundamental reasons for this rise. Technically, the equity market is witnessing a strong uptrend after three consecutive months of negative closing. This is mainly driven by a strong anticipation among market participants that the Fed is already lining up interest rate hikes for the current cycle.
The consumer price index (CPI) rose 3.2% for October, below the consensus estimate of 3.3%. Year over year, core CPI increased by 4%, below the consensus estimate of 4.1%, which is the lowest year-over-year increase for the metric since September 2021.
The producer price index (PPI) fell 0.5% in October after rising 0.4% in September, its biggest monthly decline since April 2020. Retail sales fell 0.1% in October after rising 0.9% in September.
The flexible labor market shows signs of deterioration with only 150,000 manpower added in October. All these recently released economic data show that the economy is gradually cooling, which will force the Fed to end the ongoing rate hike era. The high interest rate regime is detrimental to growth sectors like technology and cryptocurrency.
Fundamentally, the news that the Securities and Exchange Commission (SEC) is set to approve a Bitcoin exchange-traded fund (ETF) has once again boosted investor optimism. The expected approval of a Bitcoin ETF by the SEC is likely to boost demand by providing a path for traditional investors to access Bitcoin and other cryptocurrencies through regular stock markets.
This development is expected to attract new investments into the crypto industry, potentially increasing overall demand. As a result, the prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) climbed 5.7%, 4.6%, 6.2%, 5.3% and 3.6% respectively. Nov 15.
stock to buy
nvidia corporation NVDA is a giant of the semiconductor industry and one of the biggest success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA stock typically soars on the booming crypto market. This is because GPUs are vital for building data centers, artificial intelligence, and crypto assets.
NVIDIA’s expected earnings growth rate for the current year (ending January 2024) is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past seven days. NVDA currently sports a Zacks Rank #1 (Strong Buy). you can see The full list of today’s Zacks #1 Rank stocks here,
Coinbase Global Inc. COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN provides the primary financial account in the crypto space for consumers, a marketplace with pools of liquidity for institutions to transact in crypto assets; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global’s estimated earnings growth rate for the current year is 91.7%. The Zacks Consensus Estimate for current-year earnings has improved by 44% over the past 30 days. COIN currently holds a Zacks Rank #2 (Buy).
Block Inc. SQ is an online digital and mobile payments platform for consumers and merchants and is the parent company of Square and Cash App. Cash App users can buy, sell, send, and receive Bitcoins. Additionally, SQ’s decentralized TBD platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
The block’s expected earnings growth rate for the current year is 88%. The Zacks Consensus Estimate for current-year earnings has improved by 15.3% over the past 30 days. SQ currently sports a Zacks Rank #2.
Interactive Brokers Group Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. IBKR’s Commodity Futures Trading Desk also offers clients the opportunity to trade cryptocurrency futures.
Interactive Brokers Group’s earnings growth rate for the current year is expected to be 41.7%. The Zacks Consensus Estimate for current-year earnings has improved by 1.1% over the past 30 days. IBKR is currently carrying a Zacks Rank #2.
The chart below shows the price performance of our four picks over the past month.
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