Bitcoin Endures Volatility in 2024: Spotlight on Key Tech and Financial Stocks

As we entered 2024, the cryptocurrency market carried its upward momentum from the previous year, starting strong with significant developments. On January 10th, a landmark event unfolded as the U.S. Securities and Exchange Commission (SEC) gave the green light for the formation of spot bitcoin exchange-traded funds (ETFs), an exciting evolution for the crypto industry.

Following the SEC's announcement, a wave of spot bitcoin ETF introductions took place, propelling the price of bitcoin above the key technical level of $47,000 to hit a high of $47,893.70. Since then, the price has experienced a considerable dip, falling to $39,854.61 on January 22nd, a low not seen since December 2023. Despite this, bitcoin managed a modest comeback over the subsequent seven trading days, appreciating by 6%.

The triumphs and tribulations of bitcoin signal its significant potential and the likelihood of a new relationship between cryptocurrencies and mainstream finance. What's more, the anticipated Bitcoin halving event scheduled for the first half of 2024 will reduce mining rewards by half, likely causing an uptick in Bitcoin value owing to decreased new supply.

Reviewing Crypto-Focused Stocks

NVIDIA Corp. (NVDA), renowned for its GPUs that are crucial for various tech applications, including cryptocurrency mining, showed remarkable performance in 2023. Their stock benefits from a bustling crypto market, and with an expected earnings growth rate of 63.1% for the year ending in January 2025, NVDA appears to be a solid option for investors.

CME Group Inc. (CME) provides cryptocurrency futures options, allowing for investment in Bitcoin and ether derivatives. The company is seeing a modest expected earnings growth rate of 2.3% for the current year, positioning it as another stock to watch.

Coinbase Global Inc. (COIN) serves as a critical financial hub in the cryptocurrency world. With a projected earnings growth rate of 49.1% for the current year, COIN's adjustments to its earnings estimates suggest positive trends for the company.

Robinhood Markets Inc. (HOOD), allows users to trade various asset classes, including cryptocurrencies, through its Robinhood Crypto platform, and forecasts an earnings growth rate of over 100% for the current year.

Block Inc. (SQ), the parent company of Square and Cash App, also invested heavily in Bitcoin and offers its users Bitcoin trading services. An expected earnings growth rate of 53.1% signals potential for their stock performance.

Focusing on these companies, investors might navigate the seesaw nature of crypto trading in 2024, keeping an eye on both the risks and opportunities presented by Bitcoin's volatility and the broader technological advancements in the cryptocurrency sector.

NVDA, CME, COIN, HOOD, SQ