The cryptocurrency market started 2024 on a positive note after closing last year at highs. On January 10, the most anticipated moment arrived: the US Securities and Exchange Commission (โSECโ) finally gave the green light to 11 Bitcoin spot ETFs.
The move, believed to be one of the most significant events to occur in the history of the cryptocurrency market, added fuel to Bitcoin (btc) manifestation. This approval will now allow retail investors to trade the world's largest cryptocurrency without actually owning it.
Bitcoin prices skyrocketed to over $47,500 following the announcement. However, since then the price of Bitcoin has fallen drastically. On January 18, Bitcoin traded down almost 3.5% at $41,364.33. Earlier, it fell to $40,601.37, hitting its lowest level since December 18.
Although last week's positive news raised hopes that Bitcoin and other cryptocurrencies would continue on their dream trajectory, the rally has stalled somewhat. Bitcoin has entered correction territory after the ETF launch.
Experts believe that Bitcoin still has great potential and the launch of the ETF will only boost the market in the long term. Despite the inherent volatility and risks associated with cryptocurrencies, the decision to bring them into the mainstream has been eagerly anticipated.
This change is expected to facilitate closer monitoring of the digital currency market, a development that the sector has historically resisted.
However, since the approval, Bitcoin has lost 12% of its value as several investors have flocked to institutional investment products to avoid risks. Furthermore, the flow of Bitcoin to derivatives exchanges has stopped growing, a trend that previously indicated bear markets or impending price corrections.
However, the correction phase is temporary and last week's approval of 11 spot Bitcoin ETFs will only boost the cryptocurrency market.
has improved 3.1% in the last 60 days. Coinbase currently has a Zacks Rank #1.
Actions to take into account
BlackRock, Inc. (BLACK - Free report) is one of the largest investment managers in the world and is publicly owned. BLK was one of the first traditional market companies to join the Bitcoin ETF race in June 2023.
BlackRock's expected earnings growth rate for the current year is 3.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. BlackRock currently has a Zacks Rank #3 (Hold). You can see The complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Coinbase Global, Inc. (CURRENCY - Free report) offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquidity-rich marketplace for institutional transactions of cryptoassets and technology, and services for developers to build cryptocurrency-based applications and securely accept cryptocurrencies as payment.
Coinbase Global's expected earnings growth rate for the current year is 92.5%. The Zacks Consensus Estimate for current-year earnings has improved 9.2% over the past 60 days. Coinbase currently has a Zacks Rank #2.
Marathon Digital Holdings, Inc. (MARA - Free report) is a digital asset technology company. MARA mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
Marathon Digital Holdings' expected earnings growth rate for the current year is 95.1%. The Zacks Consensus Estimate for current-year earnings has improved 47.1% over the past 90 days. Marathon Digital Holdings is currently a Zacks Rank #2.
NVIDIA Corporation (NVDA - Free report) is a major player in the semiconductor industry and has been one of the most notable success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA's stock value tends to rise in a prosperous crypto market. This is mainly due to the crucial role GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA's expected earnings growth rate for the current year is 268.6%. The Zacks Consensus Estimate for current-year earnings has improved 12.9% over the past 60 days. Currently, NVIDIA has a Zacks Rank #1.
