In 2023, the cryptocurrency market showcased robust performance, and the momentum persists into the current year. On March 14, Bitcoin (BTC), the leading cryptocurrency, achieved an unprecedented peak at 73,750.07. However, within a span of less than a week, it experienced a decline of over 17.5%, settling at $66,982.84 by March 21. The rally regained steam on March 21, with Bitcoin surging over 7% following the Federal Reserve’s commitment to three interest rate cuts of 25 basis points each throughout 2024.
A climate of low interest rates favors sectors characterized by high growth potential, such as technology, consumer discretionary goods, and cryptocurrency. Bitcoin has demonstrated remarkable appreciation, rising by 74.5% this year after a staggering 157% surge in 2023. Notably, a significant milestone in the cryptocurrency landscape occurred on January 10, when the U.S. Securities and Exchange Commission greenlit rule changes permitting the establishment of spot Bitcoin exchange-traded funds (ETFs). Subsequently, 11 spot Bitcoin ETFs debuted in January.
Furthermore, the upcoming Bitcoin halving scheduled for April 2024 is anticipated. During this event, the reward for mining new blocks is halved, heightening the difficulty for miners to acquire net Bitcoins. Historically, this phenomenon has augmented scarcity, consequently driving up the value of Bitcoin owing to diminished supply.
Optimistic forecasts abound within the cryptocurrency sphere. Several research entities foresee a prolonged upward trajectory for Bitcoin. Standard Chartered projects a year-end target of $100,000, while Fundstrat offers a target range between $116,000 and $137,000 for the current year. Hedge fund SkyBridge predicts a valuation of $170,000 by April 2025.
VanEck presents a medium-term target of $350,000 for Bitcoin. Connors’s base-case scenario envisions Bitcoin hitting $110,000 in 2024 and $140,000 the subsequent year. In the firm’s most bullish scenario, Bitcoin could soar to $180,000 in 2024 and $450,000 in 2025.
In light of these developments, we have identified five cryptocurrency-focused stocks poised for strong performance in 2024. Each selection either boasts a Zacks Rank #1 (Strong Buy) or #2 (Buy). For a comprehensive list of today’s Zacks #1 Rank stocks, please refer to our recommendations.
