Bitcoin Witnesses Seesaw Trading in Early 2024: 5 Stocks in Focus (Part-1)

Following a remarkable surge in value last year, the cryptocurrency market got off to a strong start in 2024. On January 10th, the cryptocurrency space underwent its much-anticipated reorganization. A new type of exchange-traded fund (ETF) allowing investors to buy and sell bitcoin on the spot was authorized by the U.S. Securities and Exchange Commission (SEC).

Last month, eleven different spot bitcoin ETFs were introduced. Shortly after the news broke, the price of bitcoin (BTC) surged beyond the critical mark of 47,000 and reached 47,893.70. Still, the value of Bitcoin has dropped significantly in the time since.

Traders saw a 3% drop in Bitcoin prices on January 22nd, sending the cryptocurrency to its lowest level since December 2023: $39,854.61. Bitcoin, nevertheless, got its mojo back in the previous seven trading days, when its price increased 6%.

Bitcoin still has a great deal of untapped potential. The most recent ruling from the SEC will most certainly go down in history as a watershed moment, establishing cryptocurrency and the whole crypto sector as essential parts of traditional banking. 

People, hedge funds, and other financial organizations will soon be able to gain exposure to the largest cryptocurrency in the world without actually owning any of it, according to a groundbreaking ruling by the SEC.

In addition, the first part of 2024 is when Bitcoin will undergo its next halving. The incentive for mining new blocks is cut in half during a halving, which makes it harder for miners to earn net Bitcoins. In the past, this has caused a decrease in supply, which in turn has raised the value of Bitcoin by making it more scarce.

Concentrated Stocks One of the most remarkable companies of 2023 was NVIDIA Corp., symbol NVDA, which is a semiconductor industry behemoth. The stock price of NVDA, a prominent maker of GPUs, tends to skyrocket during periods of robust cryptocurrency markets. Reason being, graphics processing units are essential for AI, data centers, and the development of cryptocurrency.

he current year (ending January 2025) is projected to see a 63.1% increase in NVIDIA's earnings. In the past 30 days, there has been a 1.8% improvement in the Zacks Consensus Estimate for its current-year profits. At the moment, NVDA is ranked #2 (Buy) by Zacks. Every stock with a Zacks #1 Rank (Strong Buy) for the day can be viewed here.

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