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Two crypto stocks still worth buying despite recent rally in Bitcoin

Monday, March 04, 2024 12:01 PM | Invezz via QuoteMedia

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Two crypto stocks still worth buying despite recent rally in Bitcoin

2024-03-04 12:01:21 ET

two crypto stocks worth buying bitcoin rally

Crypto stocks have been flying high in recent weeks on the back of Bitcoin that is moving quickly back to its all-time high. But following what has been an incredible rally, are crypto stocks still poised for further gains in 2024? Let’s explore.

Bitcoin ETFs remain a tailwind

As evidenced in the price action almost since the start of this year – the one factor that overshadows all else in determining the valuation of crypto stocks is how well or poorly is the BTC doing.

Ever since the Securities and Exchange Commission of the United States approved the Spot Bitcoin ETFs and enabled institutional capital to drive into the crypto market – the world’s largest cryptocurrency has been in a sharp uptrend.

But that rally may be far from over just yet considering the exchange-traded funds are not a one-time benefit but a continued catalyst for Bitcoin. William Quigley – a cofounder of Tether is convinced that BTC is headed for $300,000. That suggests a near 400% upside from here.

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Bitcoin halving is right around the corner

Experts are turning increasingly bullish because the Spot Bitcoin ETF is just one of the many tailwinds that could help the crypto space. The total supply of BTC is slated to halve in April or May of 2024 ( halving event ) that typically delivers a significant price boost as well.

Plus, the U.S. central bank is perhaps at the cusp of start of lowering interest rates now that tends to make the risk-on assets like Bitcoin or cryptocurrencies at large more attractive.

And then, of course, Bitcoin may be a good hedge to government spending, as per Ivory Johnson of Delancey Wealth Management. So, all in all, it looks like the Bitcoin is destined to rip even higher from here – and with it will likely go the crypto stocks.

Having said that, here are the two more reliable crypto stocks that you should consider buying in 2024.

Coinbase Global Inc (NASDAQ: COIN)

Coinbase has soared well over 300% in the trailing twelve months. But is it as far as it goes for now? Perhaps not – as per Edward Engel of Singular Research.

Engel assumed coverage of $COIN this week with a buy rating and said the crypto stock could climb further up to $263 in about a year. His price objective suggests close to a 30% upside on its previous close.

The analyst is bullish on Coinbase stock as it reported a whopping 41% sequential growth in its quarterly revenue in February ( read more ). Much of it was related to a surge in BTC. So, as Bitcoin continues to rip higher on the back of aforementioned tailwinds – so will the company’s revenue and eventually its stock price.

More importantly, $COIN managed a sharp increase in revenue even though the number of monthly trading users (MTUs) on the platform remained close to cyclical lows. A potential recovery in MTUs could still deliver a significant boost to its trading revenue moving forward.

Coinbase shares are attractive at writing also because about 45% of the company’s revenue now comes from non-trading segments. The added reliability in its financials could see positive revisions in estimates and help push the crypto stock further up from here, Engel concluded.

MicroStrategy Inc (NASDAQ: MSTR)

MicroStrategy is another prominent crypto stock worth investing in 2024 if you’re indeed sold on the forecast that Bitcoin will continue to move further up in the coming months.

That’s because the Nasdaq-listed firm has accumulated a hoard more than 190,000 Bitcoin at an average price of $31,224 per BTC as of February 5 th . Considering the world’s largest cryptocurrency is currently trading at $66,000 and change – $MSTR, at writing, is about $6.65 billion in profit on its Bitcoin investment.

The cloud-based business intelligence and mobile software company has effectively doubled its BTC investment – and even though its total revenue was down about 6.0% year-over-year in its latest reported quarter , subscription services revenue up 23% in Q4 paints a rather rosy picture of what the future holds for MicroStrategy.

Wall Street currently has a consensus “overweight” rating on the crypto stock that may rip higher in the coming months if Bitcoin continued to make new highs as expected.

Note that $MSTR is not done investing in BTC either. It loaded up on another 3,000 Bitcoin last week to bring its total holdings to about $10.3 billion. That suggests the company’s management still sees massive upside potential in the cryptocurrency moving forward.

The post Two crypto stocks still worth buying despite recent rally in Bitcoin appeared first on Invezz

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