Yahoo Finance 3 Crypto Stocks to Watch as Fed Ponders on Interest Rates
The recent crypto mini-rally is not only a corrective rebound but also a direct result of the hardships that the traditional currency market is undergoing. The regional banking crisis that was witnessed earlier in the year has resulted in heavy losses on various bong holdings, which has forced the Federal Reserve to go slow on rate hikes so as to combat severe liquidity issues.
Historically, a state of fast-rising interest rates has not proven conducive to the crypto market, as this latest trend is considered too volatile for such a state of the economy. In recent months, crypto has suffered heavily due to stringent regulatory measures taken up by the SEC, and generally high inflation levels that have acted as a catalyst for the Fed to keep raising rates. However, a recent spate of data, which showed cooling inflation, and the June rate-hike pause have meant that things are looking up again for the sector.
Last year was, thus, brutal for cryptocurrencies. Due to geopolitical upheavals and the FTX fallout, the markets plummeted. But now, Bitcoin and the other currencies have staged a comeback. Also, with fed officials currently foreseeing only two more 25 bps interest rate hikes for the rest of 2023, investors are hopeful that the worst phase is over.
The other thing that has changed recently is that countries around the world have started to proactively integrate crypto into the system by clarifying regulations around the system. The United States has not been a pioneer in this endeavor, let us say, like Southeast Asia has been. But things are moving in this part of the world too with the central bank’s decentralizing finance initiative, and the industry which is currently worth $1.2 trillion, can only benefit from it.
So, it might just be prudent to keep a close watch on crypto stocks and stocks exposed to the cryptocurrency market at this point in time. Here is a selection. These currently carry a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Digital Holdings, Inc. MARA operates as a digital asset technology company that mines cryptocurrency. It is singularly focused on the blockchain ecosystem and the generation of digital assets in the United States.
Marathon Digital’s expected earnings growth rate for the current year is 113.7%. The Zacks Consensus Estimate for its current-year earnings has improved by 525% over the past 60 days.
Interactive BrokersGroup, Inc. IBKR is a global automated electronic broker, and among other offerings, routes, executes, processes and trades in cryptocurrencies. The company’s commodities futures trading desk also offers customers a chance to trade cryptocurrency futures.
Interactive Brokers’ expected earnings growth rate for the current year is 39.5%. The Zacks Consensus Estimate for its current-year earnings has improved by 0.7% over the past 60 days and is expected to grow 4.8% next year.
Mogo Inc. MOGO is a digital finance company exposed to the crypto market via its major stake in Coinsquare, and a previous dabble in owning a cryptocurrency called Mogo Crypto.
Mogos expected earnings growth rate for the current year is 50%. The Zacks Consensus Estimate for its current-year earnings has improved by 20% over the past 60 days.
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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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Mogo Inc (MOGO) : Free Stock Analysis Report
