Cryptocurrency Bitcoin Skyrockets Over 200% in 2020: 4 Stocks to Buy Now


The cryptocurrency market has seen a resurgence in the last few weeks, with Bitcoin (BTC) trading above $36,600 on Nov 8. A number of developments and an increased optimism around the crypto market have been the catalysts for the bullish trend which is expected to carry into the last two months of the year.

The market had initially made a solid comeback in the first seven months of 2023 after a disappointing 2022. However, the rally stalled in early August, and prices had been rangebound since then. The current surge is largely due to the Federal Reserve’s decision to keep interest rates unchanged in the range of 5.25-5.5% in its September and November FOMC meetings.

Despite the Fed’s statement that inflation is still well above its 2% target, fresh jobs data hinted at a cooling labor market, raising expectations that the Federal Reserve may be done with its monetary tightening campaign. This has been beneficial to growth sectors such as technology, consumer discretionary and cryptocurrency, as higher interest rates typically have a negative impact on them.

The expectation that the Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded fund (ETF) is another factor driving the rally. This will enable conventional investors to access Bitcoin and other cryptocurrencies through regular stock markets, potentially increasing demand.

The result of these events has been an increase in the value of Bitcoin and other cryptocurrencies like Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB). Bitcoin has now more than doubled this year, and the rally is expected to continue. Year to date, Bitcoin price has soared more than 121.6%.

The stocks of companies which benefit from a thriving crypto market, such as NVIDIA Corporation (NVDA), Interactive Brokers Group, Inc. (IBKR), Block Inc. (SQ) and Coinbase Global, Inc. (COIN), are also expected to perform well. NVDA, IBKR and SQ have a Zacks Rank of 1 (Strong Buy), while COIN carries a Zacks Rank of 2 (Buy).

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