The cryptocurrency market has seen a recovery in 2023, after a difficult year in 2022 due to the Federal Reserve’s aggressive monetary tightening to battle inflation. Popular digital currencies such as Bitcoin, Ethereum, XRP, Litecoin, and BNB have been in a narrow range for three months, reflecting the uncertainty surrounding the Fed’s future interest rate decisions.
Bitcoin surged to a 52-week high of $31,500 this year, but subsequently dropped after the Fed raised interest rates under Chair Jerome Powell’s leadership. The cryptocurrency is now trading around $26,900. The market recovered when the Fed kept its benchmark policy rate at the Federal Open Market Committee (FOMC) meeting.
Despite this, Chair Powell’s warning of a potential 25-basis-point hike to combat sustained inflation has sparked fears of a recession and caused a surge in the yield of the 10-year US Treasury Note. However, dovish comments from some Fed officials are helping fuel another cryptocurrency recovery attempt.
Companies such as NVIDIA Corporation (NASDAQ:), CME Group Inc. (NASDAQ:), and Coinbase Global, Inc. (NASDAQ:COIN) are in prime position to take advantage of this resurgence. NVIDIA Corporation, with a Zacks Rank #1 (Strong Buy), is projected to experience an earnings growth rate of 221.6%. CME Group Inc., which provides Bitcoin and ether options and carries a Zacks Rank #2 (Buy), has an expected growth rate of 14.1%. Coinbase Global, Inc., supporting crypto-based applications with a Zacks Rank #2 and a predicted growth rate of 84.5%, is likely to benefit from this cryptocurrency market recovery.
This article was written with the aid of AI and then reviewed by an editor. For more information please refer to our T&C.
