Bitcoin has once again crossed the $100,000 threshold, following a remarkable peak of $106,533 recorded in December. Investors looking to capitalize on Bitcoin’s performance can find opportunities in stocks associated with the cryptocurrency, such as Nvidia, Robinhood Markets, Shopify, Interactive Brokers, and Coinbase, all of which are positioned to benefit from a potential Bitcoin surge. The year 2024 proved to be exceptional for stocks, although market volatility resurfaced in late December and continues to affect trading. Nevertheless, the cryptocurrency sector displayed resilience, with Bitcoin resuming its upward trajectory after a brief dip following its all-time high.
### Bitcoin Surges Following Positive Economic Indicators
On Wednesday, Bitcoin surpassed the $100,000 mark once more, propelled by the release of the December consumer price index (CPI) data, which indicated a slight easing of inflation at the year’s end. The excitement around cryptocurrencies has surged in recent months, particularly following Donald Trump’s victory in the U.S. Presidential election, as many anticipate that his pro-cryptocurrency policies will help propel Bitcoin to new heights. Given this positive sentiment, investing in Bitcoin-related stocks such as NVIDIA Corporation (NVDA), Robinhood Markets, Inc. (HOOD), Shopify Inc. (SHOP), Interactive Brokers Group, Inc. (IBKR), and Coinbase Global, Inc. (COIN) appears to be a wise strategy, as these stocks are expected to show significant growth potential in 2025. Recent trends indicate that each of these companies has seen upward revisions in their earnings estimates over the past two months.
### Market Fluctuations and Recovery
After reaching a historic high of $106,533 on December 22, Bitcoin experienced a pullback of more than 12% in early January. However, it rebounded above the $100,000 level again on Wednesday, buoyed by favorable inflation data and regulatory developments viewed as advantageous for the cryptocurrency. As of Friday morning, Bitcoin had risen past $102,000, stabilizing around $101,600. This uptick coincided with reports showing a 0.4% month-over-month increase in the CPI for December, slightly exceeding analyst expectations of a 0.3% rise. On a year-over-year basis, the CPI climbed 2.9%, matching consensus forecasts. Notably, the core CPI, which excludes volatile food and energy prices, increased by 0.2% month-over-month, slightly below the expected 0.3%.
### Anticipation Surrounding Trump’s Presidency
The surge in Bitcoin’s price comes just days ahead of Trump’s inauguration, with various factors contributing to this rally. Analysts predict that Trump’s administration will cultivate a crypto-friendly environment, thanks to his pro-cryptocurrency outlook. He has already begun to appoint several individuals supportive of digital assets to key positions within his cabinet and regulatory agencies. During his campaign, Trump pledged to establish the United States as the “crypto capital of the world,” proposing the creation of a strategic Bitcoin reserve and the appointment of regulators who favor digital currencies. Experts believe that loosening regulations will provide a significant boost to Bitcoin, potentially making 2025 another landmark year for the cryptocurrency.
### Historical Growth Patterns of Bitcoin
Historically, Bitcoin has achieved new all-time highs every four years during its bullish cycles since 2017. In these past cycles, the cryptocurrency experienced astonishing gains of 2300% and 1700%, respectively, followed by corrections that saw declines ranging from 70% to 80%. Since hitting a low of $16,000 in early 2023, Bitcoin has surged nearly 600%, indicating considerable room for growth in the next two years.
### NVIDIA’s Prominence in the Crypto Market
NVIDIA Corporation has emerged as a significant player in the semiconductor market and has been one of the standout performers of 2023. As a leading designer of graphic processing units (GPUs), the value of NVDA stock typically rises in a flourishing crypto market, primarily due to the essential role that GPUs play in data centers, artificial intelligence, and the mining of cryptocurrencies. NVIDIA’s projected earnings growth rate for the current year exceeds 100%, with the Zacks Consensus Estimate for its earnings having improved by 3.5% over the past two months. The company currently holds a Zacks Rank of #2 (Buy).
### Robinhood’s Role in Crypto Trading
Robinhood Markets, Inc. operates a financial services platform that allows users in the United States to invest in a variety of assets, including cryptocurrencies. The platform enables trading of Bitcoin, Ethereum, Dogecoin, and other digital currencies through its Robinhood Crypto service. For the current year, Robinhood Markets is expected to see earnings growth over 100%, with the Zacks Consensus Estimate for its earnings up by 26.4% in the last 60 days. The company currently boasts a Zacks Rank of #1 (Strong Buy).
### Shopify’s E-commerce Innovations
Shopify Inc. is an e-commerce platform that facilitates cryptocurrency payments for merchants. It has integrated with CoinPayments, a cryptocurrency payment processor, enhancing its offerings. The expected earnings growth rate for Shopify this year stands at 70.3%, with its earnings estimates improving by 12.5% over the past three months. The company also holds a Zacks Rank of #1.
### Interactive Brokers and Cryptocurrency Futures
Interactive Brokers Group, Inc. is a global automated electronic broker that engages in cryptocurrency trading. It provides customers with opportunities to trade cryptocurrency futures through its commodities futures trading desk. The company’s expected earnings growth rate for the current year is 20%, with the Zacks Consensus Estimate for its earnings having risen by 1.3% over the last two months. Interactive Brokers currently carries a Zacks Rank of #2.
### Coinbase’s Infrastructure for Crypto Transactions
Coinbase Global, Inc. offers essential financial infrastructure and technology to support the global cryptocurrency ecosystem. Its services include providing consumers with a central financial account for crypto transactions, a marketplace for institutional asset transactions, and technological support for developers creating crypto applications. Coinbase’s expected earnings growth rate for the current year exceeds 100%, with the Zacks Consensus Estimate for its earnings having improved by 11.4% over the last two months. The company currently has a Zacks Rank of #1.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
