4 Crypto Stocks To Consider As Bitcoin Hits New All-Time Highs
While stocks languish below all-time highs, the cryptocurrency market has entered a new bull phase, with Bitcoin hitting all-time highs last week. As direct cryptocurrency investment has gained traction, many investors are now exploring public companies with significant exposure to digital assets.
Investing in cryptocurrencies is easier for those of us who already have a brokerage account, though it’s crucial to understand the risks.
Cryptocurrency markets are inherently volatile, even more so than small caps. Dramatic price swings driven by speculation and sentiment are common. The ever-evolving regulations and technological developments give the space a Wild West feel.
Investing in stocks with fortunes tied to Bitcoin or other digital currencies introduces an even greater layer of unpredictability and risk than conventional stock picking.
That unpredictability and volatility is a risk. But it can also send these stocks soaring.
In this article, we’ll pick four stocks that can outperform in a Bitcoin bull market based on technical signals, earnings potential, and the amount of digital assets they hold. Word to the wise: always use an extra measure of caution when investing in crypto-adjacent companies.
Coinbase Global Inc.
Coinbase (NASDAQ:COIN), one of the first companies to offer cryptocurrency investing to retail traders, became the first cryptocurrency exchange to go public in April 2021. The stock quickly shot over $300 per share following the IPO, topping out at $353 at the peak of the 2021 Bitcoin bull market in November. However, like the broader crypto market, Coinbase entered a bear market in 2022, dropping under $50 per share by the start of 2023. Despite its massive market cap and customer base, the stock didn’t participate in the 2023 market recovery and only started showing renewed strength once the rally extended to 2024.
Much like the price of Bitcoin, COIN shares declined for the second half of 2024 before rallying again on Donald Trump’s presidential victory in hopes of relaxed crypto regulation. Then, another extended decline followed Inauguration Day, and the stock suffered a 50% haircut. However, …
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