The article suggests accumulating Bitcoin with a buy-on-the-dip strategy for long-term growth

From Nasdaq: 2024-06-17 08:04:00

The cryptocurrency market faced a setback in April after a strong rally, with Bitcoin falling 17% from its all-time high of 73,750.07 on Mar 14. Bitcoin gained 67% in Q1 2024, but the halving event in April reduced block rewards, leading to scarcity-driven price increases.

The launch of the first Bitcoin ETFs on Jan 11 boosted Bitcoin’s value by more than 50%, offering a regulated way for investors to access the cryptocurrency. Fed Chairman Powell’s post-FOMC meeting statement hinted at only one 25 basis point rate cut in 2024, down from earlier expectations of three cuts.

Investors should consider accumulating Bitcoin using a buy-on-the-dip strategy, as the Fed approaches the end of its higher rate regime. A low interest rate is beneficial for high growth-oriented industries like technology, consumer discretionary, and cryptocurrency. The terminal rate of the Fed fund rate is expected to reach 4.1% by the end of 2025.

Top Bitcoin-related stocks to watch include Coinbase Global Inc. (COIN), NVIDIA Corp. (NVDA), Robinhood Markets Inc. (HOOD), Hut 8 Corp. (HUT), and Interactive Brokers Group Inc. (IBKR). These companies have strong potential moving forward, with expected earnings growth rates of more than 100% for the current year.

Bitcoin has been the most profitable asset class for investors, outperforming other forms of decentralized, borderless money. In the past three presidential election years, Bitcoin’s returns were impressive: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in the coming months.

Read more at Nasdaq: Accumulate Bitcoin From a Long-Term Perspective: 5 Picks