Bitcoin (BTC) has reinforced its position as the leading cryptocurrency, with its market dominance reaching 52% in late June this year, up from a range of 39% to 49% over the previous two years. This surge in dominance followed the filing of Bitcoin ETFs by several top investment firms for SEC approval in June. The move by these investment giants towards Bitcoin has led to a decline in altcoins, further solidifying Bitcoin's reputation as a "safe" crypto asset.
On Monday, Bitcoin once again breached the 50% mark in market dominance. It is expected to secure an even larger share of the market in the near future given recent developments. As of Tuesday, Bitcoin had risen 62.6% in price in 2023, peaking at a 90% increase in mid-July when it almost reached the $31,500 mark. Currently, it is steadily approaching the $27,000 level.
The New York Department of Financial Services (NYFDS) proposed stricter rules for listing cryptocurrencies on exchanges earlier this week. However, they have given Bitcoin and Ethereum (ETH), along with stablecoins issued by PayPal (NASDAQ:PYPL) and Gemini, a green light as digital assets that license holders can list or custody without facing additional regulatory hurdles.
This regulatory leeway is expected to benefit Bitcoin significantly. In light of these factors, it might be prudent for investors to track stocks that are directly linked to or exposed to Bitcoin.
Stronghold Digital Mining Inc., a crypto asset mining company that focuses on mining Bitcoin in the U.S., is one such stock. The company's expected earnings growth rate for this year is 97.7%. Over the past 60 days, the consensus estimate for its current-year earnings has improved by 68.7%.
NVIDIA Corporation (NASDAQ:NVDA), one of the biggest success stories of 2023 and a leading designer of graphic processing units (GPUs), is another stock to watch. Given that GPUs are crucial for data centers, artificial intelligence, and Bitcoin and altcoin mining, NVIDIA's stocks usually surge with a booming crypto market. The company's expected earnings growth rate for the current year is 219.5%.
Robinhood Markets Inc (NASDAQ:HOOD)., which operates a financial services platform in the U.S. that allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies, is also worth tracking. The platform enables the buying and selling of Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies. Robinhood's expected earnings growth rate for the current year is 57.3%.
BlackRock Inc (NYSE:BLK)., the world's largest asset manager, applied to launch a Bitcoin exchange-traded fund in June this year. Although BlackRock's expected earnings growth rate for the current year is only 0.3%, it is expected to grow by 13.2% in 2024.
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