The cryptocurrency market has recently experienced significant turbulence, with Bitcoin (BTC), the most prominent cryptocurrency, enduring substantial losses over the past two months. After reaching an all-time high earlier this year, Bitcoin’s value has plummeted, influenced by various factors including a broader market selloff in early August.

Despite these setbacks, Bitcoin continues to hold considerable long-term potential. With the Federal Reserve approaching the conclusion of its monetary tightening campaign, adopting a buy-the-dip strategy could prove advantageous. Four Bitcoin-centric stocks poised for growth are Interactive Brokers Group, Inc. (IBKR), Block Inc. (SQ), NVIDIA Corporation (NVDA), and Robinhood Markets, Inc. (HOOD).

### Factors Contributing to Bitcoin’s Decline

Bitcoin has been entrenched in a bear market for the past two months. Currently trading around $58,091.90, Bitcoin has dropped over 21% from its peak of $73,750 on March 14. Since April, Bitcoin’s price has fluctuated within a narrow range, briefly surpassing $65,000 in June. Even the halving event in April, which traditionally increases demand and prices by reducing the reward for mining new blocks by 50%, failed to boost Bitcoin’s value this time around. Instead, Bitcoin’s price saw a significant decline post-halving.

The cryptocurrency market faced further challenges during the broader market downturn in early August, driven by fears of a slowing economy. Consequently, Bitcoin’s price dipped below $55,000. Although Bitcoin has made attempts to recover, it remains confined within a limited trading range.

### Potential Benefits from Federal Reserve Rate Cuts

Despite the Federal Reserve’s cautious approach towards substantial rate cuts following subdued inflation data, investors remain optimistic about a minimum 25 basis point reduction in interest rates. The CME FedWatch tool indicates a 100% probability of a 25-basis point cut during the Fed’s September FOMC meeting. Projections for November suggest a 100% chance of a cumulative 50 basis point reduction for the year and a 94.4% probability of reaching 75 basis points.

Any rate cut favors growth assets like cryptocurrencies by lowering the opportunity cost of holding non-yielding assets. In a low-interest-rate environment, investors tend to gravitate towards assets offering higher potential returns, despite their inherent risks.

### Promising Crypto-Centric Stocks

We have identified four crypto-oriented stocks with strong growth potential for 2024. Each stock is rated highly by Zacks Investment Research, carrying a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold).

#### Interactive Brokers Group (IBKR)

Interactive Brokers Group operates as a global automated electronic broker, executing and processing cryptocurrency trades. The company also offers cryptocurrency futures trading through its commodities futures desk. IBKR boasts an expected earnings growth rate of 18.4% for the current year. Over the past 60 days, the Zacks Consensus Estimate for current-year earnings has improved by 1.6%. IBKR holds a Zacks Rank #3.

#### Block Inc. (SQ)

Block Inc., parent company of Square and Cash App, provides online digital and mobile payment platforms for consumers and merchants. Cash App users can buy, sell, send, and receive Bitcoin. Additionally, Block’s decentralized tbd platform allows developers to create decentralized finance applications on programmable blockchains. As one of the largest Bitcoin investors, Block has an expected earnings growth rate of 100% for the current year, with the Zacks Consensus Estimate for earnings rising by 9.8% over the past 60 days. SQ holds a Zacks Rank #3.

#### NVIDIA Corporation (NVDA)

NVIDIA leads in visual computing technologies and is renowned for inventing the graphics processing unit (GPU). The company’s focus has evolved from PC graphics to AI-based solutions supporting high-performance computing, gaming, and virtual reality platforms. NVIDIA’s expected earnings growth rate exceeds 100% for the current year, with a 4.5% improvement in the Zacks Consensus Estimate over the past 60 days. NVDA carries a Zacks Rank #3.

#### Robinhood Markets, Inc. (HOOD)

Robinhood Markets operates a financial services platform in the U.S., enabling users to invest in stocks, ETFs, options, gold, and cryptocurrencies through Robinhood Crypto. The platform supports trading in Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies. Robinhood Markets’ expected earnings growth rate for this year is over 100%, with a 38.2% improvement in the Zacks Consensus Estimate over the past 60 days. HOOD holds a Zacks Rank #2.

In summary, despite recent challenges in the cryptocurrency market, Bitcoin and select crypto-centric stocks exhibit significant long-term potential. With expected Federal Reserve rate cuts and robust earnings growth projections, stocks such as Interactive Brokers Group, Block Inc., NVIDIA Corporation, and Robinhood Markets are well-positioned for future growth.

For detailed stock analysis reports on these companies and more investment recommendations from Zacks Investment Research, explore our latest insights today.