The price of Bitcoin (BTC), unfortunately, entered correction territory after the Bitcoin halving event in April. However, BTC shrugged off the bearish trend and touched a 30-day high of $68,477.85 on Jul 22. Currently, BTC is priced above its support level of $67,000 and is well-positioned to surpass the $70,000 resistance level soon.
As of Jul 22, BTC long contracts were at $1.28 billion, way more than the short positions valued at $1.20 billion. Thus, with BTC’s long contracts exceeding short contracts, its price is expected to enter a bullish trend and attract more buyers.
What’s Propelling Bitcoin Price Higher?
The continuing political events emerging in the United States proved beneficial for BTC. President Joe Biden opting to drop out from the presidential race, bolstered the chances of Donald Trump winning the election. Trump favors the crypto industry and has accepted donations in digital assets for his presidential campaigns.
By the way, there isn’t any downward pressure on the BTC price as the German government has ended Bitcoin liquidations. On the other hand, the recent approval of spot Bitcoin ETFs has raised interest among prominent hedge fund managers, who are placing more bets on the flagship cryptocurrency than quintessential artificial intelligence stocks. For instance, Cathie Woods expects BTC to reach $3.8 million by 2030, more than her prediction of $1.5 million last year (read more: 2 Stocks in Cathie Wood's Portfolio to Watch Now).
Additionally, financial firms such as Millennium Management, Citadel Advisors and D.E. Shaw have already begun to take long-term positions in iShares Bitcoin Trust IBIT, which is one of the recently accepted worthwhile spot Bitcoin ETF. IBIT’s shares have already surged 15.3% over the past month.
Image Source: Zacks Investment Research
Meanwhile, weakening economic conditions coupled with falling inflationary pressure raised hopes of an interest rate cut as early as the fall, which would undermine the dollar and increase interest in alternative assets such as BTC.
It’s also worth pointing out, that BTC price doesn’t increase after a Bitcoin halving event. Historically, BTC price has always gone up 12 to 18 months later, which means further upside is left and 2025 can be a promising year for the world’s numero uno cryptocurrency. Have a look at the table:
Source: FidelityDigitalAssets
Bitcoin Bull Run is Here: NVDA, COIN, SQ to Benefit
With the price of BTC set to scale upward, things are looking encouraging for NVIDIA Corporation NVDA, Coinbase Global, Inc. COIN and Block, Inc. SQ.
NVIDIA
NVIDIA designs graphics processing units for mining cryptos such as Bitcoin. NVIDIA presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased by 10.3% over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 106.2%.
Coinbase
The largest U.S. cryptocurrency exchange, Coinbase has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Coinbase’s next-year earnings has increased by 0.6% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,740.5%.
Block
Digital payment company, Block, generates revenues from products like Cash App. In this platform, Bitcoin is purchased and sold. Block currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Block’s current-year earnings has increased by 0.7% over the past 60 days. Block’s expected earnings growth rate for the current year is 72.8%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
