Bitcoin Stocks: Block Falls 50%, Coinbase Down 18%, and Argo Blockchain Declines 98%

Investing $10,000 in Jack Dorsey's Block stock five years ago would result in approximately $5,000 today due to a 48% decline. Meanwhile, Bitcoin has grown 870% over the same period, and stocks like MicroStrategy have soared 2,200%. Other crypto-related stocks, such as Coinbase and Argo Blockchain, have also faced significant declines.

The cryptocurrency market has experienced significant volatility in recent weeks, with Bitcoin (BTC) reaching a seven-week low before recovering marginally on Thursday. Despite the recent decline, Bitcoin's impressive year-to-date performance and potential for future growth remain intact. The recent drop in Bitcoin's value can be attributed to several macroeconomic concerns, including the potential firing of Federal Reserve Governor Lisa Cook and the uncertainty surrounding the Federal Reserve's monetary policy.

However, there are signs of optimism. Chairman Jerome Powell indicated that the Federal Reserve might consider cutting interest rates in September, which could provide a boost to cryptocurrencies and help Bitcoin resume its rally. This development has led analysts to suggest a "buy-the-dip" approach, investing in crypto-focused stocks to capitalize on the potential recovery.

Three crypto-focused stocks that have shown strong growth potential and positive earnings estimate revisions in the past 60 days are Interactive Brokers Group (IBKR), Robinhood Markets (HOOD), and PayPal Holdings (PYPL). Interactive Brokers Group, a global automated electronic broker, offers trading in cryptocurrencies and cryptocurrency futures. Its expected earnings growth rate for the current year is 11.4%, with a Zacks Consensus Estimate improvement of 11.4% over the last 60 days, earning it a Zacks Rank #1 (Strong Buy).

Robinhood Markets, a financial services platform that allows users to invest in cryptocurrencies, has an expected earnings growth rate of 42.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 26% over the past 60 days, also earning it a Zacks Rank #1. PayPal Holdings, which provides digital wallet services for cryptocurrency transactions, has an expected earnings growth rate of 12.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved by 2.3% over the last 60 days, earning it a Zacks Rank #2 (Buy).

Investing in these stocks could be a strategic move for investors looking to capitalize on the potential recovery in the cryptocurrency market. However, it is essential to remember that all investments come with risks, and past performance is not indicative of future results.

References:
[1] https://www.nasdaq.com/articles/3-bitcoin-centric-stocks-buy-dip-rate-cut-hopes-soar