Solid Crypto Stocks to Buy Before the Next Bitcoin Rally

The cryptocurrency rally has come to an abrupt halt after a solid 15-month period that saw Bitcoin (BTC) hit all-time highs earlier this year. However, Bitcoin is overpriced and currently trading below 69,000.

This comes despite renewed hope that the Federal Reserve may soon begin cutting interest rates.

Bitcoin reached an all-time high of $73,750 in March. Its price has fallen by more than 16 percent. However, the recent decline is temporary, as Bitcoin has seen a dream over the past year. Year to date, Bitcoin has gained 56.2% after rallying more than 207% in 2023. Bitcoin's rally gathered steam in early January after the SEC approved 11 spot Bitcoin ETFs. With the start of the halving event in April, the cryptocurrency fell.

The halving event, which occurs once every four years, reduces the block reward by 50%, with the goal of limiting the total supply of Bitcoin to 21 million coins.

This drop in the supply rate of new bitcoins usually results in an increase in demand for cryptocurrencies, which often increases their value.

However, half of the episode is now over, and Bitcoin is expected to regain momentum. Also, weak manufacturing data and a drop in inflation in April have fueled hopes that the Federal Reserve may start cutting rates soon. High interest rates negatively impact growth assets, such as cryptocurrencies, consumer discretionary equities, and technology companies.

Our choices

We've narrowed down our search to four crypto-oriented stocks with strong 2024 prospects. Each of our picks has either a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Coinbase Global, Inc. COIN offers the financial infrastructure and technology to support the global cryptocurrency economy. COIN provides an important financial account for users in the crypto space.