Cryptocurrencies rebounded in 2023 on a plethora of favorable news after a disappointing 2022. Recently, this space got a boost from a few good developments. These are likely to support the crypto markets for the rest of this year and beyond.

Robinhood Markets has added wallet support for Bitcoin (BTC) and Dogecoin (DOGE). So far, the multi-chain, self-custody and Web3 wallet was restricted to sending and receiving tokens built on the Ethereum (ETH) blockchain only.

One of the most significant developments in 2023 for the Bitcoin ecosystem was the legal victory in the U.S. Court of Appeals for the D.C. Circuit, involving Grayscale and the U.S. Securities and Exchange Commission (“SEC”).

The court sided with Grayscale in its lawsuit against the SEC’s denial of the company’s application to convert the Grayscale Bitcoin Trust into an ETF. This decision is not only a win for Grayscale but also sets an example that could impact other companies seeking to launch Bitcoin ETFs, including industry giants like BlackRock and Fidelity.

The largest thrust for the crypto space has come from institutional investors. BlackRock Inc.’s (BLK) decision to launch a Bitcoin ETF and the decision of The Charles Schwab Corp. (SCHW) led consortium to create a new crypto exchange called EDX Markets, have attracted several investors toward cryptocurrencies.

The latest addition to this league is PayPal Holdings Inc. PYPL, which has become the first major U.S. fintech company to offer its own crypto token with a dollar-pegged stablecoin known as PayPal USD.

Stocks in Focus

NVIDIA Corp. NVDA reported second-quarter fiscal 2024 adjusted earnings of $2.70 per share, surpassing the Zacks Consensus Estimate of $2.09. NVDA posted revenues of $13.51 billion for the quarter, outpacing the Zacks Consensus Estimate by 20.89%. This compares to year-ago revenues of $6.7 billion. Management sees third-quarter revenues of $16 billion versus the Zacks Consensus Estimate of $12.34 billion.

NVIDIA has an expected revenue and earnings growth rate of 62.9% and more than 100%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 9.8% over the last seven days. NVDA currently sports a Zacks Rank #1 (Strong Buy).

Robinhood Markets Inc. HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.

Robinhood Markets has an expected earnings growth rate of 20.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 18% over the last 30 days. HOOD currently carries a Zacks Rank #2 (Buy).

Coinbase Global Inc. COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.

Coinbase Global has an expected earnings growth rate of 84.8% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 21.7% over the last 30 days. COIN currently carries a Zacks Rank #3 (Hold).

Block Inc. SQ is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.

Block has an expected earnings growth rate of 68% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the last 30 days. SQ currently has a Zacks Rank #3.

PayPal Holdings Inc. operates digital wallets and allows users to buy, transfer and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash and Litecoin. PYPL’s users can check out and pay using crypto to online merchants. Its mobile wallet Venmo also allows users to buy and sell cryptocurrency. PYPL has become the first major U.S. fintech company to offer its own crypto token with a dollar-pegged stablecoin known as PayPal USD.

PayPal Holdings has an expected earnings growth rate of 19.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 90 days. PYPL currently carries a Zacks Rank #3.
NVIDIA Corporation (NVDA): Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Block, Inc. (SQ): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report

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