The cryptocurrency market has finally sprung back to life after being plagued by low trade volumes for successive weeks. On Jul 17, Bitcoin — the world’s largest cryptocurrency —surged to its highest levels since the first week of June.
Bitcoin gained $700 in under an hour to go past $7,000 on Tuesday. The rally also showered gains on the overall virtual currency market, which grew by a little more than $20 billion.
Those who had written off the cryptocurrency market can expect this momentum to continue in the near term. The next rally in the space is likely to be sparked by cryptocurrency regulations to be initiated by the government of South Korea. Under such circumstances, investing in stocks of companies related to the virtual currency market seems prudent.
Bitcoin Hits Its Highest Levels in 5 Weeks
The virtual coin whizzed past the $7,000 level to settle at $7,483 on Jul 17. This marked it highest settlement in the past five weeks. Further, the price of Bitcoin shot up around 10% in just 30 minutes, followed by a surge in its trade volume.
Within an hour of this spike in BTC, the prices of other virtual currencies such as Bitcoin Cash, ether, Ripple, and EOS increased in the range of 7-10%. This also resulted in the overall cryptocurrency market witnessing a surge from $272 billion to $292 billion.
This rally followed gains that were made a day earlier on Jul 16, after BlackRock (BLK) announced that it has established a “working group” to study the cryptocurrency market as well as the blockchain technology. The BTC had last rallied on such a scale on Apr 9, when it surged from $6,000 to $8,000 in just 30 minutes.
What Sparked The Rally?
After weeks of low trade volume, the crypto market witnessed a recovery in liquidity on Tuesday. In just two days, the volume of Bitcoin against Tether (USDT) has shot up to $300 million from $100 million on Binance — world’s biggest virtual currency exchange. This increase in trade volume primarily sparked the rally.
Despite encouraging Relative Strength Index (RSI) and momentum average convergence divergence (MACD) of Bitcoin, low trade volumes for the past few weeks had subdued the crypto rally.
Moreover, government initiatives and positive developments in world’s largest crypto markets such as Japan and South Korea has not only pushed up demand for cryptos, but also the overall market.
4 Best Picks
A corrective rally on Jul 17, which resulted in a sudden increase in cryptocurrency trade volumes, helped Bitcoin blast past the $7,000 mark. Further, consistent government initiatives by the world’s leading virtual currency markets have propelled the overall sector higher.
In this context, we have selected four crypto related stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel (INTC – Free Report) is the designer and manufacturer of computer, networking, data storage, and communication platforms. The company also stated that it plans to release its stand-alone graphics card on the market by 2020.
The company is based out of Santa Clara, CA and has a Zacks Rank #1. The expected earnings growth rate for the current year is 16.52%. The Zacks Consensus Estimate for the current year has improved 4.7% over the past 60 days.
Micron Technology (MU – Free Report) is the designer and manufacturer of electrically re-writeable, non-volatile semiconductor memory and storage devices, client solid-state drives for notebooks, desktops, workstations as well as consumer applications.
The company is based out of Boise, ID and has a Zacks Rank #1. The expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 6.2% over the past 60 days.
Advanced Micro Devices (AMD – Free Report) is the designer and manufacturer of accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs).
The company is based out of Santa Clara, CA and has a Zacks Rank #2. The expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved 2.2% over the past 60 days.
Hewlett Packard (HPE – Free Report) is the provider of converged storage solutions, such as all-flash arrays and hybrid storage solutions as well as traditional storage solutions which includes tape, storage networking, and legacy external disk products. The company also provides deep learning platforms and GPU servers.
The company is based out of Santa Clara, CA and has a Zacks Rank #2. The expected earnings growth rate for the current year is 50.42%. The Zacks Consensus Estimate for the current year has improved 2.9% over the past 60 days.
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