Bitcoin (BTC USD) and other cryptocurrencies experienced a sharp decline on Thursday following the release of U.S. economic data showing higher inflation and slower growth in the first quarter of 2024. US GDP growth was reported at 1.6%, below the 2.5% expected, while the GDP price index was at 3.1%. higher than expected. This background makes up my list of crypto stocks for investors to buy this month.
CoinDesk noted that Bitcoin briefly fell below $63,000, falling more than 4% before recovering to around $63,700. ether (ETH-USD) also saw a 4% decline and traded at around $3,100.
However, the good news is that I still firmly believe that Bitcoin has the potential to reach new heights, which is likely to provide significant tailwinds for crypto stocks for the rest of the year.
So here are three crypto stocks that investors should consider in 2024.
Riot Platforms (RIOT)
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Riot Platforms (NASDAQ:R.IOT) focuses primarily on Bitcoin mining and blockchain technologies.
For 2024 is RIOT The focus is on expanding its mining capacity with plans to significantly increase its self-mining hash rate. The company aims to increase its hash rate from 12.4 EH/s to over 28 EH/s by the end of 2024.
RIOT is an impressive crypto stock in its own right with a great hash rate, but there’s more to the thesis that investors should consider.
As InvestorPlace previously reported, RIOT has seen significant gains in recent days, rising a dramatic 46%.
This price increase comes against the backdrop of rising short interest, which now accounts for more than 13% of RIOT’s free float, indicating a possible short squeeze. The situation is compounded by increasing mentions and positive sentiment on social media platforms.
Speculation aside, this could make RIOT a great pick for the rest of the year.
Coinbase (COIN)
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Coinbase (NASDAQ:COIN) is a leading platform in the cryptocurrency exchange space.
COIN typically follows a close price correlation with Bitcoin and is often more volatile than the underlying asset. This could potentially increase both returns and losses from holding COIN.
Based on recent developments, there could be a good reason why whales are flocking to the market. A significant transaction valued at $1.3 billion USD coin (USDC-USD) transferred to Coinbase was seen by market watchers as a potentially strong buy signal for BTC and ETH.
COIN predicts one for 2024 sustained increase in the total market capitalization of cryptocurrencies, which doubled in 2023. Key themes for COIN in 2024 include increased institutional investment and favorable macroeconomic conditions for risk assets.
While interest rates may indeed have remained higher for some time, we are probably near the peak of the cycle. The instabilities around the world may have caught investors by surprise, but I think the market could lead to a strong rally. This makes COIN one of those crypto stocks that investors should keep on their watchlist.
MicroStrategy (MSTR)
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Microstrategy (NASDAQ:MSTR) is characterized by significant investments in Bitcoin and is positioning itself as a major business owner of the cryptocurrency.
However, some issues could cloud MSTR’s rating.
The launch of spot Bitcoin ETFs in January 2024 represents a new challenge for MSTR. These ETFs offer investors easier and potentially cheaper access to Bitcoin, which could erode the premium that MSTR shares have garnered due to direct Bitcoin exposure, CryptoGlobe reported.
However, at the end of 2023, MSTR reported holding approximately 190,000 Bitcoins, with the market value of these holdings significantly exceeding their cost basis.
For this reason, I believe that MSTR could reach new heights later in the year as the market rises, as this would also improve its book value per share.
I think MSTR is one of those crypto stocks to consider as it offers investors a solid mix of owning a traditional stock that has significant indirect exposure to Bitcoin.
At the time of publication, Matthew Farley did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed are those of the author and are subject to InvestorPlace.com’s publication guidelines.
