Wall Street had a shaky start to 2025, with volatility returning to markets in the final weeks of December. However, the cryptocurrency market has held its ground on expectations that technological progress, regulatory clarity and increased institutional adoption will play key roles in shaping the market this year.
Bitcoin (BTC), especially, saw a solid surge last year, surpassing the $100,000 mark for the first time. Although it has retreated slightly from its all-time high over the past few days, the cryptocurrency had an impressive start to 2025 and was hovering around $99,550 on Monday.
Investing in Bitcoin-centric stocks like Robinhood Markets, Inc. HOOD, NVIDIA Corporation NVDA, Visa Inc. V and Shopify Inc. SHOP would thus be a smart choice. These stocks have a strong growth potential for 2025. Each of these stocks has seen positive earnings estimate revision in the past 60 days.
Bitcoin on Track to Reach Newer Heights
Bitcoin hit an all-time high of $106,533 on Dec. 22, triggered by Donald Trump’s victory in the Presidential election, which raised hopes of a crypto-friendly environment and regulatory clarity under his regime.
Trump has already chosen some pro-crypto people for important cabinet and regulatory roles. Also, the president-elect had pledged during his campaign to make the United States the "crypto capital of the world," outlining plans to establish a strategic Bitcoin reserve and select regulators supportive of digital assets.
The positive sentiment has been fueling the rally over the past couple of months. However, the cryptocurrency retreated more than 10% in the penultimate week of December after the Federal Reserve gave a hawkish outlook for rate cuts in 2025 as inflation is still high.
2025 Holds Promise for Cryptocurrencies
Despite the hawkish outlook, investors are hopeful about Bitcoin’s surge this year after a stellar 2024. Bitcoin jumped more than 125% in 2024, doubling its market cap. Experts believe that 2025 could prove to be yet another outstanding year for cryptocurrencies as a large number of regulatory changes are expected.
China, Canada and the EU, along with the Middle East have been easing regulatory restrictions, which is expected to create a healthier crypto environment. Also, Trump’s pro-crypto leadership is likely to push for more institutional activity through Bitcoin ETFs. Besides, technological progress is anticipated to enhance the importance of blockchain in practical, real-world uses.
Moreover, Bitcoin has typically hit new all-time highs every four years during its last two bullish cycles since 2017. In each cycle, Bitcoin saw a surge of 2300% and 1700%, respectively, followed by corrections of 70% to 80%.
From hitting a low of $16,000 two years ago in early 2023, Bitcoin has surged nearly 600%, suggesting significant potential for continued growth in the next two years.
4 Crypto-Centric Stocks With Upside
Robinhood Markets
Robinhood Markets, Inc. 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’ expected earnings growth rate for the current year is more than 100%.The Zacks Consensus Estimate for current-year earnings has improved 16.9% over the last 60 days. Robinhood Markets currently has a Zacks Rank #1 (Strong Buy).
NVIDIA Corporation
NVIDIA Corporation is a major player in the semiconductor industry and has been one of the standout success stories of 2023. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.
NVIDIA’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. Currently, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Visa Inc
Visa Inc. is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
Visa Inc.’s expected earnings growth rate for the current year is 11.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. V currently has a Zacks Rank #3.
Shopify Inc.
Shopify Inc. is an e-commerce corporation that provides a platform for merchants to accept cryptocurrencies as a form of payment. Additionally, SHOP has established integration with CoinPayments, a processor for cryptocurrency payments.
Shopify’s expected earnings growth rate for the current year is 70.3%. The Zacks Consensus Estimate for its current-year earnings has improved 11.5% over the past 60 days. SHOP currently has a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
