Investing.com
Published Oct 12, 2023 18:20
The cryptocurrency market has shown signs of recovery in 2023, following a challenging year in 2022 due to the Federal Reserve’s aggressive monetary tightening measures aimed at combating inflation. Key cryptocurrencies such as Bitcoin, Ethereum, Cardano, Dogecoin, and BNB have remained rangebound for three months, reflecting uncertainties about future interest rate decisions by the Fed.
Bitcoin experienced a rally this year, reaching a 52-week high of $31,500. However, a subsequent drop followed a Fed interest rate hike led by Chair Jerome Powell, with the cryptocurrency now trading around $26,900. The market rebounded when the Fed maintained its benchmark policy rate at its Federal Open Market Committee (FOMC) meeting.
Despite this rebound, Chair Powell’s warning about potential additional hikes of 25 basis points due to sustained inflation has sparked recession fears and triggered a surge in the yield of the 10-year U.S. Treasury Note. Nevertheless, dovish comments from some Fed officials are fueling another attempt at cryptocurrency recovery.
Several companies are positioned to benefit from this resurgence. NVIDIA Corporation (NASDAQ:NVDA), a leading GPU manufacturer with a Zacks Rank #1 (Strong Buy), is expected to see an earnings growth rate of 221.6%. CME Group Inc. (NASDAQ:CME), which offers Bitcoin and ether options and carries a Zacks Rank #2 (Buy), projects growth of 14.1%. Additionally, Coinbase (NASDAQ:COIN) Global, Inc. (NASDAQ:COIN), supporting crypto-based applications with a Zacks Rank #2 and an anticipated growth rate of 84.5%, is also set to benefit from the ongoing cryptocurrency market recovery.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
