Yahoo Finance Zacks Investment Ideas feature highlights: BlackRock, Riot Platforms, Coinbase, Marathon Digital and MicroStrategy
For Immediate Release
Chicago, IL – January 9, 2024 – Today, Zacks Investment Ideas feature highlights BlackRock BLK, Riot Platforms RIOT, Coinbase COIN, Marathon Digital MARA and MicroStrategy MSTR.
Bitcoin 2024 Outlook: 3 Shocking Stats
In its short history, Bitcoin has been one of Wall Street's most controversial asset classes. While Bitcoin "maximalists" see the world's largest digital asset as a cure for rampant government spending and inflation globally, Bitcoin pessimists see it as magic make-believe internet money. Regardless of what one believes, one factor is black and white and is impossible to argue – performance.
Time and time again, over its history, Bitcoin has shown resilience and the ability to recover in the face of bad news. "Satoshi Nakamoto's" brilliant creation has survived the Global Financial Crisis of 2008, a 2013 China Ban, and several crypto exchange collapses, to name a few. 2023 was no different – fresh off a vicious bear market and the collapse of crypto exchange giant FTX, Bitcoin rewarded investors who stayed the course with a 154.37% surge in 2023, adding more than $500 billion to its market capitalization. Can Bitcoin's momentum continue into the new year? Below are three reasons it will:
More Demand Due to Bitcoin ETF Approval
Bitcoin Spot ETFs, the most highly anticipated ETFs in history, are all but a done deal. ETF operators such as Invesco, BlackRock, and ARK, are already working with the SEC to finish approval, unveiling their fee structure, and showing off their ticker symbol. In fact, there is already $12 billion Bitcoin "physically backing" these ETFs. At this juncture, the real question is not whether Bitcoin ETFs will be approved, but rather, will the approval be a classic "sell-the-news" event?
To answer this question, here are three shocking facts from a recent survey:
· Only 39% of financial advisors believe a spot Bitcoin ETF will be approved in 2024.
· 88% of advisors interested in purchasing Bitcoin are waiting until after a spot ETF is approved.
· Only 19% said they are able to currently buy in client accounts.
In other words, many financial advisors have no access to Bitcoin but want it. Expect a rush of demand in the coming months.
Bitcoin Halving = Supply Constraint
While demand is likely to soar, supply will be constrained in 2024 due to the next "Bitcoin Halving" in April. A Bitcoin halving is an event that occurs approximately every four years, reducing the reward miners receive for validating and adding new blocks to the Bitcoin blockchain by half.
One of the virtues of Bitcoin is its built-in monetary policy. The reduction in the rate at which new Bitcoins are created leads to a gradual decrease in the overall supply of newly minted Bitcoins. Though the number of halvings in Bitcoin's history is only three, the stats suggest that bulls should stay the course for at least the next year.
2024 Is a Presidential Election Year
Did you know that in the past three presidential election years, Bitcoin returns were as follows?
· 2012 +272.4%
· 2016 +161.4%
· 2020 +302.8%
Bottom Line
Investors should strive to interpret rather than predict. With that in mind, investors who soberly look at the data should conclude that Bitcoin is likely to be much higher in 2024. Look for Bitcoin proxies such as Riot Platforms, Coinbase, Marathon Digital and MicroStrategy to be higher in 2024.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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BlackRock, Inc. (BLK) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report
Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
