BTC Stocks and Crypto Play to Watch

Given the on-a-whim price swings in the crypto world, discovering the best stocks out of that bunch can be challenging.

For now, based exclusively on IBD’s chart analysis, the best crypto stocks and Bitcoin stocks to purchase or watch include Coinbase (COIN), Silvergate Capital (SI), ProShares Bitcoin Strategy (BITO), a Bitcoin futures ETF, Bitfarms (BITF) and Riot Blockchain (RIOT).

Those stocks are recovering after falling sharply. But investors should take notice. Those stocks live and die by Bitcoin price gyrations. Some have unsettled pasts.

Oscillations in Bitcoin, Bitcoin Stocks

The price of Bitcoin presently stands at below $48,000, well up from where it was at the end of 2020. But it’s down from around $58,000 at the beginning of December and a record $68,990.90 in early November. It’s also barely below its 200-day moving average.

Bitcoin has taken numerous hits along the way. Morst recently due to concerns regarding the Federal Reserve and other central banks taking a more aggressive strategy to end epidemic-era economic aid. But behind the U.S. central bank on Wednesday signaled the chance of three rate hikes next year and a more rapid end to its bond-buying program. Bitcoin pursued the stock market higher.

As a reason for reviving its tapering of bond purchases, the Fed noted “inflation developments” as a reason, as global supply chains stay cramped and gas and labor costs rise.

The Fed raises rates to control inflation and keep the economy from overheating. Bitcoin advocates have disputed that higher inflation is a cause to buy cryptocurrency since growing prices debilitate the buying power of traditional currencies.

The digital asset hasn’t continuously followed with inflation or inflation risks. But the growing sense among investors on Wednesday was that the Fed would hold inflation in check without tightening up too fast.