Cryptocurrencies have been experiencing volatility in the wake of the Federal Reserve’s decision to resume interest rate hikes. As the Fed raises rates, the market prospects for cryptocurrencies are dampened, leading to a decline in prices.
After a disappointing performance in 2022, cryptocurrencies, including Bitcoin, saw a resurgence earlier this year. However, the Fed’s aggressive interest rate hike policy to combat high inflation had a negative impact on the crypto market. But as inflation started to slow down, cryptocurrencies began to recover and climb higher.
The recent rate hike by the Fed in July caused a drop in prices for major cryptocurrencies such as Bitcoin, Dogecoin, and Ethereum. Bitcoin, in particular, experienced a decline after reaching $31,500 earlier in July. It is now trading at $29,126, indicating the potential for further volatility in the coming days if the central bank continues its rate hikes.
Investors are advised to adopt a strategy of buying on the dip when dealing with cryptocurrencies. Each price drop presents an opportunity to accumulate digital assets, which may result in significant gains once the Fed concludes its aggressive monetary control policy.
In this context, some companies in the cryptocurrency industry are worth considering. PayPal Holdings, Inc. provides digital wallet services that enable users to buy, transfer, and sell various cryptocurrencies. The expected earnings growth rate for PayPal Holdings is 19.9%, and the company’s shares have gained 9.7% in the past month.
Coinbase Global, Inc. offers financial infrastructure and technology for the global cryptocurrency economy. With an expected earnings growth rate of 78.1%, Coinbase’s shares have increased by 26.4% in the last 30 days.
NVIDIA Corp., a major player in the semiconductor industry, has been successful due to its graphic processing units (GPUs), which play a crucial role in data centers, artificial intelligence, and cryptocurrency mining. NVIDIA’s expected earnings growth rate is 133.2%, and its shares have gained 4.6% in the past month.
Accenture plc, a worldwide system integrator, promotes Ethereum-based blockchain solutions to simplify payment processing. With an expected earnings growth rate of 8.2%, Accenture’s shares have gained 3% in the last 30 days.
While investing in cryptocurrencies can be volatile, considering companies that provide services in this industry can be a way to explore potential opportunities.
It is important to note that the future of cryptocurrencies is closely tied to the Federal Reserve’s interest rate decisions and the overall market conditions. Investors should keep a close watch on these factors and stay informed about any developments that may impact the crypto market.
Disclaimer: The information provided here is for informational purposes only and should not be considered as investment advice. It is always advisable to do thorough research and seek professional guidance before making any investment decisions.
