Crypto stocks have remained on edge in the past few weeks as Bitcoin and other altcoins have pulled back. Bitcoin price has retreated by over 10% from its all-time high, triggering a bigger sell-off on other altcoins.
Many crypto shares will likely bounce back in the coming months if BTC rebounds. So, let’s explore some of these stocks and what to expect.
Bitcoin price may surge soon
There are rising odds that the price of Bitcoin will bounce back in the coming weeks. The weekly chart shows that the BTC price has formed a cup and handle pattern, a highly popular continuation sign. It has also formed a bullish flag pattern, which is known for having a tall vertical line and a consolidation.
Bitcoin price remains above all moving averages, signaling that bulls are in control. Therefore, there are signs that it will bounce back, and possibly surge to the H&S target at $122,000.
BTC price chart by TradingView
Top crypto stocks to buy ahead of BTC surge
History shows that most crypto stocks do well when Bitcoin price is surging. So, some of the best crypto stocks to buy are: MicroStrategy (MSTR), Coinbase (COIN), and Robinhood (HOOD).
MicroStrategy (MSTR)
MicroStrategy is one of the best crypto stocks to buy and hold ahead of the next Bitcoin price surge. MSTR stock has plunged by over 44% from its highest level this year, underperforming Bitcoin’s performance.
This crash is primarily because of the company’s plan to raise cash, which it will use to buy Bitcoin. Investors have sold it because of the dilution that will happen.
However, the MSTR stock price will likely do well in the long term as Bitcoin price will likely thrive over time. Besides, it has already surged from below $1 in 2009 to over $109,200 earlier this year.
Analysts expect that Bitcoin will ultimately jump to $200k later this year. Such a move would value MicroStrategy’s BTC holdings at about $95 billion, higher than the current $77 billion.
Coinbase (COIN)
Coinbase is another top crypto stock to buy after it crashed by 32% from its highest point this year. COIN is a good company to buy because it is the biggest player in the crypto industry in the United States.
The company has it all. It has diversified its business such that transaction revenue is not the biggest part of its revenue. Coinbase now makes a lot of money from other areas like subscriptions, blockchain, and custody. For example, Base Blockchain has become a core part in its business as it has become the biggest layer-1 network in the industry.
Further, Coinbase has become the biggest crypto custodian in the industry, housing exchange-traded funds for companies like Blackrock and Grayscale. Therefore, its business will likely keep thriving as Bitcoin price prepares a huge surge ahead.
Robinhood (HOOD)
Robinhood stock price has been in a strong surge in the past few months. This surge faded on Friday after the Bybit hack. Still, the company is a good investment in the crypto industry, where it has become a major player. It is a key exchange for American investors, a market share that it will gain after acquiring Bitstamp, a crypto exchange.
Bitstamp has been around for years, but has recently lost market share to companies like Crypto.com, Binance, OKX, and HTX. Therefore, there is a likelihood that Robinhood will use its balance sheet to help boost its market share.
There are many other top crypto stocks to buy are Riot Platforms, Marathon Digital, Block, formerly known as Square, and NVIDIA.
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