Bitcoin (BTC-USD) is poised for a strong comeback in 2024, with multiple factors contributing to a bullish outlook. One such factor is the introduction of the Bitcoin spot ETF, which is expected to increase investor participation and broaden crypto adoption. Furthermore, Bitcoin’s halving event this year is likely to trigger a rally.
The Federal Reserve’s potential rate cuts in 2024 are also expected to bolster Bitcoin. Expansionary monetary policies could lead to higher liquidity in the financial system, supporting a rally in riskier asset classes. Given this optimistic forecast, it’s worth considering three crypto stocks for potential high returns this year.
In the wake of Bitcoin’s recent retreat, there has been a correction in Bitcoin miners. This presents an opportunity to accumulate, with Riot Platforms (NASDAQ:RIOT) appearing particularly attractive. Riot’s strong balance sheet, zero debt, and $599 million cash buffer (including digital assets) position it well for large investments to accelerate growth. With an increasing hash rate capacity and a potential Bitcoin upswing, Riot’s free cash flows could see a significant boost in the next 12 to 24 months.
Coinbase (NASDAQ:COIN) stock, which traded above $350 in November 2021, plunged during the crypto winter. However, COIN has since surged by 175% from oversold levels. If Bitcoin trades above previous all-time highs, COIN stock could surge by 200% in 2024. As Bitcoin surges, altcoin rallies will likely follow, leading to increased trading and speculation activity. This, in turn, could result in strong growth in brokerage income and swelling subscription revenue.
Coinbase’s global expansion in 2023, including an eight-week expansion drive across six continents, and plans to launch crypto derivatives in the European Union, positions it for stellar growth and cash flow upside.
Bitfarms (NASDAQ:BITF), a penny crypto stock, is another attractive option, even after a 141% rally in the last 12 months. Bitfarms, another Bitcoin miner, boasts aggressive growth plans and a strong balance sheet. The company’s attractive Bitcoin mining cost suggests a healthy EBITDA margin. With plans to triple mining capacity by the second half of 2024, Bitfarms is well-positioned for revenue and EBITDA expansion.
Bitfarms ended 2023 with $84 million in cash and $34 million in Bitcoin, providing a total liquidity buffer of $118 million. This financial flexibility supports aggressive expansion plans, and the company aims to be debt-free by February. Therefore, this penny stock represents a company with strong fundamentals.
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