Choppiness in the crypto market has created a buying opportunity. And traders say these 4 crypto-related stocks look like good bets now.
It has been another wild week for the crypto market.
Bitcoin dropped to a two-week low on Monday after reports emerged that China was intensifying its crackdown on cryptocurrency mining. Ethereum, XRP, and Dogecoin all dropped as well before bouncing back.
On Tuesday, the world’s largest digital coin dropped below the $30,000 threshold, briefly wiping out all gains for the year, before rebounding.
Bitcoin has since stabilized at $34,745 at the time of writing on Thursday afternoon.
Still, the this week’s whipsaw signals “that Bitcoin traders could find themselves in choppy waters for weeks to come,” said Sean Rooney, head of research at crypto asset manager Valkyrie Investments.
But the choppiness looks to be creating entry points for brave investors.
“I definitely see this as a buying opportunity if you’re looking further out,” said New Street Advisors Group’s Delano Saporu.
Saporu also noted that for investors looking for exposure to the crypto market, the BLOK Amplify Transformational Data Sharing ETF—and some of its primary holdings—looks like a good option now.
“It has some of the companies that I really like as far as their top holdings, whether it’s Square (NYSE: SQ), PayPal (NASDAQ: PYPL), or MicroStrategy (NASDAQ: MSTR), which is directly tied to Bitcoin itself, so that’s what I would pick if I were going an indirect strategy route.”
Blue Line Capital’s Bill Baruch agrees that this week’s volatility in the crypto market is a buying opportunity, both for the coin’s themselves and for related stocks.
“I own payment companies like Square and PayPal,” Baruch said. “I own the chip companies like Nvidia (NASDAQ: NVDA). So, I think there’s a lot of places to be looking and a lot of companies to be investing in to capitalize overall on this space.”
“And I don’t think it’s a time to be concerned or panicked,” Baruch added. “It’s a buying opportunity.”