With Bitcoin (BTC-USD) prices headed south after a major Fed meeting, many traders could head for the nearest exit. Past Bitcoin halving events paved the way for strong results in the ensuing quarters. Yet, one can’t help but notice the rather unsightly technical picture for Bitcoin and some of the other cryptocurrencies.
Investors may be asking if the stage is set for a continued downfall in Bitcoin prices.So, is it time to bail on Bitcoin right here? Only time will tell.
Regardless, some of the top blockchain stocks are getting caught up in the descent. These names are for investors seeking not only Bitcoin but the entire crypto asset class and the future of blockchain technology.
From choppiest to stablest, let’s examine three blockchain bets that deserve more respect from Wall Street amid Bitcoin’s post-halving plunge.
Coinbase (COIN)
Coinbase (NASDAQ:COIN) is a go-to publicly traded stock for investors who want a proxy to the price of cryptocurrencies such as Bitcoin. Undoubtedly, the correlation between COIN stock and Bitcoin has been quite notable lately. The past-year chart of COIN stock certainly seems to mirror that of Bitcoin’s, perhaps with wilder swings in both directions.
Now Bitcoin may be flirting with a bear market. Also, shares of Coinbase have been nosediving, now down around 25% from its own 52-week high. If investors continue bailing from Bitcoin, COIN could easily take a bigger hit. But, the tide may turn and the Bitcoin halving event could eventually lead to a sizable bounce back. Perhaps later in the year, the stock could face a larger surge than Bitcoin itself.
Therefore, Coinbase is definitely worth watching on weakness for those eyeing an entry point into the crypto asset class. It will be interesting to see how the crypto exchange firm fares come the next crypto winter. It may be in better shape to roll with the punches as it continues investing strategically across the ecosystem.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) is another blockchain-flavored play that’s more suitable for value investors. Coinbase stock, while more tied to Bitcoin’s booms and busts, is far too expensive for the value crowd. Shares of COIN go for a lofty 51.55 times forward price-to-earnings (P/E). That’s miles ahead of the mere 13.28 times forward P/E of PYPL stock.
With shares rising more than 20% in the past six months, perhaps it’s time to stash the fallen fintech stock back on a watchlist.
The company’s stablecoin, PayPal USD (PYUSD) launched almost a year ago on Ethereum’s blockchain. Arguably, the token is one of the most trusted stable coins for crypto investors seeking order and stability.
Indeed, PayPal has also rubbed shoulders with quite notable crypto names, including Crypto.com and Ledger. As PayPal looks to move further into the blockchain waters, one has to imagine that more partnerships could be in the cards.
Mastercard (MA)
Finally, Mastercard (NYSE:MA) is flirting with correction territory after reporting a solid first-quarter earnings beat. Truly, the actual quarterly numbers don’t seem to mean much if they are accompanied by a cut to the full-year forecast.
For 2024, management now sees net revenue growth on the lower end rather than the higher end of the low double-digits. Indeed, this is disappointing given the rather lofty valuation. (MA stock goes for 31.3 times forward P/E.) But, it’s still not horrid given the turbulent macro picture.
Looking ahead, I expect Mastercard to keep innovating on numerous initiatives, including those involving blockchain. Like PayPal, Mastercard stands to gain in the space by teaming up with established players to bring consumers into the crypto realm with the utmost confidence. The company has a reputation to uphold. Therefore, expect it to continue prioritizing safety above all else in all crypto and blockchain-related endeavors.
On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
