Bitcoin’s Asymmetric Returns

Is Bitcoin a currency? Store of value? Digital gold? The debate on Wall Street about what Bitcoin is and what purpose it serves continues to drag on into 2025. Regardless of where you stand in the Bitcoin debate, the largest crypto’s performance is undeniable. Bitcoin has been the best-performing asset class since its inception and enjoys an outsized triple-digit compound annual growth rate (CAGR). On an yearly basis, Bitcoin has been higher in eleven of the past 14 years and has produced triple-digit gains in nine of those years.

December Bitcoin Outlook

Though performance in 2024 has been stellar, Bitcoin’s price hit a wall just below $100k and has retreated. Below are three reasons to buy the Bitcoin dip:

1. Political Changes: The election of Donald Trump means that there will be significant pro-Bitcoin changes politically.

2. Public Company Adoption: Publicly traded companies like Semler Scientific ( SMLR ) and Rumble ( RUM ) are following MicroStrategy’s ( MSTR ) lead and are adding Bitcoin to their balance sheets.

3. Year-end Chase: Investors will likely chase Bitcoin into year-end with the $100k level acting as a “magnet.”

3 Crypto Stocks to Buy

iShares Bitcoin ETF ( IBIT )

IBIT is the most liquid Bitcoin ETF and is experiencing its first pullback since breaking out of an eight-month base structure. For those who want a “pure play,” IBIT is the best option.

Coinbase ( COIN )

No other company will benefit from political changes more than COIN. SEC Chair Gary Gensler has continuously failed to provide “regulatory clarity” to the company. In addition, COIN CEO Brian Armstrong will have political sway as a crypto advisor to President-elect Donald Trump.

Marathon Digital ( MARA )

MARA converts clean, stranded, or otherwise underutilized energy into economic value with the most efficient hardware available. Recent relative strength and price action in the stock suggests that the stock will be much higher into year-end. MARA shares are breaking out of a quarterly bull flag pattern.

Bottom Line

Political changes, public company adoption, and the $100k “magnet” are three reasons Bitcoin and Bitcoin proxies are likely to be higher into year-end. IBIT, COIN, and MARA are three stocks to buy to take advantage.

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