Bitcoin has been showcasing strongly bullish trends and five stocks witnessed strength whenever cryptocurrency markets gain. At the time of publication of this report, BTC was trading almost one percent lower at $66,950, after trading comfortably above $67,500 levels for most part of the trading session today.

Coinbase was down by 2.98 percent. MicroStrategy stock closed almost flat today after touching a high of $198.88 during the session. The stock also witnessed intraday low of $185.8 but recovered by the end of the trading session. MicroStrategy is close to its 52-week high of $227.15.

Robinhood stock price was close to its 52-week high of $27.33 but today's high remained at $27.08. The stock closed at $26.32. CME closed almost flat after touching 52-week high of $230.12 during early trades.

Nvidia continued with the strong momentum and closed one percent higher today. The stock also touched all-time high of $140.89 but couldn't sustain at higher levels and closed the session at $136.93.

Bitcoin Bounces Back from Recent Lows, Poised for Further Gains

Bitcoin is on a solid rebound after touching a high of $68,376 on Wednesday, currently trading at $66,950. The cryptocurrency, often seen as a barometer for riskier assets, is gaining momentum following the Federal Reserve’s recent 50-basis-point rate cut and a surge in global liquidity fueled by China's economic stimulus. The optimism surrounding these factors, combined with anticipation for the upcoming U.S. Presidential election, is setting the stage for Bitcoin to push towards new all-time highs. Up 11% for the week, Bitcoin is seeing its largest gains since April, reaching a 10-week high.

Federal Reserve Policies Boost Bitcoin Sentiment

The Federal Reserve’s dovish stance, marked by its first interest rate cut in over four years, has injected new life into Bitcoin and other risk-on assets. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin, making it a more attractive option for investors seeking higher returns. With two more potential 25-basis-point rate cuts on the horizon, market participants are increasingly optimistic that the crypto rally could gain further momentum. This environment, coupled with increased global liquidity, favors growth assets, especially those like cryptocurrencies that thrive in low-interest-rate settings.

Global Liquidity and Economic Stimulus Fuel Bitcoin Rally

China’s ongoing economic stimulus measures have been a significant catalyst for Bitcoin’s recent surge. Increased liquidity in the global financial system tends to drive demand for alternative assets, including cryptocurrencies. As Bitcoin last traded above $70,000 in July and hit an all-time high of $73,750 in March, the current bullish outlook suggests that the digital currency could once again push toward these levels. Investors are watching closely as a convergence of macroeconomic factors appears to be creating an ideal environment for Bitcoin to continue its upward trajectory.

Bitcoin-Related Stocks to Watch

As Bitcoin continues to climb, several stocks closely tied to the cryptocurrency market are expected to benefit from this trend. Companies operating in the crypto ecosystem, including those facilitating trading, mining, or storing cryptocurrencies, stand to gain as investor interest in Bitcoin grows. Here are five Bitcoin-related stocks with promising upside potential:

Robinhood Markets (HOOD)

Robinhood Markets offers a comprehensive financial services platform that allows users to trade stocks, ETFs, options, and cryptocurrencies. The company’s Robinhood Crypto platform supports trading in Bitcoin, Ethereum, Dogecoin, and several other digital assets, making it a key player in the crypto market. Robinhood’s expected earnings growth rate for the current year exceeds 100%, reflecting strong demand for its services and the continued expansion of its user base. As Bitcoin’s price rises, Robinhood is well-positioned to capitalize on increased trading volumes.

NVIDIA Corporation (NVDA)

NVIDIA is a global leader in visual computing and the inventor of the GPU (graphics processing unit). While historically focused on PC graphics, NVIDIA’s scope has expanded to include artificial intelligence, gaming, and virtual reality. NVIDIA’s GPUs are widely used in cryptocurrency mining, making it a significant beneficiary of the Bitcoin rally. The company’s expected earnings growth for the current year is also projected to be over 100%, driven by strong demand for its high-performance computing solutions. As Bitcoin prices rise, the demand for mining hardware is expected to follow, providing additional growth for NVIDIA.

CME Group (CME)

CME Group offers cryptocurrency futures contracts, including Bitcoin and Ether options, providing investors with the ability to hedge or speculate on cryptocurrency prices. As Bitcoin’s rally gains strength, demand for futures contracts and options tied to Bitcoin is likely to increase, providing a boost to CME’s bottom line. The company’s expected earnings growth rate for the current year stands at 7.9%, making it a solid option for investors looking to gain exposure to the crypto derivatives market.

MicroStrategy Incorporated (MSTR)

MicroStrategy has undergone a dramatic transformation under the leadership of Chairman Michael Saylor. The company, originally a software and business intelligence firm, has adopted the Bitcoin Standard, shifting a large portion of its assets into Bitcoin. As such, MicroStrategy now functions as a leveraged proxy for Bitcoin, with its stock price closely tracking Bitcoin’s performance. Investors who are bullish on Bitcoin may see MicroStrategy as an indirect way to gain exposure to the cryptocurrency market. Since adopting this strategy, MicroStrategy has become a key player in the crypto space, with its future tied to Bitcoin’s price movements.

Bitcoin’s Macro Impact and Investor Outlook

The broader macroeconomic environment, including Federal Reserve policies, global liquidity, and economic stimulus measures, continues to support Bitcoin’s upward movement. As interest rates remain low, investors are increasingly seeking alternative assets like cryptocurrencies to hedge against inflation and find potential high returns. Bitcoin, as the most popular and widely traded cryptocurrency, stands at the forefront of this trend, offering significant upside potential in the near term.

While the future of Bitcoin remains speculative, the current combination of factors suggests that the digital asset is well-positioned for continued gains. However, as always, investors should carefully assess the risks involved and consider diversifying their portfolios to mitigate potential volatility.