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Most crypto stocks performed strongly in September as Bitcoin and most altcoins bounced back. Bitcoin jumped to $87,000, while top altcoins like Zcash, Near Protocol, Quant, Midnight, and Arbitrum soared by triple digits. This article explores the top three crypto stocks to watch in October.
Circle Stock in Focus as US Treasuries Jump and Arc Gains Momentum
Circle Internet Group jumped in September and then pared back some of the gains despite some major catalysts. Its main catalyst was the launch of Arc, its layer-1 network, which has been received well. Arc now has a total value locked (TVL) of over $500 million and a stablecoin supply of over $550 million.
Investors will watch Arc closely in October. Signs that it is growing will be bullish for the shares as it will establish a new revenue stream for the company. It will also lead to a higher valuation of a potential ARC token in future.
Circle will also be in focus because of the ongoing US bond yields surge. The ten-year has jumped to 5.2%, while the important 3-month bonds are yielding over 4.2%. This is important for Circle because it invests its cash holdings to short-term bonds and swaps.
Further, Circle stock will react to flows in the stablecoin market. Its USDC market cap has jumped to over $75 billion, helped by the crypto market rally and a recent partnership with Binance. In September, Binance took a $100 million stake in Circle and entered a partnership to promote USDC globally. As part of the deal, Circle will pay Binance a monthly fee.
BitMine to Conclude its Ethereum Buying
BitMine stock did well in September, reaching a high of $28.8, its highest level since January. This rally happened because of the Ethereum price rally that saw it hit the resistance at $2,800 during the month.
BitMine will now be in focus because its Ethereum buying is nearing the end. The company now holds over 6 million ETH tokens, which is equivalent to 4.9% of the tokens in circulation. The company now needs to buy just a few more tokens to get to the “Alchemy of 5%.”
Hitting that milestone will be important because it will help the company stop diluting its shareholders. It will also stake all these tokens and start generating a monthly return. BitMine has already achieved an annualized revenue of over $300 million.
Technically, the BMNR stock price has already formed a golden cross pattern, pointing to more gains.
Coinbase Stock in Focus Ahead of Earnings
Coinbase is another top crypto stock to watch in October because it will publish its earnings report on 29th. These results are expected to show some improvement because of the recent crypto rally that brought Bitcoin and most altcoins higher.
Coinbase benefits from a crypto rally for several reasons. It leads to higher transaction volume as investors start buying. At the same time, it leads to higher ETF buying. Indeed, spot Bitcoin ETFs added over $2.6 billion in September after adding $3.5 billion in October. Coinbase is the biggest company in the ETF custody business.
The company also holds substantial crypto assets. It has over 150k ETH tokens, making it the fifth biggest holder. At the same time, it holds over 17,000 Bitcoin, making it the 8th biggest holder.
Therefore, its real earnings will likely be higher than expected. Yahoo Finance data show that the average estimate is for revenue to drop 37% in the third quarter to $1.17 billion.
This article is for informational purposes only and does not constitute financial or investment advice. Wallet transfers do not by themselves confirm buying or selling.
