timothy sykes logo

Penny Stocks-Timothy Sykes Millionaire Challenge

Top Crypto Penny Stocks to Watch in January 2025

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ben Sturgill
Updated 1/21/2025 15 min read
Top Crypto Penny Stocks to Watch in January 2025 Thumbnail

Top Crypto Penny Stocks to Watch: Key Takeaways

  • Bitcoin has broken its $100,000 resistance, and it’s taking these crappy penny stocks along with it…
  • Stock #1’s a PR pump machine, and lately it looks like it’s back from the dead…
  • OTC spikers are back — and that’s good news for crypto penny stocks…

Things look great right now — but remember how it all ended last time.

My students know to never “hold and hope” — yet that’s what so many newbies are doing now. The smart move is to respect price action, and stick a disciplined trading plan. What’s the best way to prepare for opportunites? Build your watchlists, so you can be prepared for the sector’s next move!

What Are Crypto Penny Stocks?

© Millionaire Media, LLC

Crypto penny stocks are stocks of companies that mine, hold, or invest in bitcoin (BTC), crypto altcoins, or blockchain technology. These can include companies entering the metaverse and NFT space since both use blockchain technology.

With Trump’s election, crypto stocks are on the biggest run since 2020. What’s more — Bitcoin just shattered the $100k mark!

Over my 20+ year career trading penny stocks, I’ve seen plenty of hype around new potential hot sectors…

I made my first million in college during the dot com boom. (Read all about it in my NO-COST book “An American Hedge Fund.”) And hot sector hype returned with weed stocks in 2018, and again in 2020 with mask and biotech stocks. Now crypto’s the new kid on the block.

But I don’t look for the best cryptocurrency to buy, or trade sketchy cryptocurrencies like Shiba Inu or SafeMoon. I focus on trading sympathy plays in crypto penny stocks. Here’s what I’m watching…

Crypto Stocks Surge Under Trump’s Pro-Crypto Agenda

With Donald Trump sworn in as the 47th President of the United States, the cryptocurrency market is riding an unprecedented wave of enthusiasm. Bitcoin (BTC) smashed through a new all-time high on a day when traditional markets were closed for Martin Luther King Jr. Day—coincidentally, the same day as Trump’s inauguration. Traders and crypto enthusiasts alike are paying attention to Trump’s rhetoric about positioning the U.S. as a global leader in the crypto space.

The incoming administration has pledged sweeping changes to normalize and legitimize digital currencies. These include the creation of a federal Bitcoin reserve, streamlined regulations to attract institutional investment, and policies aimed at promoting widespread adoption of cryptocurrencies. The buzz surrounding Trump’s pro-crypto stance has ignited momentum across the board, with Bitcoin-related stocks, blockchain companies, and digital assets benefiting from the market’s optimism.

The launch of Trump’s digital tokens—Crypto Emperor Trump ($TRUMP) and Official Melania Meme ($MELANIA)—is another part of this hype sandwich. These memecoins, created by Trump-backed entities, skyrocketed to multi-billion-dollar market caps, signaling strong demand from retail traders eager to drink the Kool-Aid.

Key Catalysts for Crypto Stocks in 2025

Post image

Get my weekly watchlist, free

Sign up to jump start your trading education!

  1. Bitcoin’s Record Highs: Bitcoin’s surge past $109,000 has set the tone for an explosive crypto market under Trump.
  2. Trump’s Bitcoin Reserve Plan: Modeled after gold reserves, this plan could further legitimize Bitcoin as a major asset class and attract institutional investors.
  3. Memecoin Frenzy: The meteoric rise of $TRUMP and $MELANIA tokens is a reminder of how speculation can drive massive gains in the crypto market.
  4. Crypto Stocks Rally: Companies like MicroStrategy (NASDAQ: MSTR), Coinbase (NASDAQ: COIN), and Robinhood (NASDAQ: HOOD) are already seeing increased attention, with pre-inauguration rallies highlighting the sector’s momentum.

For short-term traders, the volatility surrounding these developments creates plenty of opportunities to trade the spikes. But, as I always teach, don’t get caught up in the hype. The crypto market is as unpredictable as ever, and it’s critical to stick to your trading framework. Cut losses quickly, lock in your profits, and always remember that no stock—or coin—is “safe.”

The excitement around Trump’s pro-crypto stance might make for some great trades, but don’t forget the risks. The best way to deal with those? Cut your losses quickly.

Top Crypto Penny Stocks to Watch in January 2025

My top crypto penny stock picks are:

  • NASDAQ: BTCT — BTC Digital Ltd. — The Low-Float Crypto Penny Stock
  • NASDAQ: CLSK — CleanSpark Inc. — The 10,000 Bitcoin Holding Crypto Penny Stock
  • NASDAQ: CAN — Canaan Inc. — The Bitcoin Mining Tech Penny Stock
  • NASDAQ: MARA — Marathon Digital Holdings — The Bitcoin Mining Sector Leader—Now With AI!
  • NASDAQ: RIOT — Riot Platforms Inc. — The Other Bitcoin Mining Sector Leader
  • NASDAQ: BTCS — BTCS Inc. — The Blockchain x AI Pump

The stocks on my watchlist aren’t recommendations to buy. This is just ONE of the many watchlists I keep…

I want to show you how to create your own watchlists, so that you’re prepared for anything the market throws at you!

That’s how $15 million trader Jack Kellogg earned over $2 million in trading profits after Trump’s election victory…

In just 10 weeks!*

And now, starting shortly after Trump’s official swearing in, Jack believes things are about to get even crazier.

Click HERE to see Jack’s plan for the Trump era.

Here are the crypto penny stocks he’s watching:

Crypto Penny Stock #1: BTC Digital Ltd. (NASDAQ: BTCT) — The Low-Float Crypto Penny Stock

BTC Digital Ltd. is a perfect example of a penny stock trying to stay relevant by chasing the latest trend. In August 2023, it rebranded from Meten Holding Group to BTC Digital Ltd., shifting from education services to Bitcoin mining and mining machine rentals. This kind of sector-hopping screams penny stock desperation—jumping from one hot trend to the next in search of hype-fueled trading volume.

Key Catalysts:
BTCT’s press releases are a dime a dozen… but they sometimes lead to big moves like the one BTCT made on January 17!

Trading Strategy:
Focus on trading the spikes and avoid believing in the narrative. BTCT’s low float means it can move quickly on volume surges, but you need a tight trading plan. Cut losses fast, and don’t hold overnight unless the news is really good.

More Breaking News

Crypto Penny Stock #2: CleanSpark Inc. (NASDAQ: CLSK) — The 10,000 Bitcoin Holding Crypto Penny Stock

  • CleanSpark Inc., based in Nevada, operates Bitcoin mining data centers with a focus on using low-carbon energy. Recently, the company hit a major milestone, coming into possession of over 10,000 Bitcoin—a 236% year-over-year increase. For traders, that’s a sign this company knows how to capitalize on momentum in the Bitcoin market.

Key Catalysts:
CleanSpark’s low-carbon mining narrative adds speculative appeal, but the real driver here is Bitcoin’s price movement. When Bitcoin rallies, CleanSpark often sees sharp upward spikes, making it a go-to stock for short-term traders. Keep an eye on news about mining efficiency and Bitcoin accumulation as potential catalysts.

Trading Strategy:
Ride the momentum but avoid overcommitting. CleanSpark is tied to Bitcoin’s volatility, so trade it like a momentum stock—look for breakouts and volume spikes. Always trade with stops in place and focus on taking quick singles rather than hoping for home runs.

Crypto Penny Stock #3: Canaan Inc. (NASDAQ: CAN) — The Bitcoin Mining Tech Penny Stock

Canaan Inc. designs and manufactures ASIC chips for Bitcoin mining, making it a key player in the cryptocurrency infrastructure space. While its technology is solid, the stock is extremely volatile due to regulatory pressures and fluctuating demand for mining equipment. It’s a classic example of a stock that can spike on hype but faces significant long-term challenges.

Here’s the latest news on this volatile asset.

Key Catalysts:
Canaan has faced headwinds from increasing regulatory scrutiny in the crypto mining sector. However, any bullish news on Bitcoin or crypto adoption can send this stock spiking. The company’s strong foundation in ASIC chip technology positions it well for short-term trading opportunities when the crypto market heats up.

Trading Strategy:
Focus on short-term price action. Canaan is highly reactive to Bitcoin’s price movements and regulatory news, making it ideal for intraday trades. Look for clear setups with high volume and don’t hold overnight without a solid reason—this stock can reverse quickly.

Crypto Penny Stock #4: MARA Holdings, Inc. (NASDAQ: MARA) — The Bitcoin Mining Sector Leader—Now With AI!

MARA Holdings, formerly Marathon Digital, has expanded its focus beyond Bitcoin mining to include AI and high-performance computing infrastructure. This pivot may sound exciting, but it’s worth asking whether it’s just another buzzword strategy to attract traders. Still, MARA’s expansion of its Ohio operations by 372 megawatts shows it’s serious about scaling its mining capacity.

Key Catalysts:
MARA’s growth plans include nearly 1.5 gigawatts of capacity and potential diversification into AI-related services. These moves have created speculative buzz, but the stock’s performance remains closely tied to Bitcoin’s price movements.

Here’s the kind of move that big market-cap Bitcoin stocks like MARA can still make!

Trading Strategy:
Trade the momentum but stay skeptical of the AI narrative until there’s proof it can deliver results. MARA is a volatile stock that reacts sharply to Bitcoin rallies. Use technical setups to guide your entries and exits, and always keep a close eye on Bitcoin prices.

Crypto Penny Stock #5: Riot Platforms, Inc. (NASDAQ: RIOT) — The Other Bitcoin Mining Sector Leader

Riot Platforms is one of the most recognizable names in Bitcoin mining, with operations focused on renewable energy integration. Its stock is a favorite among traders because of its frequent and sharp price swings, often driven by Bitcoin’s performance. When Bitcoin spikes, RIOT tends to follow suit.

Key Catalysts:
Riot’s focus on sustainability and operational efficiency gives it a speculative edge in the evolving crypto market. Recent expansions in renewable energy initiatives have added fuel to the stock’s momentum during Bitcoin bull runs.

Trading Strategy:
Use Riot Platforms as a vehicle for short-term trades during Bitcoin rallies. The stock’s high volatility makes it ideal for momentum strategies, but it’s not a buy-and-hold play. Stick to your trading framework, cut losses quickly, and aim for consistent gains.

Crypto Penny Stock #6: BTCS Inc. (NASDAQ: BTCS) — The Blockchain x AI Pump

BTCS Inc. claims to be a pioneer in blockchain technology, but its focus on buzzwords like AI and blockchain analytics put it into the crappy penny stock category for me. The company recently announced a “Scaled Validator Implementation Plan” and added a new data scientist to its team. While these moves sound good, they’re more likely to drive short-term speculation than long-term growth.

Key Catalysts:
BTCS’s operations include Ethereum validator nodes and the development of its ChainQ platform, which it markets as an AI-powered blockchain analytics tool. These announcements have created some buzz, but the stock’s movements are mostly driven by speculative trading rather than fundamental changes.

Trading Strategy:
BTCS is a classic penny stock for momentum traders. Look for volume spikes and trade the price action, but don’t buy into the AI hype without solid results. As always, cut losses quickly and avoid getting emotionally attached to the story. Focus on the patterns and take profits when you can.

See the Hottest Stocks I’m Watching

top penny stocks list September 13, 2021 Tim Sykes drinks coffee in Positano Italy working on Mindset Master
© Millionaire Media, LLC

Check out the stocks I’m watching each week for no cost — subscribe to my weekly watchlist here.

Will you find crypto penny stocks on my list? That depends. I go where the hottest market action is.

What’s even better than my weekly watchlist? You can get my full watchlist EVERY trading day with a Profit.ly subscription. Choose the best subscription for your dedication level here.

My goal with every watchlist is to help you learn. Use my watchlists to study the patterns, catalysts, and price action. Then build a trading plan of your own.

Why Bitcoin’s Rally Matters for Crypto Penny Stocks

Bitcoin’s climb to nearly $100K is more than just a big round number—it’s a catalyst driving widespread interest in the cryptocurrency sector. As Bitcoin pushes higher, it often pulls smaller, related stocks along for the ride. Here’s why:

  1. Market Sentiment: Bitcoin’s gains create excitement across the sector, encouraging speculative trading in crypto-linked stocks.
  2. Sympathy Plays: Smaller stocks like BTCWF, BTCT, and BTCS often benefit as traders look for low-cost ways to participate in the broader rally.
  3. Volatility Opportunities: High volatility in Bitcoin can translate to sharp, tradeable moves in crypto penny stocks

Tips for Trading Crypto Penny Stocks

  1. Follow Bitcoin Closely: Crypto penny stocks often mirror Bitcoin’s price action. If Bitcoin breaks key resistance levels, related stocks could follow suit.
  2. Avoid Chasing Spikes: Wait for consolidation or pullbacks before entering trades to avoid overpaying.
  3. Take Quick Gains: Volatility works both ways—aim for 10-15% profits and follow your trading plan.
  4. Cut Losses Quickly: If a trade isn’t working, GET OUT. Your number one job is to protect your account.

Crypto Penny Stocks: The Bottom Line

Crypto penny stocks tend to move together based on sector momentum.

NEVER try to predict the market or a hot sector — react to what the market shows you.

Follow the latest developments in Bitcoin and crypto stocks to stay ahead of the curve. Don’t get fooled by all the hype. The Donald Trump-Bitcoin catalyst will fade at some point, and you don’t want to be the one left holding the bag.

Watch for major news in the crypto industry. StocksToTrade’s Breaking News Chat alerts the top crypto penny stock news every trading day. Grab your 14-day trial for only $17 here.

And keep your goals reasonable. Swing for singles. Learn to be patient and wait for your best setups to come to you. That’s what I teach students in my Trading Challenge…

Ready to put in the work to become a self-sufficient trader? Apply today!

What do you think about these crypto penny stocks? Let me know in the comments below!

* Past performance doesn’t indicate future results.

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”