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3 CRYPTO PENNY STOCKS TO WATCH AS BITCOIN NEARS $100K

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Written by Timothy Sykes
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Bitcoin’s rise toward the $100,000 mark might be the biggest news in any market, and it’s driving high volatility in crypto-related penny stocks. With Donald Trump signaling Bitcoin benevolence and Bitcoin-linked stocks like MicroStrategy Inc (NASDAQ: MSTR) among the hottest in the stock market, traders are turning their focus to smaller, blockchain-linked stocks for the next supernova play.

Here are three crypto penny stocks to watch closely as Bitcoin approaches this historic milestone.

1. Bluesky Digital Assets (OTCQB: BTCWF): AI and Blockchain Converge

Bluesky Digital Assets is poised for a big transformation as it prepares to launch its AI-powered BlueskyINTEL Web Engagement Platform (WEP) in January 2025. This platform uses an AI-driven matchmaking service to connect businesses with blockchain and AI technology providers. A successful soft launch earlier this year has already drawn interest from major players like Amazon AWS.

Key Catalysts:

  • The platform is on track to generate subscription and partnership revenue starting in January 2025.
  • Strategic interest from Amazon AWS could boost investor confidence.
  • The AI-powered service is already showing strong engagement metrics, though revenue generation is still months away.

Trading Strategy:

  • Watch for volume spikes ahead of the January launch. Pre-revenue status could create volatility, so focus on well-timed entries around key support levels.
  • Bitcoin’s performance remains a strong indicator. If Bitcoin continues its rally, BTCWF could gain momentum as a sympathy play.

2. BTC Digital Ltd. (NASDAQ: BTCT): Meme-Like Moves Meet Bitcoin Mining

BTC Digital went supernova last week, rallying 316% in a single session, fueled by Bitcoin’s upward trajectory and BTCT’s newfound meme status. The company, which operates as a Bitcoin miner, has a small market cap of just $42 million, making it highly sensitive to price moves in the broader crypto market.

Key Catalysts:

  • A massive rally in Bitcoin (up 43% in the past month) has reignited interest in crypto mining stocks like BTCT.
  • The stock remains volatile after its recent surge, with potential for additional momentum if Bitcoin breaks above $100,000.

Trading Strategy:

  • Watch that it holds support around the $12 level. A breakout above $20 with strong volume could trigger a new rally.
  • Be cautious of speculative behavior. Without clear fundamentals driving the spike, focus on short-term trades and set tight stop-loss orders.

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3. BTCS Inc. (NASDAQ: BTCS): Profitable Blockchain Play with Strong Momentum

BTCS has delivered impressive gains recently, climbing 233% in the past month. The company is capitalizing on blockchain’s growing adoption, making it an attractive pick for traders.

Key Catalysts:

  • A transition to profitability has driven renewed investor interest in this crappy penny stock, which sets the table for a multi-day run.
  • Positive financial results and broader market sentiment around crypto have pushed BTCS into the spotlight.

Trading Strategy:

  • Look to see if support holds around $3 and target resistance above $5. Scalping small gains in this environment can be a smart strategy.
  • Use Bitcoin’s price movements as a guide—BTCS often mirrors broader crypto trends.

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.

The Bottom Line

As Bitcoin nears $100K, crypto stocks like BTCWF, BTCT, and BTCS are some of the best plays on the penny stock market. By focusing on clear trading setups, monitoring Bitcoin’s moves, and managing risk, traders can navigate this volatile sector effectively.

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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.

What’s your take on the crypto surge? Do you think we’re in a bubble or a bear market — let me know in the comments!

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* 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 .

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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”