Bitcoin changes everything

This breakout in Bitcoin is more important to the broader market than you know.

As the market violently surges higher post-election, you need to know where the best opportunities are.

Next week we’re hosting our LIVE mid-monthly market review, diving into the post-election outlook. We’ll reveal the sectors, stocks and crypto we’re buying now—and just as importantly, the ones we’re selling.

This exclusive session is reserved for Premium Members of The Trading Initiative. Sign up risk-free to join the live webinar and get detailed insights on each trade idea.

We’ve been pounding the pavement since prior to the election that the market was ready to rally higher.

• The Put-to-Call ratio was sitting at 1.3, which historically sets the markets up for a squeeze.

• Professional money managers through the NAAIM survey were the least enthusiastic they had been in months.

• The average investor through the AAII survey was more bearish than at any point since May.

These types of environments set the stage for an explosive move higher if the expected drawdown isn’t realized immediately.

You can read more here: Election Night in the USA!

With the weight of the evidence favoring a higher upside through the end of the year, we assumed that our bullish thesis would prove to be correct.

We’ve made a bunch of money over the last few days as everything rallied higher quickly.

But no chart has my attention more than Bitcoin’s breakout into all-time highs.

After spending the majority of 2024 consolidating underneath the 70,000 level, Bitcoin explosively broke out nearly 30%.

It’s all over the headlines. It’s plastered on your TV, your social media platforms, and that one guy you knew from high school who still lives with his parents may have recently reminded you to “stay poor”.

But when we look at the actual data, the average investor and trader actually isn’t that interested.. yet.

Check out this super-scientific Google trends read on the word bitcoin:

While this evidence may seem anecdotal, it lends credence towards the fact that this breakout in Bitcoin is not the crowded trade it has been in the past.

Most people don’t even know it’s sitting at all-time highs!

That means the “early” trade may still be available. Before the masses get involved and eventually turned into asses.

Listen, whether you hate or love Bitcoin is not my concern and I am not here to persuade you one way or another.

But Bitcoin has held a very tight correlation with the broader Trad Fi market for years, more specifically the NASDAQ and higher beta stock groups.

I tend to treat the cryptocurrency asset class as an extension of risk-on behavior, much like high beta stocks.

As new liquidity finds its way into a risk-on environment, it tends to permeate through and finds those higher beta groups of stocks first.

And those areas tend to respond explosively.

Take a look at the total market cap of the entire cryptocurrency ecosystem:

While Bitcoin is sitting 15% higher than its previous all-time highs, the entire cryptocurrency market cap hasn’t even broken its 2021 peak.

What do you think is more reasonable to occur when this chart breaks out:

1. Bitcoin fails this all-time high breakout, pulls back under 70,000, and eventually heads to 0.

2. Bitcoin continues to rally on newly added liquidity and continues towards its price targets at 100,000, 160,000 and possibly beyond.

While I don’t know for certain, I refuse to miss the chance at #2 happening.

This breakout in Bitcoin is confirms to me what I thought the day after the election where we saw a historic number of new highs in stocks:

We’re in the beginning of the next leg up across all markets.

Next week we’re going to be going over everything we need to know to take advantage of it and make as much money as we can.

We’re not only going to be talking about how we want to close the end of this year, but how we are positioning ourselves right now to take advantage of 2025.

The most important sectors, industries and stocks for next year are setting up RIGHT NOW. Join us next week and get all of the trades we’re taking to make money over the next six months.

Excited to meet a bunch of you,

Hamilton

You can follow me on X by clicking here.

You can follow me on YouTube by clicking here.