The New Bull Run Is Beginning…
Archived from August 6th, 2020.
The New Bull Run
Bitcoin recently started a strong uptrend breaking out of its 100-day range near the $9000 price level. Gold and Silver prices have skyrocketed to 10-year highs and the commodity market is seeing a large surge of demand. Bitcoin is considered to be a commodity by the CFTC and there is a theory that Bitcoin tends to follow the precious metals. This combination together makes for a very strong trade thesis I will share with you all in this report.
What is causing the surge into these assets? Well it is a combination of several events. Digital currency is more than just “digital money”. There is a whole new level to the technology with more being discovered and created. For example, when you sign up with a centralized server like Facebook, you are forced to give them your data and information. You can choose who receives your information. One thing you should never bet against in my opinion is the exponential growth of technology. The 2020’s and beyond will feature more online and digital economies and probably a transformation in finance itself. Think “Decentralized Finance” as an early example.
Trade Thesis
Here is an idea. If you are bullish on digital currency in any form you should take advantage on the trade that most who are crypto exclusive have been missing out on for quite some time. As you know there is a way to gain exposure to bitcoin via the stock market. That is through the GBTC. Well, just as gold and silver mining companies skyrocketed farther than the metals did in %. Why wouldn’t bitcoin or any digital currency mining company also appreciate in value?
Remember when I mentioned the exponential growth of technology. Moore’s law is obsolete. There is so much innovation going on in technology and digital currency is in the heart of it all. Blockchain solution companies is another way you can approach this. They have started to rapidly increase in value just this last week. Stocks $DMG +21.05% $MARA +132% and $RIOT up 50% for being involved with cryptocurrencies. So there may be another cycle of mania and greed. You can see a few examples of this on a few charts related to bitcoin mining.
In Conclusion
This is a unique and interesting opportunity for money to flow into a few of these undervalued stocks. The market is certainly showing me this thesis has some validity. I will be sharing ideas and stocks in the next report. Welcome to arguably one of the most interesting decades in history.
For those interested in reading the end of the cycle post, follow the link posted here.
