Three Reasons Why Trump’s New Cabinet Will Supercharge the Fourth Crypto Boom
Note from Ashley Cassell, Managing Editor, TradeSmith Daily: Last we heard from Luke Lango, senior analyst from our corporate partner InvestorPlace, he was sharing his “Auspex” strategy: a simple yet elegant method to build a portfolio of 10 high-performing stocks… rebalance monthly… and beat the market more and more over time.
And since then, Auspex has done just that – up 10% in January vs. just 2.7% for the S&P 500. Overall, that portfolio is already up 32.7% since inception in July… more than 4X the broad market.
Now we’re bringing Luke back for his insight on another hot market – crypto. Specifically, on why the new administration has the potential to send the market much higher this year.
For more on that, check out our interview with Luke from yesterday’s Daily.
And today, he’ll share his technical analysis on one of the best “Trump trades” around. Read on…
BY LUKE LANGO, SENIOR INVESTMENT ANALYST, INVESTORPLACE
As the threat of a trade war sent markets into turmoil over the weekend, the price of Bitcoin (BTC-USD) dropped below $100,000 on Sunday, while other major cryptos cratered 20% or more in a matter of hours.
That was the first time BTC dipped below $100,000 since mid-January.
But if you think the crypto rally is over, think again.
Donald Trump is the most pro-crypto president in history, and he is implementing three specific new White House crypto policies that could ignite the biggest crypto super-cycle in history (more on those later).
This isn’t speculation:
- Trump is openly embracing the crypto industry – a stark contrast to President Joe Biden’s heavy-handed regulations – and has appointed crypto fans to crucial Cabinet positions.
- Trump’s “crypto czar,” David Sacks, is saying a strategic U.S. Bitcoin reserve is a top priority.
- And Trump himself just signed an executive order to establish a sovereign wealth fund, and Bitcoin could be among its strategic assets.
Recall back to the weeks following Trump’s victory. As all the Trump-linked catalysts became apparent, crypto markets surged. Bitcoin pushed past $100,000, for the first time ever, in early December.
And all this came in the middle of the fourth crypto super-cycle, in which Bitcoin and altcoins were already in the mood to push higher.
With the rally heating up, my team researched the dynamics of this market. And, in a report we sent to all my crypto subscribers, I said we believed:
- That Bitcoin would not run into much resistance until it hits $120,000.
- That this super-cycle has about 12 months of runway left, with room for Bitcoin to pop toward $200,000 by late 2025.
- And that altcoins (i.e., cryptos other than Bitcoin) will start to join the party soon and would soar in 2025, similar to how they soared in 2021.
So… In my message today, I want to do a few things.
I want to let you behind the curtain a bit to talk about some of the technical catalysts we follow to make our projections.
And I want to further review the Trump-caused fundamental catalysts I’m seeing lining up behind Bitcoin.
Finally, I want to tell you a bit about the quant-based strategy I use to help my members trade cryptos.
We’ve used the same system to make stock gains like 48.3% in a year on ADMA Biologics (ADMA)… 54.3% in eight months on Enel Chile (ENIC)… and 119.7% in one year on Bioventus (BVS).
Let’s go…
How Bitcoin Could Rally to $120,000… Then $200,000
Let’s start with the first major conclusion: Bitcoin will not run into much resistance until it hits $120,000.
That’s because, psychologically, Bitcoin taking out the $100,000 level will likely generate lots of buying momentum, which alone should carry BTC well above $100,000 in the short term.
We also think that Trump’s pro-crypto appointments at the Treasury and the Securities and Exchange Commission will provide further fundamental ammunition for this rally to stay alive.
When we did our analysis, the top of BTC’s 2023-24 technical uptrend channel was at about $120,000. Considering BTC has cleared every other technical resistance level and is now running in “open territory,” we don’t see why the rally would still stall out until the top of the channel.
We therefore believe Bitcoin will fully cross above $100,000 soon… and stay hot, ultimately making its way to $120,000.
While Bitcoin could hit some resistance around $120,000, that won’t stop the fourth crypto super-cycle. Rather, I believe it will last throughout 2025.
In fact, this super-cycle should keep going so long as the economy remains healthy.
Most economists and market observers – we don’t always agree with them, but they’re on point here – believe that U.S. economic growth will accelerate throughout 2025 thanks to Trump’s pro-growth policies, AI spending, and rate cuts.
Therefore, this crypto super-cycle will likely continue into and throughout 2025.
Our technical analysis comes to the same conclusion.
At the time of our analysis, the monthly Relative Strength Index (RSI) on Bitcoin had just crossed above 70. In previous boom cycles, whenever the monthly RSI crossed above 70, that marked the beginning of the “bubble phase” of the boom cycle – where the rally picked up steam and BTC absolutely surged over the next few months.
Therefore, if history repeats, we’re looking at a strong Bitcoin rally over the next year or so.
Of course, we can’t say how high Bitcoin will go in the 2025 rally. No one really knows.
But our analysis suggests that Bitcoin could make a run for $200,000 or maybe even $250,000 this year.
So, from our perspective, things look good for BTC going into 2025.
Altcoins have been lagging. But as stated above, our technical analysis of BTC suggests that we are just now entering the “bubble phase” of the current super-cycle.
The “bubble” phase is also when altcoins start to soar.
I’ve done a full technical analysis for my Crypto Trader members, but you can also watch a replay of my free broadcast this past Thursday talking all about it at this link. I’ve included three specific ideas to get you started trading the altcoin bubble today.
Trump’s Cabinet: A Shift in Crypto Regulation
Fundamentally, Trump’s pick for Treasury secretary, Scott Bessent, is as pro-crypto as they come.
Bessent, a prominent pro-crypto hedge fund manager, is known for his time as chief investment officer for billionaire George Soros and as the founder of Key Square Capital Management. What’s more, Bessent advocates for blockchain and digital assets.
His nomination as Treasury secretary marks a significant departure from the Biden administration’s cautious approach to cryptocurrency regulation. Bessent will likely implement policies more favorable to the crypto industry, potentially integrating digital assets into the financial mainstream.
For one, Bessent has consistently advocated for blockchain’s transformative potential in modernizing financial systems. He views crypto as a tool for freedom and financial inclusion, particularly for younger generations. His support extends beyond rhetoric, with investments in blockchain startups and decentralized finance initiatives.
This position aligns with Trump’s growing interest in digital assets, as Trump’s campaign was the first to accept crypto contributions, and he also is in favor of creating a federal Bitcoin reserve. This crypto-friendly approach has attracted support from industry leaders, including significant donations from the Winklevoss twins and Kraken co-founder Jesse Powell.
Bessent’s appointment will bring much-needed clarity to crypto regulation, as the industry has struggled with inconsistent policies under the Biden administration, hindering mainstream adoption. Ripple CEO Brad Garlinghouse has described Bessent as potentially “the most pro-innovation, pro-crypto Treasury secretary we’ve ever seen.”
While Bessent will face the challenge of fostering innovation while maintaining necessary oversight, his past comments suggest a pragmatic approach, advocating for “smart regulation” that encourages innovation without compromising oversight.
Given that outlook, we are obviously bullish on the crypto markets right now and believe this is a good time to own some altcoins.
So, let’s take a peek at how I’m recommending folks do that right now…
Why We’re Trading the Crypto Super-Cycle in 2025
To review… We think:
- Bitcoin won’t find real resistance till it hits $120,000.
- The fourth crypto super-cycle will last throughout 2025, and BTC may not peak until around $200,000.
- Altcoins will come to life in 2025 like they did in 2021 and 2017.
That said, altcoins’ price moves will likely be volatile… chaotic even.
While I recommend long-term holds on Bitcoin and some other top cryptos, I’ll be trading these moves in smaller altcoins. Emphasis on trading.
We can’t ignore the trading potential of the other, smaller assets out there.
That’s why, after nearly a year of working behind the scenes, I held a free briefing this past Thursday called my Great American Crypto Project.
A replay is available here that shows you:
✅ Three specific crypto trades that could soar in Trump’s first 100 days in office.
✅ How my team’s quant-based trading algorithm identifies a predictable pattern before cryptos surge 10X, 50X, even 100X – in 90 days or less.
✅ Three specific new White House crypto policies that will add fire to the biggest crypto super-cycle in history.
For those who were trading with me in 2021, that’s saying a lot. That year, we delivered to my Ultimate Crypto members 276% gains on CELO – in one month… and 605.3% gains on MANA – in two months.
And those were just two of our top-performing crypto trades.
Click here to watch my Great American Crypto Project broadcast for full details.
And I hope to see you at Crypto Trader soon.
Regards,
Luke Lango
Senior Analyst, InvestorPlace