Cryptocurrencies are soaring right now – led by the biggest crypto of them all, Bitcoin (CCC:BTC-USD), surging more than 50% over the past three weeks alone.
That’s a huge rally. Indeed, this is the sharpest and biggest rally in Bitcoin since February of 2021.
But you never would’ve guessed this rally was happening had you just been reading the news headlines about cryptocurrencies in the mainstream media.
Instead, you’d think that cryptos were crashing! (Spoiler alert: they’re not):
That’s because legislation over in Washington D.C. is aiming to essentially “kill” the crypto world in the U.S.
Long story short, there is a proposal in the new infrastructure bill which would increase tax compliance by cryptocurrency market participants. Sounds fair enough. But that proposal includes crypto miners, and would require those miners to file a type of 1099 form for certain transactions that those miners do not have the capacity to file, because – by nature of the blockchain – they do not know who their users are…
Basically, D.C. is trying to shut-down cryptos in a sneaky way by mandating very specific tax forms for miners that they physically cannot file.
Of course, against that backdrop, you’d expect cryptos to be crashing. But they aren’t… instead, cryptocurrencies are in the midst of their best rally in months.
And that’s a very important insight about the recent “Bitcoin Breakout.”
The bullish sentiment underlying the recent leg higher in cryptos is so strong that it is entirely offsetting what would otherwise be rally-breaking headwinds.
In other words, the folks buying Bitcoin today don’t care about these near-term legislative headwinds, or any near-term new or price action, for that matter. Instead, they are ready and willing to back out, see the big picture, and place long-term bets on the disintermediation (the reduction of middlemen) potential of blockchain technology.
To us, this bullish sentiment screams that the current “Bitcoin Breakout” is the real deal, and that cryptos are in the early innings of one of their big breakouts, à la late 2017, mid-2018, and late 2020.
Some numbers to back-up that claim: Bitcoin has, for the first time in months, surpassed its 200-day simple moving average (SMA). Historically, when Bitcoin is trading above its 200-day SMA, the crypto’s six-month forward return is about 193%, while it is just 10% when trading below the 200-day SMA.
If we extrapolate that data, the obvious question is: Can Bitcoin triple from here?
And: Could Bitcoin really soar to $100,000 in the coming 6 to 12 months?
History says it is entirely possible – and we think history could, indeed, repeat itself. Of note, much like previous big Bitcoin breakouts, we think this one will be led by a handful of altcoins that will soar much, much more than Bitcoin over the next year.
The time to buy the next generation of big altcoin winners is now.
That’s why we’d like to point you to our cryptocurrency-focused research advisory called Crypto Investor Network.
At Crypto Investor Network, my team and I have partnered with legendary early Bitcoin investor Charlie Shrem to hand-pick a blockbuster portfolio of crypto picks that, in less than a year, has risen more than 100%. Some of those picks are up more than 400%.
Just three weeks ago, we introduced a brand-new cryptocurrency pick into that portfolio that we think could be our biggest winner yet…
It’s already up 60% — in just three weeks!
And yet, we think the best is yet to come… not to mention, we’re also looking at some other exciting crypto projects right now, and may soon introduce an even more-exciting altcoin pick…
Excited? You should be. We are!
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.