I like to think of Bitcoin as just another mega-cap growth stock.
I treat it like I treat the Magnificent Seven names because it acts like one of them.
This simple and straightforward intermarket analysis has worked cycle after cycle, and is hard to argue with at this point.
I use BTC as leading or confirming evidence for stocks. And I use stocks in the same way for BTC.
But it goes beyond Bitcoin… the broader crypto space also exhibits price action that is often indistinguishable from parts of the US equity market.
I like to think of the altcoin space like a basket of speculative growth stocks.
Whether you agree with this take or not, you can’t deny that the price behavior is alarmingly similar.
This is Soundhound AI overlaid with Chainlink— a hot AI stock and one of the larger altcoins. Could you tell the two apart if these charts weren’t labeled?
And I’m not cherry-picking two strange patterns that coincidentally look identical… we’ve seen this same formation all over the altcoin and speculative growth landscape of late.
And these relationships didn’t just start. Strong positive correlations exist over longer timeframes, too.
Here’s a chart of the flagship ARK Invest fund $ARKK with the Altcoin Index, illustrating that this has been going on for some time.
So, why does it matter and how is this more than just a fun fact?
It matters because hot stocks– AI, quantum, space, drones– are now the best stocks. The most speculative corners of the market have been home to the top performers since the April low.
We’ve been buying them all along, and these bets continue to pay off.
So if we’re seeing similar patterns and price action setting up and playing out in crypto, shouldn’t we be buying those too?
I think so. I think the answer is a big YES.
I bought more LINK last night. I already had a little, but I more than doubled my position.
Solana is my largest token holding right now— it’s one of my highest conviction longs out there. Ripple is second at about half the size. I’m also big in SUI and ETH, and I have plenty of exposure to the meme coins.
I get a lot of my ideas from my good pal, head of All Star Crypto, Louis Sykes. He’s writing about cryptocurrencies and sharing his best ideas every day.
