Risk appetite continues to improve as investors reach further out on the risk curve to take full advantage of this bull run.
As for market internals, they are as bullish as they’ve been all year.
Small Caps are finally working, even outperforming.
Leading speculative areas like Quantum and Space & Exploration are charging higher again.
China and other Emerging Market equities are outperforming around the globe.
Put simply, investors have their offense on the field, and they’re looking to score.
The animal spirits are alive and well.
The riskiest assets are delivering the biggest returns.
And this is really the perfect environment for crypto, isn’t it?
Remember, while Bitcoin, Ethereum, and Solana trade like Magnificent Sevens or mega cap growth stocks— alt coins trade like speculative growth stocks.
We also have some speculative growth stocks that operate in the cryptocurrency space. I’m talking about the BTC miners, which are emerging as our new crypto leaders.
They are riding tailwinds from both BTC as well as the speculative growth theme this year.
Institutions are taking big stakes in some of these names, and the tech giants are partnering up with them.
More importantly, they look as good as anything from a technical view.
Here’s the Valkyrie Bitcoin Miners ETF, which is currently on the verge of breaking out to new all-time highs.
One more green candle and this breakout is in the books. I think this is actually a great option for investors because the BTC miners are such a diverse basket of stocks.
I like it long above 30.50 with a target of 47.
But as always, I’m more interested in owning the top names from under the hood of this ETF. Let’s run through some of the components I’ve used to build my own basket.
Here’s Applied Digital Corp $APLD:
Applied Digital broke out of a base two weeks ago.
I’m long above 13.50, targeting 34.
Next is Iris Energy, now IREN Ltd $IREN:
This industry leader just resolved a massive base with a 15% breakaway gap on Friday.
As long as IREN is above its post-IPO highs near 28.50, I’m long with a first target of 45 and a secondary target of 73.
Here’s Cipher Mining $CIFR with another nice base:
CIFR has spent the past year consolidating constructively below 7.50. This level has acted as resistance several times already, but it looks like buyers might finally get it done.
CIFR pierced above the breakout level with a wide-ranging candle Friday. I’m looking for a follow-through next week.
If the breakout sticks, I’m long with a target of $15.50. I also own the warrants in this one.
Next is Hut 8 Corp $HUT, which was among the first to see institutional interest when Coatue took an almost 10% stake last summer:
HUT just completed a textbook bearish-to-bullish reversal pattern. If it’s above 21, I’m long and targeting 82.
If I had to pick a long-term favorite, this would probably be it.
Next is Bitdeer Technologies $BTDR, which might be the most actionable right now as it looks to resolve a coil at the upper bounds of a multi-year base:
BTDR is pressing up against a critical confluence of resistance marked by a shelf of former highs and the VWAP from all-time highs around 15.
I think a monster breakout is brewing, so I’m jumping the entry and targeting 34.
Last but not least, here’s one of the old-school BTC miners, Riot Platforms $RIOT:
RIOT has been a laggard in this space for years, but I think that’s changing, and there is a massive catch-up opportunity at play.
If RIOT resolves this multi-year channel and reclaims its VWAP from all-time highs, I think it’s heading back that way, and fast.
I’ve been accumulating above the pivot high VWAP, which comes in around 13. I’m using the shelf of highs since late last year, around 15 for confirmation. If we’re above there, I’m all in on RIOT with a long-term target of 75.
And I’m not just trading the common stock in these new crypto leaders. I’ve been piling on exposure to this theme for weeks in our Breakout Multiplier portfolio.
I bought APLD calls when the stock was breaking out in July. I’ve already sold a double and am currently up over 3x on the remaining half position.
And this week, I added two new longs in BTC miners, which are both still trading around my entry price.
