October 22, 2024
This Asset is Set to Get a Bigger Boost
Dear Subscriber,
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| By Juan Villaverde |
There’s a rising tide of global liquidity right now.
When global liquidity — the total amount of money and credit circulating in the global financial system — rises, asset prices often follow suit.
Cryptocurrency prices, in particular, almost always follow suit.
How Does 10x Return Potential Sound?
Now, if you aren’t a “crypto investor,” don’t close this email. This email applies to you, too.
That’s because the window to become a potentially very profitable investor is WIDE open.
And the floodgates are likely to stay open well into 2025.
More liquidity tends to amplify moves, often by a factor of 10x.
So if liquidity goes up 5%, crypto markets can shoot up roughly 50%.
This is why I often say that owning crypto is like holding a call option on central bank money-printing.
There’s Some Irony Here, Too
Since around August, we’ve seen a slow ramping-up of liquidity injections by the world’s second-largest central bank: the People’s Bank of China.
So, right now, the central bank from the nation most associated with crypto crackdowns is the one that’s giving Bitcoin (BTC) a big boost.
PBoC balance sheet assets.
Click here to see full-sized image.
When you see a big shift in global liquidity like this, buckle up …
That’s because things are about to get interesting!
China & Crypto Prices
Are Heavily Correlated
The white line shows assets on the balance sheet of China’s central bank, while the blue line tracks Bitcoin’s price.
The pink areas represent periods when the PBoC was draining liquidity. The purple areas show when they were printing money.
Your takeaway:
- When China prints, Bitcoin goes up.
- When Bitcoin goes up, altcoins follow — and they usually outperform Bitcoin by several magnitudes.
On the right, you’ll see how the Chinese central bank ramped up liquidity injections around August 2024. Thismarked the low point in Bitcoin’s recent correction.
That correction started back in March. Right around the time China started aggressively pulling liquidity out of the market.
Things don’t get much more correlated than that!
Another China-Based
Boost for Bitcoin
Because no one rescues an economy overnight … certainly not one as big as China’s …
We can safely conclude the money-printing that began in August — and has just gotten a big boost — has many more months to run.
With possibly even bigger boosts along the way!
As soon as Golden Week wound down earlier this month, Bitcoin started marching up — and it did so during Asian trading hours.
This has been another consistent pattern throughout this bull market …
Bitcoin does its heavy lifting when China is awake.
In fact, we’ve even seen rallies reverse when U.S. markets open for trading.
The takeaway is clear …
A surge in demand for crypto is coming from China.
And it’s having a dramatic effect on the price of Bitcoin and other leading crypto assets.
Since bottoming around $60,000 midmonth, Bitcoin surged to a multi-month high just shy of $70,000.
And that happened mostly during Asian trading hours.
What’s Next for Bitcoin?
My Crypto Timing Model has been calling for a key cycle low on or around U.S. Election Day on Nov. 5.
Don’t be surprised to see Bitcoin trend between $60,000 and $70,000 for a while.
A move above $70,000 will confirm that all this money-printing is starting to have its usual effect on crypto.
And once Bitcoin puts in that key cycle low, make no mistake:
The crypto bull market is ready to shift into high gear.
And, to be clear, 10x may represent the low end of the profit potential!
The last time my Crypto Timing Model flashed a signal like this, it produced massive 19x … 23x … and even 93x windfalls.
To be clear, you can’t get returns like these by simply throwing money at any crypto … at any time.
You must be disciplined and smart if you want to make the most of this window of opportunity.
That’s why I’m hosting an urgent event this coming Tuesday, Oct. 29 at 2 p.m. Eastern.
I’ll show you how my prized Crypto Timing Model can lead you toward the right cryptos to buy ... and WHEN to buy them during the coming Golden Window.
It’s free to attend. Just be sure to save your seat.
Best,
Juan Villaverde, Editor
Weiss Crypto Portfolio
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