Are You Buying Bitcoin Before $50K?
Bitcoin $50K is imminent.
Hey, we have the rest of the month to hit my $115K prediction for August.
It’s been eerily quiet in the Twitterverse around crypto … until now. Now, crypto is looking HOT again!
Nearly 80% of bitcoin is being held for profit. That means people were buying like crazy during the recent dip. (Did you?)
Here’s the big “secret” a lot of folks don’t get: The time to buy is when prices are low. And one mistake is to be conservative after a correction.
You have to let your winners run! And be bold with Strong Hands. That’s how you make big gains during the rebound.
Check out this week’s IanCast for opportunities in crypto, the America 2.0 market, Robinhood’s new publicly traded stock and more:
Paul Mampilly: Good afternoon, Ian.
Ian Dyer: Hey Paul. How’s it going?
Paul: It’s going good. How are you feeling?
Ian: Doing great.
Paul: Folks missed the IanCast last week. It’s going to happen from time to time. Ian and I sometimes feel burned out from doing videos. Between us, how many videos do we do per week?
Ian: Not as many for me compared to you, but at least two or three a week for me.
Paul: On this channel we have Amber on Market Talk every Monday, I come on for our Tuesday investment video, we have the IanCast and then each of our services we are doing videos and updates. Understand from time to time we are going to need a break.
If you still want to get Ian’s thoughts on Friday, you do written updates instead of the IanCast.
Crypto Heating Back Up!
Ian: Exactly. Last week there was a written update. I encourage people to check that out. It was on crypto. As we know, the crypto market is finally starting to heat back up again after several months.
Paul: I agree. We were talking before we got on that there’s zero excitement associated with this move to $40,000. I left the house and came back and looked at the screen and said, “Oh, it’s over $40,000 again.” I felt nothing. Which means, in all likelihood, the market feels the same way.
Ian: I prefer it that way. That means there’s plenty of room for it to go up even more.
Paul: Usually all the moves are driven by people who are chasing fast gains, short-term gains. Those gains never last. This move I would give a 75% likelihood of continuing.
Ian: I agree. Once it does, we’re going to be back at that $65k in no time at all — maybe a matter of weeks. Once that breaks, all bets are off on where it’s going to go from there.
Paul: I tweeted — partly driven by your tweets on the demand and supply, which more and more very favorable. The people who are buying are accumulating and holding for longer and longer periods of time.
Ian: There’s that and Bitcoin is coming off exchanges like crazy. I believe more than 100,000 BTC have come off exchanges in the last week. The other thing I have seen that’s very interesting is the number of BTC and Ethereum (ETH) being held for a profit right now.
We’re recording this on Thursday and this data comes out at the end of the day today. The latest is Wednesday’s, but 82% of BTC and around 95% of ETH is being held for a profit, even though they are still 40% below their highs. That means people were buying like crazy during this dip.
Pretty much everything that was sold is now not only been bought, but is being held for a profit, which means people are mostly likely going to buy more.
Paul: Most people don’t think about this but the psychology of strong hands — which is something we talk about here at Bold Profits — generally speaking you have the strongest hands when you’re making money.
Ian: Exactly. That’s the whole thing with demand at higher prices. If you hate BTC at $30,000, you’ll love it at $70,000. That’s the whole thing.
Paul: I wanted to mention, I am waving on ETH flag this week on my t-shirt. We have to give ETH some love. We give BTC a lot of love on the IanCast but we have to give ETH some love. We were talking early this morning. Ian and I are often texting at ungodly hours in the morning.
We were chatting and I had done an analysis of the three big coins — Aave, Compound and Uniswap — and all these coins are showing signs that insipient demand is pushing prices higher.
Ian: Those are carving out their niche. It’s part of the crypto ecosystem that are really the blue chips. There’s more than three, but those are three that have led the rally higher, especially now that you see ETH breaking out. It’s these three coins that are outperforming everything else.
Is The Timing Right To Get Into Crypto?
Paul: If you want to get in on what we think is a spectacular opportunity, crypto is a great opportunity. It’s very early innings. This moment after BTC crashed from $64,000 down to $28,000-ish, it took down everything with it. In other words, the timing is right.
We’ve just crossed $40,000 again. If you are interested in that, check out Ian’s Crypto Flash Trader. It will take you to Ian’s presentation on Crypto Flash Trader. It lays out the opportunity and what can happen. It gives you an idea of what you can expect.
The trades you have put on in Crypto Flash Trader are all now profitable. Right?
Ian: They are. We’ve had four. We just put out the fourth one today. They are all up. It’s looking good. I don’t think we could have launched the newsletter at a better time. It turned out to be perfect.
Paul: That’s the thing lots of people never get. The time to get into stuff is when things are low. Generally speaking, a lot of people who casually dabble in the markets do the exact opposite.
Ian: Right. New highs are bullish, but you don’t want to get in at hype highs. When things are around the bottom and starting to break out to new highs it’s still bullish. Right now we still have a long way to go to even get to that. Like we are saying, it’s not full of excitement right now on crypto Twitter or Reddit.
It’s a very good time to buy.
Paul: The more excitement there is from more people, in our way of looking at it, it means the demand is in. The reason is because most people get most excited after they have bought something. Because now they own it and they think about how high it can go.
Generally speaking, sentiment is lowest after people have sold for a loss after they had huge expectations. In other words, they bought somewhere near the high and sold somewhere near the low. That sets the mood for everybody and it’s what sets the next rally.
Ian: When BTC was up near the highs it sat near $50,000 and $60,000 for a while. A bunch of people were buying and a bunch of people were excited. Then it just fell off a cliff and went straight down to $30,000 It killed the mood for about three months. It can take a while for that to adjust. But now I think we are going to see a huge reversal of that.
I do think this rally is going to hold up pretty strong. Before long I think we are going to see a lot of excitement again.
Paul: Another mistake a lot of rookie traders make is that post a correction they become conservative. They want to take very small profits. They are afraid to allow their winners to run.
Ian: That’s why sometimes you have a bounce after the initial crash and then it goes back down, if not lower. Thankfully with BTC it stayed at right about the first crash level. There’s been so much demand around there. Now we’re finally starting to see the effects of that with it going back up.
Paul: I am with you. I think $50,000 is imminent for BTC and then new highs shortly after. I tweeted saying I believe BTC was likely to be at $100,000 by yearend. It seems like a total gimme to me. I am still on the hook for $250,000 by the end of June next year for BTC and $20,000 for ETH.
I feel a little less certain about my ETH prediction. Gas fees continue to stay high, which tells you there’s massive demand for ETH from all these DeFi apps. I saw a chart showing that volumes for DeFi is at record highs.
Ian: DeFi volume is picking back up. The NFT volume for all this art is what is going crazy. People are spending six figures on these random NFT art things. You know a lot of money is going to go into the system because that’s about as speculative as you can get.
Paul: We could continue to talk all day about crypto for hours and hours a day. We are BOP on crypto. We have BTC and ETH in Profits Unlimited. However, if you want more exposure than what’s there — how long are the opportunities in Crypto Flash Trader? Three months? Six months?
Ian: About one to three months is the goal.
Paul: We are BOP on crypto. We think new highs will be here before yearend. Just to close out the loop, tell people your predictions and then let’s move to the stock market.
Ian: My BTC to $115,000 by August is not looking good. It didn’t happen by the beginning. I’m still confident it will hit $350,000 by the end of next June. I don’t have a long-term ETH prediction, but I am still holding to my $8,000 by the end of the year prediction.
Paul: There’s still a few days left in August. I have not given up hope for your $115,000 by the end of August. It would be amazing if it happened.
Ian: I wouldn’t complain.
Current Big Events Of The Stock Market
Paul: Alright, rapidly moving on to the stock market. The big events that seemed to have changed the tone for our stocks — America 2.0, Fourth Industrial Revolution stocks — are a few things. The first is Square. It’s a leader of growth stocks that many people may or may not know.
They bought an Australian company called AfterPay that gets them into the buy now, pay later financing movement. They paid $29 billion in stock for it. What was remarkable was that we were both watching this. Ian and I are obsessed with markets. We both were watching the premarket.
It was down as much as 10% at one point. They announced the deal in the evening. The thing started to trade early in the morning. It opened up and whoa.
Ian: Before the market opened I messaged you and said it doesn’t make any sense why it’s down this much. I think it’s a fake out. We see that with earnings sometimes when a stock will be down 10% in the premarket and then it will end up rallying throughout the day.
It’s the same thing here. You can bid a stock down with a low number of shares because it’s illiquid. Our predictions panned out for that day. As soon as the market opened it just shot right up. It hasn’t stopped since then. I think it had maybe one down day. Now it’s at all-time highs.
Paul: Just to give folks some explanation as to what happens, in our opinion, we think someone who was short Square thought it was an incredible deal and started hitting it hard in the premarket because it’s so illiquid. They were able to push the price down.
However, the moment the regular market came, it was a fantastic deal for institutional buyers. They were integrating into CashApp and into their register business. It really fills out their closed loop system between their register and CashApp. It’s a fantastic deal.
The stock went from being down 10% to being up 13% that day.
Ian: It was incredible. It’s a strong sign. Now it’s followed through to all-time highs, which we could tell when we saw that action happen that day.
Paul: Something similar happened on the Robinhood IPO. I put myself on the hook and told everybody that the Robinhood IPO was coming and Robinhood was giving you access to the IPO and IPO prices if you downloaded the app and applied.
Then I started to get the trolls come at me, “I could have had it at $33 if I waited.” Sorry, I’m not perfect. If you want perfect, tune in to another channel. If you want to be right every day, I’m the wrong guy for you. We’re looking to make big money over time.
None of this is financial advice. You’ll have to pay 1% of all your assets every year if you want that. You are not getting that free on YouTube. This is just engagement. There is going to be mistakes, errors and volatility. Nonetheless, it came IPO at $38.
The media hates Robinhood. They descended on it like locusts. It hit $33 and then it started to rally. By day three it was hitting new highs.
Ian: Exactly. Then it went crazy and they had to halt the stock because it went up so fast. I think that was Wednesday. Overall, of course there’s going to be some volatility when you have this action at first. Robinhood is growing like crazy. They have added a ton of users just in the past five months.
It’s the go-to broker right now I think.
Paul: I researched Robinhood very heavily before going on YouTube and telling our Profits Unlimited subscribers to look at the IPO. At the end of March, which was when their filing was dated in terms of financial statements, they said they had 18 million daily active users.
Now they have in excess of 30 million. In three months they have added another 13 million users.
Ian: And that’s during a time when a lot of growth stocks, which Robinhood users tend to like, have gotten crushed. They are bringing people on even during bad periods of the market, which is very good.
Paul: The documents also said in excess of 50% of the people opening an account were looking to invest and speculate for the very first time. The average age is under 31. We are talking about a lot of people who are coming into the markets.
The elites of the world think it’s terrible. The Charlie Mungers and Warren Buffetts of the world think it’s a terrible thing. We have covered this. They think it’s speculation. What do they do that’s so different?
Ian: You don’t become a multi billionaire from not speculating. That’s all I know.
Paul: I totally don’t get it. We think the capitalist system should be open to one and all. There are young folks going in and figuring things out. Quite importantly and differently from the billionaires, they take responsibility for their losses.
They don’t put their hands out to the government and say, “Hey, bail us out.” The Robinhood IPO is another example of short-term dynamics. So many people are wedded to day trading and want instant lottery tickets. They miss out. There were a bunch of people complaining to me.
My guess is, a bunch of them probably sold.
Ian: It’s not like there’s going to be some magic wand you can wave and send it straight to $200 a share. That’s the stock market. If you get in on an IPO it’s going to be some volatile stuff, especially one with as much attention as Robinhood.
You just have to sit through it. I am very bullish on Robinhood. They are second to none when it comes to growth in any brokerage. Except maybe Coinbase. Those two are the standard right now for stocks and crypto.
Paul: People were writing to me and saying, “They are selling 70 million or 90 million shares. This is all over.” Whatever. People are ready to panic at any news. We are in things for years. If you want second to second trading, go somewhere else.
Just to get into what happened with Square and what happened with Robinhood is important because it’s starting the next leg of the growth stock rally.
Ian: The fintech stocks. Coinbase is another one. Then of course ARK Invest has a whole fintech ETF that’s ARKF. I think the top holdings in that are Square, Coinbase and PayPal. I think Shopify is in the top four. They are centered on crypto. PayPal, Square and Coinbase are all crypto related.
And they are buying Robinhood now too, which is also crypto related. Crypto and fintech are the next leg up I think.
Paul: I read that Cathie Wood bought in on IPO day. All the folks who were going short or selling it out to try to push the stock down gave her a nice gift.
Ian: I think she had $40 million worth.
Paul: We saw a report. It was something like $45 million in Robinhood. My guess is she bought more on Monday before it moved up. Good for her. Cathie is a genius. She knows what’s she’s doing. It does look like now Square is making new high\s. Tesla is inching its way up.
We talked about how Square and Robinhood is starting to put a fence under these fintech stocks. We have trades in our options services — Rapid Profit Trader and Rebound Profit Trader.
Ian: We have several fintech and crypto-related trades in each of those. There’s really good options opportunities across the market in fintech. There are a lot of smaller companies in fintech that I think are going to see some action based on the strength of the bigger companies.
One is not necessarily fintech but crypto-related, is BTC miners. Their stocks bottomed out in May right around the first drop in BTC. They were in a range for a while but they are breaking out now. They started getting stronger before this rally. To me, that’s a leading indicator that crypto will do well.
We have a miner trade outstanding in Rebound Profit Trader so I am bullish on that.
Paul: The miner trade outstanding is Marathon?
Ian: Yes it is.
Paul: Are there any in Rapid?
Ian: No miners.
Paul: We have Coinbase in Rapid and ARKF in Rebound. There’s clearly momentum taking a whole bunch of stocks to 52-week highs. That’s what we target in Rapid Profit Trader: stocks that are making new highs and are continuing to make new highs.
Then there are stocks that get pushed down because of market maker action or temporary imbalances in demand and supply that cause prices to get marked down. Usually after a period of time once the market makers have absorbed it, they have the inventory.
They have zero interest in that inventory staying at lows for long. They will expose buy orders to the market to try to get the market to bid the price up. Eventually they will dump it out. That’s our Rebound Profit Trader service. Fintech looks ripe for both strategies.
Ian: We have that covered in both. I am very bullish there.
Paul: It’s been a hard five or six months, but that’s going to happen.
Ian: Another area is cannabis because it looks like we are starting to get some volume in those stocks too.
Paul: Cannabis is a place where that demand and supply has to be really tight. People who have been buying these stocks have been doing it for several years. These people are the definition of strong hands.
Ian: Canopy Growth, by the time people see this video, will have reported. The stock is up today. I think they report Friday AM before the market opens. That could be a huge momentum shifter. All it takes is a couple days. This selloff in cannabis stocks, the volume is so low. The selling pressure is all but wiped out.
If there’s a follow through to tomorrow, that could be huge for pot stocks.
Paul: There’s an old Wall Street saying: Never short a dull market. What they mean by that is not the price action, they are talking about the lack of volume. A lot of people sometimes think it’s an easy short. You know what? They should do it. Then they create a nice short-covering rally that will get these stocks going.
Ian: I agree.
Paul: We have covered all the usual ground. Let’s end this here. You say goodbye first and I will say goodbye next
Ian: Everybody, thanks for watching. Have a great weekend. Happy Friday. See you next week.
Paul: Happy Friday from me as well. We will have another IanCast next week. Until then, this is Paul saying bye.
Editor, Crypto Flash Trader