One effective way to identify relative strength is by charting one asset class against another.
This approach helps us position ourselves strategically for the current market environment—and right now, it's all about crypto.
Bitcoin is breaking out of a multi-year base relative to the Dow Jones Industrial Average.
The ratio is piercing through the upper bounds of its base, suggesting that BTC is ready to reassert its former leadership.
If this breakout holds, cryptocurrencies are likely to enter a phase of outperformance versus stocks. I expect something similar to 2017 and 2021.
The best assets tend to do this during sustained bull market periods: they outperform their alternatives.
At this point, if you're not long crypto in some way, you're leaving too much alpha on the table.
It’s irresponsible.
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