Crypto is on a bull run right now. And we don’t need to buy actual cryptocurrency to capitalize.
We’re always looking to trade the strongest trend in the market.
I’m watching 1 stock for continued crypto momentum.
No… I’m not buying Bitcoin.
In this market, you don’t have to buy crypto to ride the sentiment for gains. There are plenty of stocks that benefit from a crypto bull run.
And one stock looks better than the rest.
Bitcoin Momentum
Look at the recent strength from Bitcoin (BTC):
In late June, the price bottomed out at $57,800. Then it spent most of the summer consolidating sideways, stuck between roughly $62,000 and $66,000.
By mid-August, that changed…
Bitcoin ripped from around $64,000 to $80,000 in a matter of days, on the heaviest buying volume we’ve seen since early June.
From there, it built another base between $76,000 and $82,000 for about a month.
Then came the bad news.
On September 15, the Senate blocked the Clarity Act, the bill meant to finally spell out how crypto gets regulated in the U.S. It failed 49-50, 11 votes short of the 60 needed to move forward.
You can see the dip on the chart. Bitcoin slipped to around $75,000, the bottom of its recent consolidation.
But it didn’t break. Instead, it pushed higher.
Bitcoin blew through $82,000 and hit $87,396, more than 50% above its June lows. And the old $82,000 ceiling could become the new floor…
Why the strength? Because crypto regulation is far from over.
Two days after the vote, the SEC opened a temporary route for trading certain tokenized stocks, a step toward round-the-clock markets. Then the CFTC sent its own crypto rulemaking proposal to the White House.
The rules are getting written, with or without Congress.
My #1 Crypto Stock
Robinhood Markets, Inc. (NASDAQ: HOOD) is one of the easiest ways for everyday traders to ride crypto momentum.
We saw the correlation earlier this year. With Bitcoin in a slump, Robinhood’s crypto revenue fell 38% in the second quarter.
Plus, on July 1, Robinhood launched the public mainnet for Robinhood Chain and rolled out Stock Tokens. Now that the SEC has opened a path for tokenized U.S. stocks to trade on-chain, Robinhood exists right where crypto and the stock market meet.
And its price is approaching YTD highs…
On September 23, I alerted a possible breakout on this stock after the price bumped against the breakout level 3 times.
This is a “3x a lady” breakout setup…
And with the pullback on September 24, there’s still time to find an entry on this crypto-related runner.
This stock could explode higher at any moment. But make sure to study the breakout strategy before you buy contracts.
It would be a shame to miss this trade because you didn’t follow the rules for a proper entry.
Bitcoin and cryptocurrencies are center stage. Take advantage of the sector strength.
Be good (and be good to others),
Ben Sturgill
*Past performance does not indicate future results. Not typical.
