Keep These 3 Market Insights in Mind Ahead of the Next Rally
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| By Juan Villaverde |
Bitcoin’s (BTC, “A”) halving is over. The second quarter is well underway. And we still have the next bullish rally ahead of us.
As such, let’s use the relative quiet in the markets this week to assess where we are … and what we should be on the lookout for going into the second half of this year.
And right now, there are three key insights we need to keep in mind.
Insight 1: AI Is Surging
That isn’t a tough one to guess. I mentioned just a few weeks ago that AI is the No. 2 sector leading the market.
But AI is only just getting started.
There are two upcoming catalysts that could send the AI sector into overdrive in the near term, as my colleague Beth Canova first pointed out on Wednesday.
The first is the upcoming Nvidia (NVDA) earnings report, set for May 22.
Nvidia is the high-end TradFi semiconductor company whose powerful circuit boards power Bitcoin mining and the computationally intensive training of AI neural nets.
The second is the release of the newest latest iteration of ChatGPT 5.0, the natural language-processing website that talks like a real person. That is planned for mid-2024, though the exact date is unknown.
If both events turn out as well as we expect, AI-related coins should do very well.
In fact, one of them — which my Weiss Crypto Investors hold — has already gotten a head start, jumping 40% in a week!
Insight 2: Solana Coins Are Outperforming
Solana (SOL, “B”) was one of the earliest movers in this bull cycle, and it has consistently been one of the strongest since.
If my Crypto Timing Model is correct and BTC exceeds $70,000 in the next leg up, a rally to $100,000 shortly thereafter. And when BTC hits $100,000, mainstream media will rush to tout Bitcoin as the next digital gold … as it always does.
This will be powerful advertising to insiders in the still vast non-crypto sector. Because when this happens, we expect retail-friendly Layer-1 blockchains like Solana — and memecoins built on it like dogwifhat (WIF, “E+”) — to do especially well.
As such, savvy investors can utilize coins built on the Solana network — particularly ones supported by another narrative — such as memecoins — as leveraged plays on Solana.
Insight 3: Waiting Can Be Wise
And as I surveyed the market this week, I have come to the conclusion that right now, the wisest thing we can do … could be nothing at all.
If you’re a long-term investor, looking to hold through the bull cycle, and your portfolio is ready, the best thing you can do may be to sit tight and wait.
According to my Crypto Timing Model, a 320-day-cycle low is expected soon. That means a new cycle will be starting … and new cycle highs are on the horizon.
But if there are laggards in your portfolio, it may be prudent to take advantage of these lower prices to move into more promising positions.
Which coins are most likely to outperform in the coming rally?
No one can say for sure. But to get a glimpse at what I’m telling my Weiss Crypto Investor Members, you can click here.
Best,
Juan Villaverde
