Today, you’ll hear from our Yankee cousins and international affiliates at Fat Tail, specifically James Altucher.
If you don’t know James’ work, then you’re in for a treat.
You see, James has been on a prediction tear recently.
With his hedge fund experience and elite network of US insiders, he has consistently been ahead of the market in the past year I’ve been reading him.
For those who do know him, it’s no surprise that his recent focus has squarely been on one place…cryptocurrencies.
I’ll leave it to James to explain why he’s so bullish right now:
Prepare for Up-tober
Jerome Powell just handed cryptocurrency investors a trillion-dollar gift.
Most investors have no idea what’s coming.
Last week, Jerome Powell and the Federal Reserve cut interest rates for the first time this year.
The 0.25% cut marks a shift in how the central bank manages the economy.
Fed officials hinted at two more cuts before year’s end.
For cryptocurrency markets, rate cuts are like rocket fuel. When borrowing costs fall, investors hunt for assets with higher growth potential.
Cryptocurrencies sit at the top of that list.
Crypto markets had already been anticipating these moves, driving prices higher this past summer.
But the real opportunity isn’t where most people think…
Altcoin Season Begins
These rate cuts have come at the perfect time for the crypto market, which has already been on a tear.
Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all hit all-time highs earlier this year. The total crypto market now stands at $4 trillion.
The spotlight is shifting away from Bitcoin.
Altcoins – essentially any cryptocurrency that isn’t Bitcoin – are gaining momentum fast.
We’ve officially entered “altcoin season,” a market cycle peculiar to the sector where these smaller cryptos outperform Bitcoin.
Over the past 90 days, 75% of the top 50 cryptocurrencies have outperformed Bitcoin.
The total market cap of all altcoins recently surpassed its previous record high of $1.61 trillion. Today it stands at over $1.71 trillion.
And there’s a powerful new force driving this surge that many investors don’t even know about…
What’s Behind the Rally
Digital Asset Treasuries, or DATs, have emerged as the secret weapon of this crypto cycle.
These companies raise billions through debt offerings, then use that capital to buy and hold cryptocurrencies.
Now, with interest rates falling, these treasuries can borrow more cheaply than before.
Lower rates mean cheaper loans. Cheaper loans mean more buying. More buying means higher prices.
And altcoins stand to benefit the most from this capital influx.
The reason is simple math.
Bitcoin’s market cap sits around $2.3 trillion.
The largest altcoin, Ethereum, has a market cap of $558 billion.
Some altcoins in our portfolio have tiny market caps by comparison. It takes far less money to move the price of a smaller asset.
A $1 billion investment barely budges Bitcoin.
That same amount can send an altcoin into orbit.
I mentioned this Digital Asset Treasury trend two weeks ago.
Earlier this week, the largest Ethereum DAT, Bitmine Immersion, announced they had surpassed 2 million Ethereum, bringing the total market value of their holdings to just under $11bn.
Other digital asset treasuries acquired more than $2 billion of Solana over the past two weeks.
I continue to think we’re still in the early stages of a massive shift for these projects.
But digital treasuries and cheap money aren’t the only things working in favor of altcoins…
The Next Few Weeks Could Change Everything
October has historically been kind to cryptocurrencies, particularly Ethereum.
Over the past five years, Ethereum has rallied 83% of the time during October, with an average gain of 12.6%.
With regulatory clarity improving under the new administration, institutional money continues pouring in.
SEC Chairman Paul Atkins recently declared that “crypto’s time has come” and vowed to end years of regulatory hostility.
The agency is currently reviewing over 90 exchange-traded products, including applications for Solana (SOL), and ChainLink (LINK) ETFs.
Market analysts expect that some of these ETFs could debut in the coming weeks.
Simultaneously, treasury companies are continuing to acquire as many altcoins as they can get their hands on.
We are witnessing the early stages of an altcoin boom unlike anything we’ve seen before.
If you don’t already own Ethereum, now is the time to consider buying some.
More money is moving into the altcoin markets every day and we don’t see any sign of it slowing down soon.
Investors positioning themselves today have a rare opportunity to build wealth as this cycle unfolds.
