Bitcoin Is Being Tested… But These Altcoins Could Outperform

John Gillen (0:00)

I'm very heavily concentrated on Bitcoin and Ethereum. I have the rest of my portfolio very focused on a lot of what I think are the blue chip or the best DeFi projects and protocols. Bitcoin is fighting to hold on to $83,000. It is up over 40% from its lows in July. Every dip back towards $81K has been bought this month, but this morning's inflation report came in hot, and fears of the Fed rate hikes coming back are rising. Is this the start of a new bull market for crypto? Is this just another bear market rally? And what do investors need to know about all of this? Hello and welcome to Milk Road Crypto, the show that still hasn't turned on its fee switch. I'm your host, John Gillen. Today is Wednesday, October 14th, and today for the first time in a long time, we are doing a Milk Road Crypto roll up. So I'm joined by two of my Milk Road colleagues, Kyle Reidhead, the head of research, and Martin, the lead analyst. Kyle has gone full DeFi on us. Martin's indexes are telling a much more cautious story, so we are gonna get into it all today and unpack what everyone's thinking about the crypto markets. If that sounds good to you, make sure you like and subscribe, share this episode with somebody who's gonna enjoy it. And as a reminder, our podcast today is free, and that would not be possible without our wonderful partners at Nexo, the digital asset platform that lets you trade, earn, and borrow all in one place, all in one account. So stay tuned for more information on them later in the episode. But for now, welcome back to the Milk Road Crypto Roll Up. Martin, Kyle, how are you gentlemen?

Kyle Reidhead (1:16)

Great. It's good to be back. That's a hell of an intro, John. We don't get those kind of vibes. Yeah, I jumped right into it.

John Gillen (1:24)

Yeah, I've been doing a lot of these. I'm getting a little bit more used to it. Let's kick off with Bitcoin because I really am curious to hear what your guys' thoughts are here. Like I said, Bitcoin is up 40 percent from its lows in July. It's I think still just a little bit under 83k, around 82 actually at the time of recording.

What's your outlook here? Martin, I'd love to start with you on this question. What are your thoughts on Bitcoin? Are we starting a new bull market? What are your updated thoughts here?

Martin (1:50)

Well, we are again in that range around 83k and I think most of us in Milk Road, we said that beating 82k, 83k is key level for Bitcoin. Now we are testing it back from the upside. I think unfortunately the macro is not in the setup that we wanted to have.

I was about to say that yes, crypto is again in the bull market, but if the macro is going to be headwind, then I don't see Bitcoin doing new all time highs anytime soon, unless the whole situation with rates and yields and oil will calm down. And then I think we are going to see the next bull market. So right now, at this very point, I think we are going to probably range around 80, 85k for some time and then depends on how all the new data will come in. We will move from there.

John Gillen (2:54)

Kyle, what about you? Last time we spoke, you were calling for Bitcoin to BART back to like 65k, I think. What are your thoughts now?

Kyle Reidhead (3:02)

I was hoping for it to BART. I do think we're going to get it.

I had said it needed to go above the 80k, which it did. Now, as Martin said, we're kind of testing it right now. I think there's a chance we go lower.

My number that I had put in Milk Road PRO was if it hit 74k, I think you want to be buying a ton of it right now. We'll see if it gets there, but I do think overall we're in a bull market, so dips are for buying at this point. Will it range for a bit? Could it chop for a bit? It could. I still think a lot of people are offside and just not in Bitcoin or in crypto at the moment. I think it's starting to get a narrative. The macro is shaky in terms of the price of oil, maybe inflation a little bit, but I don't think it's that bad. I'm not as concerned as Martin is, and so I think we will be much higher from here by the end of the year.