| | | | Credit Cracks Forming?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
Tricolor subprime was one of the first credit cracks to form. Other cracks in the system are forming. I am gonna break down what is happening. Plus, as always, stocks pop and drop…
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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30-40 Countries Are About to Front-Run Bitcoin
Something significant is brewing beneath the surface of the Bitcoin market, and I wanted to bring it to your attention before the crowd figures it out.
According to intelligence I've been following from financial sources that have proven reliable in the past, 30 to 40 major countries are seriously considering establishing Bitcoin strategic reserves.
We're not talking about speculative discussions here — these are concrete plans to potentially deploy billions of dollars of national treasury funds into Bitcoin.
Think about the implications. When countries start treating Bitcoin as a strategic reserve asset — similar to how they hold gold or foreign currencies — it fundamentally changes the game.
Combined with the global liquidity surge we've been tracking out of Japan, this could be exactly what pushes Bitcoin into the technical targets I've been monitoring.
But here's where it gets interesting, and why I'm not just blindly bullish like so many Bitcoin maximalists out there.
The Liquidity Problem Nobody's Talking About
While everyone's focused on institutional demand and sovereign accumulation, there's a massive elephant in the room that most traders are ignoring: 72% of all Bitcoin is held in private wallets.
Let that sink in for a moment. That's a lot of individual holders who can decide they've had enough of the upside and start taking profits.
I get the “diamond hands forever” narrative. It sounds great on social media. But in reality, at some point people want to actually enjoy their gains.
When Bitcoin hits certain psychological levels — especially if we get the kind of parabolic move that sovereign buying could trigger — you'd better believe some portion of that 72% is going to hit the sell button.
And here's the critical part…
Liquidity dynamics in the Bitcoin market have a drastic effect on price action. Even a relatively small percentage of private holders deciding to cash out at elevated levels could overwhelm demand and create violent reversals.
It's basic market mechanics.
How to Position for This Setup
I'm not saying avoid Bitcoin — far from it. I'm long Bitcoin myself. But I'm also realistic about the risks of a blow-off top scenario.
The smart play here is understanding both sides of this coin — pun intended! Yes, 30-40 countries preparing to deploy capital into Bitcoin is massively bullish.
But you need to be aware that this same catalyst could eventually create the exact conditions for a sharp correction once private holders start taking profits.
If you're looking at Bitcoin proxies like MicroStrategy (MSTR), there's significant resistance around the $400 level. If it clears that, we could see a move toward $600 for new all-time highs, with potential extension to $1,000 if the breakout holds.
The key is staying nimble. This setup has massive upside potential, but it also comes with risks that the permabulls won't acknowledge until it's too late.
Position accordingly, manage your risk and don't get caught up in the hype without understanding both sides of the trade.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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