Bitcoin’s Next Big Rally Has Started... And It Could Get MUCH Bigger

Bitcoin absolutely ripped higher last week, but Wall Street is telling you the wrong reason why. I'm going to tell you the real reason because it is the same reason I think it will continue to rise. Now, four pieces of crypto news landed in Washington last week. New stablecoin rules on Monday, a surprise framework out of the SEC on Tuesday, and on Wednesday, the president of the United States, sitting in the White House with a room full of crypto executives, was there telling Congress to pass a crypto bill. Bitcoin went up 24%. It's best week since March of 2023. And not one of those three things is what moved it. Now, let me walk you through last week in order cuz this is important. On Monday, the Treasury Department published its proposed rules for stablecoins under the GENIUS Act. It's a big deal for the industry. Bitcoin, however, did nothing. Tuesday afternoon, the SEC dropped a surprise new framework for how crypto companies can raise money legally in this country. The industry loved it. Bitcoin again did nothing. Then came Wednesday morning. And the thing that finally broke Bitcoin out of this range it's been in for months did not come from the SEC. It did not come from the White House. It came from the office in the Treasury that manages the national debt. They announced that they were doubling their buybacks of long-dated government bonds from $2 billion per operation to at least $4 billion. In fact, the Fed came back and said it's probably going to be much higher than that. Now, why does this matter? Well, a buyback is is just what it sounds like. Uncle Sam goes out to the open market and buys back his own bonds. The 10-year, the 20-year, the long-dated stuff they can't find a market. And when a new buyer of that size, of the federal government size, shows up and buys in mass, not caring about prices, guess what happens? The bond prices go up. And that's the whole point because when bond prices go up, the interest rate on those bonds, the yield, goes down. So, yields go down and the US Treasury makes it crystal clear that they're going to work to keep them down and to drive them lower. Use all their tools with or without the Fed's help. And that started a domino effect. Because suddenly, here's what people realized. All that money, all our dollars that are sitting out there getting paid handsomely to just sit in bonds and do nothing, suddenly won't be getting paid quite so handsomely. So, those dollars, as they do, started hunting for other safe stores of value. If bonds are off the table, that leaves exactly two things, gold and Bitcoin. Gold went up, too. Bitcoin is the big winner, though. Because it's a smaller market. Bitcoin started moving and that triggered a short squeeze. Three billion dollars of shorts were forced to cover and drove the thing even higher. Then the president comes out with his comments. But, those came hours later that afternoon. Bloomberg's own headline that day read, "Bitcoin surges most since March ahead of White House meeting." By the time Trump spoke, the market had already made the bulk of its move. So, why are these headlines out there giving credit to Trump? Well, it's an easier story to tell. The president at the podium is much easier to write about than some debt management operation you probably still don't understand after I've tried to explain it to you. But, what at the core of this is why, right? Why is the Treasury suddenly out there buying its own bonds in the first place? And that, my friends, is the real story. And it tells us everything we need to know about where Bitcoin is headed. Now, before I get into this, that $5 Black Ops special is still going on. That means you get an entire year of membership to my trading service for just five bucks. We'll get together live every single week for an hour, you, me, and the other members, interactive. We'll look at what's leading the market. We'll look at cryptos in depth. We'll talk about uh stocks, uh uh what to look for when buying and selling, supply and demand dynamics, all of it. Every week for a year, just five bucks plus bonus reports, plus my weekly newsletter, tons of stuff there. I swear, $5, no strings. So, click the link in the description, scan the QR code, or just go to trade with Ross.com to get signed up. Now, here is why the Treasury is buying these 10- and 20-year bonds. Nobody wants them. That quote there is Treasury Secretary Scott Bessent what he said on television Thursday. He also said the buybacks are going to be routine. That $4 billion is not a ceiling. In fact, they will likely buy much more. And the market interpreted that, I believe correctly, as the federal government finally saying out loud it has a debt problem, that no one wants IOUs from Uncle Sam, that they don't trust the US dollar. And Bessent showed again that the Treasury is ready and willing to step into the market to buy its own bonds, to buy interest rates down. But there's another piece to this, and not very many people seem to be connecting the dots. Monday's stablecoin rules are a wolf in sheep's clothing. Here's how this new law works. If you want to issue a stablecoin in the United States, you have to back every single coin with cash and short-term US Treasury bill. That's it. Only options. Not gold, not Bitcoin, not loans, cash and government paper. Which means every dollar that moves into a stablecoin is a dollar that turns around and buys American government debt. Automatically. Whether the person holding it ever thinks about it or not. Now, the stablecoin market today is a little over $300 billion. Standard Chartered thinks it's a $2 trillion market by 2028. And that getting there creates somewhere between $800 billion and a trillion dollars of brand new demand for Treasury bills. Washington needed somebody to buy about a trillion dollars of debt. And it writes a law requiring the fastest growing industry in finance to buy a trillion dollars of its debt. What a coincidence. And folks, this law has teeth. Tether, as we know, is the biggest stablecoin on the planet. And roughly a quarter of what's backing it, roughly 47 billion dollars, is sitting in assets that these new rules don't allow. Gold, Bitcoin, loans. And they have until 2028 to fix it or lose access to American customers entirely. And breaking these rules carries up to a million dollars and five five years federal prison. They're going to do it. Now, before you go thinking you missed the thing, folks, let's remember Bitcoin can move, okay? It went from 64,000 to 80,000 in 3 days. It's all-time high was 126,000 back in October, but let's go ahead and take a look at what happened here. So, I am recording this on Friday. You're probably watching it on Monday. So, if it did something crazy Saturday and Sunday, that's why it looks outdated. Uh but, huge, huge move. And if we look at this thing on a weekly chart, each week being a candle, look at that big week we just had there. So, all summer long we've been in this tightening little consolidation as price action compressed and tightened, volume drying up, and in this massive breakout here to the upside. Now, the best way, if you're trying to look at long-term targets, is to back up, look at several years of data, and this is the important part, put it in logarithmic scale. Arithmetic scale is 1 in is 20,000, next in is 20,000, next in is 20,000. Watch what happens to the prices on this right axis when I go to log scale. See how they get all wonky and weird? That's because each inch up the chart is now the same percentage, okay? So, it says a move from 10,000 to 20,000 should look the same as a move from 50,000 to 100,000. And that's true, because when you look at things in logs in regular scales, oh man, look, he made all the money at the end. No, it's because of the compounding, okay? So, when you back this out and start looking at the trend trajectory, don't overcomplicate this, folks. Just kind of build you some channels here on what the growth in this industry or or what this asset is with with the liquidity flowing into it, right? Probably something like that. I mean, I probably want to ignore this parabolic year back over in here, but you know, we look at the last 8 10 years here. This is pretty much the trend. This is COVID. Everybody This is when we everybody's buying uh uh what are those stupid things? The JPEGs of the monkeys and uh pictures of rocks for a million dollars. Everybody just got real stupid, went a little far, right? So, it had to come back in. But, this is pretty much the trajectory here into this channel. And so, if if you fast forward this out again, this is this is not like some super high-level finance here. I'm just trying to get an idea of what we can realistically expect the the next couple of years here. Well, this is kind of where we get back up in this channel. So, you probably get a strong rise back up into here where we should have been. And look at the number, folks. That gets you up here, you know, 180, 200, 250,000 dollars. And you might think, well, that's just a couple of lines, Ross. That's silly, folks. It can happen, and it probably will. So, here's what how I believe this plays out. The thing that changed this week isn't a bill or a rule. It's what Bitcoin is trading on. For for the last 6 weeks, it traded like a crypto asset. It's been waiting around on watching to see what happens. But, on Wednesday, it traded like a liquidity asset. Something that moves based on capital flows, responding to that bond market. And that is a very different animal. But that's the one you want to bet on. Which means you stop watching the podium. You stop listening to the live streams of of toddlers using words like hold and whale as they stream from their mom's basement. And you start watching the bond market. That's what is driving liquidity, real money into Bitcoin. And that's why the price is likely to continue to rise. Folks, don't forget to subscribe to the channel. And don't forget about my Black Ops trading service. Join me. Click the link. Join me next Monday morning. We'll talk about all this live. I'll answer all your questions. I'll look at your stocks. You'll start getting my newsletter every Friday, plus indicators and bonus reports. You can even email my support team if you need help there. So, just click that link, scan the QR code, or go to trade with ross.com to get signed up. And I'll see you in the next video.