In this clip from The Call @ Hedgeye, Macro & Digital Assets analyst Josh Steiner provides the basis for why Hedgeye has pivoted to a Bullish position on Bitcoin. Chief among the reasons is a shift to Monthly Quad 2 – when growth and inflation are accelerating at the same time.
“The only quad that Bitcoin backtests really poorly in is Quad 4 [when growth and inflation slow together],” Steiner explains. “The best is in Quad 3 [when growth slows, but inflation accelerates]. And interestingly we have a May Quad 3 and a June Quad 2.”
Steiner also highlights Hedgeye’s current Bullish trend signal on Bitcoin, noting that the cryptocurrency is in a pivotal stage of its quadrennial halving cycle—a period that has historically marked some of its most explosive return phases.
Make no mistake, Hedgeye views Bitcoin as just another asset to be bought and sold in the appropriate economic environments. We don’t blindly hold it in perpetuity – we buy it when it’s appropriate and short it when the data tells us to.
Hedgeye CEO Keith McCullough then summarizes the three reasons to buy Bitcoin: “The [bullish] signal says buy it. The Quad says buy it. And the fundamental backdrop on the supply side that Steiner walked through says buy it. I don’t have to spend the rest of my life telling you how smart I am about Bitcoin.”
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