👇 1) As many readers have been asking, we are providing an update to our crypto equity-related valuation model as those stocks have all corrected since our end-of-December report while Bitcoin has rallied. If this bull market continues, as we believe it does, then crypto-related stocks will become an important pillar for multi-asset or stock-only portfolios.

👇 2) These stocks will likely offer more upside than Bitcoin - if investors are able to time their entry and exit points well. This is what we aim to do.

👇 3) On December 28 and December 29, we pointed out that crypto equities had become overvalued after an incredible run in Q4. TradeFi had potentially front-run the ETF approval and had accumulated exposure that outpaced the price of Bitcoin. That’s when we suggested switching out of those stocks and to purely focus on cryptocurrencies.

👇 4) We suggested that MicroStrategy was 26% overvalued based on the Bitcoin spot price, a level the stock typically tops out in our relative valuation model. And while Bitcoin prices have increased by +9% since our call, MicroStrategy has declined by -20%.