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This Could be the Most Important Map You See This Year
The Map to the Next Big Catalyst
This Could be the Most Important Map You See This Year
Bitcoin is just 11% off its all-time high of $109,350 in January 2025, and the market is losing its collective mind.
We can tell because of the crypto fear and greed index. The index ranges from 0-100, with 0 meaning complete panic and 100 extreme greed.
Right now, the index is at 35. That’s down from 81 in December 2024, when bitcoin was trading near $110,000.
The negative investor sentiment reminds me of January 2024, when we saw the launch of the first spot bitcoin exchange-traded funds (ETFs).
In anticipation of the ETF launch, bitcoin had risen from an October 2023 low of $25,000 to a January 11 peak of $49,000.
It was a classic “buy the rumor sell the news” scenario… And for a few weeks, everyone who sold in the $49,000 range was breaking their arms patting themselves on the back as they watched bitcoin crash to $39,000.
In January, the fear and greed index went from a high of 74 to a low of 49. Sentiment was horrible.
Then – like now – we were pounding the table to buy bitcoin. At the time, Daily editor Teeka Tiwari told his readers: “All I can say is if it sells off, it’s a buying opportunity. Every sell-off this year will be a buying opportunity.”
And he was absolutely right. Because bitcoin rocketed up from its $39,000 low to as high as $73,700 by mid-March. And the fear/greed index surged to 92, indicating extreme greed.
After a three-year bear market, many long-term bitcoin holders started cashing out, and bitcoin chopped sideways for the next eight months with some gut-wrenching sell-offs.
By August, it was back to trading as low as $49,000. Meanwhile, the fear/greed index plunged to 34, signaling extreme pessimism.
At Digital Asset Daily, we’ve seen this movie before. We knew bitcoin’s long-term upward trajectory was still intact and this was just a temporary pullback.
So on August 9, Teeka wrote an essay titled “Why You Should be Buying Into This Sell-Off.”
Friends, the worst thing you can do right now is throw your hands in the air and sell your quality crypto and stock positions. Don’t. View this sell-off as an opportunity. Just buy the dip and let the panic wash out.
Later that month, I followed up with an essay titled, “Four Reasons You Should Own Crypto Today.” Here’s what I wrote:
Don’t let today’s price action cloud your vision of what’s going to happen over the next five to 10 years. If you want to pull your financial goals years forward, you need to act now while most are sitting on their hands. Today’s prices present a buying opportunity. And those who act now will be rewarded in the years ahead.
If you bought bitcoin at that time, you put yourself in position to nearly double your money when the next catalyst triggered.
And it didn’t take long, either.
Weeks before the November 2024 presidential election, Teeka predicted President Trump would return to the White House… And his victory would trigger a massive boom in the crypto market.
That’s exactly what happened.
During the campaign, President Trump pledged to make America the “crypto capital of the world.” And he expressed interest in creating a national bitcoin reserve. By the time of his inauguration, the excitement was palpable.
Bitcoin skyrocketed from $66,800 in November to an all-time new high of nearly $110,000 in December. And the greed/fear index shot up to 81.
If there’s one thing I’ve learned over the past seven years about investing in crypto, it’s this: There’s no asset in the world harder to hold. It’ll give you whiplash. In less than a year, we’ve seen the fear/greed index go from as high as 92 to as low as 26 even though nothing about the bitcoin narrative has fundamentally changed. (And as you’ll see below, the story has only gotten better.)
Yet BTC is just down 11% from its all-time high. That’s like a walk in the park for bitcoin.
Just like last summer, we expect the crypto market to be significantly higher later in the year. So any pullback here presents a buying opportunity.
And as you’ll see in a moment, the wave of buyers could arrive at any moment. That will become crystal clear when you see what I believe is the most important map of this bull cycle.
The Map to the Next Big Catalyst