Why it’s time to be bullish on Bitcoin

Today’s issue in preview:

• Why it’s time to be bullish on Bitcoin

• The next phase of Epic Fury will send these stocks higher

• More than a trillion dollars of spend buys you a very resilient megatrend. Stay long AI infrastructure.

• Our call to own utility stocks continues to pay off

Why it’s time to be bullish on Bitcoin

Credit: Vertigo3d

Is the horror show for Bitcoin bulls finally over?

Recent price action suggests it is.

After reaching an all-time high of around $125,000 last October, Bitcoin entered a brutal bear market that saw it decline by about 48% to the mid-$60,000 range.

Crypto specialists attributed this decline to the U.S. government withdrawing liquidity from financial markets, as well as to gold and AI trades drawing money flows that could have been directed toward Bitcoin.

Most long-term Bitcoin believers see it as a “store of value” that should maintain its purchasing power like gold and beachfront homes do. It should be a digital form of “hard money.” Sounds great.

However, from October 2025 to February 2026, Bitcoin traded more like a failing technology company than anything you’d call strong and stable.

This brings us to today, where we are seeing some rays of sunlight punch through the Bitcoin darkness. Over the past month, Bitcoin has formed a bottom and gained 9.5%. Meanwhile, tech stocks, as measured by the Nasdaq 100 ETF (QQQ), have lost 0.85%, while gold has risen only 3.2%.

Importantly, Bitcoin has outperformed stocks and gold as Operation Epic Fury has created tremendous market volatility and hammered many sectors of the stock market. It’s been a “port in the storm.”

So, after months of disappointing believers, is Bitcoin the “store of value” back? Is it ready to be a “port in the storm” and a stabilizing component of serious portfolios? I hope so. The world is a better place when Bitcoin is rising, and we have not one but two forms of hard money to own. Plus, I like it when the “crypto bros” are chirpy on X and antagonize the old guys.

Count me bullish on Bitcoin. Probably biased, but bullish.

The next phase of Epic Fury will send these stocks higher

Credit: bogdanserban

Since the U.S. and Israel started bombing Iran on February 28, investors have been treated to a series of bad news, losses and ugly price action.

Just when you think the war could start wrapping up and letting things get “closer to normal,” another story about shipping attacks hits the market.

Still, the odds favor de-escalation soon. The White House is fully aware of Operation Epic Fury’s painful domino effects. Epic Fury is constricting Middle Eastern oil shipments… which is raising oil prices… which is raising American gasoline prices… which will hurt the Republican party during the mid-term election season.

There is enormous incentive for Trump to end this soon and let the markets calm down.

This is why I’m monitoring the markets for “beaten down rebound” candidates. When an exogenous shock like Epic Fury hits the market, the themes and industries that take the hardest hit often stage the strongest short-term rebounds as conditions begin to ease.

Our Global Trend Tracker shows that homebuilding, airlines, and small-cap U.S. industrials are among the hardest hit industries over the past few weeks. Each of these industries is economically sensitive. Each one suffers when critical resource supplies are threatened and investors grow concerned about an economic downturn.

Of course, there’s a chance Epic Fury gets uglier and protracted. We’re talking the Middle East and Donald J. Trump here. But the odds favor de-escalation.

Given this, put the badly beaten-up SPDR S&P Homebuilders ETF (XHB), American Airlines (AAL), Southwest Airlines (LUV), and the Invesco S&P SmallCap Industrials ETF (PSCI) on your rebound radar. These stocks and funds have suffered huge declines over the past two weeks. If Trump & Friends can de-escalate soon, they should enjoy strong relief rallies.

More than a trillion dollars of spend buys you a very resilient megatrend. Stay long AI infrastructure.

Credit: imaginima

Few investors would describe the past few weeks of “Epic Fury-induced” market chaos as pleasant. But if you’re looking for silver linings, look to AI infrastructure stocks.

It turns out, when you’re on the receiving end of the largest capex cycle in all recorded history, your business and your stock price can stay incredibly resilient… even during global chaos.

Given AI’s enormous promise, large tech firms like Google, Amazon, Microsoft, OpenAI, Oracle, and Meta are engaged in the largest capex spending cycle in history.

More than a trillion dollars has been spent already on specialized semiconductors, data centers, and other infrastructure components. More than a trillion more is expected to follow in 2026 and 2027. The scale and velocity of investment is awesome and unprecedented.

Companies on the right side of this mega-spending spree are enjoying torrential downpours of cash on their financial statements. In the past, I’ve detailed AI-power related firms Bloom Energy (BE) and GE Vernova (GEV) as major beneficiaries of the boom. Data center cooling firm Vertiv (VRT) is another. Each of these companies is enjoying incredible revenue growth and strong stock price gains.

The tailwinds here are blowing so strong… and the Amazon rivers of money are flowing so freely… that shares of Bloom, GE Vernova, and Vertiv have barely budged from their all-time highs reached in February… despite many tech sectors selling off over the past few weeks.

Vertiv and Bloom have actually advanced since the start of Epic Fury.

This “relative strength”, while the overall market has suffered, is yet more proof that the forces driving the AI infrastructure boom are very, very strong. I guess we should not be surprised. If you give me a trillion dollars, I’ll show you a good time, too.

Market Notes

• Our September 2025 recommendation to own oil stocks continues to be a winner. Oil giants Shell (SHEL), Equinor (EQNR), TotalEnergies (TOT), and Eni (E) reached new one-year highs today.

• Our recommendation to own utilities to play soaring AI power demand continues to be a winner. Large utilities Exelon (EXC), FirstEnergy (FE), and Duke Energy (DUK) reached new one-year highs today.

• Apparel giant Lululemon (LULU) reached a new one-year low today.

• Telecom equipment providers Nokia (NOK) and Ericsson (ERIC) reached new one-year highs today.

• Natural gas shipping giant Cheniere Energy Partners (CQP) reached a new one-year high today. Shipping disruptions caused by Operation Epic Fury are increasing demand for CQP’s shipments.

Regards,

Brian Hunt
Editor, Money & Megatrends

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