Welcome to the New ‘Crypto Capital of the Planet’ Bitcoin (BTC/USD) jumped another 8% yesterday – hitting another record high and sending the gold standard of cryptocurrencies to trade above $86,812. In fact, the largest cryptocurrency is now up more than 43% in the last 30 days alone: 
Crypto assets have by far been the strongest movers of the so-called “Trump trade” that kicked off last week, after decisive election results cleared up the market’s lingering uncertainty. Bitcoin and the rest of the crypto space are on fire as Washington D.C. is now poised to become the “crypto capital of the planet,” as President-elect Trump put it while on the campaign trail. The outsized move in Bitcoin in particular has been fueled by the fact Trump pulled a huge about-face on crypto in recent months. Once a skeptic, saying Bitcoin “was based on thin air,” he now seems to have fully backed the crypto industry. He thinks crypto can “define the future,” and he wants it “mined, minted, and made in the USA.” Trump has also proposed a strategic national Bitcoin stockpile, in the same style as the country’s strategic petroleum reserve. Perhaps Trump intends to direct the Treasury department to purchase and invest in cryptos as a national security measure – we’ll have to wait and see. Speaking of Trump’s new approach, the President-elect is even considering a slate of crypto industry-friendly candidates for key regulatory posts in his new administration. Ironic, considering that the most likely departing Chairman of the Securities Exchange Commission (SEC), Gary Gensler, has been a vocal critic of crypto – and has aggressively pursued enforcement actions against crypto firms over the course of his tenure. But that’s not to say Bitcoin’s boom is entirely Trump-based: In fact, there has been an overwhelming amount of buying into Bitcoin and other cryptos recently, a trend that started well before Election Day. And this buying has only accelerated since the results came in Tuesday night: Net cash inflows for Bitcoin (BTC) ETFs were over $2 billion in just the first two days after the election. And Ethereum (ETH) ETFs weren’t lagging either, registering net money inflows of $132 million: 
That’s part of the $38 billion tidal wave of cash that’s flowed into crypto funds since 2019 —and it seems the trend is still going strong. How long – and how high – this explosive crypto uptrend can continue is anyone’s guess. But for those looking to enter the space while it’s hot, TradeSmith has a strategy to help you find possible winning trades across the crypto space. Scanning for Momentum with Crypto Kinetic VQ Momentum, or the velocity of a price trend, exists in all markets. That’s true whether you’re looking at stocks, bonds, commodities, currencies… or cryptocurrencies. This is a concept rooted in physics – kinetic energy. It’s the force required to accelerate an object from a state of rest up to a given velocity. Think of a professional baseball pitcher who throws 95 mph fastballs. Kinetic energy is the amount of force the pitcher needs to generate with his body motion during his wind-up and delivery in order to get that baseball up to 95 mph when it leaves his hand. The concept works in a very similar way when applied to the velocity of price movements in financial assets. And here at TradeSmith, we’ve created a way to track that energy: the Kinetic Volatility Quotient (KVQ). The Kinetic VQ (KVQ) strategy is based on our proprietary TradeSmith measure of volatility: the Volatility Quotient (VQ%), which like a fingerprint, is unique to every asset. And based on this popular stock strategy, we’ve created a similar one for crypto – the Crypto Kinetic VQ. When the current VQ of a stock, bond, or crypto is significantly higher than its average VQ, it is like that asset has stored up extra kinetic energy – energy that, once released, can push the asset much higher in price. To qualify for this strategy, an asset must meet all the following requirements. The stock or cryptocurrency must… - Be in the Health Indicator Green Zone…
- Be trending up or sideways…
- Have an Average VQ at or under 60%…
- Have a Current VQ at or under 80%…
- And have a Current VQ that is 20% or greater than the Average VQ%.
Let’s look at this strategy in a little more detail. Going back to our earlier analogy, a crypto with high Kinetic VQ is like a baseball that’s right about to leave the hand of the pitcher. It’s got extra built-up energy propelling it. We detect the degree of that extra energy by comparing the current VQ to its long-term average VQ. When the current VQ is significantly higher than the long-term average VQ, it’s as though our pitcher is really giving it his all – putting extra kinetic force behind the crypto that could potentially send the asset on its next big move. Of course, we want to make sure that move is in the right direction for our portfolio to benefit. Just as it’s critical that the pitcher must release the ball at exactly the right moment to get the right pitch, it’s also critical that we get the timing right before we buy into a stock or crypto with KVQ. That’s where the TradeStops Health Indicator comes into play: To know when it’s time to look for an entry, we wait for the Health Indicator to change its signal from Red to Green. Putting it all together, the Crypto Kinetic VQ strategy works like this: By using our system to screen for cryptocurrencies that have a higher current Volatility Quotient (VQ) than its long-term Average VQ – and that have recently moved from the Health Indicator Red Zone to the Health Indicator Green Zone – we can find cryptos with a chance of spiking upward and set ourselves up for a potential winning trade. And we’ve made it easier than ever to identify these opportunities in the crypto space. We’ve added Crypto Kinetic VQ to the list of TradeSmith Ideas Lab strategies – allowing you to easily scan to see which cryptos are worth examining on any given day. I’ll quickly walk you through the process. The first step is to log in to your TradeSmith Finance dashboard, and navigate to Invest from the main menu bar at the top of the screen. 
Once you’ve opened the Invest page, select Opportunities from the sub-menu bar, then select the drop-down menu under Strategies. From All Strategies, navigate to the Crypto Ideas Lab options and select Crypto Kinetic VQ. Then you’ll see a full list of all the cryptos that currently qualify for our TradeSmith Crypto Kinetic VQ strategy, as shown below: 
Please Note: Access to the Crypto Kinetic VQ strategy is exclusive to ourCrypto Ideas Premium and Lifetime subscribers, as well as ourTradeSmith Platinum members. If you don’t see this strategy in your TradeSmith Finance dashboard, and would like to, please call our dedicated Customer Care team at 866-220-1107 to find out how to get access. That said, there’s another way to access the results from our crypto-focused strategy. One good alternative is to access the Crypto Lab strategies through our popular TradeSmith Screener tool. Simply navigate to Invest from your TradeSmith Finance dashboard, then select Screener, followed by + Create new screener – then click on + Manage Filters to select the filters shown below: 
While it may take longer to access the Crypto Kinetic VQ results from this menu, the advantage to this method is that you can also select other screener filters to run alongside your scan – or use a combination of filters to get fewer or more results tailored just to your portfolio’s preferences. You can also sidestep our pre-selected Crypto Kinetic VQ filters altogether if you wish, and set filters for your own personal crypto screener. Just be sure to include these filters at a minimum: - Asset type = Crypto
- VQ Range
- Average VQ
You can adjust the VQ Range and Average VQ settings as you see fit, to broaden or narrow your search. And you can also consider adding a filter for Volume, as shown above. That’s because some cryptos can be very illiquid – and you always want to be sure that you can buy and sell with ease. Mike Burnick’s Bottom Line: The Trump Presidency 2.0 promises to make crypto a more mainstream investment than ever before, and its popularity with retail and institutional investors is already through the roof, as recent price action tells you. Just remember, the crypto space is notoriously volatile and fraught with unique risks. So, you’ll want to do your homework and invest carefully. And our exclusive Crypto Kinetic VQ strategy can help you do just that. Good investing,  Mike Burnick
Senior Analyst, TradeSmith P.S. Here at TradeSmith, we’re always working to develop new strategies, tools, and services to power up your investments – giving you opportunities to juice up your portfolio with plenty of kinetic energy. And on Thursday, we’ll be announcing a new partnership feature that can enhance your portfolio monitoring system – and just in time for a whole new wave of bullish opportunities. This is a big enough deal that our CEO, Keith Kaplan, is stepping up to talk about it himself. So, stay tuned – and look out for this Thursday’s issue of Inside TradeSmith, because we can’t wait to share more. | 
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