How I'd Trade Bitcoin Now
Let's check the midday market action as cash rotates into the semiconductors and banks — and my Bitcoin strategy.
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Money is rotating into semiconductors (SMH) and banks (XLF) on Thursday morning. Taiwan Semiconductor (TSM) is boosting the chip sector following a strong earnings report, while BlackRock (BLK) is providing a lift to financials.
Overall market breadth is slightly negative, but the Russell 2000 (IWM) continues to push deeper into new all-time highs, gaining 0.5%. The Magnificent Seven (MAGS) is up 0.4%, but it is currently off its early highs and lagging behind small caps once again. I have mixed action on my screens, with some profit-taking and reversals in biotechnology names.
Focusing on Solaris Energy
I am making a few position adjustments but am not doing too much. One name I continue to watch very closely for a potential breakout is Solaris Energy (SEI) . It has made several runs at the $55 level, but it has frequently faded late in the day. It needs a strong finish to build genuine upside momentum.
Revisiting the Bitcoin Narrative
Another area I am looking at this morning is Bitcoin via the iShares Bitcoin Trust (IBIT) . I have held a long-term position for a while, but I am now looking for a potential short-term entry.
Bitcoin disappointed many investors in 2025. After hitting a high of $125,000 in October, it finished the year at $87,506, resulting in an annual loss of 6.37%. Several factors influenced Bitcoin's movement last year, including support from the Trump administration, the GENIUS Act, and increased institutional backing. Notably, there was a record $21 billion in inflows into Bitcoin ETFs.
The Challenge of Valuation
I am not a "true believer" in the Bitcoin narrative, because it is essentially impossible to value. There are no earnings or balance sheets to analyze. Some supporters argue that Bitcoin should be viewed as "digital gold" due to its limited supply and its occasional role as a safe haven from the traditional monetary system. Long-term, the primary driver for Bitcoin will be greater acceptance and use by businesses and governments.
If you are a true believer in the future of Bitcoin, then it is a "buy and hold" asset. If you are not, the only logical way to trade it is based on technical analysis. Since there are no valuation metrics to provide a floor, it is driven purely by emotion, supply, and demand.
Strategy for the IBIT Trade
Is now a good time to start a Bitcoin trade? I prefer to trade Bitcoin using an ETF, and my "weapon of choice" is the iShares Bitcoin Trust (IBIT) , which maintains a 99.9% statistical correlation with spot Bitcoin.
As the chart shows, IBIT has had a good bounce to start the year. This move has created a couple of important support levels that help define entry points. I am considering a small initial buy around the $53.75 area with a tight stop. If it holds above the 50-day simple moving average (SMA), I will look to "ramp" the position further. There is significant overhead resistance, but IBIT can move quickly when sentiment shifts.
Managing Volatility
One difficulty in trading IBIT is the high level of random volatility. It is more volatile than many stocks, and it is very easy to be whipsawed if you try to trade it too tightly. You have to give it more room if you hope to catch the "meat" of a trend.
Currently, Bitcoin looks rather uninteresting, and there does not seem to be much speculative interest—but that may actually be a positive contrarian signal.
At the time of publication, DePorre was long IBIT, SEI.
