Crypto Czar's Clue: David Sacks Hints at Expanded US Bitcoin Reserve
After printing all-time highs earlier this year and surpassing the landmark $100k level, Bitcoin has oscillated for months and is retreating. Despite the short-term weakness, Bitcoin provides investors with five reasons to be bullish into year-end, including:
Crypto Czar David Sacks Hints at Potential Expansion of US Strategic Bitcoin Reserve
Earlier this year, President Donald Trump and his hand-selected 'Crypto Czar' David Sacks lit up the Bitcoin lexicon by announcing the 'Strategic Bitcoin Reserve and US Digital Asset Stockpile.' Through the March 6 th Trump administration executive order (EO), the US government will hold onto any Bitcoin seized through nefarious activities (The US currently holds ~200k Bitcoin).
While the EO means that the US government will not flood the market with a massive supply of Bitcoin, it will not add to Bitcoin demand. However, recent comments from David Sacks at the world's largest Bitcoin conference suggest that that could change in the future. Sacks indicated that the US government may expand the Bitcoin Strategic reserve by acquiring more Bitcoin through 'budget neutral' strategies.
Bitcoin Enters High Probability Reward-to-Risk Zone
Using the iShares Bitcoin ETF (
IBIT
) as a Bitcoin proxy, Bitcoin is retreating to its rising 50-day moving average for the first time since making a low at the beginning of Q2. Typically, the first tag of the 50-day moving average after a price advance establishes a high probability support zone.
GENIUS Act May Spur More Bitcoin Demand
Earlier this month, the GENIUS (Guiding and Establishing National Innovation for US Stablecoins Act) passed the US Senate in a bipartisan fashion and with a wide margin of 68-30. Though the act is primarily focused on providing regulatory to stablecoins (digital assets pegged to fiat and other assets) like Circle's (
CRCL
) USDC, GENIUS will profoundly impact the digital asset market as a whole, including Bitcoin. The GENIUS Act will lead to further Bitcoin adoption for three reasons, including:
1. Regulatory Credibility: Over the years, a key struggle that has stymied Bitcoin demand is the lack of regulatory clarity. Industry leaders like Coinbase (
COIN
) CEO Brian Armstrong have complained for years about the lack of comprehensive regulations in the digital asset space. By regulating stablecoins, the government lends credibility to digital assets in general, including Bitcoin.
2. A Broader Crypto Ecosystem: Increased trust and regulatory oversight will lead toa sturdier andwidely accepted digital asset ecosystem.
3. The Stablecoin Stepping Stone: With more institutions and digital asset users leveraging stablecoins, the GENIUS Act will act as a new entry point for other crypto assets like Bitcoin for once non-crypto users.
Bitcoin's Insatiable Institutional Demand
Between the growing popularity of Bitcoin ETFs and companies like Strategy (
MSTR
) and Block (SQ), which continue to add Bitcoin to their balance sheets by the millions, institutional Bitcoin demand will likely remain robust into 2026.
Risk-On Assets Like Bitcoin Are In Vogue
Despite Fed Chair Jerome Powell's recent hawkish monetary policy stance, investors are pricing in a 50 bps interest rate cut (according to the betting website Polymarket). Historically, lower rates (more liquidity) have been bullish for Bitcoin.
Bottom Line
Despite Bitcoin's recent sloppy price action and a retreat from all-time highs, a confluence of factors, including a potential expansion of the US Strategic Bitcoin Reserve, paint a decidedly bullish picture for Bitcoin into 2026
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
MicroStrategy Incorporated (MSTR): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
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Got $1,000 to Invest? Here Are 3 Low-Risk Dividend Stocks to Buy Right Now.
Dividend-paying stocks tend to be lower-risk investments compared to non-payers. They typically produce more than enough cash to fund their growth, leaving them with excess to return to shareholders via dividends. However, some dividend stocks are less risky than others. Black Hills (NYSE: BKH), Kinder Morgan (NYSE: KMI), and American States Water (NYSE: AWR) stand out to three contributing analysts for their lower risk profiles. As a result, they can turn $1,000 into durable streams of dividend income. Black Hills is a boring, high-yield regulated utility Reuben Gregg Brewer (Black Hills): From a business perspective, the ultimate achievement is a monopoly. This is such a powerful industry position that the government attempts to prevent monopolies from a few exceptions. One exception is the utility sector, as building two electric grids in one region would be prohibitively difficult. That's why the government regulates utilities like Black Hills, which has a monopoly on natural gas distribution and electricity in the areas it serves in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. There are both positive and negative aspects to being a regulated utility. One negative is that the government dictates Black Hill's rates and capital investment plans. Regulators try to strike a balance between reward, reliability, and customer costs, leading to slow and steady growth for utilities like Black Hills. That's a positive, as regulator-approved spending generally occurs regardless of what's going on in the economy or on Wall Street. Investors buying Black Hills are, effectively, buying into a fairly reliable business through the economic cycle. In the case of Black Hills, its customer base is growing around twice as quickly as the broader U.S. population. There's a good reason to believe that more regulator-approved growth lies ahead. Looking backward, meanwhile, investors have benefited from a regularly increasing dividend payment. At this point, Black Hills is one of the few utilities to have achieved Dividend King status, with over five decades of annual hikes. Given the company's expectation of 4% to 6% earnings growth for the foreseeable future, meanwhile, it seems like the dividend streak will continue. Add in an above industry-average yield of 4.8% and you can see why this low-risk dividend stock might be a great buy today. A $1,000 investment will net you around 17 shares. A very bankable income stream Matt DiLallo (Kinder Morgan): Kinder Morgan operates one of the country's largest energy infrastructure platforms. Its pipelines, processing plants, terminals, and other midstream energy assets generate lots of very stable cash flow. Take-or-pay contracts, which entitle the company to payment regardless of volume, back 64% of the company's annual cash flows. On top of that, Kinder Morgan has hedging contracts that lock in an additional 5% of its cash flows. Meanwhile, another 26% of its cash flows are fee-based, which provides it with a fixed fee based on volumes (most of which tend to be very stable). That leaves only about 5% of its annual earnings exposed to the ups and downs of commodity prices. The company's highly contracted and predictable cash flows provide a rock-solid foundation for its more than 4% yielding dividend. The company has high visibility in its cash flow, which it expects will grow by 5% to $5.9 billion this year. That's more than enough to cover its expected $2.6 billion dividend outlay. It's also plenty to fund its entire capital spending level for this year, with room to spare ($150 million in excess free cash flow). That surplus cash will enhance the company's already strong financial flexibility. Kinder Morgan has an investment-grade balance sheet backed by a conservative leverage ratio. The midstream giant currently has $8.8 billion of growth capital projects underway. Those projects, predominantly natural gas pipelines ($8 billion), will enter commercial service through 2030. As they do, they'll add to the company's stable sources of cash flow. That should give Kinder Morgan more fuel to increase its dividend. The pipeline giant has raised its payout for eight straight years. With a 4% dividend yield, a $1,000 investment would generate about $40 (and growing) of dividend income each year. 70 years of dividend increases Neha Chamaria (American States Water): Given the uncertain times we are in right now, adding stocks that can earn you some reliable extra income is a smart move. Even better, a defensive, low-risk dividend stock like American States Water should send bigger dividend checks your way every year. American States Water is one of the largest water utilities in the U.S., serving 1 million consumers across nine states. The company also owns an electric utility and provides water and wastewater services to 12 military bases under 50-year contracts. As a regulated utility, American States Water generates stable cash flows, which is why it has been able to pay a dividend every year since 1931 and has raised it for 70 consecutive years. That incredible dividend streak makes American States Water the top Dividend King, with the longest streak of dividend increases. After growing its dividend by a compound annual growth rate (CAGR) of 8.8% over the past five years, American States expects the trend to continue and is aiming to increase its dividend by a CAGR of over 7% in the long term. Management believes there's ample room for dividends to grow, given the company's earnings growth prospects backed by planned capital expenditures. All that makes American States Water one of the safest and most reliable dividend stocks out there. The dividend growth potential is the cherry on top, making this 2.4%-yielding stock an incredible buy now. Should you invest $1,000 in Kinder Morgan right now? Before you buy stock in Kinder Morgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kinder Morgan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. 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