By Bill Taylor, CEO / Digital Wealth News and AI & Finance
DISCLAIMER: The opinions expressed below are solely those of Bill Taylor & do not represent those of DWN or any affiliates. Any financial advice included here is for entertainment purposes only.
BULLISH – BITCOIN, ETH
NEUTRAL – GOLD, SILVER
BEARISH – S&P 500
1/13/26 Closing Prices:
BTC: $94,338.74 +2% (Tue-Tue)
ETH: $3,206.59 -0.01% (Tue-Tue)
Gold: $4,527 +2.1% (Tue-Tue)
S&P 500: 6,963.74 +0.003% (Tue-Tue)
OK, now that we are fully entrenched in the new year (2026 if you’ve been sleeping), let’s get down to making some money this year. After sitting down with my crack investment committee (the Easter Bunny, Santa, the Tooth Fairy, and Jim Cramer) to discuss the financial markets, I’m ready to rock.
It’s going to be a very interesting year and NOT like the past few. No more buying and forgetting. No more 15%–20% returns locked in certainty. This year will require more attention to detail and active risk control. Volatility is going to be both your friend and your enemy.
So this year will bring a 250-year U.S. birthday party for the nation. Mid-term elections will soak up attention, and who knows what else. But let’s get specific.
First off, let’s be clear: the equity markets WILL experience pullbacks. Serious pullbacks. Of course, like anybody else, when is difficult to pin down. BUT, here ya go.
S&P 500
Option back spreads. Specifically, call option back spreads. Example: buy a 700 call on the S&P 500 and sell a 650 call, perhaps 3–4 months out. The risk is defined if the S&P 500 continues higher, and if the S&P 500 declines 10% or so, it’s a great payday. Going 3–4 months out gives you plenty of time to wait things out. Great risk-reward.
Staying neutral on GOLD and SILVER. Something is going on there, and I don’t know what. GOLD sure looks like it wants to trade $5,000 and SILVER $100. I’m staying out. It’s natural to want to pick a top, but I’ll observe.
How about BITCOIN and ETH? Yeah, how about them. The low $80K area for BITCOIN and the $2,800–$2,900 area for ETH look solid. A lot of new accumulation has very stealthily bought a lot of BITCOIN… very professionally. The crypto sector has been “back burner” for quite a while. I expect a huge upside breakout.
Again, reduce risk with options. For options, I use IBIT (ETF). Pure risk? Buy calls 3–4 months out. Mitigated risk? Buy a call spread. Reduced upside BUT protected downside. I love BITCOIN, and at some point, ETH trades at $5,000.
LET 2026 BEGIN. YAHOO.
S&P 500…..Hedged Short
GOLD…..Neutral
BITCOIN…..Bullish
ETH…..Bullish
2025 TARGETS:
- BITCOIN 2026………..$175K +/-
- ETH 2026………………$5,000
- GOLD 2026……………..?
- S&P 500 2026………….Down 10% on a pullback….then????
Current trading positions:
- BITCOIN…….LONG
- ETH….NONE
- GOLD….NONE
- S&P 500….HEDGED SHORT
We compare the price of Bitcoin, Ethereum, Gold & the S&P 500. We use the CME Bitcoin Indexes (BRR & BRTI) and the CME Ethereum Indexes (ETH_RR_USD) & (ETH_RTI_USD) for reference as well as the London Bullion Market afternoon price settlement on the digital assets & gold.
Bill Taylor is CEO of Digital Wealth News. He is widely published & quoted in financial media and an international expert on markets and BTC, ETH, Gold & SP500.
His opinions are solely his own and for informative purposes only.
