Latest / The Paul Barron Crypto Show / Rate Cut Countdown📉Crypto Market Update

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Rate Cut Countdown📉Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's get into it.
• 0:00
  Speaker 2: We're going to talk about a rate cut countdown because
• 0:03
  Speaker 2: the FOMC is happening tomorrow. You guys don't want to
• 0:05
  Speaker 2: miss it. Let's just jump right into the show. I
• 0:07
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  Speaker 1: Check it out and.
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• 0:35
  Speaker 2: So tomorrow we will be doing the FOMC live, so
• 0:38
  Speaker 2: make sure and check that out.
• 0:39
  Speaker 1: Will air that.
• 0:40
  Speaker 2: If you're not subscribed to the channel, do that right now.
• 0:42
  Speaker 2: Hit the little bell and give you a notification when
• 0:44
  Speaker 2: this comes out. This is going to roll into the
• 0:47
  Speaker 2: rate cut, which pretty much is a slam dunk for
• 0:49
  Speaker 2: the quarter point and there is no other It does
• 0:53
  Speaker 2: not look like there's another shot at this the fifty
• 0:55
  Speaker 2: basis points, very very low. All of that happening right now.
• 0:59
  Speaker 2: With that, you've also got the government shutdown, and this
• 1:03
  Speaker 2: is everything from snap benefits suspension. This is getting much
• 1:07
  Speaker 2: bigger and it's going on for much longer than what
• 1:10
  Speaker 2: I think a lot of people anticipated. Right now, the
• 1:13
  Speaker 2: poly market on the government shutdown is ending. Look at this,
• 1:16
  Speaker 2: this is going out all the way into January. End
• 1:19
  Speaker 2: of January ninety eight percent, December thirty first ninety five percent,
• 1:23
  Speaker 2: November thirtieth eighty two percent, So it looks like it's
• 1:27
  Speaker 2: going to extend past Thanksgiving, which I think was the
• 1:30
  Speaker 2: big target that everybody was looking for. With that being said,
• 1:34
  Speaker 2: we have the dollar hitting a one week low, and
• 1:37
  Speaker 2: of course this starts to put a lot more pressure
• 1:39
  Speaker 2: on pressure on the United States obviously with what's going
• 1:42
  Speaker 2: on with the United States and China trade deals, which
• 1:46
  Speaker 2: is all bearing down on the US dollar and the Dixie,
• 1:49
  Speaker 2: which puts more impetus on you guys to get out
• 1:52
  Speaker 2: there and get into assets, which is why crypto is
• 1:55
  Speaker 2: the place to be.
• 1:56
  Speaker 1: Asset owners are winning.
• 1:59
  Speaker 2: Combined asset value major asset classes run right now have
• 2:02
  Speaker 2: reached a major record with two hundred and sixty one trillion.
• 2:05
  Speaker 2: This is equivalent to two hundred and ten percent of
• 2:07
  Speaker 2: the size of the global economy. So as you can
• 2:09
  Speaker 2: see everybody pouring into assets, gold, real estate, crypto, stock, spawns,
• 2:15
  Speaker 2: et cetera, all of that getting away from the dollar.
• 2:19
  Speaker 1: And this has been a big one.
• 2:20
  Speaker 2: Now, remember that Argentina, we did a big bailout on that. Well,
• 2:25
  Speaker 2: they just won. Melee just won his party's election. This
• 2:28
  Speaker 2: is a midterm election, so he's back there in office.
• 2:31
  Speaker 2: But remember this is Bernie Sanders. He's kind of going
• 2:34
  Speaker 2: at the president on this. During the shutdown, Trump could
• 2:36
  Speaker 2: find forty billion to bail out Argentina, a three hundred
• 2:40
  Speaker 2: million for a ballroom, and you can kind of see
• 2:42
  Speaker 2: this is all of the Dems pushing hard to try
• 2:45
  Speaker 2: to get the government shut down done. With all of
• 2:48
  Speaker 2: that happening, we also have issues going on right now
• 2:51
  Speaker 2: around how China is playing out on this, because China's
• 2:55
  Speaker 2: continuing to almost dedollarize. Let me go to a clip
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  Speaker 2: real quick, it'll explain more.
• 3:00
  Speaker 1: Take a look. Now.
• 3:02
  Speaker 3: In his first month este Treasury Secretary Scott Besen has
• 3:05
  Speaker 3: been very loud about one specific thing, and that is
• 3:09
  Speaker 3: that the United States has to take a bigger role
• 3:13
  Speaker 3: in global markets again. In other words, he wants to
• 3:15
  Speaker 3: slow down this chart right here, Remember this one. It's
• 3:18
  Speaker 3: the chart that shows decades and decades of de dollarization.
• 3:22
  Speaker 3: So the goal is to defend the dollar's global role
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  Speaker 3: by helping allies stabilize their economies before China does it
• 3:29
  Speaker 3: with the yuan, which we know will be backed by gold.
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  Speaker 3: But I don't think it's just about Argentina. It's also
• 3:36
  Speaker 3: about the US fighting its war with China over the
• 3:41
  Speaker 3: idea of what money should look like in the future.
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  Speaker 3: Because think about what's happening. China is getting ready to
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  Speaker 3: build its gold corridor right the node of vaults across Asia, Africa,
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  Speaker 3: Latin America, and they're literally creating a parallel financial system
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  Speaker 3: backed by their economy with the money that's redeemable for gold.
• 4:00
  Speaker 3: And the US has also been doing kind of the
• 4:02
  Speaker 3: same thing, but in reverse. So this bailout of Argentina,
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  Speaker 3: I don't think is some random act of charity, right,
• 4:09
  Speaker 3: it's not altruism, and the president's not doing it just
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  Speaker 3: to be nice. He's doing it because it's supposed to
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  Speaker 3: telegraph to the world that the US still has that
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  Speaker 3: power to stabilize economies whenever it wants. China might be
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  Speaker 3: lending in yuon backed by gold, the US is now
• 4:28
  Speaker 3: lending dollars backed by treasuries, right, and Argentina is sort
• 4:33
  Speaker 3: of this test case scenario, all.
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  Speaker 2: Right, So you can kind of see this does play
• 4:38
  Speaker 2: out into kind of the gold versus digital asset space.
• 4:41
  Speaker 2: You look at a few things here, Shanghai is gold, warrants,
• 4:45
  Speaker 2: digital certificates, all this proving ownership, especially around what Andre
• 4:50
  Speaker 2: was talking about, and that is this new migration into
• 4:53
  Speaker 2: gold as the core asset against the yuon. Now, how
• 4:57
  Speaker 2: does this play out with crypto and how the United
• 5:01
  Speaker 2: States is really leveraging in on stable coins because that
• 5:03
  Speaker 2: could also play into this where stable coins of course
• 5:07
  Speaker 2: are backed by treasuries. So there seems to be a
• 5:10
  Speaker 2: balance of power that is playing out on the global stage,
• 5:12
  Speaker 2: and I think that's what he's getting at with Trump.
• 5:15
  Speaker 2: This starts to change things a lot. The only question though,
• 5:19
  Speaker 2: is why are central banks starting to leverage into gold?
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  Speaker 1: So you have this right here, global.
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  Speaker 2: Central banks now the most gold in this century. Granted
• 5:26
  Speaker 2: it's edging up, but it's not as high as it
• 5:29
  Speaker 2: was back in nineteen eighty when it was all gold,
• 5:33
  Speaker 2: and this of course could immediately switch if we start
• 5:36
  Speaker 2: to see the growth of stable coins and digital assets
• 5:39
  Speaker 2: starting to take place, which is why I think the
• 5:41
  Speaker 2: strategic reserve plays into this as well as the overall
• 5:45
  Speaker 2: strategy of what crypto and Trump is trying to do.
• 5:49
  Speaker 2: If you take a look at that, and here's Hunter
• 5:51
  Speaker 2: Horseley coming in from bit Wise, he says, in the
• 5:53
  Speaker 2: next twelve months, every Wall Street institution will be doing
• 5:56
  Speaker 2: something in crypto. Software is eating the world. And this
• 5:58
  Speaker 2: is where it gets interesting because if you look at
• 6:00
  Speaker 2: Wall Street still the center of the universe when it
• 6:04
  Speaker 2: comes to finance, the fact that we're going on chain
• 6:07
  Speaker 2: to RWA's real world assets tokenizing securities, this puts so
• 6:12
  Speaker 2: much pressure on China, who is going to more of
• 6:15
  Speaker 2: the physical and the tactile side of it by utilizing gold.
• 6:19
  Speaker 2: All this could still leverage in on both assets winning
• 6:22
  Speaker 2: in the long term. We just may end up with
• 6:24
  Speaker 2: a kind of a bipolar scenario between the US and
• 6:28
  Speaker 2: China both leveraging it on two different asset classes. The
• 6:32
  Speaker 2: other thing you got to look at is what's happening
• 6:34
  Speaker 2: in the ETF side of things. Well, you've got Bitwise
• 6:37
  Speaker 2: launching their Salona ETF starts trading today, so that was
• 6:39
  Speaker 2: a big one. And this is where you'll get direct
• 6:42
  Speaker 2: exposure to soul, so it's the first of its kind.
• 6:45
  Speaker 2: The other thing that plays into ETFs is the number
• 6:49
  Speaker 2: of them. And if you look at this, this is
• 6:51
  Speaker 2: balshunis one of the Bloomberg guys who focuses on ETFs
• 6:55
  Speaker 2: right here, and he's talking about the very issue of
• 6:57
  Speaker 2: Bitwise's Salona canaries like coin Mary's h Bar. All this
• 7:01
  Speaker 2: launching tomorrow, so you can see the acceleration.
• 7:04
  Speaker 1: We'll see XRP ETFs. All this playing into it.
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  Speaker 2: The real question is is will the fund start to
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  Speaker 2: transition from the major capital in the market or will
• 7:14
  Speaker 2: we see it coming in from retail. And I think
• 7:16
  Speaker 2: that's going to be the question that all this place,
• 7:18
  Speaker 2: because remember ETFs in the past have done something kind
• 7:22
  Speaker 2: of unique. Remember ETF's launched for eth and this was
• 7:26
  Speaker 2: in July and then I followed with a forty percent correction.
• 7:29
  Speaker 2: So the question is will Solana take the same track.
• 7:32
  Speaker 2: Right now, it's about a fifty to fifty on the
• 7:33
  Speaker 2: pole right there with just a few votes in. But
• 7:37
  Speaker 2: some people think it's different now but most people think
• 7:40
  Speaker 2: this could see a retracement on Solana.
• 7:43
  Speaker 1: Other things you got to look at, of course, is Blackrock.
• 7:46
  Speaker 2: Blackrock is the only reason the bitcoin ETF investments didn't
• 7:50
  Speaker 2: turn negative into twenty twenty five. Institutional capital is the cornerstone.
• 7:54
  Speaker 2: And if we're not getting institutional capital and Solana, could
• 7:57
  Speaker 2: it go the way that we had kind of seen
• 7:59
  Speaker 2: with early stages around ethereum. A couple other points within
• 8:03
  Speaker 2: this article, blackrocks I shares Bitcoin ETF Trust received twenty
• 8:08
  Speaker 2: eight billion in investments in twenty twenty five. Without it,
• 8:12
  Speaker 2: the fun spot Bitcoin ETF records would have been like
• 8:15
  Speaker 2: basically a net outflow of about one billion, So a big,
• 8:19
  Speaker 2: big difference in Blackrock putting a big flag in the
• 8:24
  Speaker 2: ground around these ETFs. Let's take a look at this though,
• 8:28
  Speaker 2: because Tom Lee is still very bullish, and this is
• 8:30
  Speaker 2: a narrative that Tom has been touting for some time,
• 8:35
  Speaker 2: and he's still buying eight He's continuing to double down.
• 8:39
  Speaker 2: He is all in on ethereum because he believes in
• 8:41
  Speaker 2: noting the narrative, but he's got a conviction around this
• 8:45
  Speaker 2: asset changing the world.
• 8:47
  Speaker 1: Many people would say he's just going a little too
• 8:49
  Speaker 1: hard here.
• 8:50
  Speaker 2: This of course was Tom Lee talking about how the
• 8:52
  Speaker 2: MAGS seven and crypto are or rallying. And if you
• 8:55
  Speaker 2: look at just what's been going on in not only AI,
• 9:00
  Speaker 2: but just look at in general bitcoin ethereum.
• 9:03
  Speaker 1: This is just short term.
• 9:05
  Speaker 2: Imagine what this could do in the next six to
• 9:07
  Speaker 2: eight months if we continue to see the pour in
• 9:10
  Speaker 2: on assets. And I think that's the issue that Tom
• 9:13
  Speaker 2: is watching right here.
• 9:14
  Speaker 1: Let's go to a clip andw Kong.
• 9:17
  Speaker 4: I don't know if people saw this tweet, but it
• 9:19
  Speaker 4: was titled Tom Lee's e thesis is retarded. You got
• 9:24
  Speaker 4: about one point five million views, and basically his claim
• 9:27
  Speaker 4: was that, yeah, look it might be true that stable
• 9:29
  Speaker 4: coins are going to ethereum, RB is going tothereum people,
• 9:32
  Speaker 4: you know, banks are going to use ethereum, but they're
• 9:34
  Speaker 4: not gonna pay fees. Always think feast for any of this.
• 9:36
  Speaker 4: This is all just a meme and you should buy
• 9:39
  Speaker 4: I don't know, robotic companies.
• 9:40
  Speaker 1: I guess he's super big.
• 9:42
  Speaker 4: Now, do you have a counterpoint to what you saw
• 9:46
  Speaker 4: coming out of the Andrew Kong camp the doubters.
• 9:49
  Speaker 3: Well, as you know in the crypto world, retarded is
• 9:52
  Speaker 3: a good thing.
• 9:52
  Speaker 1: So I took it as a compliment.
• 9:56
  Speaker 3: Okay, okay, I'm ethe tarting a good response.
• 10:02
  Speaker 4: That's a very good response.
• 10:03
  Speaker 5: Wow.
• 10:05
  Speaker 2: I like Tom and his ability to kind of take
• 10:07
  Speaker 2: it on the chin because this guy has been right
• 10:09
  Speaker 2: for the most part on a lot of his calls.
• 10:11
  Speaker 2: The question is is he right this time? I think
• 10:14
  Speaker 2: everybody is waiting to see. But the new financial order
• 10:18
  Speaker 2: is coming in hot. You look at Securitize putting out
• 10:20
  Speaker 2: a tweet tokenization single greatest opportunity in all of finance.
• 10:24
  Speaker 2: I would agree with this as we continue to see
• 10:26
  Speaker 2: growth around our Toba's in that market. One other clip
• 10:29
  Speaker 2: I want to go to because this gets into what
• 10:32
  Speaker 2: are the ingredients that could spur a massive rally?
• 10:36
  Speaker 1: Take a look.
• 10:37
  Speaker 5: Feels exactly like nineteen nine nine. I don't know whether
• 10:41
  Speaker 5: we'll actually replay it exactly, but I think all the
• 10:46
  Speaker 5: ingredients are in place. Well, if you just think about
• 10:49
  Speaker 5: bull markets, right, the greatest price appreciations always the twelve
• 10:54
  Speaker 5: months preceding the top. So that's the nature of a
• 10:57
  Speaker 5: bull market. It kind of doubles whatever that annual averages
• 11:01
  Speaker 5: and before then. So if you don't play it, you're
• 11:05
  Speaker 5: missing out on the juice. If you do play it,
• 11:08
  Speaker 5: you have to have really happy feet because there will
• 11:12
  Speaker 5: be a really, really bad endto it. And my guess
• 11:17
  Speaker 5: is that I think all the ingredients are in place
• 11:20
  Speaker 5: for some kind of a blowoff. Will it happen again?
• 11:23
  Speaker 5: History rhymes a lot, so I would think some version
• 11:27
  Speaker 5: of it is going to happen again.
• 11:29
  Speaker 1: If anything, now is.
• 11:31
  Speaker 5: So much more potentially explosive than nineteen ninety nine. We
• 11:35
  Speaker 5: were looking at a rate hike in November. Now we're
• 11:38
  Speaker 5: looking at a ray cut. That fiscal monetary combination is
• 11:42
  Speaker 5: a brew that we haven't seen since I guess the
• 11:45
  Speaker 5: postwar period or early fifty something like that. And that
• 11:49
  Speaker 5: was crazy time.
• 11:52
  Speaker 1: All right.
• 11:52
  Speaker 2: So that's Paul Tudor Jones talking about this, and then
• 11:54
  Speaker 2: what he's referencing to is the dot bomb, and between
• 11:57
  Speaker 2: ninety six, ninety seven and two thousand, that was an
• 12:01
  Speaker 2: era in technology that does have a lot of similarities
• 12:04
  Speaker 2: to what we're dealing with right now with AI, crypto,
• 12:08
  Speaker 2: stable coins, all the things that are happening globally. And
• 12:11
  Speaker 2: then he is right now, you apply some pressure coming
• 12:14
  Speaker 2: in from the FED on rate cuts cycling into this,
• 12:18
  Speaker 2: this will either be one of the biggest booms in
• 12:22
  Speaker 2: our industry, or it could be a dud. Many people
• 12:25
  Speaker 2: are trying to figure that out right now. If you
• 12:27
  Speaker 2: guys are not subscribed to the channel, make sure and
• 12:30
  Speaker 2: do that because we'll keep you updated on all that
• 12:32
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• 12:35
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• 12:37
  Speaker 2: at Paul Baron. We'll catch you next time right here
• 12:39
  Speaker 2: on The Paul Baron Show.