Latest / The Paul Barron Crypto Show / Gridlock Rally Incoming?🔥Tom Lee Claims Midterm Surprise?

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Gridlock Rally Incoming?🔥Tom Lee Claims Midterm Surprise? · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Gridlock rally is underway today. Let's break it down because
• 0:02
  Speaker 1: there's a lot of things you'll want to pay attention
• 0:04
  Speaker 1: to here. And it really starts with a couple of
• 0:07
  Speaker 1: key things. Before we do that, I want to thank
• 0:09
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• 0:38
  Speaker 1: to start tax planning soon. And IRAs are one of
• 0:40
  Speaker 1: the diversification things that you should be doing to set
• 0:43
  Speaker 1: yourself up for success. Let's just jump over this right here,
• 0:46
  Speaker 1: and that is Polymarket. Which party is going to win
• 0:48
  Speaker 1: the Senate? Right now, you have the Democrat Party holding
• 0:52
  Speaker 1: at about 66%. A couple of things to point out here,
• 0:55
  Speaker 1: because remember, when you look at crypto in general, it
• 0:58
  Speaker 1: has been mostly the Republicans that have been kind of pro-crypto. However,
• 1:04
  Speaker 1: I've got something at the end that may be giving
• 1:06
  Speaker 1: you some indicators that there are some Democrats playing into
• 1:09
  Speaker 1: this game as well. Other things you got to look
• 1:12
  Speaker 1: at are key timing here. This is around midterms. First
• 1:15
  Speaker 1: chart you're looking at here is seasonality trends. We're weaker
• 1:21
  Speaker 1: for equities in September. And if you can kind of
• 1:24
  Speaker 1: notice here, this, of course, breaks down all the way
• 1:26
  Speaker 1: since 1950, past 20 years, past 10 years, and past five,
• 1:31
  Speaker 1: which is the gray. Look at that gray. That bar
• 1:35
  Speaker 1: right there is seasonality equities in September. Now, let's compare
• 1:38
  Speaker 1: that to what goes on in midterm years. And this
• 1:42
  Speaker 1: is the orange being a presidential election year. The midterm year,
• 1:47
  Speaker 1: kind of that black color, and then no election year,
• 1:50
  Speaker 1: the yellow. You'll notice right there in September, midterm year,
• 1:53
  Speaker 1: which we're in right now, down in September, fairly significant.
• 1:58
  Speaker 1: Look at October, midterm year, this absolutely skyrockets in terms
• 2:03
  Speaker 1: of the seasonal patterns where these markets could go. So
• 2:07
  Speaker 1: this could be a good indicator for crypto in general.
• 2:10
  Speaker 1: Let's jump over here to 2018, because remember 2018, this
• 2:13
  Speaker 1: is a good example right here. This was a situation where, Post-midterm,
• 2:20
  Speaker 1: we saw election dump. Now, remember, this was when we
• 2:24
  Speaker 1: did not have gridlock. That's a key factor here. If
• 2:27
  Speaker 1: you look at this chart, it goes a little bit further.
• 2:30
  Speaker 1: Now you're going into where the Republicans kind of had
• 2:33
  Speaker 1: a chance of being able to sustain. This was 2022.
• 2:37
  Speaker 1: Somewhat sideways in the market, one key difference, guys. You
• 2:41
  Speaker 1: all remember what happened in 2022. In fact, what happened
• 2:46
  Speaker 1: in November of 2022 was this is what happened. Six
• 2:50
  Speaker 1: days that pretty much rocked the crypto industry. And that
• 2:53
  Speaker 1: was the FTX situation in early November. This, of course,
• 2:57
  Speaker 1: was a major event that, of course, recorrected the course
• 3:01
  Speaker 1: of crypto, I think. And it had a lot of
• 3:03
  Speaker 1: play into how crypto was even being looked at. Obviously,
• 3:06
  Speaker 1: by the lawmakers, we went through a very rough time. Essentially,
• 3:10
  Speaker 1: I think this is what launched Stand With Crypto to
• 3:14
  Speaker 1: try to outline who the lawmakers were that were behind it,
• 3:17
  Speaker 1: the lawmakers that were not for it. All of that
• 3:20
  Speaker 1: played into that cycle. None of that exists right now.
• 3:24
  Speaker 1: The fact that we are most likely going to have
• 3:27
  Speaker 1: a gridlock coming into the administration could change things up
• 3:32
  Speaker 1: pretty significantly as long as we don't see a major
• 3:37
  Speaker 1: crypto collapse like what we have seen. If you go
• 3:39
  Speaker 1: back to October of last year, November of 22. Those
• 3:43
  Speaker 1: are the kind of things that make a difference. Now,
• 3:45
  Speaker 1: I want to go over here because I want to
• 3:46
  Speaker 1: showcase something here. This is in reference to what's next
• 3:50
  Speaker 1: for digital asset regulation. And one of the key things
• 3:53
  Speaker 1: I want to showcase right here is what the SEC
• 3:56
  Speaker 1: has been doing. Remember, August 18th, they proposed the crypto
• 3:59
  Speaker 1: asset regulation. This, of course, remained open for full public comment.
• 4:04
  Speaker 1: And I want you guys to remember back in August
• 4:06
  Speaker 1: what happened when we started to see those rules being formulated.
• 4:11
  Speaker 1: Market pumped. What happens when this locks in? Because the
• 4:15
  Speaker 1: public comment period will be over on October 20th. So
• 4:20
  Speaker 1: another reason October could be a major month for crypto
• 4:24
  Speaker 1: and blockchain in general. Now, Tom Lee goes into a
• 4:27
  Speaker 1: couple of things, and one is a buying spree. They
• 4:30
  Speaker 1: are jumping into another 15,000 in Ethereum, or 15,000 ETH,
• 4:32
  Speaker 1: worth 41 million in Ethereum, And he continues to purchase,
• 4:41
  Speaker 1: and he's not slowing down. And I think there's a
• 4:43
  Speaker 1: couple of things that he's looking at. Obviously, revenue we'll
• 4:45
  Speaker 1: get to in a second of what BitMind is doing.
• 4:48
  Speaker 1: But I want to play a clip real quick, because
• 4:50
  Speaker 1: this will go a little bit further into Tom Lee's
• 4:53
  Speaker 1: thesis of whether or not we get a downturn.
• 4:56
  Speaker 2: Take a look. You also, I think, already.
• 5:01
  Speaker 2: At any time for a drawdown, that could still come,
• 5:04
  Speaker 2: and you've been talking about that for a while. That
• 5:06
  Speaker 2: would be a midterm sort of a freakout, or what
• 5:10
  Speaker 2: would cause that?
• 5:11
  Speaker 3: Is it 28?
• 5:11
  Speaker 2: That's a zombie movie, another 28 days. Is it only
• 5:15
  Speaker 2: about 28 days away?
• 5:17
  Speaker 4: I mean, I think there is an expiration date for
• 5:20
  Speaker 4: a correction, partly because I think the midterms is a
• 5:23
  Speaker 4: clearing event. You know, that's probably going to be a
• 5:25
  Speaker 4: very big risk on signal for markets, regardless of outcome.
• 5:29
  Speaker 1: We've had.
• 5:30
  Speaker 4: a lot of different groups and a drawdown. But as
• 5:34
  Speaker 4: far as a bigger drawdown in markets, I'm still kind
• 5:36
  Speaker 4: of holding a view that from mid-October to midterms is
• 5:41
  Speaker 4: where a speed bump could happen. I'm kind of reluctant
• 5:45
  Speaker 4: to sort of be that declarative just because sentiment's been negative.
• 5:48
  Speaker 4: And I think when people are bearish, it's hard for
• 5:50
  Speaker 4: markets to be over their skis because we know people
• 5:53
  Speaker 4: are actually speaking with their sentiment and staying cautious.
• 5:56
  Speaker 2: Right.
• 5:58
  Speaker 1: So a couple of things there, sentiment being cautious. This,
• 6:02
  Speaker 1: of course, is primarily the traditional finance markets and what
• 6:07
  Speaker 1: we're seeing around stocks. But this could also layer into
• 6:11
  Speaker 1: how this plays for crypto. If we do see a rotation,
• 6:15
  Speaker 1: which I think already has started to happen, the thing
• 6:18
  Speaker 1: that could be getting going is exactly what Tom Lee
• 6:20
  Speaker 1: is talking about. And that is that this gridlock actually
• 6:24
  Speaker 1: could be a catalyst. Take a look.
• 6:27
  Speaker 4: I think, one, markets like gridlock, so having Congress controlled
• 6:32
  Speaker 4: by the Democrats would be viewed as gridlock. The AI
• 6:35
  Speaker 4: stocks and crypto stalled because of midterms with the idea
• 6:39
  Speaker 4: that Democrats don't support data centers and they don't support
• 6:43
  Speaker 4: Clarity Act. But our contrarian take is that after midterms,
• 6:47
  Speaker 4: the Democrats are going to start supporting data centers and
• 6:50
  Speaker 4: Clarity Act because, one, data centers are generally providing a
• 6:54
  Speaker 4: lot of economic benefits to the community. And Clarity Act
• 6:58
  Speaker 4: had many Democratic supporters. So I think the AI stocks
• 7:01
  Speaker 4: are going to benefit post-midterms because the change in Congress
• 7:05
  Speaker 4: is actually going to sort of greenlight some projects.
• 7:07
  Speaker 1: All right. So what Tom was getting at, a couple
• 7:10
  Speaker 1: of things. I'm still slightly skeptical as to whether or
• 7:13
  Speaker 1: not the Dems are going to be out in front
• 7:15
  Speaker 1: of this. One thing, though, if you look at Clarity,
• 7:18
  Speaker 1: I don't think this is going to be something, first
• 7:21
  Speaker 1: of all, that we need anyway. We've already seen the
• 7:24
  Speaker 1: market move in a direction. The key here will be
• 7:27
  Speaker 1: the seats going into the SEC and the CFTC. This
• 7:31
  Speaker 1: may be a surprise for the market if we actually
• 7:34
  Speaker 1: get a non-hardline Democrat in the SEC or the SEC
• 7:40
  Speaker 1: that can help along with what we're seeing already that
• 7:44
  Speaker 1: is moving crypto in a very, I think, expeditious way.
• 7:48
  Speaker 1: So that may be a big surprise to the market
• 7:51
  Speaker 1: if in fact that it does happen. When you look
• 7:53
  Speaker 1: at the Fed decision Right now, this will be another
• 7:56
  Speaker 1: major issue that faces us in October. And of course,
• 7:59
  Speaker 1: that is the FOMC meeting on October 28th. Right now,
• 8:04
  Speaker 1: it's still holding at 83% in terms of a no change.
• 8:07
  Speaker 1: But you'll notice here, it's been kind of flat. The
• 8:09
  Speaker 1: question will be, does the Fed get any more data?
• 8:11
  Speaker 1: Do we get any other major event? Because remember, I'm
• 8:16
  Speaker 1: always concerned about October because of an October surprise. you
• 8:20
  Speaker 1: could see something like that playing out and that could
• 8:23
  Speaker 1: affect how the Fed is going forward. So just be
• 8:26
  Speaker 1: aware of that. Tom Lee also said that ETH is
• 8:29
  Speaker 1: pretty much dwarfing other macro assets. BitMind continues to add,
• 8:33
  Speaker 1: like we had mentioned earlier, a couple of points I
• 8:35
  Speaker 1: want to highlight right here. This was just the amount
• 8:38
  Speaker 1: of money that BM & R is putting into it
• 8:41
  Speaker 1: in terms of the amount of yield on a seven-day
• 8:44
  Speaker 1: annualized basis that they are getting. So Pretty significant when
• 8:48
  Speaker 1: you see these companies like this that are yield generation,
• 8:52
  Speaker 1: and it gets into other projects that are out there
• 8:54
  Speaker 1: doing yield generation as well. One of them, of course,
• 8:57
  Speaker 1: that we've talked about a lot here on the show
• 8:59
  Speaker 1: has been Uniswap. And remember when we had Standard Chartered
• 9:02
  Speaker 1: on talking about Uniswap and its target? Take a look
• 9:06
  Speaker 1: at this clip.
• 9:08
  Speaker 5: In August, you wrote, quote, and I love this line,
• 9:11
  Speaker 5: I fear that my 2030 target of $ 100 on Uniswap
• 9:14
  Speaker 5: is too low. It has extremely direct value capture. But
• 9:18
  Speaker 5: then when we got into the summer, and particularly with
• 9:21
  Speaker 5: the Robinhood chain, the amount of buyback and burn has
• 9:24
  Speaker 5: increased dramatically. So if Uniswap today was.
• 9:27
  Speaker 3: Still below $ 3 rather than above $ 9, then you'd be
• 9:31
  Speaker 3: burning between 12% and 15% annualized every month. Yeah, so-
• 9:37
  Speaker 3: The only way to square this circle is for the
• 9:40
  Speaker 3: token price to go up because clearly it'd be unsustainable.
• 9:43
  Speaker 3: Token price must go up.
• 9:45
  Speaker 2: All right.
• 9:45
  Speaker 1: So we had Jeffrey on the show and he was
• 9:50
  Speaker 1: kind of in that same camp. And of course, that
• 9:52
  Speaker 1: was back when Uniswap was trading right about right there
• 9:55
  Speaker 1: at around 250, 260 per token. Right now, it's hovering
• 10:00
  Speaker 1: around 890, almost $ 9 on Uniswap. That would still be
• 10:04
  Speaker 1: a 10x. One other note, what he said there in
• 10:08
  Speaker 1: that clip is that $ 100 is too low. So even
• 10:12
  Speaker 1: at that kind of acceleration, imagine how that translates to
• 10:17
  Speaker 1: Ethereum and just the imagine what this could look like
• 10:22
  Speaker 1: if Uniswap truly gets its legs under it. And we
• 10:25
  Speaker 1: see the kind of growth we're going to see in DeFi,
• 10:27
  Speaker 1: which I think is going to be the untold story
• 10:30
  Speaker 1: here in crypto going on, at least on this bull market,
• 10:34
  Speaker 1: because you've got a completely different type of investor now
• 10:37
  Speaker 1: that understands this. They know how to deal with that
• 10:41
  Speaker 1: in terms of an opportunity. And I think this is
• 10:43
  Speaker 1: only a good thing for Uniswap. Speaking of other tokens
• 10:47
  Speaker 1: out there that have the opportunity to run like this is,
• 10:50
  Speaker 1: of course, one, Pump. Now, Pump.Fun, if you look at
• 10:53
  Speaker 1: this chart right here, you'll notice a couple of things. One,
• 10:56
  Speaker 1: of course, is the fact that we're getting near an
• 10:58
  Speaker 1: all-time high. But I want to compare this to MarketCap.
• 11:01
  Speaker 1: Let me jump over to MarketCap real quick. We're already there.
• 11:05
  Speaker 1: So if we're at a MarketCap high, nearing a token
• 11:10
  Speaker 1: price high, what does the opportunity look like going forward?
• 11:14
  Speaker 1: to next level. And I think this is just the beginning.
• 11:17
  Speaker 1: So imagine where this could be. Maybe you feel like
• 11:19
  Speaker 1: you miss pump. It's possible. You look right here on
• 11:22
  Speaker 1: revenue and TVL. Revenue is continuing to skyrocket. This only
• 11:28
  Speaker 1: indicates one thing to me, and that is that we
• 11:30
  Speaker 1: most likely are locked in on a bull run. Now, sure,
• 11:34
  Speaker 1: it's early days of what we're seeing, but this is
• 11:38
  Speaker 1: a good indicator of where we start to see DeFi
• 11:40
  Speaker 1: moving in such an aggressive manner. Here was Ansem talking
• 11:43
  Speaker 1: about this. People are not pricing in pump, especially becoming
• 11:47
  Speaker 1: an L1 as an underlying infrastructure for other launchpads. Think
• 11:51
  Speaker 1: about that. Here's, of course, Matt Hogan that kind of
• 11:54
  Speaker 1: delivers the message home. And this was in reference to
• 11:58
  Speaker 1: Chris Dixon from A16Z. He said, the next big thing
• 12:01
  Speaker 1: will start out looking like a toy. How many times
• 12:04
  Speaker 1: have we seen that? Serious people Seriously, underestimate social trading
• 12:09
  Speaker 1: and memes. I get on this so much that social
• 12:13
  Speaker 1: trading and memes are not being looked at yet by
• 12:16
  Speaker 1: the TradFi markets. We even had guests on last week
• 12:19
  Speaker 1: where people just didn't quite get it. And eventually, they'll
• 12:24
  Speaker 1: start to understand. And the reason is because you've got
• 12:27
  Speaker 1: a demographic shift occurring. You've got a whole social shift occurring.
• 12:30
  Speaker 1: And you've got a power shift, I think, of where
• 12:33
  Speaker 1: money is moving from. So be on the lookout. This
• 12:36
  Speaker 1: means one thing, guys. This means Solana is primed for
• 12:40
  Speaker 1: a very interesting time post-midterms. This, of course, is breakpoint,
• 12:45
  Speaker 1: the biggest event that happens every year for Solana post-midterms.
• 12:50
  Speaker 1: What will be announced at that event? Just step back,
• 12:56
  Speaker 1: imagine what we get to on the other side of
• 12:59
  Speaker 1: midterms where we get validity, I think, and clarity to
• 13:02
  Speaker 1: a certain extent of how to maybe move forward. And
• 13:06
  Speaker 1: especially if we start to see any indication that the
• 13:09
  Speaker 1: SEC and the CFTC are in the right spot in
• 13:12
  Speaker 1: terms of mindset, Solana could be a big winner here.
• 13:16
  Speaker 1: All right, guys, speaking of how this affects the industry,
• 13:19
  Speaker 1: let's just jump over to Stand With Crypto because this
• 13:22
  Speaker 1: is the Stand With Crypto battleground in terms of the Senate.
• 13:26
  Speaker 1: And what you're seeing here right now is just the
• 13:29
  Speaker 1: overall scorecards. We've shown these quite a bit. You'll notice
• 13:31
  Speaker 1: there's A's, D's. There's Chris Coons out of Delaware, which
• 13:35
  Speaker 1: is an F. So anybody in Delaware, think about that.
• 13:38
  Speaker 1: And then I want to zoom out. And you can
• 13:41
  Speaker 1: click this right here where it says Stand with Crypto Endorsed. One,
• 13:45
  Speaker 1: Ashley Henson. This is coming out of Iowa. You've got
• 13:49
  Speaker 1: Chris Pappas coming out of New Hampshire. This is the
• 13:52
  Speaker 1: one you have to watch, though, and that is Ohio.
• 13:55
  Speaker 1: So this is John Hustad. This is kind of a
• 13:57
  Speaker 1: slam dunk, but Sherard Brown, this is an absolute a no-go.
• 14:03
  Speaker 1: Ohio is a critical because this could become a new
• 14:07
  Speaker 1: leader of the Financial Services Committee, which means that we
• 14:10
  Speaker 1: will get more support for Senator Warren. This one is
• 14:14
  Speaker 1: the one you have to win, and that's why I
• 14:15
  Speaker 1: think we're seeing Stan, obviously seeing Stan with crypto really
• 14:18
  Speaker 1: go in on this one as well. In general, you
• 14:20
  Speaker 1: can go in and look on all their ratings just
• 14:23
  Speaker 1: by unchecking that, see all the Senate's. You can also
• 14:26
  Speaker 1: do this with the House as well. It goes into
• 14:28
  Speaker 1: all states. You can see every one of them. By
• 14:31
  Speaker 1: the way, Minnesota F, and we don't know about that
• 14:35
  Speaker 1: second one right there, Michelle Tafoya. So anyway, guys, this
• 14:38
  Speaker 1: is something that you have to consider. You can either
• 14:41
  Speaker 1: vote a one-issue voter, and you're going to vote for
• 14:45
  Speaker 1: anybody that's an A. You could also vote for gridlock,
• 14:49
  Speaker 1: which means that we're probably not going to get some
• 14:52
  Speaker 1: of these as long as we don't get Fs. or
• 14:54
  Speaker 1: people that are unknown in at least their stance on crypto.
• 14:58
  Speaker 1: So make sure and pay attention to wherever you are.
• 15:00
  Speaker 1: Go to the Stand With Crypto site and try to
• 15:02
  Speaker 1: understand exactly what your lawmakers are doing. Remember the clip
• 15:08
  Speaker 1: I just showed you guys of Tom Lee talking about
• 15:09
  Speaker 1: the Dems possibly trying to go in favor of? Well,
• 15:12
  Speaker 1: this tweet kind of verifies that. Andrew Cuomo, a Democrat,
• 15:17
  Speaker 1: going in and kind of bridging this partnership between OKEx
• 15:21
  Speaker 1: and the New York Stock Exchange, ICE. And one of
• 15:24
  Speaker 1: the things that has happened now, the notice will allow
• 15:27
  Speaker 1: 60 companies listed on the U.S. Stock Exchange to trade 24-7.
• 15:32
  Speaker 1: This is a major deal. It's a landmark step. And
• 15:35
  Speaker 1: of course, this has all been because of the innovation
• 15:39
  Speaker 1: exemption rule that the SEC put out there. You're going
• 15:42
  Speaker 1: to see a lot more of this. The question will be,
• 15:44
  Speaker 1: is do we see a lot more Democrats trying to
• 15:47
  Speaker 1: position like what Cuomo is doing in New York to
• 15:50
  Speaker 1: get prepared for a pro- crypto run on maybe who
• 15:55
  Speaker 1: knows where. So think about that, guys. If we do
• 15:58
  Speaker 1: actually have Democrats that are going to be pro-crypto, what
• 16:02
  Speaker 1: is that going to look like if you actually have
• 16:04
  Speaker 1: pro-Democrats and pro-Republicans on many of this lawmaking that is
• 16:09
  Speaker 1: actually happening right now? This could be very good for
• 16:12
  Speaker 1: the bull run that is pending. So stay tuned for
• 16:15
  Speaker 1: all of that. If you like this video, hit like
• 16:24
  Speaker 1: and subscribe, drop a comment down below, and also join
• 16:27
  Speaker 1: our free private member group. The link is in the description.