Latest / The Paul Barron Crypto Show / Inflation Surprise Boosts Crypto Market📈

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Inflation Surprise Boosts Crypto Market📈 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Inflation.
• 0:00
  Speaker 2: Surprise is of course boosting all coin season or is
• 0:03
  Speaker 2: it today? We'll break it all down, try to get
• 0:06
  Speaker 2: into this because there's a lot happening in the market.
• 0:08
  Speaker 1: Let's go into it.
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  Speaker 2: out there for where this market is heading right now,
• 0:54
  Speaker 2: and right now it's heading in the right direction.
• 0:57
  Speaker 1: Let's go over to a couple.
• 0:58
  Speaker 2: Of points I want to hit on, and that is
• 1:00
  Speaker 2: the June CPI inflation falls to three point five percent.
• 1:03
  Speaker 2: This was below expectations of three point eight. The core
• 1:06
  Speaker 2: CPI fell to two point six, below expectations of two
• 1:10
  Speaker 2: point eight. And the last time that we've had these
• 1:12
  Speaker 2: kind of numbers was all the way back in May
• 1:15
  Speaker 2: of twenty twenty, and we all know what happened in
• 1:18
  Speaker 2: May of twenty twenty. So pretty significant here, and the
• 1:22
  Speaker 2: stock market as well as crypto is rewarding these numbers.
• 1:26
  Speaker 2: I think some of the things we're going to see
• 1:28
  Speaker 2: right now is really going to boil down to this
• 1:31
  Speaker 2: right here, and that is where is the FED chair
• 1:34
  Speaker 2: going to be when it comes to a.
• 1:37
  Speaker 1: Rate cut, a rate hike, or a pause.
• 1:40
  Speaker 2: So he went in front of Congress in his first
• 1:43
  Speaker 2: monetary policy report. We've got a few clips for you
• 1:47
  Speaker 2: that talks about his direction, and there's some very specific
• 1:50
  Speaker 2: ones here I think that are intriguing and you kind
• 1:53
  Speaker 2: of have to read between the lines, but we'll talk
• 1:55
  Speaker 2: about it a little bit. But this is in reference
• 1:58
  Speaker 2: to his tolerance for inflation.
• 2:00
  Speaker 3: Take a look now at the FED. Our number one
• 2:04
  Speaker 3: objective is getting monetary policy right. That's our clear and
• 2:08
  Speaker 3: constant aim. The star we steer by and if we
• 2:13
  Speaker 3: get policy right, and I can assure you we will,
• 2:18
  Speaker 3: the inflation surge of the last five years will be
• 2:22
  Speaker 3: a thing of the past. Underlying inflation over longer time
• 2:26
  Speaker 3: horizons is determined largely by monetary policy. As the Chairman
• 2:31
  Speaker 3: said at the outset, inflation's a choice. The members of
• 2:34
  Speaker 3: our committee have no tolerance for persistently elevated inflation, and
• 2:39
  Speaker 3: we share a resolute commitment to ensure price stability.
• 2:45
  Speaker 2: All right, so you can see he's very I would
• 2:48
  Speaker 2: use the word resolute. He is very committed to this
• 2:51
  Speaker 2: idea of changing some policy within the FED architecture to
• 2:55
  Speaker 2: be able to get in and really control what's happening
• 2:58
  Speaker 2: in the markets.
• 2:59
  Speaker 1: Peter Shift touched on this.
• 3:00
  Speaker 2: The only way regime change is FED will reduce inflation
• 3:03
  Speaker 2: if we also get regime change in Congress, and that
• 3:06
  Speaker 2: I know is not going to happen. But ending it
• 3:09
  Speaker 2: requires huge cuts to government spending, which is another thing
• 3:11
  Speaker 2: that's not going to happen. I think all of this
• 3:13
  Speaker 2: really boils down to how does the FED start to
• 3:16
  Speaker 2: put more pressure on the overall market. And one of
• 3:20
  Speaker 2: the questions that have been asked of Kevin Walsh has
• 3:23
  Speaker 2: always been around Trump because Trump put him in. Is
• 3:27
  Speaker 2: he just going to follow Trump's requests or Trump's need
• 3:31
  Speaker 2: for lower interest rates? Or how's he going to respond? Well,
• 3:35
  Speaker 2: here's the clip.
• 3:36
  Speaker 4: Will you follow the president's wishes or follow the data?
• 3:42
  Speaker 3: My commitment to you is to follow the law and
• 3:44
  Speaker 3: follow the data.
• 3:45
  Speaker 1: And that's even if he publicly criticizes you. Will you
• 3:51
  Speaker 1: still do what the data tells.
• 3:54
  Speaker 3: You to do. I will, Congressman, you ready for that?
• 4:01
  Speaker 1: All right?
• 4:01
  Speaker 2: So you've got worst kind of pushing back there. Hey, listen,
• 4:04
  Speaker 2: I'm just going to follow the data. And maybe the
• 4:05
  Speaker 2: data is now starting to tell him something already with
• 4:08
  Speaker 2: the CPI prints, because if you look at the high
• 4:11
  Speaker 2: rate possibility for twenty twenty six, it of course just
• 4:15
  Speaker 2: caved from seventy one percent down to fifty percent just
• 4:18
  Speaker 2: in a few short days, and of course all of
• 4:22
  Speaker 2: that coming in from CPI and a lot of what's
• 4:24
  Speaker 2: happening in the market. Calcy odds of a twenty five
• 4:27
  Speaker 2: basis points hike in July on the FOMC meeting, which
• 4:31
  Speaker 2: was kind of holding it about thirty five percent has
• 4:34
  Speaker 2: continuing to drop. This is definitely I would agree with
• 4:37
  Speaker 2: Zach Panel here it's going to zero, and he kind
• 4:40
  Speaker 2: of hits on a few other points here that let
• 4:42
  Speaker 2: me kind of zoom in on that for you. And
• 4:45
  Speaker 2: he's talking about this Bitcoin ball of worry, and this
• 4:47
  Speaker 2: is something that also I think starts to affect the market.
• 4:50
  Speaker 2: And that is what's been going on with micro Strategy
• 4:53
  Speaker 2: and Sailor and the stabilization of their balance sheet, whether
• 4:57
  Speaker 2: you think it has or not, because it hasn't pegged
• 5:00
  Speaker 2: back yet, we're talking about stretch. And then the other
• 5:02
  Speaker 2: issue is no FED rate hike, which it looks like
• 5:06
  Speaker 2: for July it's.
• 5:07
  Speaker 1: Going to be the case.
• 5:07
  Speaker 2: We have a FED meeting next week, and then we
• 5:11
  Speaker 2: have the issue of do we get Clarity Act passed?
• 5:14
  Speaker 2: So it's really boiling down to that, and I think
• 5:18
  Speaker 2: we are in a position right now that maybe Summer
• 5:22
  Speaker 2: might be lining up for a nice little run. Here.
• 5:24
  Speaker 2: Let's remember one thing that Tom Lee said and has
• 5:27
  Speaker 2: said multiple times, and that is that he is concerned
• 5:31
  Speaker 2: there could.
• 5:32
  Speaker 1: Be a pullback. Now has he changed his mind?
• 5:34
  Speaker 2: We haven't full pulled a clip that says that yet,
• 5:37
  Speaker 2: but he does give us some indicators around the CPI
• 5:41
  Speaker 2: take a.
• 5:41
  Speaker 5: Look Infleetion's weakening if we look at the last seven
• 5:46
  Speaker 5: I'm sorry eight CPI reports, the inflation number came in
• 5:50
  Speaker 5: better than expected seven of eight times. April was the
• 5:53
  Speaker 5: only shock effect of the Iran war and on patrolling
• 5:57
  Speaker 5: products and the supply chain. But the main number was
• 6:01
  Speaker 5: a downside reading. And yet inflation is at two point
• 6:04
  Speaker 5: eight five percent year of a year. Now it's going
• 6:07
  Speaker 5: to become easier comps as we get to tune which
• 6:10
  Speaker 5: comes next week July in August, because as you can
• 6:13
  Speaker 5: see here, those month over month numbers are higher. That's
• 6:16
  Speaker 5: from last year's ter for wars.
• 6:18
  Speaker 1: All right.
• 6:18
  Speaker 2: So his point is that he understands one thing, and
• 6:21
  Speaker 2: that is there's a declining number here starting to show
• 6:25
  Speaker 2: very significant data to the FED. And when you look
• 6:29
  Speaker 2: at that and you kind of consider the position for Walsh,
• 6:32
  Speaker 2: maybe Walsh has an idea of how he's going to
• 6:35
  Speaker 2: play this out. One thing that is happening is the
• 6:38
  Speaker 2: market is responding. Bitcoin of course reclaimed sixty four k
• 6:42
  Speaker 2: eth of course reclaimed eighteen eighty. This is all after
• 6:45
  Speaker 2: this morning's CPI post, so another big deal. It's up
• 6:49
  Speaker 2: two percent in the last hour and a half. So
• 6:51
  Speaker 2: lots of good numbers here. Overall etho over I think
• 6:54
  Speaker 2: over five percent up now for the day, and one
• 6:57
  Speaker 2: hundred and thirty four million in shorts were liquidated as well.
• 7:00
  Speaker 2: So this leads me to something else on the agenda
• 7:04
  Speaker 2: for Kevin Walsh, and that is this idea that has
• 7:08
  Speaker 2: been posed before that the FED could go into the
• 7:12
  Speaker 2: idea of bailing out crypto companies.
• 7:14
  Speaker 1: Well, he had a surprise. Take a look.
• 7:17
  Speaker 6: There's a rival to these institutions, and that is stable coins,
• 7:23
  Speaker 6: which are just like a money market fund, except you
• 7:26
  Speaker 6: are in zero interest and everything is hidden. Can you
• 7:30
  Speaker 6: assure us that we need that you will not be
• 7:33
  Speaker 6: bailing out stable coin and cryptocurrency.
• 7:36
  Speaker 3: We do not want to be in the bailout business
• 7:38
  Speaker 3: full stop.
• 7:39
  Speaker 6: But your predecessor did provide a liquidity function stable for
• 7:45
  Speaker 6: money market funds. If God forbid, we faced a similar
• 7:49
  Speaker 6: circumstance in the crypto world, would you bail them out?
• 7:52
  Speaker 3: I want to be very clear, We're going to do
• 7:55
  Speaker 3: everything we can to mitigate those sorts of extraordinary risks.
• 8:00
  Speaker 3: We want to be in a position we're not bailing
• 8:02
  Speaker 3: out anybody, including crypto.
• 8:05
  Speaker 6: You're not really answering the question.
• 8:08
  Speaker 2: Wow, I think they may have backfired on little mister
• 8:12
  Speaker 2: Brad Sherman there, and that is Kevin worsh just said
• 8:16
  Speaker 2: he's not bailing out the banks. He said, we're not
• 8:18
  Speaker 2: bailing out anybody, including crypto. So big news here coming
• 8:23
  Speaker 2: out of the FED for sure. And I look at
• 8:26
  Speaker 2: where this could be going for. The market continues to
• 8:29
  Speaker 2: pressure eat the course, showing some significant move here on binance.
• 8:33
  Speaker 2: This kind of revenue or should say, buying activity on binance.
• 8:37
  Speaker 2: This shows one thing, guys. Could this be the actual
• 8:40
  Speaker 2: time where ethereum starts to break away from bitcoin and
• 8:44
  Speaker 2: gets into a move that could be aggressive here? Mike
• 8:48
  Speaker 2: Novogratz was talking about the volume and it's actually picking up.
• 8:51
  Speaker 2: Are we actually nearing a bull market cycle? Are we
• 8:56
  Speaker 2: getting close?
• 8:56
  Speaker 1: Take a look.
• 8:58
  Speaker 7: There's some hope on market structure. Not a ton I
• 9:00
  Speaker 7: say it's fifty to fifty right now, but I think
• 9:03
  Speaker 7: you're seeing volumes pick up. Volumes are up twenty thirty
• 9:06
  Speaker 7: percent from a pretty low level, but they're picking up.
• 9:09
  Speaker 7: You're seeing some activity. I mean Robinhood launched a chain
• 9:12
  Speaker 7: with you know, to compete compete in the you know,
• 9:16
  Speaker 7: the DeFi space and boom big usage first day three
• 9:19
  Speaker 7: times that was the first day. There's a lot of hype,
• 9:21
  Speaker 7: but it was three times to use a hyper liquid
• 9:23
  Speaker 7: and so that's a big deal. Robinhood is a you know,
• 9:26
  Speaker 7: fifteen million customers in the US, a monster here domestically,
• 9:30
  Speaker 7: at least smaller overseas, and so he got a lot
• 9:34
  Speaker 7: of decent little stories showing up around the edges.
• 9:37
  Speaker 2: Theoreum is growing against bitcoin thanks to robin Hood chain
• 9:39
  Speaker 2: and that's just one trat fi company. So imagine if
• 9:43
  Speaker 2: this goes into a lot of others. You're going to
• 9:46
  Speaker 2: see some others. Look at this right here. This is
• 9:48
  Speaker 2: an interesting chart. This is eight bitcoin chart before robin
• 9:51
  Speaker 2: Hood and then post Robinhood. In terms of just launching
• 9:55
  Speaker 2: a chain. Imagine the ability for other enterp or retail
• 10:01
  Speaker 2: starting to launch on blockchain and have this kind of movement.
• 10:05
  Speaker 2: Robinhood and the finance sector, I get it probably has
• 10:07
  Speaker 2: the most impact. But one thing it does do is
• 10:11
  Speaker 2: it gets into what many people would say is a
• 10:13
  Speaker 2: mean coin rally. Now Congress is always worried about so
• 10:17
  Speaker 2: that so take a look.
• 10:19
  Speaker 8: You decide whether the race go up or down. It
• 10:21
  Speaker 8: If you lower them, then people can engage in these
• 10:25
  Speaker 8: speculative bubbles. Such as the Trump Mean coin, and they
• 10:30
  Speaker 8: can lose a lot of money. At some point, we
• 10:33
  Speaker 8: all have to take a stand. Mister chairman, this is
• 10:36
  Speaker 8: going to be your opportunity. You're gonna have to take
• 10:39
  Speaker 8: a stand at some point. But you're going to have
• 10:41
  Speaker 8: to be concerned about a speculative bubble, especially as a
• 10:44
  Speaker 8: release to crypto. This is something that we'll all have
• 10:47
  Speaker 8: to address.
• 10:48
  Speaker 6: I thank you very much.
• 10:50
  Speaker 2: Yes, And this was a you know, an article by
• 10:52
  Speaker 2: Zach Panel kind of showing the variation between the sectors
• 10:57
  Speaker 2: performance sectors between crypto.
• 10:59
  Speaker 1: One is you know, the core projects out there that
• 11:02
  Speaker 1: are more.
• 11:03
  Speaker 2: Financial orients and meeting their earning income, making revenue. And
• 11:07
  Speaker 2: then you have the consumer and the culture which is ecosystem,
• 11:11
  Speaker 2: which is more on the meme poin side. The only
• 11:13
  Speaker 2: difference is is that there hasn't been a genesis to
• 11:17
  Speaker 2: move the market on meme coins, where there has been
• 11:20
  Speaker 2: a significant genesis of what we've seen around financial improvement
• 11:25
  Speaker 2: in the blockchain space, primarily because of what's happening in
• 11:28
  Speaker 2: DC and.
• 11:29
  Speaker 1: Also in tradfi.
• 11:31
  Speaker 2: But if we get another major move, you know, I
• 11:33
  Speaker 2: kind of go against green. There is that there's going
• 11:35
  Speaker 2: to be some opportunities here. For yes, people are going
• 11:38
  Speaker 2: to go out there and gamble in the meme coin
• 11:41
  Speaker 2: market just like they did before. Some will lose, some
• 11:44
  Speaker 2: will win. Everybody, I think knows that. But being able
• 11:46
  Speaker 2: to be in a position where you have the opportunity
• 11:48
  Speaker 2: to do it is the key. I want to go
• 11:50
  Speaker 2: to a clip here that breaks a little bit of
• 11:52
  Speaker 2: this down. This is Ryan Rasmus's some a bit wise
• 11:55
  Speaker 2: and he talked about the idea of vaults kind of
• 11:58
  Speaker 2: as the new ETF take a look.
• 12:00
  Speaker 9: Which is that bitcoin prices might be down, but it
• 12:03
  Speaker 9: feels like a raging bull market in the vault space,
• 12:05
  Speaker 9: and I think that captures where things are headed. In
• 12:08
  Speaker 9: bear markets, you typically see the foundation being laid for
• 12:12
  Speaker 9: what will grow and see the most kind of euphoria,
• 12:18
  Speaker 9: and we're capital flow in the following bull market, and
• 12:22
  Speaker 9: I think that's what's happening right now without any of
• 12:25
  Speaker 9: the Wall Street money touching it. You really have to
• 12:27
  Speaker 9: be a crypto native or you know, pretty sophisticated investor
• 12:32
  Speaker 9: who's been investing crypto for a while to get access
• 12:35
  Speaker 9: to vaults today, and majority of wealth in America sits
• 12:39
  Speaker 9: on these large wealth platforms with financial advisors and wealth
• 12:42
  Speaker 9: managers and they simply can't access it now. It'll probably
• 12:45
  Speaker 9: be a couple of years before they can access it.
• 12:47
  Speaker 9: Because I think the same thing again is true with
• 12:48
  Speaker 9: bitcoin ets. Like everyone assumes that when bitcoin ETFs launched
• 12:51
  Speaker 9: in January twenty twenty four, it was like this light
• 12:54
  Speaker 9: switch that turned on. It took two years for the
• 12:57
  Speaker 9: largest wire you know, the major wirehouses and largest both
• 13:00
  Speaker 9: platforms to allow their advisors to even start talking to
• 13:04
  Speaker 9: clients about these things and then they could start allocating.
• 13:08
  Speaker 9: You know, Vanguard just started allowing their clients to access bitcoins.
• 13:14
  Speaker 9: He has to spite the thing out for tiears. I
• 13:15
  Speaker 9: think that's the kind of lag you see with Wall
• 13:18
  Speaker 9: Street adoption to crypto innovation.
• 13:22
  Speaker 2: Yeah, it is in that position, and I think the
• 13:26
  Speaker 2: one difference there that Ryan was talking about is it
• 13:28
  Speaker 2: takes a little bit of time because usually there's some
• 13:30
  Speaker 2: indicators there, but then you have kind of an all
• 13:33
  Speaker 2: at once moment, and you know, markets can move, especially
• 13:36
  Speaker 2: in the crypto market, can become very violent and volatile
• 13:40
  Speaker 2: upside where we see some of these breakouts, And I
• 13:44
  Speaker 2: think that's the real question because we have a lot
• 13:47
  Speaker 2: of things that are starting to come into alignment right
• 13:50
  Speaker 2: now around Genius, which also could have a little bit
• 13:54
  Speaker 2: of a factor here in how the markets respond. This
• 13:57
  Speaker 2: is a clip on that in terms of the Genius deadline,
• 14:00
  Speaker 2: because it's coming up.
• 14:00
  Speaker 3: Take a look the Genius Act.
• 14:02
  Speaker 9: The deadline for the FED to promulgate rules is this Saturday.
• 14:06
  Speaker 4: Will the Fed meet that deadline?
• 14:09
  Speaker 3: Well, it's a fair and open question. We're racing to
• 14:15
  Speaker 3: put that out by this deadline.
• 14:18
  Speaker 2: So as you can see, that's a major deal. Because
• 14:20
  Speaker 2: we are talking about the final door closing on the banks,
• 14:24
  Speaker 2: this would give them, i think, a very limited amount
• 14:29
  Speaker 2: of AMMO. It is an opportunity right now that pretty
• 14:31
  Speaker 2: much gets us in a position where we can move
• 14:33
  Speaker 2: forward on clarity. But there are going to be some headwinds.
• 14:36
  Speaker 2: One of the biggest headwinds in Congress is going to
• 14:39
  Speaker 2: be Maxine. And let's just play the clip.
• 14:43
  Speaker 4: I have here President Trump's most recent financial disclosure, the
• 14:48
  Speaker 4: bulk of which came from his families crypto businesses. This
• 14:52
  Speaker 4: is how many pages? This is nine hundred pages of
• 14:58
  Speaker 4: financial interest. Let me assue, do you believe we must
• 15:02
  Speaker 4: put an end to it?
• 15:05
  Speaker 3: A ranking member, you've given us a big job and
• 15:08
  Speaker 3: I'm focused on that.
• 15:10
  Speaker 4: Well, let me just go further with the prediction markets.
• 15:14
  Speaker 2: So what you saw there, of course, was Maxine Waters,
• 15:17
  Speaker 2: and she is going right at the heart of the matter,
• 15:20
  Speaker 2: and that is ethics. If there is going to be
• 15:22
  Speaker 2: a problem, it will be in that area. And I
• 15:25
  Speaker 2: think this is already showcasing right now as we are
• 15:28
  Speaker 2: seeing Clarity Act sign into law plummeting down to thirty
• 15:33
  Speaker 2: seven percent. Chance this is low has been in a
• 15:35
  Speaker 2: very very long time and continued with pressure on Trump
• 15:39
  Speaker 2: and his financial disclosure and whether or not ethics starts
• 15:43
  Speaker 2: to make its way in Remember that we're going to
• 15:44
  Speaker 2: get new verbage coming out of the Senate that is
• 15:48
  Speaker 2: going to combine those two bills, and the likelihood I
• 15:51
  Speaker 2: think is we're going to get some verbage in there
• 15:53
  Speaker 2: that will have issues around the idea of where ethics
• 15:57
  Speaker 2: plays into this. Now that may have to go back
• 16:00
  Speaker 2: to the House, which is slowing it down. And I
• 16:02
  Speaker 2: get that some people are now saying we could even
• 16:04
  Speaker 2: go past the date of August. I hear that, but
• 16:07
  Speaker 2: I just don't know how this gets through with this
• 16:10
  Speaker 2: kind of headwind right now. So when you look at
• 16:13
  Speaker 2: what's going to happen this week. You've got Senator Cynthia
• 16:16
  Speaker 2: Lumis hitting on it right here. We'll introduce the bill
• 16:19
  Speaker 2: text in just the next few days.
• 16:21
  Speaker 1: And this is going to be interesting because she's been
• 16:22
  Speaker 1: on camera.
• 16:23
  Speaker 2: We've had Patrick mckenry on camera talking about that they're
• 16:26
  Speaker 2: going to get this done. My concern is that they
• 16:29
  Speaker 2: may be putting this up just so they can tell
• 16:32
  Speaker 2: the industry.
• 16:33
  Speaker 1: Look, we tried to get it up.
• 16:35
  Speaker 2: Does that mean that we actually get this vetoed or
• 16:37
  Speaker 2: voted down on in the Senate. Man, We're going to
• 16:40
  Speaker 2: have a lot to talk about for sure, because this
• 16:42
  Speaker 2: is getting very very close to the end of lying guy,
• 16:45
  Speaker 2: So stay tuned right here. If you like this video,
• 16:54
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• 16:57
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• 16:59
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