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Crypto Crash Shakeout Buy Opportunity?🔥Market Update · The Paul Barron Crypto Show

0:00
Speaker 1: Did you sell to early Today We're going to break
0:02
Speaker 1: that down for you, give some strategies that may be
0:04
Speaker 1: playing out in the market right in front of our face.
0:07
Speaker 1: So to stick around for it. Let's get into the show.
0:09
Speaker 1: I do want to thank our sponsor, and that's Coinbase.
0:12
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0:14
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Speaker 1: Check it out, and of course let me know what
0:41
Speaker 1: you guys think on coinbase. Just drupt some comments. Let's
0:44
Speaker 1: go into the show today because I want to get
0:46
Speaker 1: into some of the key catalysts that of course has
0:48
Speaker 1: caused a lot of this to happen this week, and
0:51
Speaker 1: that's not necessarily the number one reason. It is the
0:54
Speaker 1: thing that kind of adds to what's happening from a
0:57
Speaker 1: manipulation standpoint. More more in point is China now confirming
1:03
Speaker 1: their working level talks with the US regarding tariffs and
1:06
Speaker 1: of course export controls. So this is number nine. It's
1:10
Speaker 1: this little metric that the kobeec letter put out and
1:14
Speaker 1: I think it's pretty accurate. Let me show it to you,
1:17
Speaker 1: and here we are. If you guys miss this, we
1:19
Speaker 1: kind of break it down. We'll start from one, but
1:21
Speaker 1: I'll go to number nine real quick. Trump put out
1:24
Speaker 1: a cryptic post talking about tariff's coming. Trump announces a
1:27
Speaker 1: big tariff fifty percent or more, and it crashes the markets,
1:31
Speaker 1: exactly what happened over the weekend. Then the you know,
1:34
Speaker 1: the dip buyer step in, do a head fake, leads
1:37
Speaker 1: to fresh slows, which is what we saw after the
1:40
Speaker 1: market close on Friday. Perfect timing. Trump says, hey, you know,
1:44
Speaker 1: maybe we're going to really apply this because of all
1:46
Speaker 1: this you know, precious metals that we're dealing with. And
1:49
Speaker 1: then he continues to back off over the weekend, and
1:51
Speaker 1: well we are now at number nine, which over the
1:54
Speaker 1: next two to four weeks, we could see various members
1:57
Speaker 1: of the Trump administration teasing a trade deal with China.
2:00
Speaker 1: If that happens, then all this is pretty much a
2:02
Speaker 1: playbook that you guys can follow, so reference back to
2:06
Speaker 1: it when we told you so kind of thing. The
2:08
Speaker 1: other thing that's happening, if you look at tariff on China,
2:11
Speaker 1: everybody is kind of in the same position saying it's
2:15
Speaker 1: taco time. It's Taco Tuesday here today, and that's the
2:18
Speaker 1: only sixteen percent opportunity here that says we will see
2:21
Speaker 1: a tariff on China. Everybody thinks this is going to
2:25
Speaker 1: get worked out, and of course that's why we're seeing
2:27
Speaker 1: the market. Also play into this. Other news that's heading
2:30
Speaker 1: into the market is Meta Mass doing a major partnership
2:34
Speaker 1: opportunity here with of course Polymarket. This is going to
2:37
Speaker 1: change things dramatically on order books and how this plays
2:41
Speaker 1: into where we're going to see the strength of these
2:45
Speaker 1: prediction markets play into. So Polymarket of course looking for distribution,
2:50
Speaker 1: Meta Mars is going to be one of the biggest
2:51
Speaker 1: out there in terms of the largest wallets in terms
2:53
Speaker 1: of hot wallets. So interesting move there by Joseph Lubin
2:57
Speaker 1: with that. Other things that, of course is this new
3:00
Speaker 1: right here where Finance of course said we're going to
3:02
Speaker 1: distribute three hundred million to users that were liquidated during
3:05
Speaker 1: last week's market crash. I know that this may seem
3:09
Speaker 1: like a small amount. It is a small amount in
3:13
Speaker 1: comparison to the amount of money that was lost in liquidations.
3:16
Speaker 1: Many people would look at that and say, well, this
3:18
Speaker 1: could re ingest back into the market. But if you
3:21
Speaker 1: look at the shots that were fired across the bow
3:24
Speaker 1: between Binance and hyper Liquid. I'll show you this in
3:27
Speaker 1: a second, but this was the statement from Binance. Eligible
3:30
Speaker 1: affected users will receive token vouchers. Token vouchers worth four
3:34
Speaker 1: to six thousand dollars, while institutions hit the hardest by
3:37
Speaker 1: the crash will get a one hundred million dollar interest
3:41
Speaker 1: low interest loan. So if you're an institution, you could
3:45
Speaker 1: get an low interest loan for up to one hundred
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Speaker 1: million dollars. I don't know that that sounds like a
3:52
Speaker 1: great deal, but I think this is something that Binance
3:55
Speaker 1: is trying to do to kind of protect the situation.
3:58
Speaker 1: You had a hyper Liquid daily kind of calling them out.
4:01
Speaker 1: Token prices rebounded as if untouched. We all saw that,
4:05
Speaker 1: yet thousands of traders portfolios absolutely vanished forever. Look at BnB,
4:11
Speaker 1: How can anyone claim finance played no role in crypto's
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Speaker 1: largest liquidation ever, and of course them stating this is
4:19
Speaker 1: manipulation in a reeks. And remember this is where Binance
4:22
Speaker 1: flipped XRP over this deal, So just be thinking about that, guys,
4:27
Speaker 1: all right, So let's jump over to this other tweet
4:29
Speaker 1: right here, hyper Liquid Daily. Again, this is where Jeff
4:32
Speaker 1: Yang course kind of hits on this hyper Liquid Fully
4:35
Speaker 1: unchained liquidations cannot be compared with underreported sex liquidations. And
4:41
Speaker 1: if you look at what he's talking about with centralized
4:43
Speaker 1: changes publicly document that they dramatically underreport user liquidations. For
4:48
Speaker 1: example Binance, even if there are thousands of liquidation orders
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Speaker 1: in the same second, only one is reported because liquidations
4:55
Speaker 1: happen in bursts, and this is easily done because one
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Speaker 1: hundred x under porting under some conditions could happen. So
5:04
Speaker 1: this could be a lot bigger than everybody really anticipated.
5:06
Speaker 1: Of course, what we saw in general, I think is
5:09
Speaker 1: the biggest issue, and I'm still hearing horror stories about
5:14
Speaker 1: these issues with finance in terms of not being able
5:16
Speaker 1: to get into positions. Here. Of course, CZ fired back
5:20
Speaker 1: across the bow. Some people ask why B ANDB so strong, Well,
5:23
Speaker 1: they're definitely strong now they're number three token. While others
5:26
Speaker 1: tried to ignore, hide, shift, blame or attack competitors, the
5:29
Speaker 1: BnB chain, Ecosystems, Finance, Venus, etc. Went out with hundreds
5:34
Speaker 1: of millions of their own pocket to protect uners. I
5:36
Speaker 1: haven't seen hundreds of millions. I'd like to see an
5:38
Speaker 1: audit of that. So if finance is willing to actually
5:41
Speaker 1: publish that where it went, not just framework of where
5:45
Speaker 1: it went, that would be helpful, I think, to the
5:47
Speaker 1: industry and would be very transparent. Now, if you look
5:52
Speaker 1: at the market fear and greed right now on traditional finance,
5:55
Speaker 1: this is the lowest has been in a very very
5:57
Speaker 1: long time. If you just look a week ago, we
5:59
Speaker 1: were at fifty which was neutral. A month ago holding
6:02
Speaker 1: a fifty four kind of edging into greed, and then
6:05
Speaker 1: even a year ago holding a greed. But we have
6:08
Speaker 1: not seen these kind of lows in the market at
6:11
Speaker 1: quite some time. I want to go to a clip
6:12
Speaker 1: real quick because this will get into why the market
6:16
Speaker 1: is nervous. Take a look. This happens al so, this
6:19
Speaker 1: is just an arrest, arrest in the selling, but it
6:22
Speaker 1: will continue.
6:23
Speaker 2: Interesting guys, folks in it. This isn't just a blip
6:25
Speaker 2: in terms of hey, just kidding, there's no question we
6:29
Speaker 2: saw from the market's reaction two things. One is that
6:32
Speaker 2: this is a nervous market. We had seen volatility creeping
6:35
Speaker 2: up towards the end of the week. Even without that move,
6:37
Speaker 2: it was a choppy week at best. We've kind of
6:40
Speaker 2: run out of gas. But the dynamics of getting a
6:43
Speaker 2: lot of macro, a lot of headlines without a lot
6:45
Speaker 2: of bottom up substance. That's the great thing about earning season,
6:48
Speaker 2: which is coming down the pike here. But I don't
6:50
Speaker 2: think there's any question the reaction we had on Friday
6:52
Speaker 2: tells you that this is a market that is nervous.
6:55
Speaker 2: It also tells you, and I think we said this
6:58
Speaker 2: on Fridays, I'm not sure that there aren't.
7:00
Speaker 1: A lot of people that want to buy dips out there,
7:02
Speaker 1: all right. So what he hit on there at the end,
7:04
Speaker 1: which I thought was interesting, is that there's he didn't
7:07
Speaker 1: think there was a lot of people out there willing
7:08
Speaker 1: to buy the dips, And of course we are seeing
7:10
Speaker 1: institutions doing that. We saw Bitcoin and eth all getting
7:15
Speaker 1: purchased up, and I think we've continued to see that.
7:18
Speaker 1: I put out a poll yesterday and your current crypto
7:21
Speaker 1: market sentiment, and then I put in bitcoin eth XRP
7:24
Speaker 1: Solana and it's bullish right now at eighty five percent
7:28
Speaker 1: eighty five point seven percent over twelve almost twelve hundred
7:31
Speaker 1: votes and we still got a few hours left on
7:33
Speaker 1: this pole. That one surprised me because I felt like
7:37
Speaker 1: we would be a little bit more skittish, and this
7:39
Speaker 1: was telling me that there was a lot of people
7:41
Speaker 1: even before this dip, that everybody was all in. Also
7:44
Speaker 1: tells me that these back, it's almost like the point
7:46
Speaker 1: of no return here we are in crypto, So this
7:50
Speaker 1: gets very cautious. The other thing that hit that you
7:53
Speaker 1: have to kind of consider is what shar Pala has
7:55
Speaker 1: put out today in his meeting that says economic growth
7:58
Speaker 1: before the government shutdown may be better than expected. So
8:04
Speaker 1: that might be a light at the end of the
8:05
Speaker 1: tunnel because it could loosen up a little bit of
8:07
Speaker 1: liquidity in the market. In terms of traditional finance, people
8:10
Speaker 1: might look at this and say, okay, let's calm a
8:13
Speaker 1: Marcus down, stop the selling and try to figure out
8:16
Speaker 1: where we go from here. That is what we're looking at,
8:18
Speaker 1: and of course some people looking at bitcoin and gold
8:21
Speaker 1: as being the option. The correlation though, is increasing a
8:25
Speaker 1: couple of points. To look at bitcoin gold correlation very
8:28
Speaker 1: high right now if you look at it on the charts.
8:31
Speaker 1: And the other thing is this is because capital appreciation
8:33
Speaker 1: potential has outweighed its ease of transfer for payments. This
8:37
Speaker 1: is another big factor that looks at where value of
8:40
Speaker 1: gold and bitcoin kind of come together, which is intriguing
8:44
Speaker 1: how all this plays together. Institutions are now increasingly embracing
8:49
Speaker 1: the debasement trade, which is what we've talked about here.
8:51
Speaker 1: A lot on the channel is dollar debasement, and we're
8:55
Speaker 1: following along very closely on that because I think it's
8:57
Speaker 1: just going to do nothing but up from there. The
9:00
Speaker 1: other thing that plays into this, which is interesting from
9:02
Speaker 1: the AI side of things, which leads leads most of
9:06
Speaker 1: the traditional finance sector in terms of stocks. Fifty four
9:09
Speaker 1: percent of investors now say we're in AI bubble. And
9:13
Speaker 1: this is b of a survey showing fifty four percent
9:15
Speaker 1: on the AI bubble and sixty percent saying stocks are overvalued.
9:20
Speaker 1: So that could be some of the pullback that many
9:22
Speaker 1: analysts continue to push on right now around are and
9:26
Speaker 1: is this market two heated? Are we going to see
9:30
Speaker 1: an assessment or a drop back into the market going forward. Now,
9:34
Speaker 1: Larry Fink was asked this question, are we in a bubble?
9:37
Speaker 1: Here was his answer, take a look, but.
9:39
Speaker 3: Are we free? A bubble means a bad thing, but
9:42
Speaker 3: there is certainly a skyrockety amount of capital that's being
9:46
Speaker 3: put to work. If you think about that, investing in
9:49
Speaker 3: AI does not just mean investing in GPUs and chips.
9:53
Speaker 3: It means investing in h fact and investing in power grades,
9:59
Speaker 3: in power supplies. It means employing a lot of people
10:03
Speaker 3: too to build this out. So we are talking trillion
10:06
Speaker 3: and a half dollars. I don't believe this is a bubble,
10:08
Speaker 3: but I believe this is capital that in most cases
10:11
Speaker 3: is going to be well spent.
10:13
Speaker 1: All right, So he's talking about the a trill and
10:16
Speaker 1: a half coming out from JP Morgan there, And to
10:19
Speaker 1: his point is they're going to expand across a variety
10:22
Speaker 1: of different infrastructure side of things. But in general, if
10:25
Speaker 1: you look at where he's positioned, Black Rocks Q three
10:28
Speaker 1: earning smashed forecasts, and this of course revenue surging twenty
10:32
Speaker 1: five percent. This course's I shares ETF demand number one.
10:36
Speaker 1: We're continuing to see that. Remember, these guys make money
10:39
Speaker 1: on volume. Volume has been absolutely crazy, and I think
10:42
Speaker 1: we are ready for another big push on ETF volume
10:46
Speaker 1: as we start to move into this latter part of
10:48
Speaker 1: the year. Other things you got to look at. They
10:51
Speaker 1: also bought another five hundred and twenty five and bitcoin
10:53
Speaker 1: worth sixty million. I know that's not a lot, but
10:55
Speaker 1: they are buying in this one hundred and eleven range
10:58
Speaker 1: right now where we are today at recording on bitcoin.
11:02
Speaker 1: I also want to go over to the next clip
11:04
Speaker 1: here because this will get into a little bit more
11:05
Speaker 1: around what Larry thinks about the whole idea of tokenization
11:09
Speaker 1: and where it might be going.
11:10
Speaker 3: Take a look Crypto, our digital asset platform, our private
11:15
Speaker 3: markets platform, our investment technology grew as fast as they
11:21
Speaker 3: have in many many quarters now and then you know,
11:24
Speaker 3: just across the board ETF to record quarter.
11:28
Speaker 1: You know, I do believe we're just at the.
11:30
Speaker 3: Beginning of the tokenization of all assets, from real estate
11:35
Speaker 3: to equity.
11:36
Speaker 1: The bonds across the board, the.
11:40
Speaker 3: Four point one trillion dollars of money in city globally,
11:43
Speaker 3: and digital wallets. A lot of that money is outside
11:46
Speaker 3: the United States. If we could tokenize a ETF, you know,
11:52
Speaker 3: digitize that ETF. We get have investors who are just
11:56
Speaker 3: beginning to you know, invest in markets through the see crypto.
12:01
Speaker 3: They're investing in it, but now we can get them
12:03
Speaker 3: into the more traditional long term retirement products. So we
12:07
Speaker 3: look at that as the next wave of opportunity for
12:10
Speaker 3: Blackrock over the next tens of years.
12:14
Speaker 1: All right, so you've got Larry really all in on
12:16
Speaker 1: tokenization and the capacity of creating momentum and velocity, which
12:22
Speaker 1: is how a lot of these markets blow up. It's
12:25
Speaker 1: how AI blew up. It's what we saw in the
12:27
Speaker 1: early stages of Internet stocks. This might be that phase
12:32
Speaker 1: right now of us entering kind of this next era,
12:35
Speaker 1: and tokenization will lead the way. I want to go
12:37
Speaker 1: to one more clip here, because this is Joe Mowglia.
12:39
Speaker 1: He talks about betting against Larry, and this gets into
12:42
Speaker 1: a very intriguing scenario that I'll explain in a second.
12:46
Speaker 1: Take a look.
12:47
Speaker 4: I mean, Larry's a pretty bright guy. Used to be
12:49
Speaker 4: a real traditional finance guy. Now's it defied guy, and
12:53
Speaker 4: he's a Web three guy, and he appreciates the future.
12:55
Speaker 4: The people that grew up in the Web three world
12:57
Speaker 4: and the defied world really really are of their game.
13:01
Speaker 4: But it's a lot of people in traditional finance world
13:03
Speaker 4: that still tend to struggle with this a little bit.
13:05
Speaker 4: Five years from now, there is not going to be
13:06
Speaker 4: a stock, that's not going to be an option, it's
13:08
Speaker 4: not going to be a mutual fun etf anything that's
13:10
Speaker 4: not not in effect tokenized stable coins. Five years ago
13:14
Speaker 4: nobody heard about stable coins. Today we've got about two
13:17
Speaker 4: or eighty billion dollar market, and Secretary Bessett had said
13:21
Speaker 4: that two years from now probably have a two trillion
13:23
Speaker 4: dollar market. Etherium is about sixty percent of that. Would
13:26
Speaker 4: we started to look at the dats, the digital asset treasuries.
13:29
Speaker 4: When you think about the future and you think what's
13:31
Speaker 4: going on? To me, this is still the early stage.
13:33
Speaker 4: It's kind of like ethereum and an equity wrapper. It's
13:36
Speaker 4: not just the etherem by itself. It's an the etheroerem
13:38
Speaker 4: with an equity wrapper.
13:40
Speaker 1: All right. So his explanation is interesting here because remember
13:43
Speaker 1: you got to remember who they're talking to in terms
13:47
Speaker 1: of investors, and by them packaging it in this way,
13:49
Speaker 1: I know you guys are probably thinking this doesn't make
13:51
Speaker 1: any sense. We understand all this, Paul, we get this,
13:54
Speaker 1: but traditional investors don't, and I think they're starting to
13:58
Speaker 1: wake up to this. He also drops stateable coins the
14:01
Speaker 1: ethereum as an equity wrapper. People understand that in terms
14:05
Speaker 1: of how equity works within stocks. This all plays into
14:09
Speaker 1: a potential growth around where tokenized securities can make their
14:13
Speaker 1: way into mainstream. And it's no longer just crypto investors
14:16
Speaker 1: that are doing this. So beyond the lookout, guys, we
14:19
Speaker 1: could be in for some big rights. And he mentioned
14:22
Speaker 1: stable coins, and then here was Matt Siegel talking about
14:25
Speaker 1: Cities Assessment here which raised stable coin AU and forecast
14:29
Speaker 1: twenty percent. And I still think they're way under But
14:32
Speaker 1: the point that they're talking about is a catalyst for
14:35
Speaker 1: chat GPT's moment, which is crypto and blockchain. And the
14:39
Speaker 1: issue is volume, which they thought would now be going
14:42
Speaker 1: up to like one point nine. But if you look
14:43
Speaker 1: at the bullish case, that's a four trillion dollar potential
14:48
Speaker 1: in terms of deposits. And this is just by twenty thirty. Guys,
14:51
Speaker 1: we're talking about four years away that we could see
14:55
Speaker 1: a four trillion that's the size of the entire crypto
14:57
Speaker 1: market right now on a stable coin market. So if
15:01
Speaker 1: this is even underserved by any chance, and if we
15:04
Speaker 1: do get a big pickup here in terms of market,
15:07
Speaker 1: there's a huge opportunity for this going forward. And this
15:11
Speaker 1: was a statement that I thought really kind of hit home.
15:14
Speaker 1: This is Andrew Kange talking about this. The inevitable perpification
15:18
Speaker 1: of global markets will undoubtedly lead to more volatility. What
15:22
Speaker 1: he's talking about here is liquidation, cascades and crypto markets
15:24
Speaker 1: applied to global equities is going to be a site
15:28
Speaker 1: to behold. I wanted to just set back for a
15:30
Speaker 1: second and think of it this way. You've got stocks
15:33
Speaker 1: in the same capacity that you can trade Solana in
15:38
Speaker 1: other words, liquidity, open markets, multiple markets worldwide globally twenty
15:43
Speaker 1: four to seven three sixty five. Imagine if you had
15:47
Speaker 1: a liquidation event occur like what we saw over the weekend.
15:50
Speaker 1: Now granted it may not be the same kind of
15:52
Speaker 1: manipulators that are out there, but imagine if you had
15:56
Speaker 1: that and you had it in something as as equities
16:01
Speaker 1: have been because you have to wait the weekend to
16:03
Speaker 1: be able to trade the next Monday opening. And I
16:06
Speaker 1: think this changes the game dramatically. This is going to
16:09
Speaker 1: make so many people so much money when they get
16:12
Speaker 1: to this level, and I think, think, and a lot
16:15
Speaker 1: of these companies realize this and are just waiting for
16:19
Speaker 1: this to occur. So, guys, the number one way to
16:22
Speaker 1: beat all of this is simple. Hotal. You know, if
16:26
Speaker 1: you're convicted in a stock or if you have conviction
16:30
Speaker 1: in a crypto, hold that and just look at the
16:34
Speaker 1: long term position. That is the way you beat these
16:37
Speaker 1: kind of manipulation events. It's the only way to go.
16:40
Speaker 1: If you guys are not in the diamond circle, get
16:42
Speaker 1: in right now. It's a great place to beat that
16:46
Speaker 1: issue around dollar debasement and these manipulation events that have
16:50
Speaker 1: been happening. I put an email every week. You guys
16:52
Speaker 1: can click the link down below, follow me out there
16:54
Speaker 1: on x at Paul Baron. We'll catch you next time
16:56
Speaker 1: right here on the Paul Baron Show
17:01
Speaker 2: The Permuting deput