Latest / The Paul Barron Crypto Show / Cathie Wood Swaps Tesla For Ethereum🚨Crypto Market Update

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Cathie Wood Swaps Tesla For Ethereum🚨Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Kathy Wood is selling Tesla for Ethereum. We'll break it
• 0:03
  Speaker 1: all down for you. Let's just jump right in. I
• 0:05
  Speaker 1: want to go over and look at what the week
• 0:07
  Speaker 1: is holding out in terms of things that could happen.
• 0:09
  Speaker 2: It's a big week for crypto holders.
• 0:12
  Speaker 1: What we're going to see is unemployment data and non
• 0:14
  Speaker 1: farm payrolls data. This is going to come in I
• 0:16
  Speaker 1: think soft obviously, we've already started seeing indicators on that.
• 0:20
  Speaker 1: We'll also see the CPI and the core CPI data
• 0:24
  Speaker 1: coming out. This will be a very important one and
• 0:26
  Speaker 1: it's going to be one that I think people might
• 0:28
  Speaker 1: be surprised with as well. We're also going to be
• 0:31
  Speaker 1: looking for the bake of Japan and that potential interest
• 0:34
  Speaker 1: rate decision. If they actually hike rates, we could really
• 0:38
  Speaker 1: start to see a little bit of market turmoil, inflation
• 0:42
  Speaker 1: cooling down, high unemployment. This means rate cut odds will
• 0:45
  Speaker 1: go up, and that of course goes into next month
• 0:47
  Speaker 1: end of January, and.
• 0:49
  Speaker 2: How this plays out for chair Pal.
• 0:50
  Speaker 1: All of that brewing right now this week, so make
• 0:54
  Speaker 1: sure and stay tuned for all of that good stuff.
• 0:56
  Speaker 1: Other things that are hitting right now. Ethereum is the
• 0:58
  Speaker 1: future of finance here's a big news from JP Morgan,
• 1:01
  Speaker 1: who is of course launching its tokenized fund. This is
• 1:03
  Speaker 1: a money market fund. I think one hundred million going
• 1:06
  Speaker 1: into this, so a pretty big deal for ETH in general.
• 1:11
  Speaker 1: And it also starts this domino effect potentially in Wall
• 1:14
  Speaker 1: Street that could be going this direction, so positive overall,
• 1:18
  Speaker 1: I think for crypto, especially for Ethereum. I want to
• 1:21
  Speaker 1: take a look at the Tesla chart because this is
• 1:24
  Speaker 1: something that we have continued to see Tesla out performing
• 1:28
  Speaker 1: over the last few weeks. As you can kind of
• 1:29
  Speaker 1: see that green move really from that low, which was
• 1:33
  Speaker 1: around three eighty five that was on November the fourteenth,
• 1:37
  Speaker 1: and here we are punching four to seventy five as
• 1:40
  Speaker 1: of December the fifteenth, a month later. So this was
• 1:44
  Speaker 1: a good time for Kathy Wood to actually make a
• 1:47
  Speaker 1: little bit of a move.
• 1:49
  Speaker 2: Let me go over to a clip.
• 1:50
  Speaker 3: And in the latest round, we took some profits from Tesla,
• 1:53
  Speaker 3: which is nearer to its high and allocated them into
• 1:59
  Speaker 3: or some of those it's into Crypto, which just went
• 2:02
  Speaker 3: through thanks to the flash crash on ten ten and
• 2:07
  Speaker 3: thanks to msci's press release saying that it was reconsidering
• 2:13
  Speaker 3: including dats in its indices, and that happened on the
• 2:17
  Speaker 3: same day as the flash crash, but nobody noticed it.
• 2:21
  Speaker 3: Those two dynamics hit crypto hard. We think we've seen
• 2:27
  Speaker 3: the bottom because the news is out. JP Morgan posted
• 2:31
  Speaker 3: the report about MSCI. Now everyone knows that you'll see
• 2:35
  Speaker 3: us trying to expose our clients. Two stable coins. We
• 2:40
  Speaker 3: bought some coinbase, we bought some Circle and bit mine immersion,
• 2:47
  Speaker 3: and a little bit of ether and Solana one is
• 2:53
  Speaker 3: very small. The Solana Ether one is around two percent
• 2:56
  Speaker 3: of the portfolio. So taking crypto altogether, we're probably talking
• 3:01
  Speaker 3: about a twelve thirteen percent position. So let's see how
• 3:04
  Speaker 3: this recovery tests the various technicals.
• 3:09
  Speaker 1: And that's pretty significant, I think, not only for eth
• 3:13
  Speaker 1: but just in crypto in general. To hold you know,
• 3:16
  Speaker 1: twelve thirteen percent. If you look at the combined holdings
• 3:19
  Speaker 1: of Tesla, that's kind of the proof of all the
• 3:22
  Speaker 1: cells on the Tasla stock.
• 3:24
  Speaker 2: And of course this starts to move into a handful.
• 3:27
  Speaker 2: This is this is going to reshuffle.
• 3:29
  Speaker 1: So when you look at some of the holdings here,
• 3:31
  Speaker 1: I'll just kind of scan down to the one that
• 3:33
  Speaker 1: I think is most important, that is bitmind holding at
• 3:35
  Speaker 1: two seventy five right there.
• 3:37
  Speaker 2: And even if you look at some of the others,
• 3:39
  Speaker 2: which would.
• 3:39
  Speaker 1: Be maybe meta and in even bitcoin, even those together
• 3:44
  Speaker 1: don't equal the holdings of what's going on with bimin.
• 3:47
  Speaker 1: So again, very forward on eighth holdings right now. Speaking
• 3:52
  Speaker 1: of Tom Lee, I want to go over to his
• 3:53
  Speaker 1: analysis on how crypto and AI are lining up together.
• 3:57
  Speaker 4: Take a look skepticism around the AI trade, skepticism around bitcoin.
• 4:03
  Speaker 4: Are they in fact related?
• 4:05
  Speaker 5: Do you think related but not related? Yeah, you know,
• 4:08
  Speaker 5: I think the AI trade, I mean, it's been a
• 4:11
  Speaker 5: juggernaut and we know that the visibility for the next
• 4:15
  Speaker 5: few years is really good. But now investors are just
• 4:18
  Speaker 5: trying to figure out how much to discount, you know,
• 4:20
  Speaker 5: what's the appropriate price to put, and that could drive
• 4:24
  Speaker 5: some profit taking because they've done so well this year.
• 4:26
  Speaker 5: It's almost like they both have great visibility, but the
• 4:30
  Speaker 5: price levels are just what's being uncertain.
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  Speaker 4: I feel like what's common though with both of these stories, though,
• 4:34
  Speaker 4: Tom is investors questioning the growth the trajectory of growth
• 4:39
  Speaker 4: going forward for both of these stories.
• 4:41
  Speaker 2: Yeah.
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  Speaker 5: Well, and in crypto, the best years are definitely head
• 4:45
  Speaker 5: because today there's only four million bitcoin wallets with ten
• 4:47
  Speaker 5: thousand dollars in it. There's nine hundred million IRA and
• 4:52
  Speaker 5: brokeridgeccounts globally that have ten thousand dollars, so there's that's
• 4:55
  Speaker 5: two hundred times larger market.
• 4:58
  Speaker 2: I'm I believe that.
• 5:00
  Speaker 5: At AI stocks, especially stocks like Nvidia, are going to
• 5:04
  Speaker 5: actually rerate higher because if Walmart and Costco trade at
• 5:10
  Speaker 5: thirty seven to forty five times earnings because they're predictable,
• 5:14
  Speaker 5: then in Nvidia shouldn't be twenty seven times. I also
• 5:17
  Speaker 5: think the banks are really criminally undervalued right now, like
• 5:21
  Speaker 5: a JP Morgan, because that's becoming a technology.
• 5:24
  Speaker 2: Company, all right.
• 5:26
  Speaker 1: So after that, you can kind of have to look
• 5:27
  Speaker 1: at the condition on where Bitcoin could be with a
• 5:31
  Speaker 1: lot of the downside potential that plays into this Japanese
• 5:36
  Speaker 1: moving in terms of a rate hike. Now, if we
• 5:38
  Speaker 1: see Japan move to a rate hike, which will happen
• 5:40
  Speaker 1: this week. If that occurs, then everybody is pointing at
• 5:44
  Speaker 1: what we're seeing with bitcoin. If you look at the
• 5:46
  Speaker 1: charts further into this, you can kind of see here
• 5:49
  Speaker 1: this goes back into twenty twenty four, we saw a
• 5:51
  Speaker 1: rate hike negative twenty three, negative thirty, negative thirty one,
• 5:55
  Speaker 1: which was in early this year, and then what we'll
• 5:57
  Speaker 1: we see right now, which was where bitcoin is kind
• 6:00
  Speaker 1: of trading at around the ninety k mark when this
• 6:03
  Speaker 1: was put out. But right now bitcoin is trading right
• 6:06
  Speaker 1: at eighty five point nine at time of recording. And
• 6:10
  Speaker 1: this will be the big question guys as to whether
• 6:12
  Speaker 1: or not we see a full thirty percent come off
• 6:15
  Speaker 1: of that. Maybe it is going to only be twenty percent.
• 6:17
  Speaker 1: Let me know what you guys think down in the comments.
• 6:20
  Speaker 2: All right, let's go over to really where.
• 6:23
  Speaker 1: The economic insecurity. Is it real or is it not real?
• 6:27
  Speaker 2: Take a look.
• 6:28
  Speaker 6: Average American doesn't talk about inflation. That's an economist word.
• 6:33
  Speaker 6: The average American talks about affordability to costs. Can I
• 6:36
  Speaker 6: afford the food, the fuel, the housing, the healthcare. But
• 6:41
  Speaker 6: there's something that's even more important. Half of Americans now
• 6:45
  Speaker 6: live and I quote paycheck to paycheck, and how they
• 6:48
  Speaker 6: define that is different. But these are people who have
• 6:51
  Speaker 6: trouble paying their bills on a monthly basis. When half
• 6:55
  Speaker 6: of Americans are saying that, that tells me that this
• 6:58
  Speaker 6: economic insecurity and anxiety is real. Am I warning to
• 7:03
  Speaker 6: both political parties if you don't figure out a way
• 7:06
  Speaker 6: to make health care costs more affordable. The public is
• 7:09
  Speaker 6: going to punish you. One year from today.
• 7:11
  Speaker 2: What does twenty six look like.
• 7:14
  Speaker 6: Democrats narrowly take the House. There aren't that many seats
• 7:17
  Speaker 6: that are up for play. Democrats have a five point
• 7:20
  Speaker 6: lead right now, and that's enough to give them roughly
• 7:23
  Speaker 6: a five seat majority in the House and the Senate.
• 7:26
  Speaker 6: If they botch healthcare, the Senate could be up for
• 7:29
  Speaker 6: grabs as well.
• 7:31
  Speaker 1: Interesting points there, and of course you've got to look
• 7:33
  Speaker 1: at Trump, which apparently still believes that affordability is completely neutralized.
• 7:39
  Speaker 1: We're not dealing with anything from an inflation standpoint. And
• 7:42
  Speaker 1: I agree with Lutz there in terms of affordability being
• 7:44
  Speaker 1: the key factor here, because that's going to be the
• 7:47
  Speaker 1: campaign focus for both the Republicans and Democrats going into
• 7:51
  Speaker 1: the midterms. US labor market will be the other one.
• 7:54
  Speaker 1: And of course the labor market right now if you
• 7:56
  Speaker 1: a zoom in on this one, total nonfarm hiring rate
• 7:59
  Speaker 1: fell on this percentage, so now we're seeing more. This
• 8:02
  Speaker 1: is the lowest more unemployment. Lowest is twenty twenty, and
• 8:06
  Speaker 1: that was during a pandemic. So this is a pretty
• 8:08
  Speaker 1: significant state of where jobs are getting worse as inflation
• 8:14
  Speaker 1: continues to rise. That of people, of course, is called stagflation.
• 8:17
  Speaker 1: This is the worse nightmare for the FED going into it,
• 8:20
  Speaker 1: but it can't let jobs get in spiral out of control.
• 8:24
  Speaker 1: It's one of the biggest mandates that the FED would
• 8:26
  Speaker 1: have to deal with, and of course that could mean
• 8:28
  Speaker 1: where we would see continuous cuts on the FED rate.
• 8:33
  Speaker 1: Other things people are looking at. Could we see a
• 8:35
  Speaker 1: high on bitcoin next year? Everybody's saying right now about
• 8:39
  Speaker 1: sixty six percent of you are saying, yeah, we could
• 8:41
  Speaker 1: see a twenty twenty six mini bull run. Whether or
• 8:44
  Speaker 1: not this will happen end of year or whether or
• 8:47
  Speaker 1: not this will happen early, who knows. But the key
• 8:50
  Speaker 1: here is is that people are looking at digital assets
• 8:52
  Speaker 1: to be able to beat this inflation move that we're
• 8:55
  Speaker 1: dealing with right now. When will bitcoin hit one hundred
• 8:59
  Speaker 1: and fifty K Polymarket says, let's go over and focus
• 9:02
  Speaker 1: on that December thirty one of next year. So really,
• 9:05
  Speaker 1: people about thirty two percent if you look at it
• 9:08
  Speaker 1: holding toward the end of the year. But if you
• 9:11
  Speaker 1: kind of collapse that and go over into everything we're
• 9:15
  Speaker 1: talking about, what is that almost twenty five percent now
• 9:19
  Speaker 1: saying that it.
• 9:20
  Speaker 2: Could happen before that. So a lot of factors play
• 9:22
  Speaker 2: into this.
• 9:23
  Speaker 1: As we just talked about a lot of macro comparisons
• 9:26
  Speaker 1: that we're going to be seeing over the next few months,
• 9:28
  Speaker 1: and I think the Clarity Act is going to be
• 9:29
  Speaker 1: a big factor going forward just in crypto in general.
• 9:32
  Speaker 1: Bitcoin of course, I think will also benefit from that
• 9:35
  Speaker 1: if we do get a very clear Clarity Act that
• 9:38
  Speaker 1: is pro crypto coming out.
• 9:40
  Speaker 2: What price will Ethereum hit in December?
• 9:42
  Speaker 1: Right now the number is coming in at twenty six hundred,
• 9:45
  Speaker 1: So this is again getting potential impact from what could
• 9:49
  Speaker 1: be still the impetus of what's going on in Japan
• 9:53
  Speaker 1: and more of the macro fears that we're dealing with
• 9:55
  Speaker 1: right now at the end of the year. Let's go
• 9:57
  Speaker 1: over to a couple of more points I want to
• 9:58
  Speaker 1: hit on, and this, of course is Real just announced
• 10:01
  Speaker 1: their big approval, which is a conditional approval from the OCC.
• 10:05
  Speaker 1: This is in reference to the charter for the National
• 10:08
  Speaker 1: Trust Bank. Now, don't get you crazy, this is not
• 10:11
  Speaker 1: a retail bank. This is think of it as a
• 10:13
  Speaker 1: bank for institutions. But the thing that really will go
• 10:16
  Speaker 1: into this I think will when they get what will
• 10:18
  Speaker 1: happen when they get a master account, a fully approved
• 10:21
  Speaker 1: master account. That much longer to take for that to
• 10:25
  Speaker 1: actually happen. So but garling House definitely moving in the
• 10:28
  Speaker 1: right direction over there. For Ripple, I want to thank
• 10:30
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• 10:33
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• 10:51
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• 10:54
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• 10:58
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• 11:01
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• 11:17
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• 11:19
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• 11:21
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• 11:28
  Speaker 1: sent you. And if you look at the amount of
• 11:31
  Speaker 1: companies that were listed here, this is just a few
• 11:33
  Speaker 1: of them, but this was Ripple, Bicco, Fidelity, Pasos in
• 11:36
  Speaker 1: there Circle was also approved on this list. I don't
• 11:40
  Speaker 1: know why they weren't included in this one, but that
• 11:42
  Speaker 1: is all moving to We're going to see a lot
• 11:45
  Speaker 1: of this going into blockchain integrations and this will of
• 11:48
  Speaker 1: course be good for crypto in general, but more importantly
• 11:51
  Speaker 1: it basically pulls in more institutional involvement around where banking could.
• 11:56
  Speaker 2: Be in the very near future. So huge, huge win
• 11:59
  Speaker 2: for sure.
• 12:00
  Speaker 1: One last thing, if just remember if you guys didn't
• 12:02
  Speaker 1: hear Ripple and Solana, should say XRP and Solana. Now
• 12:06
  Speaker 1: you've got the capacity to be able to go out
• 12:08
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• 12:11
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• 12:15
  Speaker 1: up because a lot of XRP holders have not necessarily
• 12:18
  Speaker 1: had a way to earn any kind of yield or
• 12:20
  Speaker 1: put their XRP to work, So this may change a
• 12:23
  Speaker 1: little bit within some of those chains out there. Let
• 12:25
  Speaker 1: me know, I know, there's a lot of XRP holders
• 12:27
  Speaker 1: that follow this show. Would you guys start to look
• 12:31
  Speaker 1: for yields on some of these DeFi platforms. Would you
• 12:33
  Speaker 1: stay with something like a Flare network where you can
• 12:36
  Speaker 1: do it. It's a little different with what Solana is
• 12:38
  Speaker 1: doing because they're doing it through a custody model. It
• 12:40
  Speaker 1: is kind of interesting to see these strategies play out.
• 12:44
  Speaker 1: Let me know how you would do that with your
• 12:45
  Speaker 1: own XRP. Last thing, of course, if you guys are
• 12:48
  Speaker 1: not part of our own Barren Market Edge, you should be.
• 12:51
  Speaker 1: That is our own private group, very easy to join.
• 12:53
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• 12:55
  Speaker 2: Check it out.
• 12:56
  Speaker 1: It's free, and of course catch me out there on
• 12:58
  Speaker 1: x It's at Paul Baron. We'll catch you next time
• 13:01
  Speaker 1: right here on the Paul Baron Show.
• 13:09
  Speaker 3: M HM.