Latest / The Paul Barron Crypto Show / Next Big Crypto Rotation Into Value🚀Crypto Market Update📈

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Next Big Crypto Rotation Into Value🚀Crypto Market Update📈 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Has the crypto rotation begun, especially into value projects. Today,
• 0:04
  Speaker 1: we'll break it down. It's going to be a good one.
• 0:06
  Speaker 1: Let's just get into it. I do want to thank
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• 0:47
  Speaker 1: Let's go over to a couple of points I want
• 0:48
  Speaker 1: to start off with today. Of course, the big news
• 0:51
  Speaker 1: I really to cover is just the lineup of events
• 0:54
  Speaker 1: this week. Of course, the markets are closed today on
• 0:57
  Speaker 1: President's Day, but you also have the durable goods orders
• 1:00
  Speaker 1: that are coming in on Wednesday, FED meeting minutes coming
• 1:03
  Speaker 1: in also this week. Then, of course we get into
• 1:05
  Speaker 1: the PCEE inflation data, which will be Friday. That'll be
• 1:08
  Speaker 1: interesting to watch. Also, one other thing, and I think
• 1:12
  Speaker 1: the thing that is significant here is fifteen percent of
• 1:16
  Speaker 1: the S and P companies right now are reporting earnings.
• 1:18
  Speaker 1: So when you look at all of these issues along
• 1:22
  Speaker 1: with what's happening also in the SMP, along with the
• 1:26
  Speaker 1: rest of the stock market, could we see some volatility
• 1:29
  Speaker 1: coming into the market tomorrow when the market opens, we'll
• 1:32
  Speaker 1: see if that happens. The other thing you got to
• 1:34
  Speaker 1: look at is no clear path ending to the government
• 1:36
  Speaker 1: shut down. This of course could extend well into late February.
• 1:41
  Speaker 1: If you look at polymarket, there's a couple of points
• 1:43
  Speaker 1: you want to focus in on right here. That is
• 1:45
  Speaker 1: right around there, February twenty four to seven. Maybe we
• 1:49
  Speaker 1: get into the twenty eight through the march right there,
• 1:51
  Speaker 1: that would be almost what is that thirty almost forty
• 1:54
  Speaker 1: percent right now, thinking that it's going to be much
• 1:55
  Speaker 1: longer than we anticipate. Other things you got to look
• 1:59
  Speaker 1: at is where's bitcoin going to be? So I went
• 2:01
  Speaker 1: over and looked at the price on bitcoin in February.
• 2:04
  Speaker 1: You scan down right now, the leaning number is around
• 2:09
  Speaker 1: seventy five K to sixty K. Those are the top
• 2:12
  Speaker 1: two positions right now on poly market. Let me know
• 2:17
  Speaker 1: in the comments, where do you think bitcoin ends in
• 2:20
  Speaker 1: the month of February. Let's go over to the poll
• 2:22
  Speaker 1: that we put up because we asked people to tell
• 2:24
  Speaker 1: us where you thought it was going to hold. If
• 2:27
  Speaker 1: you think we're going to be at seventy five K
• 2:29
  Speaker 1: plus A sixty five, a sixty or fifty nine, here's
• 2:33
  Speaker 1: the timing. Here's kind of a trick question. I don't
• 2:37
  Speaker 1: anticipate that we would get see the market structure byte
• 2:41
  Speaker 1: into February, so I still feel that we're going to
• 2:44
  Speaker 1: see a lot of sideways action. So I'm going to
• 2:47
  Speaker 1: run at the sixty five k because I think as
• 2:49
  Speaker 1: of March first now we could get an indicator though
• 2:53
  Speaker 1: that's why it's a little rocky. But I'm going to
• 2:55
  Speaker 1: go with sixty five k right now. Let's see if
• 2:57
  Speaker 1: we're there. Nope, everybody thinks we are falling through the
• 3:01
  Speaker 1: floor to fifty k. Wow, that's a bit surprising. Sentiment
• 3:07
  Speaker 1: is much deeper in the trenches right now on bitcoin,
• 3:10
  Speaker 1: all right, So based on that, let's take a look
• 3:12
  Speaker 1: quickly at the clarity odds, because I think this is
• 3:14
  Speaker 1: what hinges on Bitcoin's price right now, well market in general,
• 3:18
  Speaker 1: obviously the rest of the market specifically, but right now
• 3:22
  Speaker 1: we're hovering right around fifty five percent, and that has
• 3:25
  Speaker 1: dipped in from right at sixty two, which was the thirteenth,
• 3:29
  Speaker 1: That was last week the thirteenth, where was sixty two percent.
• 3:32
  Speaker 1: That has started to dip down primarily because of the
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  Speaker 1: government shut down, the partial shutdown that we're in right now.
• 3:38
  Speaker 1: Will that have an impending issue with where Congress is
• 3:43
  Speaker 1: on trying to get this through all of that, and
• 3:45
  Speaker 1: then you layer in on this and of course that
• 3:48
  Speaker 1: is bitcoin's track on its longest losing streak in seven years,
• 3:52
  Speaker 1: and the sailing hasn't stopped. We're continuing to see this
• 3:55
  Speaker 1: down again. In February thirteen percent, if it closes red,
• 3:58
  Speaker 1: bitcoin will print five eight monthly losses, which is the
• 4:01
  Speaker 1: longest strick since twenty eighteen. So things are getting rough
• 4:06
  Speaker 1: out there for it, that's for sure. And I think
• 4:09
  Speaker 1: in general, when you look at bitcoin and where it
• 4:11
  Speaker 1: is right now, metaplanet is also facing some hits. Metaplanet
• 4:16
  Speaker 1: reported six or five million full year loss. This of
• 4:19
  Speaker 1: course discloses after bitcoin's price plunged to October highs firm
• 4:24
  Speaker 1: also paid an average one hundred and seven k per bitcoin,
• 4:27
  Speaker 1: quite a bit different than where Sailor has been in
• 4:30
  Speaker 1: the short term. If you look over at Sailor, I
• 4:33
  Speaker 1: was looking at this statement right here. Michael Sailor did
• 4:35
  Speaker 1: an interview CNBC talking about how low bitcoin could go
• 4:40
  Speaker 1: right now, especially to face off with where their loans are.
• 4:44
  Speaker 1: Eight k is the no fly zone for micro Strategy,
• 4:47
  Speaker 1: so I don't think there's any pressure there. If you
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  Speaker 1: scan down in the article, you can kind of see
• 4:52
  Speaker 1: where this converts are fully covered even after a pulldown
• 4:56
  Speaker 1: of eighty eight percent bitcoin price decline. It shows right
• 4:59
  Speaker 1: here bcoin reserve right around six billion. The net debt
• 5:02
  Speaker 1: currently also abound six billions, so that would set the
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  Speaker 1: price pretty low on bitcoin. For have any of parents
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  Speaker 1: on Michael Sailor and micro Strategy. Now, could micro Strategy
• 5:13
  Speaker 1: itself continue to fall?
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  Speaker 3: Sure?
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  Speaker 1: I think that's more indicative of where the rest of
• 5:17
  Speaker 1: the market is going. Key here is, I think, is
• 5:20
  Speaker 1: how far we're going to see crypto, primarily Bitcoin fall
• 5:24
  Speaker 1: before we see a market turnaround. One other note that
• 5:26
  Speaker 1: you have with Sailor, remember late last year when he
• 5:30
  Speaker 1: pulled in this debt. The term of that note was
• 5:34
  Speaker 1: over two years, So maybe he foresaw a little bit
• 5:37
  Speaker 1: of this market turmoil to happen and knew that it
• 5:40
  Speaker 1: just needed time to cycle through a lot of things,
• 5:44
  Speaker 1: indicating a modulation on where the market could go. Two
• 5:47
  Speaker 1: years is going to be a big window. It could
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  Speaker 1: get close to. I mean, if we do flow into
• 5:51
  Speaker 1: twenty twenty seven, even though a lot of people are
• 5:53
  Speaker 1: still pushing for recovery this year with a FED rate increase,
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  Speaker 1: we'll talk about that in a second, with a clarity act,
• 6:00
  Speaker 1: all that playing through, But what if neither of those happened?
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  Speaker 1: What would the rest of the market look like. That's
• 6:05
  Speaker 1: something to consider right there. Well, the MAG seven are
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  Speaker 1: already maybe giving us a little bit of an indicator
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  Speaker 1: if that actually does happen, because you've got almost every
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  Speaker 1: one of them can consistently down right now. When you
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  Speaker 1: look at the MAG seven on the twenty twenty six
• 6:22
  Speaker 1: returns here today, right now, you've got Nvidia down two,
• 6:26
  Speaker 1: But the big one right there is Microsoft down seventeen,
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  Speaker 1: Amazon down thirteen seven, on Taesla, Apple at five almost
• 6:33
  Speaker 1: six percent down. So this is definitely a rotation, moving
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  Speaker 1: into assets that make sense, the value products that are
• 6:43
  Speaker 1: out there. Now, I'm not saying that these are not,
• 6:45
  Speaker 1: but maybe the cycle of the aiplay has started to
• 6:49
  Speaker 1: infringe on some of these others. Now, I want to
• 6:51
  Speaker 1: go to a clip because this is where it gets
• 6:53
  Speaker 1: interesting around value stocks and how it might correlate to crypto.
• 6:58
  Speaker 1: Take a look.
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  Speaker 2: Yeah, the revenge of the value stocks. Yeah, I mean, yeah,
• 7:05
  Speaker 2: this really looks real. But this is something I think different.
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  Speaker 2: I really think that not that AI isn't great, but
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  Speaker 2: that AI is changing so rapidly it's very hard to know.
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  Speaker 2: You know, who's going to be the winner and the disruptor,
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  Speaker 2: and hey, who are the gainers? All those small stocks,
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  Speaker 2: value stocks that have only just begun to use AI
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  Speaker 2: to increase their productivity and their profit margins.
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  Speaker 1: The one point he gets out there, well, there's two obviously,
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  Speaker 1: the return of what we've seen around the Russell two thousand.
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  Speaker 1: If you look at the two thousand, it just broke
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  Speaker 1: the monster monster pattern. I'll zoom in on that for you.
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  Speaker 1: Right here is the breakout at around twenty four. So
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  Speaker 1: we're hovering in that range of twenty six hundred right now.
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  Speaker 1: So target is thirty three. If that does happen. The
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  Speaker 1: point he's going is there may be some companies that
• 8:02
  Speaker 1: are beneficiaries of where AI is going on. Other point
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  Speaker 1: is when you look at the crypto market, you're trying
• 8:10
  Speaker 1: to identify where the larger asset, the kind of the
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  Speaker 1: Russell two thousand, the top of the heap that would
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  Speaker 1: apply to AI, and most likely that's going to lead
• 8:20
  Speaker 1: to Ethereum. And if you look forward and say, okay,
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  Speaker 1: well they haven't really adopted all of that. When I
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  Speaker 1: say they meaning Ethereum's core ecosystem hasn't really adopted to that.
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  Speaker 1: It's kind of like the early stages of what we
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  Speaker 1: saw in the AI playing in the Mag seven. Could
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  Speaker 1: we see a breakout there? Well, this is where John
• 8:37
  Speaker 1: Gillen talks a little bit about how this could ignite ethereum.
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  Speaker 1: Take a look.
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  Speaker 4: A long time people were talking about the K shaped economy,
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  Speaker 4: how the MAG seven were leading, but the other four
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  Speaker 4: hundred and ninety socks in s and P five hundred
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  Speaker 4: we're flatlining. Now we're finally starting to see some of
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  Speaker 4: that rotation and this broadening out of the bull run,
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  Speaker 4: like the MAG seven have turned into the LAG seven
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  Speaker 4: and the Russell two thousand is breaking out, and it
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  Speaker 4: seems like it's likely to continue much higher. That is
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  Speaker 4: very bullish for the continued strength and breadth of the
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  Speaker 4: bull run here. The other thing I'll say about that
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  Speaker 4: specifically is that Ethereum tends to follow this chart of
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  Speaker 4: the Russell two thousand very tightly. So this is also
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  Speaker 4: bullish for the rest of the all coinspace. If those
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  Speaker 4: historical correlations hold, and if that breakout that we're seeing
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  Speaker 4: doesn't get rejected but does continue and is sustained, which
• 9:20
  Speaker 4: by the way, has been entire thesis of the Trump administration. Right,
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  Speaker 4: You're starting to see some of these things impact the
• 9:26
  Speaker 4: actual economy and play out, right like all of the
• 9:28
  Speaker 4: tax cuts, the incentives for capital expenditure, just all the
• 9:32
  Speaker 4: impacts of the big beautiful bill are starting to play out.
• 9:35
  Speaker 4: So the expectation is that will continue to see this acceleration.
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  Speaker 1: So as you can see there, the correlation has some uniqueness.
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  Speaker 1: You apply what could happen in the future of AI
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  Speaker 1: and blockchain, which has been kind of on an intersection
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  Speaker 1: point for quite some time, along with what the Trump
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  Speaker 1: administration is trying to do, then you get clarity all
• 9:54
  Speaker 1: that this does strengthen the position. I think overall for sure.
• 9:59
  Speaker 1: Other things that are happen around this are what we
• 10:02
  Speaker 1: get into neo finance, and this is kind of interesting
• 10:05
  Speaker 1: because there will be a new crop of companies that
• 10:07
  Speaker 1: come out of that. Here was a tweet talking about
• 10:09
  Speaker 1: the what they call the N seven index, which is
• 10:11
  Speaker 1: the Neobank neo finance era. You can kind of see
• 10:14
  Speaker 1: some of those in their Hype, Skysyrup, Ave, Morpho, Pendle,
• 10:18
  Speaker 1: and eat file. When you look at some of these,
• 10:21
  Speaker 1: I would argue that maybe there's some other opportunities. Sure,
• 10:24
  Speaker 1: Hype I would still hold in there, Ave, I like Morpho,
• 10:26
  Speaker 1: I like of those three, or when you have someone
• 10:29
  Speaker 1: like a black Rock jumping into UNISWAP and others. The
• 10:32
  Speaker 1: key here is is the value aspect of this, and
• 10:34
  Speaker 1: I think that is what is going to separate these.
• 10:37
  Speaker 1: That creates a good list to kind of keep an
• 10:39
  Speaker 1: eye on in the future. This was a breakdown in
• 10:42
  Speaker 1: this video right here that kind of breaks down what
• 10:46
  Speaker 1: Jupe is doing. So they're pausing the team emissions and
• 10:50
  Speaker 1: they're also postponing the Jubuary indefinitely. But all this boils
• 10:55
  Speaker 1: down to how are they going to be able to
• 10:57
  Speaker 1: give revenue share back to the holders, and I think
• 11:01
  Speaker 1: this again starts to separate these from many of the
• 11:03
  Speaker 1: others that are out there, and it's something we've been
• 11:06
  Speaker 1: talking about, is maybe we end up with like a
• 11:09
  Speaker 1: MAG thirty or a MAG twenty in crypto that kind
• 11:13
  Speaker 1: of correlates to this utility and or value package that
• 11:17
  Speaker 1: many of these projects are starting to represent. So some
• 11:20
  Speaker 1: mixed stuff to watch for sure. Other things Gray Scale,
• 11:23
  Speaker 1: of course is filing for an AVE ETF another reason
• 11:26
  Speaker 1: right there sparks institutional shift to a narrative that I
• 11:29
  Speaker 1: think has been brewing for some time, and the open
• 11:32
  Speaker 1: interest on AVE is definitely there, and I think AVE
• 11:36
  Speaker 1: in general, just with what they have been able to
• 11:38
  Speaker 1: do around user revenue share, this I think again just
• 11:44
  Speaker 1: creates a huge opportunity for AVE and it's still very
• 11:48
  Speaker 1: very suppressed as a token. So again one that we're
• 11:51
  Speaker 1: going to be watching. So when you look at the
• 11:54
  Speaker 1: value and utility of a lot of these projects, you
• 11:56
  Speaker 1: have to look at what the Trump administration is trying
• 11:59
  Speaker 1: to do, which they I think they in general understand
• 12:01
  Speaker 1: kind of the future. So they are literally throwing everything
• 12:05
  Speaker 1: they can at the economy to kind of take advantage
• 12:07
  Speaker 1: of this. Take a look at this clip.
• 12:09
  Speaker 3: So you're telling me that from this administration this is
• 12:11
  Speaker 3: kind of by design, maybe now going into this midterm
• 12:14
  Speaker 3: election year as well, right, Like, this seems like this
• 12:17
  Speaker 3: is very intentional in some way.
• 12:20
  Speaker 4: They are trying to kitchen sink the economy to get
• 12:23
  Speaker 4: both the economy and the markets to accelerate. Economic acceleration
• 12:27
  Speaker 4: means that there's a broadening out of the bull run
• 12:29
  Speaker 4: and that mainStreet is participating in the growth that the
• 12:32
  Speaker 4: United States is experiencing. Keeping the markets at high valuations
• 12:35
  Speaker 4: as well also makes people feel wealthier and they experience
• 12:40
  Speaker 4: more wealth and like you know, speculators and the rich
• 12:42
  Speaker 4: people who own all the assets in the country also
• 12:44
  Speaker 4: feel like they're doing well. So they're trying to bounce
• 12:47
  Speaker 4: between these things and make sure that both of them
• 12:48
  Speaker 4: stay strong through the end of the year.
• 12:50
  Speaker 1: Maybe he is right on this. One thing that could
• 12:53
  Speaker 1: possibly add to this other than market clarity, will be
• 12:56
  Speaker 1: of course, a new FED chair, and that will be
• 12:59
  Speaker 1: Kevin Walsh. The key here is is they have already
• 13:01
  Speaker 1: started to accelerate the hearings to possibly get him into
• 13:05
  Speaker 1: position much faster. So I mean pals out in May.
• 13:08
  Speaker 1: Does Warsh come in in June and we see him
• 13:11
  Speaker 1: in the June FMC meeting. Possibly, maybe that's the first
• 13:15
  Speaker 1: cut that many people are looking at. One other point
• 13:18
  Speaker 1: to take a look at right here, of course, is
• 13:21
  Speaker 1: the injection of the FED itself, which is another sixteen
• 13:24
  Speaker 1: bill over the next little bit we're talking about just
• 13:27
  Speaker 1: the next few days. That could be another sign hopefully
• 13:32
  Speaker 1: that we will continue to see a little bit more
• 13:33
  Speaker 1: stimulus into the economy. Harvard of course also shifted away
• 13:37
  Speaker 1: from bitcoin and into eth another signal right there that
• 13:40
  Speaker 1: people are starting to rotate a bit. Will this continue
• 13:44
  Speaker 1: to push bitcoin down? Is the question? Overall. One thing
• 13:48
  Speaker 1: to remember is Nexto is back in the US. Remember
• 13:51
  Speaker 1: if you don't remember, back in the previous bull runs
• 13:54
  Speaker 1: twenty one, Nexto was one of those that really leveraged
• 13:58
  Speaker 1: into the system. They're going to be launching available products
• 14:02
  Speaker 1: here in the US which will start to go into
• 14:05
  Speaker 1: fixed term yield programs, crypto back credit lines, which I
• 14:08
  Speaker 1: think will be the big one to watch. And then
• 14:10
  Speaker 1: of course what you'll see here with their loyalty programs.
• 14:13
  Speaker 1: All of that along with other things that I think
• 14:16
  Speaker 1: will correlate to where some of these neo services will
• 14:19
  Speaker 1: be available, another reason it could be amplifying the system.
• 14:23
  Speaker 1: Last up here is SBI's nine ten billion in XRP holdings,
• 14:28
  Speaker 1: claiming that they're in the company of Ripple, not the
• 14:31
  Speaker 1: XRP steak. This of course is big because it does
• 14:34
  Speaker 1: have a nine percent stake in Ripple Labs, which is huge.
• 14:38
  Speaker 1: The value position that they're looking at is Ripple. If
• 14:41
  Speaker 1: you just correlate that to anything else in the market,
• 14:44
  Speaker 1: look for projects that start to generate more value. This
• 14:47
  Speaker 1: is why I think you're starting to see moves like this,
• 14:49
  Speaker 1: which was Standard Charter cutting its XRP targets by sixty
• 14:53
  Speaker 1: five percent. They slashed it from two to eighty or
• 14:56
  Speaker 1: down to two eighty from an eight dollars target. So
• 14:58
  Speaker 1: that was a pretty big move. Now, I don't know
• 14:59
  Speaker 1: if it it's necessarily the SBI thing, but they cited
• 15:02
  Speaker 1: that it was ETF outflows macrohead wins that we continue
• 15:05
  Speaker 1: to see and then of course near term downside, which
• 15:09
  Speaker 1: may be the case for all assets. We may see
• 15:11
  Speaker 1: Bitcoin at a low, we may see ethereum at a low.
• 15:14
  Speaker 1: I mean, we even talked about Tom Lee that has
• 15:17
  Speaker 1: kind of pointed at that direction. For Ethereum, that there
• 15:19
  Speaker 1: is a possibility where they could deploy a lot of
• 15:23
  Speaker 1: capital at a new floor. Many people consider that maybe
• 15:28
  Speaker 1: down in below what we have seen as lows around Ethereum,
• 15:33
  Speaker 1: maybe over the past bull run. So this is something
• 15:35
  Speaker 1: we're going to keep a close sie on. Guys, there's
• 15:37
  Speaker 1: a lot happening this week that you definitely want to
• 15:39
  Speaker 1: subscribe and do that right now, but we will keep
• 15:42
  Speaker 1: you up to date. If you like this video, like
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• 15:56
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