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Trump Fires Fed Chair?🔥Crypto Market Update · The Paul Barron Crypto Show

0:00
Speaker 1: All right, let's dive in today and take a look
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Speaker 1: at what Trump is doing with the FED. This does
0:05
Speaker 1: play into crypto. I'll break it all down for you.
0:06
Speaker 1: My name is Paul Barren. Welcome back into the show.
0:08
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Speaker 1: ahead and get started. All right, so everybody understands that
0:51
Speaker 1: this is the first I guess true firing of President
0:55
Speaker 1: Trump and the administration for a FED governor, of course,
1:00
Speaker 1: is to Lisa Cook, and Lisa Cook is.
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Speaker 2: One of the Board of Governor's members.
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Speaker 1: This of course was the actual firing, and Donald Trump
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Speaker 1: himself signed it as an executive power of the US
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Speaker 1: and is now pushing to get a governor out.
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Speaker 2: If you look at the statement.
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Speaker 1: Here, Lisa Cook says President Trump has no authority to
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Speaker 1: fire her, and she's going to go ahead and carry
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Speaker 1: out the duties. Then you can take a little bit further.
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Speaker 1: And people are saying, all right, the drama gets a
1:30
Speaker 1: little bit further because now Trump signed.
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Speaker 2: The order, and now we're dealing with.
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Speaker 1: Kind of a compilation of past FED participants that also
1:40
Speaker 1: were also put up against an issue like this, And
1:43
Speaker 1: if you look at where that came from. In twenty
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Speaker 1: twenty one, it was Dallas Fed Kaplan suspicious stock trades,
1:50
Speaker 1: he resigned, Boston FED resigns that was in twenty one,
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Speaker 1: twenty two, Clardia he resigned for mostly suspicion stock trades.
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Speaker 1: And now, of course Lisa Cook is vowing to stay on.
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Speaker 1: So I don't know if this is a bad thing
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Speaker 1: or the fact that any time a FED chair has
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Speaker 1: some of these nefarious issues that are brought up, because
2:12
Speaker 1: apparently I don't think they were wrong and anything. They
2:16
Speaker 1: just were apparently alleged suspicion and then they resigned their position.
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Speaker 1: So what this means is that it is now pulling
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Speaker 1: down a very unique board of governors and what this
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Speaker 1: will look like because you've got Michelle Bowman, Christopher Waller,
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Speaker 1: Stephen Mirron, all of which have been appointed by Trump.
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Speaker 1: Most likely this is to lay in the potential of
2:38
Speaker 1: controlling the Fed's fund rate, and that, of course is
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Speaker 1: what starts to affect markets in a big way. So
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Speaker 1: if they get this position either as a resignation, they'll
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Speaker 1: control the board. I say they what President Trump has
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Speaker 1: been trying to do, which has been getting the FED
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Speaker 1: to lower interest rates.
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Speaker 2: I think the.
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Speaker 1: FED may end up being kind of pushed into this anyway,
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Speaker 1: because of what we're dealing with, you know, really the
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Speaker 1: two mandates, which is keep employment of full employment and
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Speaker 1: then of course, you know, try to get as close
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Speaker 1: to inflation as possible. And Jim Bianco kind of hits
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Speaker 1: on something that is interesting here is that if she
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Speaker 1: refuses to leave, it does put the FED in a
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Speaker 1: difficult position. I don't know that this plays into it,
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Speaker 1: but if a court were ever to come into I
3:29
Speaker 1: know this is a theoretical but if Court were ever
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Speaker 1: to come in and say, yeah, we could have fired her,
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Speaker 1: everything that she was doing past that firing letter could
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Speaker 1: end up going back on the FED in some way.
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Speaker 1: This is going to get pretty nasty pretty quick as
3:41
Speaker 1: we start to see this play out.
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Speaker 2: I want to go to a clip real quick.
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Speaker 1: Because this again, this all affects crypto in the sense
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Speaker 1: of where these interest rates are going to be going,
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Speaker 1: but more importantly, how the administration continues to embrace digital assets. Now,
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Speaker 1: this next clip will get into the point of whether
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Speaker 1: or not Chair Powell will actually back her.
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Speaker 2: Take a look.
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Speaker 3: Do you think Powell will come out in publicly back up.
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Speaker 3: I don't know. I think that the FED chair may
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Speaker 3: want to just sort of sit on the sidelines of this.
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Speaker 3: I think other members of the board, I think, will
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Speaker 3: back her in a sense of saying we need to
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Speaker 3: have a fact finding on this, and there is none
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Speaker 3: so far as where other FED officials targeted. I asked
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Speaker 3: the extent to which other people have been referred to
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Speaker 3: criminal prosecution if this is and how widespread this is? So,
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Speaker 3: I don't know.
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Speaker 4: You can hold and I think we've talked about this.
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Speaker 4: You can hold in your mind that she may have
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Speaker 4: done something inappropriate, incorrect, possibly illegal, we don't know, and
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Speaker 4: believe that she's being prosecuted for political purposes.
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Speaker 3: I think that's fair, absolute okay.
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Speaker 4: If what she did was an innoctant mistake. So I'm
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Speaker 4: just going on that side. First, I'm surprised that she
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Speaker 4: hasn't come out more publicly and said, look, this is
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Speaker 4: what happened. This is the story, and I'm sticking to it.
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Speaker 4: Why do you think she hasn't done that.
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Speaker 3: It may be her contention that the allegations are not
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Speaker 3: relevant to the question at hand, which is the authority
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Speaker 3: of the president to fire her as a governor.
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Speaker 2: All right, So I don't know about that.
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Speaker 1: What I do understand where Sorkin was going with that
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Speaker 1: is that if there is a bad actor in play here,
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Speaker 1: the typically you're going to do one thing, and that
5:41
Speaker 1: is you're going to lay you up, and that is
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Speaker 1: what she has done.
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Speaker 2: She of course has now hired a.
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Speaker 1: Lowell who also represented guess who under Biden.
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Speaker 2: So this I know this.
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Speaker 1: Is lawfair, but it does kind of get a little
5:56
Speaker 1: bit more nasty. I think it's going to happen on
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Speaker 1: both sides. It clearly has been, so that in itself
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Speaker 1: I think does put a lot of pressure on the
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Speaker 1: Fed Jerome Powell if he allows Lisa Cook in the
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Speaker 1: building tomorrow after a duly elected president coming. And this
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Speaker 1: comes from fishback man, this guy's in going in on everything.
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Speaker 1: He's complicit. He must stay neutral. This guy is a pundit.
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Speaker 1: I don't necessarily believe that he has any position on this,
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Speaker 1: so I don't even know if that's the case. I
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Speaker 1: think this would be more of an optic situation rather
6:26
Speaker 1: than complicit. It would be an optics issue for Chair
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Speaker 1: Powell to try to get in the middle of this,
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Speaker 1: because what if she is guilty or what if she
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Speaker 1: is not? You know, so it's not really up to
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Speaker 1: them to decide that. But I think this is what
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Speaker 1: we're faced with right now. But what it will do
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Speaker 1: is it's going to get down to a point of
6:48
Speaker 1: when September rolls around here, we're going to get a
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Speaker 1: governor vote on how to deal with rate increase, decrease
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Speaker 1: or holding all right, So I think this is going
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Speaker 1: to play most likely, I think we're still on course
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Speaker 1: right now for a rate cut, primarily because of what
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Speaker 1: shairpal said, and really what it boils down to is
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Speaker 1: the issue that the Chair is facing right now, and
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Speaker 1: that is data that's coming in on the jobs numbers.
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Speaker 2: It's pureor and simple.
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Speaker 1: The jobs are going to be the issue that the
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Speaker 1: FED is going to have to deal with, and we
7:20
Speaker 1: are going to be cutting rates into higher inflation, which
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Speaker 1: is going to be a stagflation issue. The only way
7:25
Speaker 1: to avoid what is about to hit us now from
7:28
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8:02
Speaker 1: Now I want to go over to another big news
8:04
Speaker 1: item right here, and this, of course is Donald Trump
8:06
Speaker 1: Junior pleas to announce that my fund, seventeen eighty nine
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Speaker 1: Capital has now invested in poly Market, and that will
8:13
Speaker 1: be he's going to be joining the team as a
8:15
Speaker 1: strategic advisor. Prediction markets have completely changed the way people
8:18
Speaker 1: follow news.
8:19
Speaker 2: I agree with this.
8:20
Speaker 1: We're going to see a very interesting playout now, especially
8:24
Speaker 1: as Polymarket now has Trump money inside.
8:29
Speaker 2: What's happening over there, Let's go over to ether real quick.
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Speaker 1: This is, of course, is Tom Lee, which I think
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Speaker 1: should be the number one evangelist for Ethereum right now.
8:37
Speaker 1: I guess he's the Michael Saylor of it. But what
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Speaker 1: he's referencing here as a guy by the name of
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Speaker 1: Mark Newton, who is a trader that essentially has called
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Speaker 1: a couple of very unique points. But at the same time,
8:48
Speaker 1: you have to kind of think about how much influenced
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Speaker 1: Tom now has on the ethereum market, which I think
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Speaker 1: he has quite a bit. He's also kind of cause
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Speaker 1: or influenced I think a lot of these dat companies
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Speaker 1: to kind of come out of the wood works, and
9:00
Speaker 1: we're now starting to see so many more of those.
9:02
Speaker 1: But this was an interesting point is this trader called
9:06
Speaker 1: what right now was the previous bottom for eth now,
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Speaker 1: what he's saying is that this new bottom is going
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Speaker 1: to land in somewhere around forty three hundred and could
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Speaker 1: skyrocket back up to around fifty one hundred and possibly
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Speaker 1: around fifty four to fifty four to fifty.
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Speaker 2: That would be a big correction.
9:23
Speaker 1: If you look at that chart right there, this is
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Speaker 1: the area of zone that we're dealing with. And if
9:27
Speaker 1: you go over and look at the actual data on
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Speaker 1: trading view, right now, we are in that pattern of
9:34
Speaker 1: ethereum bouncing off of that forty one hundred or excuse me,
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Speaker 1: forty three hundred point. And I think this is interesting
9:41
Speaker 1: because it starts to kind of make you wonder whether
9:45
Speaker 1: or not Tom Lee is now one of the key
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Speaker 1: guiders of where the ethereum market is going, much like
9:51
Speaker 1: what Sailor has been able to do with bitcoin. Speaking
9:55
Speaker 1: of bitcoin, bitcoin OG's now are depositing quite a bit
9:58
Speaker 1: of money out there on other platforms. That of course
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Speaker 1: means that they're moving in to purchase ethereum, and that
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Speaker 1: is a big deal because if this is a transition
10:08
Speaker 1: that we've been talking about for quite some time, is
10:11
Speaker 1: this what we see as the catalyst for ethereum, which,
10:14
Speaker 1: as you guys know, rolls over into all coins and
10:17
Speaker 1: that's when we start to see the market really get juicy.
10:20
Speaker 1: And this is where we are right now. So if
10:23
Speaker 1: you guys are not glued to your set, you should be.
10:25
Speaker 1: One of the things to consider though around Tom's performance
10:29
Speaker 1: predictions is whether or not he's been too early because
10:33
Speaker 1: he was very early on bitcoin and a very big
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Speaker 1: evangelist of bitcoin. Is he in that same kind of
10:41
Speaker 1: position right now with Etheroreum. I think that is something
10:44
Speaker 1: to consider. And you know, listen, it's tough because when
10:47
Speaker 1: you're close to a particular area of an industry at
10:51
Speaker 1: tech and all that, I've been in that role before,
10:55
Speaker 1: and you see the potential and it automatically gets you
10:59
Speaker 1: so juiced up on it. I mean, you really think
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Speaker 1: this is where the market is going. But the problem
11:03
Speaker 1: is a lot of times it takes years for that
11:06
Speaker 1: market to truly catch up, and that I think is
11:08
Speaker 1: the question mark. Have we reached that right now with Ethereum?
11:12
Speaker 1: Are we in a position where yeah, there's a lot
11:15
Speaker 1: of you know, movement and a lot of energy, but
11:18
Speaker 1: is it really going to take us to a blowoff
11:21
Speaker 1: top for Ethereum, because otherwise right now we are just
11:24
Speaker 1: floating around last cycles all time high and that's pretty
11:28
Speaker 1: much it. So if Ethereum is going to perform, it's
11:31
Speaker 1: going to take.
11:31
Speaker 2: A lot more.
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Speaker 1: Some of the things that will help it, of course,
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Speaker 1: is with what we're seeing right here with the dat companies,
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Speaker 1: which is the digital asset treasury companies. Sharplink acquired another
11:41
Speaker 1: fifty six thousand in ether and right around forty four hundred,
11:45
Speaker 1: so continuing to do kind of Michael Saylor moves with Ethereum,
11:49
Speaker 1: this gets big because now we're talking about three hundred
11:51
Speaker 1: and sixty point nine million in net proceeds were raised
11:55
Speaker 1: now through a new facility just in the past week.
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Speaker 1: Tells us there's a lot a lot more money coming in.
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Speaker 1: And maybe this is just the beginning that's where we
12:04
Speaker 1: could see Ethereum really take off. So maybe we aren't
12:08
Speaker 1: too early and maybe this is the time. So we're
12:12
Speaker 1: keeping a close eye on these deck companies. I think
12:14
Speaker 1: they're going to have a lot of validity on how
12:17
Speaker 1: the markets go. The other thing that we'll play into
12:20
Speaker 1: whether or not this is a early trend or not,
12:23
Speaker 1: is how traditional finance plays into this. And here's a
12:26
Speaker 1: good example. Apple's stock is showing signs of life. Okay,
12:31
Speaker 1: after struggling through most of twenty twenty five. A lot
12:34
Speaker 1: of this was terrorf related companies kind of trying.
12:37
Speaker 2: To get back in it.
12:38
Speaker 1: But what's happening now is are traders really willing to
12:43
Speaker 1: go in on the mag seven when they have this
12:45
Speaker 1: you know, kind of not sure, wait and see.
12:47
Speaker 2: I don't know if Apple's going to make it.
12:49
Speaker 1: Again, Versus going in on digital asset markets now where
12:54
Speaker 1: they think there's going to be a lot more upside.
12:56
Speaker 2: I want to go to a clip real quick.
12:58
Speaker 1: That kind of gives you an e versus Apple analysis.
13:02
Speaker 2: Take a look.
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Speaker 5: Yeah, I think rather than listening to this earnings and
13:06
Speaker 5: finding out how many fewer iPhones they sold in the
13:09
Speaker 5: past quarter versus the previous one, what really is going
13:11
Speaker 5: to matter for Apple shareholders in the near term is
13:14
Speaker 5: that any day now a judge is going to deliver
13:16
Speaker 5: a ruling on whether Google gets to keep paying them
13:19
Speaker 5: to be the dominant search Just that one payment alone
13:22
Speaker 5: represents something like ten percent of Apple's earnings. But to me,
13:25
Speaker 5: if I'm Apple and I really want to free ride
13:27
Speaker 5: on what the momentum is right now. I'm not necessarily
13:30
Speaker 5: chasing AI. I'm looking at what's been happening in stable coins,
13:33
Speaker 5: in fintech, and looking at the fact that two billion
13:35
Speaker 5: people are walking around right now with my devices in
13:38
Speaker 5: their pocket, and maybe figuring out a way to tap
13:40
Speaker 5: into some of the money they've spent on things like
13:42
Speaker 5: Apple Pay Later and others to add in those additional
13:45
Speaker 5: fintech features. That would just be a thing to bridge
13:48
Speaker 5: that gap until people are really ready to upgrade for
13:50
Speaker 5: those AI features. Because if you were able to really
13:53
Speaker 5: tap into the Apple wallet a little bit more, that
13:56
Speaker 5: goes to the services revenue, and that buys you time
13:58
Speaker 5: for people to stop questioning whether they should continue to
14:01
Speaker 5: hold their share.
14:02
Speaker 1: All right, all right, So I mean he made some
14:04
Speaker 1: really good analysis there.
14:05
Speaker 2: I've talked about this a lot.
14:07
Speaker 1: Is that I believe that the only way Apple saves
14:10
Speaker 1: their company, Yeah, that's right, saves their company is to
14:14
Speaker 1: embrace web three, embrace stable coins, and embrace digital assets.
14:19
Speaker 1: I don't know that Tim Cook has it in him.
14:21
Speaker 1: So if you're looking at this cycle, I think Apple
14:24
Speaker 1: continues to be challenged. Maybe they get forced into this
14:27
Speaker 1: because of some other platforms that maybe go this direction,
14:31
Speaker 1: but right now, that would be a huge left turn
14:34
Speaker 1: for Apple.
14:35
Speaker 2: If it did occur, I'd be all in on Apple stock.
14:38
Speaker 1: But I think the better trade right now, of course,
14:40
Speaker 1: is going to be some of the leading assets out there,
14:42
Speaker 1: ether of which is the one I'm very close to
14:45
Speaker 1: and watching in comparison to traditional markets. So if you
14:49
Speaker 1: guys are not part of the Diamond Circle, make sure
14:51
Speaker 1: and get in on that.
14:53
Speaker 2: We have big news.
14:54
Speaker 1: We're actually launching it tomorrow. I'll give you a sneak peek.
14:57
Speaker 1: We'll have a new website that will be launching a
15:00
Speaker 1: Wednesday this week. It's got a brand new Diamond Circle.
15:03
Speaker 1: I'll explain all that for you guys. But you can
15:05
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15:10
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