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The $7 Trillion Moving To Bitcoin No One Is Talking About | Bitcoin Simply · Simply Bitcoin

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There hasn't been much up in October.
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In fact, Bitcoin is on track for its worst month in October in
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seven years. But but there are three bullish
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catalysts on the horizon between now and the end of the year.
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The White House confirms that there's a good chance that the
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crypto structure market bill will pass.
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And there's analysts out there breaking down charts showing the
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gold coin is paving the way like a full back on a power in the I
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formation. And the largest catalyst that no
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one's talking about, a $7 trillion wave of capital.
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Today, we're going to focus on what happens when that $7
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trillion of capital flows into Bitcoin.
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And as always, we're going to keep it spicy.
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This is Dante Coco. Bitcoin simply, let's go.
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Although things feel relatively good with Bitcoin at 111 K right
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now, Bitcoin has been in a choppy malaise.
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But billionaire Mike Novogratz says that he believes that
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there's a catalyst on the horizon.
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The crypto story. Our government continued to
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spend way more money than they should.
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And I think as long as the debasement of Fiat currencies
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goes on, crypto is going to be seen and Bitcoin is going to be
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seen. But you know, we're in a rangy
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softer range right now. And I, you know, I don't, I
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don't see what changes that there's a bill in DC that needs
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to get passed hopefully in the next six weeks.
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If that does, I think that'll give crypto a real jolt to the
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upside that and as we get closer and every day we wake up is one
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day closer to the Fed governor transition.
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And you know, my base case is still we get a much more dovish,
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malleable Fed governor than we've had in the past.
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This is not only echoed by him, but others on Capitol Hill like
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David Sachs, the crypto czar himself.
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And not only David Sachs, but others like Cynthia Lummis and
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Brian Armstrong, the CEO of Coinbase.
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Yeah, well. We had great meetings with the
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Democrats on in the Senate and on the Republican side today.
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And the good news is that there is strong bipartisan support and
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will to get this market structure legislation done.
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It's important for America and then the 50 million Americans
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who've used crypto want to see it get done.
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And so one date we heard floated was let's try to get this markup
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done before Thanksgiving. I think that there's 90% of the
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issues are already aligned on and agreed and there's draft
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text going back and forth. A lot of great cross functional
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collaboration happening there. That last 10% are the remaining
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issues and everyone committed to get in the room together and
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work it out. And hopefully we'll see some
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draft text or I get it out of committee by Thanksgiving.
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But the second catalyst for Bitcoin between now and the end
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of the year isn't political. It's analytical.
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Bitcoin follows gold. Check out this chart produced by
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Smithson with he has two plots on the top and the bottom of the
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chart for both Bitcoin and gold showing when they're overvalued
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and undervalued. He's showing the 200 day moving
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average bear markets and bull markets for each asset class.
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But one of the interesting things that he did is he
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connected the arrows from when gold's bull market ends to when
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bitcoins bull market begins. And he also shows the
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approximate back between those two scenarios.
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And what you see is what we talk about on the show all the time
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when Gold runs Bitcoin sprints. And he's not the only analyst
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who believes this. And he's joined by some of the
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greatest minds out there, like Tom Lee and his recent podcast
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with Anthony Pompliano, Gold. Is moves 1st and then Bitcoin
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catches up. So I think that there is going
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to be the network value of gold just went up by a lot.
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And so let's say gold settles at 5000, that puts fair value of
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Bitcoin, you know like 1-6 to 2,000,000 if it matches gold's
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network value. So I think it's actually helping
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Bitcoin's future terminal price, so.
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You think that if gold settles at 5000 Bitcoin, you know you
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take the gold market cap divided by the number of Bitcoin then
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you get 1.6 to $2,000,000 per coin.
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What's the time frame for us to get there?
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Well, I mean, I can see that in five years for Bitcoin.
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So I think years, yeah. Yeah, I think Bitcoin.
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Yeah, I think Bitcoin. Bitcoin doesn't get capped by
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gold. It actually gets pulled up by
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gold because it's growing the monetary base, right?
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So gold is not competitive to Bitcoin.
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In his view, the value of gold is relative to the actual value
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of Bitcoin. So when the value of gold
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increases, it increases the floor of Bitcoin, especially in
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the minds of institutions who are now recommending that you
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should have a bit of gold and a bit of Bitcoin in your
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portfolio. So when the price of gold rises
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from 30 trillion to 35 trillion and 40 trillion, well, that
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increases the terminal value of Bitcoin in the long term.
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And he believes that this isn't the only bullish catalyst.
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Listen to what Tom Lee is bullish between now and the end
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of the year. This year gold's up 60 ish
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percent, bitcoins up 18 to 20% depending on the day.
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Do you think that on December 31st of 2025 we'll actually look
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back and could Bitcoin have outperformed gold in 2025 even
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though it has such a big lead right now?
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Yeah. I mean, we have a lot of time.
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We've we have 10 weeks as you know, Bitcoin makes its move in
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10 days a year. So are Bitcoins best days in the
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fourth quarter probably because we have catalysts, the feds
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easing, we have a shutdown that's been risk off.
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We have China, US tensions that like every time there's a
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headline on China, like Bitcoin takes a gut punch, right,
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because it is money flows and deleveraging.
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So that goes away. We have seasonality that favors
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stocks moving up and stocks moving helps Bitcoin.
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So to me, the chances of Bitcoin having a huge fourth quarter are
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really high, and not all of these would be tailwinds for
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golds. At the end of this year, I
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believe that Bitcoin will come in clutch like Steph coming in
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clutch at the end of the game versus the Nuggets last night.
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This dude is timeless. 2000 years later all.
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Right enough sports on to the largest catalyst for Bitcoin
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between now and the end of the year that nobody's talking about
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it's quite frankly the largest pot of money in the world right
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now that isn't currently allocated to growth assets and
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that is the $7.4 trillion parked in money market funds.
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This capital isn't in stocks, it isn't in gold, it isn't in real
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estate. It's collecting A4 to 5% premium
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from United States Treasuries right now.
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And so as the Fed begins to lower rates, while this money
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isn't going to sit idle, it's going to look for growth assets
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to invest in. It's going to kick off one of
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the largest reallocation events in the history of finance.
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When the Fed cuts rates, it's going to flow into the Mac 7
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stocks and now have AI built into the growth trajectory.
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And when the NASDAQ runs, when the S&P 500 runs, well, that's
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bullish for Bitcoin. More liquidity is going to flow
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into the system and algos are going to algo.
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When the Fed cuts rates, well, money's going to try to flow
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back into real estate, but I think it's not going to flow
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into real estate as much as it has in the in the past.
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And here's why real estate is facing a crisis moment of
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unaffordability. The people who are able to buy
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homes are unable to afford homes and their income isn't rising as
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fast as rental rates or property taxes and property expenses for
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owners. Therefore, the return profile
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for real estate isn't as good as it was before.
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New homes are unaffordable for the bottom of the market and
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boomers ain't selling their homes because that's where their
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equity lies. And people who are in the middle
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parts of their lives with families like me aren't trading
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their low interest rates from COVID to trade down in terms of
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homes because the interest rates are still higher than when they
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were in COVID. So this means real estate's not
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likely to catch a major bid like it has in the past.
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So what stands to benefit? Well, we've already seen assets
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flow into gold as there's somehow been a new bidder, a new
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buyer in the gold market. I think these assets are going
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to flow into Bitcoin in crypto at large.
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An analyst on Twitter, Shanaka Pereira, breaks this down.
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In 1998, one point, $3 trillion of money market funds flowed
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into the tech bubble. When the Fed cut rates in 2003,
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it was 2.1 trillion which flowed into the housing market.
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In 2009, it was 3.8 trillion in money market funds which funded
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the everything rally where everything went up and everyone
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got wealthy. In 2025.
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Now that rate is almost doubled. There's $7.4 trillion in money
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market funds. So when the Fed cuts rates,
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where do you think the new beneficiaries are going to be?
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What are the new asset classes that are going to get bit up in
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his mind? If 5% or 370 billion rotates in
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a Bitcoin, we will see prices of 280 K Bitcoin to 350K Bitcoin.
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If 10% rotates, well, we'll see 550K Bitcoin to 700 K Bitcoin.
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If 15% rotates, well, we're going to see $1,000,000 coin and
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we're going straight to the moon.
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And when that happens, you're not going to want to sell your
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Bitcoin. Yeah.
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And when that happens, we might see a frenzy that we haven't
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seen in any past cycle because now we have the institutions in
8:36
the big boys playing. But before we go any further in
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slash simply to get started. All right, let's get back to the
9:30
show. In the midst of all the
9:31
bullishness about Bitcoin, you still have people out there that
9:34
that are going to lead you astray.
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They're going to say, well, don't invest into this new
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thing, invest into this old thing like gold.
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But when gold crashed 5.7% earlier this week, the largest
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crash that it had since 2013, no one called gold too volatile.
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Silver crashed 9% on the same day.
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They both wiped out $3 trillion worth of value in a single 24
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hour period. Yet no CNBC articles came out
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saying This is why we can't have people invest into gold and
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silver. Ironic.
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Peter Schiff, the loudest voice whenever Bitcoin goes down a few
10:05
percentage points, didn't talk about that at all.
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Instead, he decided that he wanted to take the moment to
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promote a gold tokenized coin, the Shift coin.
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So you might as well just have tokenized gold and have
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something that's stable to the price of gold, because that's
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real stability, because gold will maintain its purchasing
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power. So ideally the one thing that
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makes sense to put on a blockchain is gold because it
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will work and it will do all the things that Bitcoin promises but
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can never do. You can use tokenized gold as a
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medium of exchange, as a unit of account, as a store value.
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And I probably will look, I mean I, I, I'm probably going to
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launch my own token at some point.
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I'm, I'm building, I'm building out a platform on on shift gold
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right now that people will be able to buy gold.
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In fact, you know, they'll be able to buy.
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I don't want to start promoting it yet 'cause I'm trying to get
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it all like a quick. Give a quick right now.
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No, but well, so you can buy gold at Shift Gold right on, on
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an app on your phone. We won't send you the actual
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gold. The gold will be stored in a
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vault that you own and you have it.
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And you'll be able to transfer ownership of that gold to other
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people, you know, through the app.
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And you could use it, you know, as a meat of exchange.
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You can pay or be paid in gold instantly and you can redeem it
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in physical gold or eventually you can redeem it in a token.
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I'm also going to give people a debit card where if they have
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$5000 worth of gold or silver and they take that debit card
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and they buy something for $10, $10 worth of gold will get sold
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to cover the transaction. This dude was gassing up Peter
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deliberately and he didn't even notice.
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This is the dumbest idea of all time and no gold coin that has
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ever been launched has ever worked.
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You don't have enough razors in the world to cut off $10 worth
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of gold from your gold bars. Gillette would sue you, and even
11:57
though it's no Shave November coming up, the wives around the
11:59
world would not have it. Secondly, who's buying $10 worth
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of gold? Nobody.
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Exchanges don't even let you buy $10 worth of gold because
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there's no way that they could possibly secure, sell, store, or
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manage a transaction that small in gold bullion.
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You're literally writing this on paper and you're building
12:15
another trust me bro system that will never work.
12:18
It's the reason why we moved off a gold back system in 1971 in
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the 1st place. A gold based system matched with
12:24
a credit based system does not align good for us.
12:26
We have a real time network that settles instantly, that's
12:29
available and freely usable by anyone across the globe, that's
12:32
being made even more available by these companies that are
12:35
allowing you to use the Bitcoin rails via Lightning or Bitcoin
12:38
Chang in just an API. And the good thing about Bitcoin
12:41
is you can always verify that it's there.
12:43
You don't have to trust somebody like Peter Schiff in Puerto Rico
12:46
or the Cayman Islands to tell you that you own that amount of
12:49
Bitcoin. And This is why we partner with
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13:01
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13:04
Go to thebitcoinway.com/simply Bitcoin to get started.
13:07
And nobody can explain to me who Satoshi was, the creator of
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Bitcoin, this mysterious guy who apparently died, but nobody
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knows who he was. You know, I grew up in DC,
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primarily in a government family.
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So CIA, that's my guess. Can't prove it.
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But like, you're telling me to invest in something whose
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founder is like mysterious and has billions of dollars of
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unused Bitcoin. Like, what is that?
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And no one can answer the question, including some of the
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biggest holders of Bitcoin in the world.
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Do I know personally they're like, oh, it doesn't matter what
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matters to me, right? There's lots of fun out there.
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People like Tucker Carlson say he won't buy Bitcoin because
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it's created by the CIA. Interesting.
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Unlike most things created by the government, Bitcoin, even if
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it was created by the CIA, which I highly doubt, can be audited.
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You can view the code for yourself.
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It's open source technology that anyone can refute and not choose
13:59
to use if they don't want to. Therefore, it doesn't matter if
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the CIA created Bitcoin, which they didn't.
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The CIA doesn't deny the mathematical truth and the
14:07
source code of Bitcoin. Bitcoin can be verified and it's
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being woven into the entire fabric of the system.
14:12
It's even being embedded into the culture, the culture of star
14:15
celebrities and NBA players like John Moran.
14:18
Bitcoin will become a way of life and it will be the backbone
14:21
of the system. Even a Federal Reserve chair,
14:24
Governor Christopher Wallin, said this himself.
14:27
This is an acknowledgement the distributed ledgers and crypto
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assets are no longer on the fringes, but are increasingly
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woven into the fabric of the payment and financial.
14:36
System the choice is yours either you choose to believe in
14:40
gold tokenized products. You choose to believe that we
14:42
will continue chopping sideways or forever or you can invest and
14:46
invest confidently. It's up to you, but we know what
14:48
we're doing here on this show. This is dot to coke with Bitcoin
14:50
simply and if you haven't already gotten your tickets down
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to the mining disrupt conference it's coming up soon.
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It's happening from November 11th through November 13th in
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off. Like and share this show if you
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haven't already done so and subscribe to the channel.
15:17
Have a great weekend. Wow.