Latest / The Paul Barron Crypto Show / Three Rate Cuts Now Likely📈Crypto Market Update

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Three Rate Cuts Now Likely📈Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's dive into it today. Three rate cuts could be
• 0:02
  Speaker 1: in an order. We're going to break it down for you.
• 0:04
  Speaker 1: My name is Smaul Barren. Welcome back into the show.
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• 1:09
  Speaker 1: Let's go over into the key States statements today, and
• 1:12
  Speaker 1: of course that is the FED is about to join
• 1:15
  Speaker 1: the global rate cut cycle. There's been eighty eight rate
• 1:17
  Speaker 1: cuts worldwide year date, and this is the most since
• 1:22
  Speaker 1: twenty twenty. We haven't seen these kind of numbers since then.
• 1:25
  Speaker 2: That's insane. Eighty eight rate cuts everywhere else but here.
• 1:28
  Speaker 1: This puts twenty twenty five on track for the third
• 1:30
  Speaker 1: fastest global cutting cycle on record. And this, of course
• 1:34
  Speaker 1: is Bank of America kind of talking about this. Other
• 1:37
  Speaker 1: things that playing into this, if you think about what's
• 1:39
  Speaker 1: going on in Canada are neighbors, but also the ECB.
• 1:43
  Speaker 1: This is where we're getting into three rate cuts already.
• 1:45
  Speaker 1: We're going to see four rate cuts and three more
• 1:47
  Speaker 1: times this year most likely. I think all this plays
• 1:50
  Speaker 1: into one thing, and that is the FED getting ready
• 1:52
  Speaker 1: to adjust everything. The odds though of a monster fifty
• 1:56
  Speaker 1: basis points September rate cut have increased to ten percent.
• 2:00
  Speaker 1: This is the first time that's actually showed up. And
• 2:02
  Speaker 1: remember we're still what do we almost a week away,
• 2:05
  Speaker 1: ten days away of the FOMC meeting. I still anticipate
• 2:10
  Speaker 1: we could see that fifty basis points up around fifty
• 2:13
  Speaker 1: percent by the time FOMC comes just around the corner.
• 2:18
  Speaker 1: And of course here it is on polymarket zooming in
• 2:21
  Speaker 1: right now, poly Market holding eighty six percent on the quarter,
• 2:24
  Speaker 1: ten point three on the fifty and of course no
• 2:28
  Speaker 1: change does not look like it's going to happen overall.
• 2:31
  Speaker 2: But the fact that we've got.
• 2:32
  Speaker 1: Ten point three percent that was remember that was around
• 2:34
  Speaker 1: six percent a week ago. A week from now, if
• 2:37
  Speaker 1: that goes to fifteen to twenty percent, it's really in
• 2:40
  Speaker 1: the card sto where we could maybe see that and.
• 2:42
  Speaker 2: That would be a bit of a surprise.
• 2:43
  Speaker 1: Let me know down in the comments if you guys
• 2:45
  Speaker 1: think we're at a quarters put two five or are
• 2:48
  Speaker 1: we getting a fifty but five zero down in the
• 2:51
  Speaker 1: comments below, and if you're not subscribed to the channel,
• 2:52
  Speaker 1: do that as well. I want to go over to
• 2:55
  Speaker 1: one of the analysts on CNBC that gets into a
• 2:57
  Speaker 1: breakdown here on the scope of the FED and why
• 3:01
  Speaker 1: it's been too narrow take a look.
• 3:03
  Speaker 3: What it thinks. I asked, by not cutting rates this year,
• 3:07
  Speaker 3: the Fed is a doing it right or B getting
• 3:10
  Speaker 3: it wrong? Muhammed sixty seven percent said the Fed is
• 3:14
  Speaker 3: getting it wrong by not cutting rates sooner or more aggressively.
• 3:17
  Speaker 3: Would you agree with that take?
• 3:21
  Speaker 4: I agree with the two thirds who said that they
• 3:24
  Speaker 4: have been getting it wrong. You know, there was a
• 3:26
  Speaker 4: bunch of us outside and inside the Fed that we're
• 3:29
  Speaker 4: arguing for a July cut, and our concern, which is
• 3:33
  Speaker 4: playing out in the data, is that chap Out had
• 3:36
  Speaker 4: taken too narrow a view of the jobs market, and
• 3:40
  Speaker 4: by that he was ignoring the weakness that was starting
• 3:44
  Speaker 4: to come to the surface.
• 3:45
  Speaker 3: Can they make Let's assume that you are correct, as
• 3:49
  Speaker 3: you probably are, I would, by the way, agree with you.
• 3:52
  Speaker 3: Can the Federal Reserve make up for a policy mistake
• 3:56
  Speaker 3: of not cutting rates already by overcomp on September seventeenth,
• 4:02
  Speaker 3: by cutting by half a percent, not a quarter percent?
• 4:05
  Speaker 3: Would that sort of make up for any sins of
• 4:08
  Speaker 3: the past.
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  Speaker 4: We've seen this movie before. We saw the year ago
• 4:13
  Speaker 4: where they refused to cut in July and they did
• 4:15
  Speaker 4: a jumbo cut fifty basis point is September. I think
• 4:20
  Speaker 4: this time around, the risks to the economy are higher
• 4:23
  Speaker 4: than they were a year ago because we've eroded, as
• 4:27
  Speaker 4: you just discussed earlier, we've eroded the financial security of
• 4:32
  Speaker 4: lower income households. So could they catch up, Yes, they could,
• 4:36
  Speaker 4: Hopefully they will, but it's a more risky operation than
• 4:40
  Speaker 4: a lot of people expected to be.
• 4:44
  Speaker 1: All right, So here's my point on this, guys. First
• 4:47
  Speaker 1: of all, if you look at the how many FED
• 4:49
  Speaker 1: rate cuts in twenty twenty six right here, we got
• 4:52
  Speaker 1: two fifty basis points, that's forty two percent, three seventy five,
• 4:57
  Speaker 1: and then one quarter basis all the way down nine.
• 5:00
  Speaker 1: So basically what they're saying between now and next May,
• 5:03
  Speaker 1: when Jeri Powell will be out, we could see as
• 5:06
  Speaker 1: many as five cuts. So all of that is definitely
• 5:10
  Speaker 1: in a corrective measure. But I would agree, you know,
• 5:13
  Speaker 1: July was when I was kind of on my stump
• 5:16
  Speaker 1: box saying we got to cut in July. I gotta
• 5:18
  Speaker 1: cut in July, and I think we're already late. All
• 5:20
  Speaker 1: of this blends into all the way last year. If
• 5:24
  Speaker 1: you go back and look at some of my videos
• 5:25
  Speaker 1: last year, my concern was jobs, and this was all
• 5:28
  Speaker 1: around the last fifty basis points because of the thing
• 5:30
  Speaker 1: that I talked to the most is CEOs of big
• 5:33
  Speaker 1: companies that hire a lot of people and employ a
• 5:36
  Speaker 1: lot of people, and they were telling me at that
• 5:38
  Speaker 1: time last year, in the fall of twenty twenty four,
• 5:41
  Speaker 1: this is a problem.
• 5:42
  Speaker 3: Paul.
• 5:42
  Speaker 1: We're starting to see less foot traffic in some of
• 5:45
  Speaker 1: our retail locations. We're starting to see real impact. It
• 5:47
  Speaker 1: is affecting the way we hire people. When that is
• 5:50
  Speaker 1: said in one of the biggest employer categories out there,
• 5:53
  Speaker 1: which is the restaurant industry, then I'm always taking note.
• 5:57
  Speaker 1: And that has been the factor I've been talking about
• 5:59
  Speaker 1: for over a year. I don't know that there is
• 6:01
  Speaker 1: a way for them to fix this quickly, and I
• 6:03
  Speaker 1: think that's what we are faced with right now is
• 6:06
  Speaker 1: a corrective measure going forward. Here's another clip, that's why
• 6:10
  Speaker 1: is this a bad time to cut rights? Listen to
• 6:13
  Speaker 1: what do you have to say here?
• 6:14
  Speaker 5: Typically the FED is known to cut interest rates when
• 6:16
  Speaker 5: the stock markets falling, credit spreads are widening, there's some
• 6:20
  Speaker 5: financial market dislocation. This time, we got credit spreads closed.
• 6:24
  Speaker 4: To record lows.
• 6:25
  Speaker 5: The stock market's obviously very ebrilliant given the valuations. We
• 6:29
  Speaker 5: have an ai mania building up as far as the
• 6:32
  Speaker 5: market's concerned, and in this environment for the FED to
• 6:35
  Speaker 5: be cutting interest rates would be pretty unprecedented. So I
• 6:39
  Speaker 5: think that's the main perspective that I've tried to provide
• 6:42
  Speaker 5: in this op ed today and in the past. When
• 6:45
  Speaker 5: the Fed is cut interest rates when the economy has
• 6:47
  Speaker 5: been doing okay, it has usually being a recipe for
• 6:50
  Speaker 5: a bubble. That's what happened in ninety nine, two thousand
• 6:54
  Speaker 5: and Some will argue that that's what you know, like
• 6:57
  Speaker 5: possibly even happened in twenty twenty one. But I think
• 7:00
  Speaker 5: the me issue here is the fact that financial conditions
• 7:04
  Speaker 5: are super easy. The FED has never cut interest rates
• 7:08
  Speaker 5: when financial conditions have been this easy.
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  Speaker 6: Yes, but I would argue that financial conditions are not
• 7:14
  Speaker 6: its mandate. Yes, it's a transmission mechanism, but the mandate
• 7:17
  Speaker 6: is stable inflation and maximum employment, and there's some morisome
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  Speaker 6: signs on the jobs front, and so they want to
• 7:23
  Speaker 6: get ahead of it and cut rates.
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  Speaker 5: Yeah, but I think the FED is overly focused on
• 7:28
  Speaker 5: the labor market, and I'm trying to sort of say
• 7:30
  Speaker 5: that if you look at the whole picture, including the
• 7:32
  Speaker 5: mandate that you speak about on inflation. Uh, the inflation
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  Speaker 5: rate is well above the target and it's missed it
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  Speaker 5: for five years in a row.
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  Speaker 1: All right, So I'm completely on the opposite side of
• 7:43
  Speaker 1: what this analyst is pointing at. I think they kind
• 7:46
  Speaker 1: of defended a little bit there on CBAC is that
• 7:49
  Speaker 1: the jobs numbers are the indicator. And yes, the mandate
• 7:53
  Speaker 1: is pretty clear. Inflation and jobs not necessarily a worry
• 7:58
  Speaker 1: of how the market. And I want to show something
• 8:00
  Speaker 1: here because this is my theory of where we are
• 8:04
  Speaker 1: in the market cycles. And if you go all the
• 8:07
  Speaker 1: way back to the s and P. Five hundred, as
• 8:09
  Speaker 1: you overlay this against what was one of the biggest
• 8:12
  Speaker 1: pullbacks in American history, which was the dot com bubble,
• 8:16
  Speaker 1: that's this period right here was in two thousand. That
• 8:19
  Speaker 1: was the run up that we had right there. Let
• 8:21
  Speaker 1: me kind of zoom in on that to really get
• 8:23
  Speaker 1: you guys close. Look at the difference between nineteen eighty two.
• 8:26
  Speaker 1: Really if you pull it down to around ninety, but
• 8:28
  Speaker 1: the number really was in nineteen ninety five when we
• 8:31
  Speaker 1: saw this, and I'll show you something in a moment.
• 8:33
  Speaker 1: Look at the run up we had right here going
• 8:35
  Speaker 1: into that ninety ninety five to two thousand, of which
• 8:38
  Speaker 1: I was living and working in Silicon Valley at that time.
• 8:42
  Speaker 1: I saw this literally on the sidelines, right there in
• 8:45
  Speaker 1: front of it, watching it happen, and working for one
• 8:48
  Speaker 1: of the biggest companies out there that was kind of
• 8:50
  Speaker 1: flowing into that space, and I knew at that point
• 8:52
  Speaker 1: we were going to see a major, major correction in
• 8:55
  Speaker 1: the market. And of course in two thousand, that's when
• 8:59
  Speaker 1: you had the pullback and boom. That was our bottom
• 9:02
  Speaker 1: right there in nine. Obviously there was other reasons for
• 9:05
  Speaker 1: that when you go down to two thousand and eight.
• 9:07
  Speaker 1: Had we not seen that financial crisis occur, probably would
• 9:10
  Speaker 1: not have seen this little trough right here, because this
• 9:13
  Speaker 1: was a pullback mainly because of the housing problem that
• 9:16
  Speaker 1: we dealt with savings and loans. So let's get away
• 9:18
  Speaker 1: from that. I want to go over into where we
• 9:20
  Speaker 1: are now. And here's the point. If you look all
• 9:23
  Speaker 1: the way back into the last time we saw a
• 9:26
  Speaker 1: major top like this two thousand, that's a quarter of
• 9:29
  Speaker 1: a century ago. I want you to go back and
• 9:32
  Speaker 1: look at one quarter century prior to that. So between
• 9:36
  Speaker 1: two thousand and nineteen seventy five. Look at the disparity
• 9:40
  Speaker 1: between nineteen seventy five right here and where it was
• 9:45
  Speaker 1: in two thousand in March right there. That's what I'm
• 9:50
  Speaker 1: getting at, guys. These markets do not stay the same.
• 9:54
  Speaker 1: It doesn't really factor in that we were dealing with
• 9:57
  Speaker 1: all time highs. Yes we are, but we were dealing
• 9:59
  Speaker 1: with all time high is all the way up from
• 10:01
  Speaker 1: nineteen seventy five until two thousand and eight, quarter of
• 10:05
  Speaker 1: a century. So that's my point, is that we're dealing
• 10:08
  Speaker 1: with right now now. Some people would argue, well, Paul,
• 10:10
  Speaker 1: you're also looking at that bottom in two thousand and nine.
• 10:13
  Speaker 2: Maybe that's the quarter of a century.
• 10:14
  Speaker 1: Yeah, it's a possibility, but it's still twenty five years
• 10:16
  Speaker 1: out from two thousand and nine, so look at that,
• 10:19
  Speaker 1: and it would be more toward like the middle of
• 10:21
  Speaker 1: twenty thirty to thirty five as a pullback after a
• 10:25
  Speaker 1: major market adjustment. So there's so many variables at play.
• 10:29
  Speaker 1: Into is if you believe in liquidity cycles, which I
• 10:31
  Speaker 1: think is a real thing, and we are seeing that.
• 10:34
  Speaker 1: If you believe in him to supply money, supply the
• 10:37
  Speaker 1: amount of money that's setting on the sidelines right now,
• 10:40
  Speaker 1: which is the rich going to get richer because they
• 10:42
  Speaker 1: have so much liquid capital available because of what happened
• 10:45
  Speaker 1: in twenty twenty and now the separation between the two classes,
• 10:49
  Speaker 1: which is really the haves and the have nots. And
• 10:51
  Speaker 1: that's the issue that I think we're facing right now,
• 10:54
  Speaker 1: because I think the halves are going to be battling
• 10:56
  Speaker 1: with the other halves for this next leg up. And
• 10:59
  Speaker 1: that's what Tom Lee is talking about a lot before
• 11:02
  Speaker 1: we get into all that. And also to what Tom
• 11:04
  Speaker 1: Lee says, I want to remind you, guys, the way
• 11:06
  Speaker 1: you stay ahead of all this, I want you to
• 11:08
  Speaker 1: subscribe to the Diamond Circle and this is our own
• 11:10
  Speaker 1: private email group. I go in there, I drop an
• 11:14
  Speaker 1: email usually every week, and it's the Bear Market Edge
• 11:17
  Speaker 1: and it basically kind of gives you alignment on this
• 11:19
  Speaker 1: gives you upstates on updates on what we're doing from
• 11:21
  Speaker 1: a research standpoint. Just hit the link down below, you
• 11:24
  Speaker 1: guys can become part of that. It's the Diamond Circle.
• 11:26
  Speaker 1: You want to get in this one right here, which
• 11:27
  Speaker 1: is the free one, and you're in Okay, do that
• 11:31
  Speaker 1: and hopefully you guys can kind of jump into it.
• 11:33
  Speaker 3: Now.
• 11:34
  Speaker 1: I want to jump over to Tom Lee and what he
• 11:36
  Speaker 1: was saying about jobs data, because this translates into where
• 11:40
  Speaker 1: he thinks the market is going take a look.
• 11:42
  Speaker 7: Are you of the view three times this year minimum?
• 11:45
  Speaker 8: If I look at what the bond market's pricing, which
• 11:47
  Speaker 8: is now essentially three cuts and the FED is talking
• 11:50
  Speaker 8: about two, the bond market is saying the FED is
• 11:52
  Speaker 8: behind in terms of how they're perceiving these changing conditions.
• 11:57
  Speaker 8: And so I think on the seventeenth, when the film
• 12:00
  Speaker 8: makes its great decision, I think there is a chance
• 12:03
  Speaker 8: the Fed's response to that, and if it does, it's
• 12:05
  Speaker 8: it's going to be good news because the bond market
• 12:08
  Speaker 8: is going to take comfort from the Fed recognizing the
• 12:11
  Speaker 8: labor market's weakening.
• 12:12
  Speaker 7: Tom you know, one of the things that Scott Besson
• 12:14
  Speaker 7: said was he thinks that the economy is actually in
• 12:16
  Speaker 7: better shape than we think and that the jobs numbers
• 12:20
  Speaker 7: are going to get better. How does that factor into
• 12:23
  Speaker 7: your thinking or does it?
• 12:27
  Speaker 8: I mean, I think on the margin, I'd agree with
• 12:30
  Speaker 8: Treasury Secretary Business comments for two reasons. One, when we
• 12:34
  Speaker 8: go through corporate earnings, we don't have any increase in
• 12:39
  Speaker 8: comments from businesses saying business tapered off in.
• 12:42
  Speaker 2: July or August.
• 12:43
  Speaker 8: So even though the labor market shows like it's deteriorated
• 12:47
  Speaker 8: the last two months, business conditions happen. In fact, even
• 12:50
  Speaker 8: the FED space book, most regions reported improving conditions. So
• 12:56
  Speaker 8: that is one thing, and the second is we know
• 12:58
  Speaker 8: the labor market undergoes a lot of revisions, and we
• 13:01
  Speaker 8: get September's benchmark revisions. I think it may show that
• 13:05
  Speaker 8: the job market's been weak all year, and in fact, maybe
• 13:09
  Speaker 8: the last few months have actually been stable. So I
• 13:11
  Speaker 8: think Treasury Secretary Vessinent is sort of correct to an extent.
• 13:15
  Speaker 1: Okay when he puts it that way, because I disagree
• 13:19
  Speaker 1: with this in the sense that, yes, I think the
• 13:21
  Speaker 1: job problem has been a much more nagging injury for
• 13:26
  Speaker 1: the economy and it's just now, you know, starting to
• 13:28
  Speaker 1: show up. But it takes a long time for this
• 13:32
  Speaker 1: to correct. And typically what you have to have for
• 13:35
  Speaker 1: a job market to correct is cheap capital, and we
• 13:38
  Speaker 1: don't have it. We don't have cheap capital right now,
• 13:41
  Speaker 1: and until we see those rate cuts, you're not going
• 13:43
  Speaker 1: to see businesses reinvesting into anything. And the big concern
• 13:47
  Speaker 1: I have is when cheap capital does come back around,
• 13:50
  Speaker 1: will they reinvest into traditional labor or will they start
• 13:54
  Speaker 1: to invest into AI, robotics, all those kind of things,
• 13:56
  Speaker 1: which is a concern because I think twenty seven and
• 13:59
  Speaker 1: twenty six could be a major transformational era. Now with that,
• 14:04
  Speaker 1: it still pushes a lot of these digital assets to
• 14:07
  Speaker 1: next level. Now, Tom also came back and said, hey,
• 14:10
  Speaker 1: I think bitcoin might reposition some here. Listen to where
• 14:13
  Speaker 1: he thinks bitcoin is going to be by end of
• 14:14
  Speaker 1: yew take a.
• 14:15
  Speaker 7: Look, Tom bitcoin before we let you go, tell us
• 14:20
  Speaker 7: what you think. We're about one hundred eleven thousand dollars,
• 14:22
  Speaker 7: the upside of the downside from here.
• 14:25
  Speaker 8: Bitcoin and cryptocurrencies like etherum are super sensitive to monetary policy,
• 14:31
  Speaker 8: so I think that September seventeenth is an important catalyst.
• 14:34
  Speaker 8: Crypto typically does really well in the fourth quarter, so
• 14:38
  Speaker 8: I think Bitcoin can easily get to two hundred thousand
• 14:41
  Speaker 8: before year. And I know it's a big move. It's
• 14:42
  Speaker 8: almost a double, but that's also.
• 14:44
  Speaker 4: Almost a double for here.
• 14:45
  Speaker 7: Let's just hell, then, let's just take a quick pause
• 14:48
  Speaker 7: a double from here, so everybody's listening to this. We're
• 14:51
  Speaker 7: at one hundred eleven thousand dollars and you think we
• 14:53
  Speaker 7: by Christmas time, effectively, we could be at two hundred thousand.
• 14:58
  Speaker 8: That's right. One of the reasons Bitcoin I installed this
• 15:01
  Speaker 8: year is the fed's been on pause for nine months.
• 15:03
  Speaker 2: That pause all year.
• 15:06
  Speaker 8: If you look at an easing cycle, that's only happened
• 15:08
  Speaker 8: two other times in nineteen ninety eight and twenty twenty four,
• 15:10
  Speaker 8: where the FED began to resume cuts in the fourth
• 15:13
  Speaker 8: quarter in September. Equities do really well. As you know,
• 15:17
  Speaker 8: crypto is beta to equity, so I think it's going
• 15:20
  Speaker 8: to be a very strong fourth quarter. Small caps should
• 15:23
  Speaker 8: officer rally like IWM, but that also is really bullish
• 15:26
  Speaker 8: for Ethereum, which is highly linked to small caps.
• 15:29
  Speaker 1: Other things you have to look at is the strategy
• 15:31
  Speaker 1: that has been building around Ethereum. Tom Lee did something
• 15:35
  Speaker 1: that was kind of surprising.
• 15:36
  Speaker 2: Here.
• 15:37
  Speaker 1: This is where BM and R did a moonshot investment,
• 15:41
  Speaker 1: and what they put it into was a ticker called Octo.
• 15:45
  Speaker 1: Now this company is going to initiate basically a world
• 15:49
  Speaker 1: coin treasury strategy. Now in just a short period of time.
• 15:53
  Speaker 1: This was a twenty million dollar investment in a short
• 15:55
  Speaker 1: period of time. Look at the stock difference right here.
• 15:58
  Speaker 1: This is Aco the company Octo right there. Ticker symbol octo.
• 16:04
  Speaker 1: This is the kind of growth that we've started to
• 16:06
  Speaker 1: see up and this would have made Tom Lee and
• 16:09
  Speaker 1: that investment go on paper paper profits up to around
• 16:14
  Speaker 1: five hundred and fifty to six hundred million basically on
• 16:16
  Speaker 1: twenty million investments. So not a bad move by those
• 16:20
  Speaker 1: moonshot investments. Now does it hold or do you as
• 16:23
  Speaker 1: short it? That's kind of the other factor that size
• 16:25
  Speaker 1: into this. You look, of course, tom Lee built a
• 16:28
  Speaker 1: two million dollar, two million ETH reserve. I should say
• 16:32
  Speaker 1: in less than sixty days. At ten k ETH, this
• 16:34
  Speaker 1: will be worth around twenty billion. This would place BM
• 16:37
  Speaker 1: and R in the list of the top four hundred
• 16:39
  Speaker 1: largest publicly public companies.
• 16:42
  Speaker 2: In the US.
• 16:43
  Speaker 1: That is a massive, massive Imagine you are the former
• 16:49
  Speaker 1: CEO of BM and R and Tom Lee and a
• 16:53
  Speaker 1: group of investors come to you and say let's put
• 16:55
  Speaker 1: it in ethereum, and all of a sudden, you go
• 16:57
  Speaker 1: from a no name, nothing stock to a top four hundred.
• 17:01
  Speaker 1: And that's if Eth goes to ten k, which is
• 17:03
  Speaker 1: just another doubling if it compares to what's going on
• 17:06
  Speaker 1: with of course Bitcoin other things that play into this.
• 17:10
  Speaker 1: Ethereum stable coin supply hits a record this is sixteen
• 17:13
  Speaker 1: one hundred and sixty five billion in tokenized assets, and
• 17:17
  Speaker 1: this will all obviously because of the surge we're seeing
• 17:20
  Speaker 1: right now. Supply reached a new record, and we also
• 17:23
  Speaker 1: see tokenized gold and US treasuries on eth also hitting
• 17:26
  Speaker 1: all time highs. This's another big factor. We'll talk to
• 17:28
  Speaker 1: talk more about other facts that kind of play into this.
• 17:32
  Speaker 1: Which is interesting. This is a new all time high
• 17:35
  Speaker 1: that gives Ethereum a fifty seven percent share of the
• 17:38
  Speaker 1: stable coin market. And if we continue to see the
• 17:40
  Speaker 1: growth in stable coins, which we will, we're just going
• 17:43
  Speaker 1: to see this continue to ramp up. And I think
• 17:45
  Speaker 1: it's going to be multi trillion, And many people were
• 17:48
  Speaker 1: kind of pointing on that three to five trillion. I
• 17:51
  Speaker 1: think it's well in excess of that in terms of
• 17:53
  Speaker 1: exposure for stable coins and that only means good things
• 17:57
  Speaker 1: for Ethereum in general.
• 17:59
  Speaker 2: Other things to hit on right here, Soul Strategies just
• 18:02
  Speaker 2: got there.
• 18:03
  Speaker 1: Nasdaq listing, and of course this is a big one
• 18:06
  Speaker 1: that's going to be listing under stk E. What a
• 18:08
  Speaker 1: great ticker for them. This is going to commence on
• 18:11
  Speaker 1: Tuesday tomorrow, on the night, so get ready for that.
• 18:15
  Speaker 2: CEO Leah Wall talked about.
• 18:16
  Speaker 1: This another big one, and of course this means Sole
• 18:19
  Speaker 1: Treasury is coming to the stock market again. This will
• 18:22
  Speaker 1: probably go gro Let me know in the comments if
• 18:24
  Speaker 1: you think the stk E will do better than BM
• 18:28
  Speaker 1: and R or some of the E treasury companies, just
• 18:30
  Speaker 1: put Ether or SOUL down below. Let's get into this
• 18:33
  Speaker 1: right here, because Fidelity has now a digital interestoken. This
• 18:37
  Speaker 1: is basically the think about this is kind of the biddle.
• 18:41
  Speaker 1: If you look at Securitized, they were.
• 18:43
  Speaker 2: Doing the same thing.
• 18:44
  Speaker 1: This is what Fidelity is doing now with their digital
• 18:46
  Speaker 1: interest tooken and in a very short period of time, bam,
• 18:50
  Speaker 1: look at that. And this is just getting started. So
• 18:52
  Speaker 1: imagine what this is going to do in a matter
• 18:54
  Speaker 1: of just three or four months of what this is
• 18:56
  Speaker 1: going to look at.
• 18:57
  Speaker 2: And this is called fd it, so you'll be able
• 18:59
  Speaker 2: to find it over.
• 19:00
  Speaker 1: There in your treasury or your app on Fidelity, So
• 19:05
  Speaker 1: check it out. Let me know what you guys, if
• 19:07
  Speaker 1: you're on Fidelity, let me know how you're experiencing that,
• 19:09
  Speaker 1: because that's a closed ecosystem for both bitcoin and eth purchases,
• 19:13
  Speaker 1: but also the money markets are being paid mostly quite
• 19:16
  Speaker 1: a bit higher than a lot of these other platforms
• 19:18
  Speaker 1: out there, so fidelity kind of winning in that area.
• 19:21
  Speaker 1: This goes back into this S and P thing that
• 19:24
  Speaker 1: we were talking about earlier, and I want you to
• 19:26
  Speaker 1: pay attention to something here on these all time highs.
• 19:29
  Speaker 1: I'm going to zoom in on this so you can
• 19:31
  Speaker 1: kind of see, and this is the number of highs
• 19:33
  Speaker 1: that happen in the year.
• 19:34
  Speaker 2: All right.
• 19:35
  Speaker 1: I want you to go back to nineteen ninety five.
• 19:37
  Speaker 1: Follow down the road with me to nineteen ninety five,
• 19:40
  Speaker 1: you know when Prince had great music and David Bowie
• 19:44
  Speaker 1: was still out there pomping them. Nineteen ninety five, seventy
• 19:47
  Speaker 1: seven all time highs, that's the big winner. Look at
• 19:51
  Speaker 1: what happened in ninety six, thirty nine, forty five, and
• 19:54
  Speaker 1: nineteen ninety seven, nineteen ninety eight forty seven, and in
• 19:58
  Speaker 1: nineteen ninety nine thirty five. So I ween those five
• 20:01
  Speaker 1: years you absolutely killed the market. And then, of course
• 20:06
  Speaker 1: we all know what happened in two thousand, that is
• 20:07
  Speaker 1: the dot bomb, when we saw seven trillion come off
• 20:10
  Speaker 1: the stock market in literally about eight months.
• 20:13
  Speaker 2: That's the kind of pullback that came.
• 20:15
  Speaker 1: Now me, people would say, well what about now, Well,
• 20:18
  Speaker 1: if you throw out the twenty twenty twenty one era,
• 20:21
  Speaker 1: which was fabricated market moves, and you go into where
• 20:26
  Speaker 1: we are now, that should have been more like this
• 20:29
  Speaker 1: right here, nineteen five, eight, ten, et cetera. All the
• 20:33
  Speaker 1: way down to what we see this was just mostly
• 20:36
  Speaker 1: recovery and a more moderate But now what we're dealing
• 20:39
  Speaker 1: with is another twenty twenty four and twenty twenty five
• 20:42
  Speaker 1: twenty one highs, but definitely nothing like nineteen ninety five
• 20:46
  Speaker 1: where we had seventy seven all time highs. So maybe
• 20:50
  Speaker 1: Tom Lee and these analysts are right. Think about that, guys.
• 20:54
  Speaker 1: We could just be beginning where this market is going.
• 20:57
  Speaker 1: Let me know what you guys think. One more thing
• 20:59
  Speaker 1: I want to hit on. This is one last analyst
• 21:02
  Speaker 1: that hits on this. The S and P five hundred
• 21:04
  Speaker 1: likely to peak at nine thousand, nine hundred and fourteen
• 21:09
  Speaker 1: in September of twenty twenty seven. This comes from Bank
• 21:12
  Speaker 1: of America's guy. His name is Michael Hartnett. He's also
• 21:15
  Speaker 1: been known as austrodamus of some of these calls. If
• 21:19
  Speaker 1: that moves to that level, guys, the amount of GDP
• 21:23
  Speaker 1: and growth in the United States, I don't even know
• 21:26
  Speaker 1: how you could put numbers to this because of the
• 21:28
  Speaker 1: amount of exposure we're getting into all sorts of new
• 21:31
  Speaker 1: asset classes, including digital assets.
• 21:34
  Speaker 2: But where will gold be?
• 21:35
  Speaker 1: Where will the now if we've seen an SMP at
• 21:38
  Speaker 1: that rate, what will the GDP look like in the
• 21:40
  Speaker 1: United States? And what is going to cause that to
• 21:42
  Speaker 1: continue to drive? Well, if you think about this along
• 21:45
  Speaker 1: with other countries that are trying to reposition around everything,
• 21:49
  Speaker 1: the Japanese are in the middle of it right now
• 21:51
  Speaker 1: because their prime minister has walked away from it and
• 21:54
  Speaker 1: he was one of the few guys that was I
• 21:58
  Speaker 1: won't say anti digital assets, but definitely not pro digital assets.
• 22:03
  Speaker 1: And now what we've got is a whole new potential
• 22:06
  Speaker 1: front runner leading in to the Japanese. And this market
• 22:10
  Speaker 1: is very important, guys, because it has such a major
• 22:14
  Speaker 1: impact on only the US treasuries, but the global financial
• 22:18
  Speaker 1: markets in general. So Japan might be in the middle
• 22:20
  Speaker 1: of a major shift around the prime minister, and it
• 22:23
  Speaker 1: could be one that is very forward thinking into digital assets.
• 22:27
  Speaker 1: So pay attention a lot happening right now in the markets.
• 22:31
  Speaker 1: Make sure and subscribe to the channel if you're not already.
• 22:33
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• 22:35
  Speaker 1: there on X at Paul Baron. We'll catch you next
• 22:38
  Speaker 1: time right here on The Paul Baron Show.