Latest / The Paul Barron Crypto Show / Uptober Begins?🚀Tom Lee Calls For $50k ETH Potential 🔥

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Uptober Begins?🚀Tom Lee Calls For $50k ETH Potential 🔥 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Uptober is here, and does that mean that the market
• 0:03
  Speaker 1: is on its way to another boom? Well, today we're
• 0:06
  Speaker 1: going to break it down for you guys. I want
• 0:07
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• 0:45
  Speaker 1: check it out. Tell them we sent you. And let's
• 0:47
  Speaker 1: just jump right into it. I want to start off
• 0:49
  Speaker 1: with this. ISM manufacturing came in at 54.5 in September.
• 0:54
  Speaker 1: This was below the 55 expectation. We also had a
• 0:58
  Speaker 1: reading here that 50 means the U.S. factory activity is
• 1:02
  Speaker 1: still growing. So this is good in general for the market.
• 1:05
  Speaker 1: You also have to look at where we are going to,
• 1:08
  Speaker 1: of course, see PCE. And one of the other things
• 1:11
  Speaker 1: to take a look at here is, of course, prices,
• 1:14
  Speaker 1: because these paid jumped to 77.9 One of the things
• 1:18
  Speaker 1: that I would look at here is how the Fed
• 1:20
  Speaker 1: is going to respond to this. Now, do they ease
• 1:22
  Speaker 1: up based on this new data, or do they consider
• 1:26
  Speaker 1: a potential pressure point that would possibly try to still
• 1:31
  Speaker 1: deal with inflation? I think that's a factor that everybody
• 1:33
  Speaker 1: has to look at. You look at the markets, 550
• 1:36
  Speaker 1: bill now wiped off from the U.S. stock market. This
• 1:39
  Speaker 1: is the last 45 minutes as we're recording. The 10-year exploding,
• 1:43
  Speaker 1: the 20-year exploding. essentially everything on high in terms of bonds.
• 1:49
  Speaker 1: And this is a factor that everybody is concerned about
• 1:52
  Speaker 1: in terms of money, because this pulls from traditional markets
• 1:56
  Speaker 1: and moves into these bonds. And this is the issue
• 1:58
  Speaker 1: I think a lot of investment advisors are dealing with
• 2:01
  Speaker 1: right now, as people are saying, why wouldn't I just
• 2:03
  Speaker 1: go into a bond? Why do I need to be
• 2:06
  Speaker 1: in a risky stock market out there? Tom Lee says, though,
• 2:09
  Speaker 1: the AI bubble may still have years to run. And
• 2:12
  Speaker 1: he has been very much a permable over the last
• 2:15
  Speaker 1: several years, but especially over the last several months. And
• 2:19
  Speaker 1: his point right here, if ChatGPT marked the start of
• 2:22
  Speaker 1: the cycle, that was 2023, Lee sees roughly 2033 as
• 2:27
  Speaker 1: a window where much of the good news may finally
• 2:29
  Speaker 1: be baked in. I don't know, guys. Do you think
• 2:32
  Speaker 1: we are in another decade of an up cycle here
• 2:36
  Speaker 1: when it comes to these stocks? Let me know in
• 2:38
  Speaker 1: the comments, especially when it's related to AI and And
• 2:41
  Speaker 1: the technology trade that circles the AI, because you've got
• 2:45
  Speaker 1: everything from micron, chip makers, semiconductor, all that play into this.
• 2:49
  Speaker 1: I want to go to a clip real quick, because
• 2:50
  Speaker 1: this will get into Tom Lee's market outlook.
• 2:53
  Speaker 2: The title is Staying Bullish, Even with a Hawkish Fed.
• 2:56
  Speaker 2: The AI trade is creating inflationary pressures on memory and
• 3:03
  Speaker 2: energy consumption. Those are bottlenecks. The reality is the Fed
• 3:10
  Speaker 2: raising rates isn't going to slow down AI spending. So
• 3:14
  Speaker 2: the market's selling off today because of good PMIs. It's
• 3:19
  Speaker 2: probably just a reminder that that's where the psychology is
• 3:23
  Speaker 2: at the moment. Cisco is a good example. From 1994
• 3:25
  Speaker 2: to 1997, Cisco went from $ 0. 80 to $ 9. And then
• 3:29
  Speaker 2: we had the Asia financial crisis and it fell by 40%.
• 3:32
  Speaker 2: People would have said that was the end. But then
• 3:35
  Speaker 2: Cisco a year later went to $ 0. 18. But then long-term
• 3:39
  Speaker 2: capital happened and it fell 40%. People would have said, oh, well,
• 3:43
  Speaker 2: there it is, the top again. Cisco ended up going
• 3:45
  Speaker 2: to 80. And that was a 100x from the low.
• 3:48
  Speaker 2: I think that's probably good analog. And I think we're
• 3:51
  Speaker 2: here today.
• 3:51
  Speaker 1: All right. So notice that, and he's referencing Cisco in
• 3:56
  Speaker 1: the era of kind of the dot-bomb. And this was
• 4:00
  Speaker 1: one of the companies that essentially kind of built the internet.
• 4:03
  Speaker 1: And good example around, you think about it in the
• 4:06
  Speaker 1: same way with AI. what are going to be the
• 4:07
  Speaker 1: companies that build AI, whether that's the hyperscalers or many
• 4:11
  Speaker 1: of the component manufacturers and designers and software, all that's
• 4:16
  Speaker 1: going to be playing into this. If you look at
• 4:17
  Speaker 1: this point, though, timing is very critical here. Since 1928,
• 4:21
  Speaker 1: the S & P 500 has rose 2.1% on average
• 4:25
  Speaker 1: during the first half of October when it was a U.S.
• 4:28
  Speaker 1: midterm election year. So this would be its strongest performing
• 4:32
  Speaker 1: half month of Q4 if that were to take place.
• 4:35
  Speaker 1: So All of this is looking at history and saying, well,
• 4:39
  Speaker 1: if timing works, then it's going to play out this way.
• 4:41
  Speaker 1: If you look at it on the crypto side of things,
• 4:45
  Speaker 1: you could look at October and say, yeah, history is
• 4:47
  Speaker 1: on its side. Look at October right there, mostly green
• 4:51
  Speaker 1: through the entire history all the way back down to 2013,
• 4:56
  Speaker 1: except for last October, obviously the centen, but if you
• 4:59
  Speaker 1: look at the chart here, All of these reds get
• 5:02
  Speaker 1: followed and sandwiched by green. So maybe we are in
• 5:05
  Speaker 1: an October position right now as we start to look
• 5:08
  Speaker 1: at some pretty big moves. Three of the biggest cryptocurrencies, though,
• 5:12
  Speaker 1: right now are still crushing every other asset class since June.
• 5:15
  Speaker 1: So if you were in June buyer class out there
• 5:19
  Speaker 1: and you were buying ETH or you were buying SOL
• 5:21
  Speaker 1: or Bitcoin, well, you can kind of see the numbers
• 5:23
  Speaker 1: right there. 67% up on Ethereum, 39% up on Bitcoin
• 5:26
  Speaker 1: and SOL. sitting at 61.9%. So nice moves to you
• 5:34
  Speaker 1: guys that got in in the summer. Citi also raised
• 5:38
  Speaker 1: its 12-month Bitcoin price target to $ 113K. I am very
• 5:42
  Speaker 1: interested in this because they've been back and forth on
• 5:45
  Speaker 1: where Bitcoin would go. ETH, though, is interesting because they've
• 5:50
  Speaker 1: pushed it up to around $ 3K. Not as much in
• 5:53
  Speaker 1: terms of a growth. All of this citing the continuation
• 5:57
  Speaker 1: of ETF inflows. So I'm kind of curious, do you
• 6:00
  Speaker 1: think ETH or Bitcoin hits its all-time high first? Let
• 6:03
  Speaker 1: me know in the comments down below. Let's play a
• 6:05
  Speaker 1: clip real quick because this will get into Tom Lee
• 6:08
  Speaker 1: thinking they might be wrong because he thinks ETH is
• 6:11
  Speaker 1: going somewhere else.
• 6:13
  Speaker 2: Ethereum has been consolidating for five years now. There have
• 6:17
  Speaker 2: been two other times Ethereum's consolidated this way, and they
• 6:21
  Speaker 2: were resolved with upside breakouts. The first one was a
• 6:24
  Speaker 2: 62X upside breakout. The second one was a 17X upside.
• 6:29
  Speaker 2: So we're faced with the third one, which if Ethereum
• 6:33
  Speaker 2: can break 5,000, we think it could go a 10X
• 6:38
  Speaker 2: from here.
• 6:40
  Speaker 1: And I don't know. Sometimes I don't know if I
• 6:44
  Speaker 1: should hug Tom Lee or slap Tom Lee. Sometimes I
• 6:48
  Speaker 1: just don't know. 10Xing off of a $ 5, 000 Ethereum. If
• 6:52
  Speaker 1: we are in a market that is that hot, where
• 6:55
  Speaker 1: Bitcoin and ETH, especially ETH, trading at 5K, something amazing
• 7:01
  Speaker 1: has occurred. And if that is the case, the likelihood
• 7:04
  Speaker 1: of an upcycle, significant upcycle, even parabolic to a certain extent,
• 7:09
  Speaker 1: could be possible. Now he says that there are some
• 7:12
  Speaker 1: things that are driving it, and he thinks DATS might
• 7:16
  Speaker 1: actually be a bigger part of this. Now granted, you
• 7:18
  Speaker 1: guys all know he is the king of DATS when
• 7:20
  Speaker 1: it comes to it with BM & R. Watch this clip.
• 7:23
  Speaker 3: The next 12 to 18 months, All of the DATs,
• 7:27
  Speaker 3: not just Bitmine, are going to really ramp up.
• 7:29
  Speaker 1: Their purchases of crypto. So I think the cryptos.
• 7:32
  Speaker 3: That have DATs are going to be the best performing
• 7:35
  Speaker 3: because these DATs essentially buy the crypto and take out supply.
• 7:40
  Speaker 3: The Ethereum DATs own a total of 7% of the
• 7:43
  Speaker 3: supply right now. That's more than Bitcoin DATs or the
• 7:46
  Speaker 3: Solana DATs. And I could probably see that getting to
• 7:49
  Speaker 3: 15% in this bull cycle.
• 7:52
  Speaker 1: All right, so when you listen to that clip, you
• 7:53
  Speaker 1: have to wonder, is there something in Lee's mind that says, hey,
• 7:57
  Speaker 1: we might actually start to accelerate this even more in
• 8:00
  Speaker 1: terms of our acquisition targets as they've been shooting for
• 8:03
  Speaker 1: the 5%. And if you look at the overall, Bitmine
• 8:06
  Speaker 1: now trades at nearly 6X the daily volume of all
• 8:09
  Speaker 1: nine US spot ETFs combined. I'll show you the chart
• 8:14
  Speaker 1: right there, nearly 6X right there. BM & R, this
• 8:18
  Speaker 1: is a point that I'm getting at, is if we
• 8:20
  Speaker 1: see this kind of move, on Ethereum, where would BM
• 8:24
  Speaker 1: & R be? Because they're going to participate, you would
• 8:27
  Speaker 1: think they would be, especially in the point that he
• 8:30
  Speaker 1: just made in that clip, and that is that there's
• 8:31
  Speaker 1: going to be a lot more acquisition by all these
• 8:34
  Speaker 1: different projects that are DAT holders, and that may start
• 8:38
  Speaker 1: to set things up in a big way. Okay, from
• 8:40
  Speaker 1: all of that, I want you guys to also think
• 8:42
  Speaker 1: from BM & R' s standpoint that two other major tokens
• 8:46
  Speaker 1: that they're exposed to is Hyperliquid and Solana. And you
• 8:50
  Speaker 1: can kind of see it right here. They're closing out
• 8:52
  Speaker 1: the DeFi Protocol's top 10 revenue generators. This goes back
• 8:55
  Speaker 1: to the thesis that I think BM & R has
• 8:57
  Speaker 1: been looking at. And if you go even further into this,
• 9:00
  Speaker 1: here's BitMind Immersion. This is BM & P. So essentially,
• 9:03
  Speaker 1: this is kind of the counterplay to Stretch earning at 9%.
• 9:07
  Speaker 1: So think about if this starts to hold, how would
• 9:10
  Speaker 1: that combat possibly into people maybe playing the Stretch market
• 9:15
  Speaker 1: out there? So STRC, you guys know what that is
• 9:17
  Speaker 1: in terms of what Michael Saylor is doing. So This
• 9:20
  Speaker 1: gets into a lot of positives for Ethereum. It gets
• 9:24
  Speaker 1: into a lot of positives for BM & R, if
• 9:26
  Speaker 1: you think about this. One other point I want to
• 9:28
  Speaker 1: get at is the tax position that is starting to
• 9:31
  Speaker 1: face the crypto market. This is a major U.S. tax update.
• 9:34
  Speaker 1: It has just been introduced. This, of course, is coming up.
• 9:37
  Speaker 1: It's a 56-page bill. There's a lot of things that
• 9:40
  Speaker 1: are in it. One of the biggest issues is tax
• 9:42
  Speaker 1: exemption for small purchases. The wash sale rule would go away.
• 9:47
  Speaker 1: This would prevent artificial tax loss harvesting that many of
• 9:50
  Speaker 1: you have taken advantage of because there's been no rule
• 9:53
  Speaker 1: around that. Now, one thing to be aware of is
• 9:56
  Speaker 1: this is not a law yet. It's still the proposal.
• 9:59
  Speaker 1: So it is coming. And I think the question is
• 10:02
  Speaker 1: whether this gets through. So be on the lookout because
• 10:04
  Speaker 1: this could change things up on the tax side soon.
• 10:06
  Speaker 1: We're going to get David Kramer on soon to talk
• 10:09
  Speaker 1: about that. Hester Pierce, of course, tweeted out right here,
• 10:11
  Speaker 1: I'm not a fan of credit investor gating, but at
• 10:14
  Speaker 1: least we're proposing to nudge that gaping open a bit.
• 10:18
  Speaker 1: If this happens... It changes the dynamic, I think, for
• 10:22
  Speaker 1: the next generation of investors. It's something that Gen Z
• 10:25
  Speaker 1: has and should have the availability to be able to do,
• 10:28
  Speaker 1: which is get away from that accredited investor noose that's
• 10:33
  Speaker 1: been around everyone out there. There is a crypto advocacy
• 10:36
  Speaker 1: group out there, Stand With Crypto, who's rolling out its
• 10:38
  Speaker 1: first round of Senate endorsements after Clarity failed. So let's
• 10:43
  Speaker 1: see how this plays out in the market in terms
• 10:47
  Speaker 1: of midterms. Who's going to get voted in? I'm going
• 10:50
  Speaker 1: to go check the scorecard on who actually was a
• 10:53
  Speaker 1: pro-crypto and ended up staying in their seat going forward.
• 10:57
  Speaker 1: Bloomberg also launched a stablecoin dashboard on its terminal, tracking supply, mints, burns,
• 11:02
  Speaker 1: all of this, as well as velocity for every stablecoin
• 11:06
  Speaker 1: above 100 million in circulating supply. That means mainstream, guys.
• 11:11
  Speaker 1: This means mainstream because for every major trader out there,
• 11:15
  Speaker 1: using Bloomberg Terminal is pretty much a daily habit and
• 11:18
  Speaker 1: a function within their own operations. So institutional capital all
• 11:21
  Speaker 1: played into that for sure. So I want to tie
• 11:24
  Speaker 1: in Solana to this because I think this is very pro-ETH,
• 11:27
  Speaker 1: but it's also pro-BM&R in the sense of they could
• 11:30
  Speaker 1: be going this direction. Solana being another asset that Tom
• 11:33
  Speaker 1: Lee is very focused on. And you look at it
• 11:37
  Speaker 1: right here. Solana recorded over 14 billion transactions in Q3.
• 11:42
  Speaker 1: This is the highest quarterly transactions count ever. So Imagine
• 11:47
  Speaker 1: where that is in just 12 months. These are the
• 11:50
  Speaker 1: kind of things that are moving the market right now. Now, granted, sure,
• 11:53
  Speaker 1: it's up and down. We still see a lot of
• 11:55
  Speaker 1: macro trends, but I think we are in for a
• 11:58
  Speaker 1: very interesting October. Let me know what you guys think
• 12:01
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• 12:10
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• 12:13
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• 12:15
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