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Crypto Rundown: Bitcoin Just Proved It Can Outperform Stocks · CRYPTO 101

0:08
[SPEAKER_00]: All right, everybody welcome back to the crypto run down happy Tuesday.
0:11
[SPEAKER_00]: We got another special edition for you We got Brendan here today to cover how are we gonna outperform the S&P 500?
0:18
[SPEAKER_00]: Well, the answer is very simple.
0:20
[SPEAKER_00]: It's Bitcoin.
0:21
[SPEAKER_00]: We're gonna tell you right off the top.
0:22
[SPEAKER_00]: You saw the thumbnail You saw the title and you might think how is that possible?
0:26
[SPEAKER_00]: Bitcoin's been in a bear market Bitcoin's been so volatile to the downside so how are you gonna outperform the S&P 500 with those facts?
0:33
[SPEAKER_00]: We're gonna go through it
0:34
[SPEAKER_00]: There's an interesting stat of how Bitcoin has outperform the SP500 since the launch of the Bitcoin ETFs.
0:40
[SPEAKER_00]: We're going to cover that first and then go over a plethora of other things.
0:44
[SPEAKER_00]: Sailors buying again, Tom Lee continues to buy.
0:47
[SPEAKER_00]: Bitcoin just had the best August since 2007's team is hype coming on shore.
0:53
[SPEAKER_00]: The next big stable coins coming in Wall Street continues to hire crypto jobs.
0:56
[SPEAKER_00]: Again, the fundamentals, the bullish news just continues to flow in.
0:59
[SPEAKER_00]: So let's just pull up.
1:01
[SPEAKER_00]: The I-bit verse V, which is the Vanguard S&P 500 ETF in Brendan, break down this fascinating stat with us.
1:08
[SPEAKER_00]: Welcome back to the show also, my friend.
1:11
[SPEAKER_02]: Yeah, always good to be back here.
1:13
[SPEAKER_02]: Hello, everyone out there.
1:15
[SPEAKER_02]: This is a really good post that came out from one of the lead Bloomberg Intelligence analysts, Eric Bultunus, front of the pod we've had him on before.
1:24
[SPEAKER_02]: But he put out this really interesting chart that kind of puts things in perspective.
1:29
[SPEAKER_02]: And what he says is like, hey, guys, I know it might be hard to believe because of how the last year has been for crypto.
1:37
[SPEAKER_02]: But I bet is actually beating the Vue, which is an S&P 500 index, or, you know, to mimic the S&P 500 index.
1:45
[SPEAKER_02]: And,
1:47
[SPEAKER_02]: If you look at these two, since the inception of I bit, it is actually beating an outperforming view.
1:54
[SPEAKER_02]: Now he goes on to say, like, hey, look at the chart here, it feels like an amusement park ride.
1:59
[SPEAKER_02]: It feels like a roller coaster.
2:02
[SPEAKER_02]: The performance of IBIT here is 22.62% as opposed to the performance of Vue, or the S&P, which is 21.17%.
2:11
[SPEAKER_02]: So having about one and a half percent of out-performance over the S&P 500 sense inception, the real difference here is obviously the last year or so has been a roller coaster, but have you, you know, had you weathered that?
2:29
[SPEAKER_02]: and just kind of held on.
2:30
[SPEAKER_02]: You would still be outperforming the S&P 500.
2:33
[SPEAKER_02]: Now, I think it's important to start off to show with that fact and with that in mind.
2:37
[SPEAKER_02]: And that's because crypto is a storically volatile, Tvo, but it doesn't matter really how far you zoom out, whether it's since the inception of the IBIT ETF, maybe the last five years, maybe the last 10 years.
2:50
[SPEAKER_02]: Crypto continues to be the out performer.
2:54
[SPEAKER_02]: However, there are these periods of extreme volatility.
2:57
[SPEAKER_02]: And that's nothing new, right?
2:58
[SPEAKER_02]: You saw it in like 20 around 2012.
3:02
[SPEAKER_02]: You saw it around 2014.
3:03
[SPEAKER_02]: You saw it in 2018.
3:06
[SPEAKER_02]: You saw it in 2020 and 2022.
3:09
[SPEAKER_02]: And there's these huge drawdown periods and huge periods of both up and downwards volatility.
3:15
[SPEAKER_02]: But when you zoom out in perspective here, you still are getting it.
3:20
[SPEAKER_02]: I think that should be eye-opening, right?
3:22
[SPEAKER_02]: You know, even when you zoom out, crypto here, doing still really, really well.
3:28
[SPEAKER_02]: And I think it's easy for the average person to be impatient because they want to drastically outperform the S&P 500.
3:37
[SPEAKER_02]: But again, considering all the downside that we've seen and it's still outperforming, I don't think that's a half bad metric.
3:44
[SPEAKER_00]: not at all.
3:46
[SPEAKER_00]: It's a surprising one with all the volatility of the downside recently, but also, depending on how you trade or invest, there's plenty of opportunities to whether you went into a dollar-cost average and just play the long-term play there or if you're somebody that might take some profits.
4:02
[SPEAKER_00]: There's plenty of areas to take some profits there and depending on how you look at your trading and investing strategy.
4:11
[SPEAKER_00]: but uh it's just a good thing to kick off because again it's um it's an interesting stat with all the downward uh the volatility that we've seen this year so far but the uh the stats are coming back the prices are moving to the upside which we've been covering last couple weeks and the stats back that up crypto saw an inflow of $3.2 billion last week that's the largest since last year of October and then obviously um that began the decline with
4:39
[SPEAKER_00]: It's best August since 2017 got to take the time machine back to that.
4:45
[SPEAKER_00]: We pulled up some stats for you guys by the last time this happened in Q3 or 2017 was just a green year for Bitcoin across the board and the best one since Q3 looks like Q4 was quite green as well.
5:00
[SPEAKER_00]: So again,
5:01
[SPEAKER_00]: You know, no guarantee of that for this Q4, but you do want to go back and do the research and add it into all the things that you use to make your trading decisions.
5:11
[SPEAKER_00]: Brendan, I'm going to pull up a coin market cap here and just let you kind of, what do you see in price action wise on a wide level.
5:17
[SPEAKER_00]: Obviously, you are, and our hunter are going to be doing the technical analysis on the channel later this week.
5:23
[SPEAKER_00]: But what do you feel in from the price action here?
5:25
[SPEAKER_00]: A little cool off if you will start the week.
5:29
[SPEAKER_02]: Yeah, you know, I think what we're getting here is a bit of consolidation and maybe even a little bit of a retracement after that huge move that we got to the upside you can sign kind of see it here over the last 24 hours over the last seven days the market slightly in the red off of those most recent highs but nothing too drastic right Bitcoin.
5:49
[SPEAKER_02]: maybe down 2% ethereum down maybe 2% bnb down maybe 2% nothing huge we kind of push our way towards that extreme greed territory on the fear and greed index now what you're getting off some of those most recent highs is just a bit of consolidation a bit of maybe re-tracement back downwards but I don't think that's anything too extreme right when you're seeing these cryptos move
6:13
[SPEAKER_02]: 30, 40, 50% upwards.
6:16
[SPEAKER_02]: It's pretty natural to see any kind of chilling out period before you get any further extended move to the upside.
6:23
[SPEAKER_02]: And I really do think that that's what we're in right now is we're going to cool off.
6:28
[SPEAKER_02]: We'll kind of go over this.
6:29
[SPEAKER_02]: I'm sure Hunter will cover a lot of this in the technicals on Thursday.
6:32
[SPEAKER_02]: But Bitcoin approached Bitcoin
6:34
[SPEAKER_02]: Ethereum, Solana, B&B, a lot of these large caps approached critical levels of resistance.
6:41
[SPEAKER_02]: And now what you're seeing is we've had this gigantic move up to big resistance.
6:46
[SPEAKER_02]: We're hitting resistance, we're respecting it.
6:48
[SPEAKER_02]: And then I think maybe we cool off for a little bit.
6:51
[SPEAKER_02]: Maybe even move down a little bit more.
6:53
[SPEAKER_02]: I want it right that off the books.
6:55
[SPEAKER_02]: I'm not saying we're going to go all the way to new lows, but maybe we pull back a little bit.
6:59
[SPEAKER_02]: And then I think you have more upside as an argument on the table.
7:02
[SPEAKER_02]: Now, again, we'll have to kind of wait and see how this plays out.
7:05
[SPEAKER_02]: I think Bitcoin has the catalyst there.
7:08
[SPEAKER_02]: I think that there are some headwinds and some tailwinds, which maybe we can get into this episode.
7:13
[SPEAKER_02]: But I think the crypto market.
7:15
[SPEAKER_02]: is just taking a bit of a breather after this really large move that we had to the upside.
7:20
[SPEAKER_02]: And you're seeing that everywhere.
7:21
[SPEAKER_02]: I mean, you had a handful of tokens hit new all-time highs.
7:24
[SPEAKER_02]: You saw it over there with Hyperliquid.
7:26
[SPEAKER_02]: You've seen it with some of these other altcoins as well.
7:29
[SPEAKER_02]: I think now what you're doing is you're having a huge move that happened.
7:33
[SPEAKER_02]: Now you're cooling off a little bit.
7:35
[SPEAKER_02]: you're pulling back, you're chilling out, you're kind of recollecting strength.
7:39
[SPEAKER_02]: And then I think we can start talking about the longs again once this maybe unwinding period is over.
7:46
[SPEAKER_02]: So that's really what I'm seeing here.
7:47
[SPEAKER_02]: I think overall a good week for Crypto.
7:49
[SPEAKER_02]: I think the fact that we were able to move up so aggressively
7:53
[SPEAKER_02]: And then not just immediately lose all of those gains is a step in the right direction because that's something that we kind of have seen is like, oh, we rallied up, we got up here and it's destroyed right and we're all the way back down.
8:05
[SPEAKER_02]: That's just not what we're seeing.
8:06
[SPEAKER_02]: We're kind of pushing up doing a lot of things that we've never seen in this cycle so far right inside of this bear market specifically, we're
8:14
[SPEAKER_02]: you know doing a lot of different things and hitting a lot of different metrics that we have not seen inside of this bear market and I think that in and of itself is a good thing right because if we're breaking some of that bear structure doing some bullish things to the upside that we haven't seen in this bear market that starts to get me a little bit more excited and so the fact that we're doing that and then not immediately just losing all of the gains
8:38
[SPEAKER_02]: I think that's a good thing.
8:39
[SPEAKER_02]: I think the longer you hold on to this probably the better, the more we hold it out you the better, and the fact that you haven't seen this have just a narrowly cell-off in another one of those big liquidation events that it feels like we've seen, like what, like half a dozen that doesn't times in the last year, you're not seeing that, and the only big liquidation event that we've seen at least so far in the last month or so has been a liquidation of the bears and the sellers.
9:02
[SPEAKER_02]: So,
9:03
[SPEAKER_02]: You know, fingers crossed.
9:04
[SPEAKER_02]: We can hold value.
9:05
[SPEAKER_02]: Maybe we do, you know, have some more downside and pull back, but overall here, I think you have to be a little bit optimistic.
9:12
[SPEAKER_02]: I think you have to be pretty pleased with how crypto's performed.
9:15
[SPEAKER_02]: And you know, now we're going to say, hey, let's kind of see how it reacts as it cools off.
9:19
[SPEAKER_02]: And then we'll reevaluate from there.
9:21
[SPEAKER_02]: But overall, you know, pretty optimistic here about the space.
9:26
[SPEAKER_00]: Yeah, people were listening on Friday with Brian and I were kind of joking around how we were in extreme greed and I was making some some picky noises just being like, man, how can you go from extreme fear to extreme greed so fast you guys agree little pigies and sure enough that it begins to cool off and there's macro things at play this week too again on this channel we stopped covering, um,
9:49
[SPEAKER_00]: kind of the Iron Wars, the straight-o-hormuz open as it closed.
9:52
[SPEAKER_00]: It became a tweet off.
9:54
[SPEAKER_00]: It's really too hard for, you know, average Joe's like ourselves back home to really gauge that, but there is some rumblings of some things going on there.
10:04
[SPEAKER_00]: Again, oil spiking on that, we have the interest rate, things going on at the fed, which we're going to cover up in a couple weeks here.
10:12
[SPEAKER_00]: I think there's a decision coming up in two weeks on September 16th, I believe, is the day.
10:17
[SPEAKER_00]: Hopefully we'll be available to cover that live with you guys, and I think the markets right now are pricing in a rate hike, which is interesting.
10:27
[SPEAKER_00]: And we'll break that down as we get closer.
10:30
[SPEAKER_00]: But yeah, just a lot of macro things that play too, and that's the name of the game, right?
10:34
[SPEAKER_00]: It's a zoom out, but when we're zooming in here, there's a lot of things that play.
10:39
[SPEAKER_00]: And you just can't neglect, it's been a great month for crypto.
10:43
[SPEAKER_00]: Like I just, I had up the, what was it, the Coin Market Cap 20 on the one month here while you were talking, you know, 23, 23% on the month, that's fantastic.
10:52
[SPEAKER_00]: And obviously a lot of other tokens and stuff that our team,
10:56
[SPEAKER_00]: has been uh... you know researching talking about inside the community have been doing much much better than that so if you're somebody that's interested uh... getting more involved in the community with brand and with price and the whole entire team um... we do have a special offer today in the description if you want to scroll down and click the link it's the number one crypto to own for the new bull market i know that
11:14
[SPEAKER_00]: uh... you uh... Brendan and Bryce and the whole team have done a ton of research um... and a found this one and uh... that's really success which is great but if you're somebody that that kind of once that full report on uh... what our team worked on just check out the link below it's number one crypto owned for the new bull market and if uh... that's not something you're interested in we have the other links for the community as well to get you more involved
11:35
[SPEAKER_00]: to get more involved with the team because again now is the time as the momentum continues to build and you'll see the momentum builds when this happens Brendan listen the sky is blue clouds are white and Michael sailors buying bitcoin micro strategy finally on the buy side worth a three hundred sixty nine million and then front of the show tomley continuing to add to
12:03
[SPEAKER_00]: 1,000 ETH away from the quote unquote alchemy of 5% that we've been covering on the show.
12:10
[SPEAKER_00]: Looks like Bitmind is well on their way to getting to 5% of the total supply of ETH, which is, you know, an interesting and cool accomplishment and then sailor buying as well.
12:20
[SPEAKER_00]: take both those bread and take a swing out of both what do you feel in here obviously Tom just continuing to buy and then sailor we were covering how they stopped they were selling they were buying stretch and then obviously with the rip higher that that helps the whole micro strategy financial alchemy play but what do you feel in here?
12:40
[SPEAKER_02]: Yeah, listen, I like this.
12:42
[SPEAKER_02]: I think they're back to being where they should be.
12:45
[SPEAKER_02]: And we've talked about this, and we've covered what strategy has been doing in the way that they've been acting in the last several months.
12:52
[SPEAKER_02]: And I've been a little bit of a critic of it, right?
12:53
[SPEAKER_02]: I've been a bit of a skeptic saying, I don't think it makes sense to be buying so much Bitcoin, so high, and then selling it so low, and being a Bitcoin Treasury company, and then talking about how you're going to be selling Bitcoin to raise cash.
13:07
[SPEAKER_02]: That's like counterintuitive to the whole premise.
13:10
[SPEAKER_02]: Or, you know, selling Bitcoin low to go and support a stock based dividend product, right?
13:17
[SPEAKER_02]: So I was kind of skeptical or hesitant or a critic of that.
13:20
[SPEAKER_02]: So I liked the fact that they're back where they should be, right?
13:23
[SPEAKER_02]: Because for a while, they were buying Bitcoin high and then selling underneath their cost basis at, you know, at a loss.
13:31
[SPEAKER_02]: to support these other initiatives.
13:32
[SPEAKER_02]: And I think, again, now people are saying, aha, you know, we're back.
13:35
[SPEAKER_02]: This is where we want to be.
13:37
[SPEAKER_02]: And so that makes me pleased.
13:38
[SPEAKER_02]: In fact, I was just asked about this yesterday during one of the trading sessions.
13:42
[SPEAKER_02]: And someone said, hey, what do you kind of think of the situation?
13:46
[SPEAKER_02]: Can this be a positive catalyst?
13:47
[SPEAKER_02]: And I said, I think it absolutely can be a positive catalyst.
13:51
[SPEAKER_02]: You would arguably the most influential
13:55
[SPEAKER_02]: group in crypto, one of the largest holders of Bitcoin itself, and then you have them selling low and looking at other endeavors outside of Bitcoin and stuff, and so the fact that they are back on track and supporting and buying, I think that that absolutely is a catalyst pointing us in the right direction here.
14:12
[SPEAKER_02]: It is however going to be some time before they, before they escape some of the smack talk, just looking at the comment section,
14:20
[SPEAKER_02]: the first couple ones all kind of allude to it to you the first couple comments and response to this post.
14:26
[SPEAKER_02]: I mean, yeah, I mean, they're given it to him still.
14:28
[SPEAKER_02]: So I think they got a bit more buying to do before they get themselves out of the dog house at the grip.
14:34
[SPEAKER_02]: Yeah, I mean, yeah, the first one there sell at 60K by at 78.
14:36
[SPEAKER_02]: Not sure.
14:38
[SPEAKER_02]: the next one after that.
14:41
[SPEAKER_02]: He sold a 60K and he bought back at 80K.
14:44
[SPEAKER_02]: It's like, you know, there's just a lot of that.
14:46
[SPEAKER_02]: I think it's, you know, partially deserved.
14:48
[SPEAKER_02]: But again, I think the more that they get back in here and do buying, the more this will kind of go away and they'll kind of.
14:55
[SPEAKER_02]: improve their stands once again with the rest of the crypto space and earn their trust back as they do more buying so i like to see this i think it's a really good catalyst and we love to have them back on the team of the buyers and not the sellers um as for bit mine and tom le
15:12
[SPEAKER_02]: They've kind of had a dip for an approach where they've just been buying almost every single day or almost every single week and buying and buying.
15:20
[SPEAKER_02]: I mean, yeah, look at this.
15:21
[SPEAKER_02]: This is a great chart to you though.
15:22
[SPEAKER_02]: Oh, good as to you.
15:24
[SPEAKER_02]: Yeah, look at the buys every single week here almost buying more and more and more and more.
15:29
[SPEAKER_02]: And they're almost at that 5%, now the benefit of this is that they've been buying consistently through the bear market and they have drastically brought down their average cost from what it was because they really started this thing towards the highs.
15:43
[SPEAKER_02]: And so what they've been able to do by buying so frequently and accumulating so frequently will now they almost have 5% of ETH and they've drastically brought down their cost basis
15:59
[SPEAKER_02]: drastically, you know, larger amounts of money, right?
16:02
[SPEAKER_02]: They're going to have a significantly more profits than they would have if they just held.
16:07
[SPEAKER_02]: So I think there's a lot of power here in dollar cost averaging.
16:09
[SPEAKER_02]: I'm sure they're feeling it.
16:10
[SPEAKER_02]: I'm sure a lot of the listeners out there who had bought the dip, they're probably feeling it here off those recent lows.
16:17
[SPEAKER_02]: Um, and this gets me excited, right?
16:19
[SPEAKER_02]: All it takes is a little bit of foamow to see these companies start moving again.
16:25
[SPEAKER_02]: They start recovering, you know, maybe they're share prices start recovering and then that gets more people in.
16:30
[SPEAKER_02]: And then people think, oh, I'm not going to miss it the second time around and then they start getting involved in crypto search appreciating and then the foamow snowball starts up and I think that's all you need to see is, oh, okay, now all of a sudden micro strategies back in profit, they're above their cost basis.
16:46
[SPEAKER_02]: Next up, maybe BitMind's gonna be above their cost basis.
16:49
[SPEAKER_02]: And then that starts the phone was snowball even more.
16:52
[SPEAKER_02]: And I think that's the kind of thing that you'd expect to see in a bull market.
16:55
[SPEAKER_02]: We're not quite there yet, right?
16:57
[SPEAKER_02]: You know, we're still a little bit farther away from something that euphoric.
17:01
[SPEAKER_02]: But I think that we're laying the foundation here and we're off to a bit of a good start.
17:06
[SPEAKER_02]: We obviously have a decent ways more to go for not only Bitcoin and Ethereum, but for I think a lot of different altcoins.
17:15
[SPEAKER_02]: You know, again, I'm not, I really like where we're at.
17:18
[SPEAKER_02]: I like where we're at.
17:19
[SPEAKER_02]: I think we're off to a good start.
17:20
[SPEAKER_02]: I think the crypto market needs to continue this momentum.
17:23
[SPEAKER_02]: We need to see the treasury companies continue to accumulate.
17:26
[SPEAKER_02]: Not sell low, right?
17:28
[SPEAKER_02]: We need to see more buying.
17:29
[SPEAKER_02]: And, you know, I think we hold that up.
17:31
[SPEAKER_02]: I think it helps with the overall sentiment.
17:34
[SPEAKER_02]: It helps with how everyone's kind of viewing the space.
17:37
[SPEAKER_02]: And we'll kind of go from there and we'll take it one step at a time.
17:41
[SPEAKER_00]: it's great way to look at it.
17:42
[SPEAKER_00]: I'd like where we are.
17:44
[SPEAKER_00]: I pulled a clip from Tom Lee on CNBC because again, we've played them really all the time in all markets, but specifically when
18:00
[SPEAKER_00]: on their bullish and we'd play clips and be like, man, it's a tough look for our guy, it's it's it's rain, it's tough out there, but he continued to buy credit to him.
18:08
[SPEAKER_00]: So I think it's worth, you know, checking back in and listening as we do in all markets when it's going up, we want to hear when it's going down and we want to hear.
18:15
[SPEAKER_00]: And we had takes every which way all year on what he was saying, but let's take a look, it's a minute clip here from the other day.
18:25
[SPEAKER_01]: I think it's the first leg up because this was like a catching people off-site moving crypto.
18:32
[SPEAKER_01]: I think institutional investors are buying crypto stocks.
18:36
[SPEAKER_01]: That's really evident.
18:37
[SPEAKER_01]: Like the volumes have really jumped and that's a sign that they're adding on a big fourth quarter.
18:44
[SPEAKER_01]: I think it's been a very shallow crypto winner.
18:48
[SPEAKER_01]: But there was a massive amount of deleverging, like October was a big step down and then earlier this year twice.
18:54
[SPEAKER_01]: So I think very few people own crypto.
18:57
[SPEAKER_01]: That's why I think, you know, Bitcoin could easily.
19:00
[SPEAKER_01]: be in the six figures.
19:02
[SPEAKER_01]: The Korean investor, which was really big in crypto, they've rotated into AI early this year, but we're already seeing volumes pick up in Korea, so they're rotating back into crypto.
19:12
[SPEAKER_01]: And the final is if clarity act passes, which could happen this year, and if it does, I think Bitcoin and Ethereum have a huge fourth quarter.
19:20
[SPEAKER_01]: I think 150 is still possible.
19:23
[SPEAKER_00]: I think
19:25
[SPEAKER_00]: Nice clip there kind of cut-up well just all the talking points so stuff that we've covered on the show You know obviously AI was as I said the bell of the ball and and that's you know the rotating there I saw a stat it was the momentum ETFs the momentum stocks They peeked out June 22nd
19:43
[SPEAKER_00]: and they've been in a downtrend in the momentum stocks being the AI, the memory trade, the DRAM trade, that momentum peaked in June 22nd, so you're 50, about 50 to 60 days outside of the peak of the momentum.
19:57
[SPEAKER_00]: And then as those stocks have come in, you know, the Mag7 has performed well and then obviously crypto as well, crypto best performing asset of the quarter, believe it or not.
20:08
[SPEAKER_00]: So any takeaways from that?
20:12
[SPEAKER_02]: You didn't know that too much.
20:12
[SPEAKER_02]: I think he said it pretty well.
20:15
[SPEAKER_02]: Just overall, you know, we'll wait and see.
20:18
[SPEAKER_02]: I think that we share the kind of the same idea of like, hey, this is a good first step.
20:22
[SPEAKER_02]: There is the potential for more to follow this.
20:25
[SPEAKER_02]: I think we need to figure some things out.
20:29
[SPEAKER_02]: There's still,
20:31
[SPEAKER_02]: Certainly some headwinds and some tailwinds, right?
20:33
[SPEAKER_02]: There's some bullish things and some bearish things, kind of in front of us and behind us.
20:37
[SPEAKER_02]: But overall, I would remain optimistic.
20:40
[SPEAKER_02]: You know, the way that I view this is I want to position myself for the long term.
20:45
[SPEAKER_02]: So should we pull back more?
20:48
[SPEAKER_02]: You know, my stance on this is I want to be a dip buyer.
20:51
[SPEAKER_02]: Whether the bottom is in or not, I think that the longer that we hold up here at higher prices, the better it looks.
20:57
[SPEAKER_02]: And I still want to kind of position myself to say where do I think that we could be a gear two, three years from now.
21:03
[SPEAKER_02]: And, and.
21:04
[SPEAKER_02]: My stance on that is in the long term, so long as I'm accumulating things that I'm bullish on for those longer periods, I still think that we're at bargain prices, right?
21:12
[SPEAKER_02]: When you have Bitcoin and Ethereum and Solana and a lot of altcoins down 40, 50, 60 plus percent, it's hard to argue that, you know, with what we're seeing right now that you don't see long-term value, if there's even a chance that we're coming out of that more bearish period.
21:30
[SPEAKER_00]: Yeah, it's a good point and, you know, it kind of helps with the the investment thesis of diversification and owning different assets because again different assets perform better at different times.
21:42
[SPEAKER_00]: But no matter what you're researching you want to, I'm sorry, no matter what you're investing in you want to make sure that you're doing the research and have the education and that's why we're here.
21:50
[SPEAKER_00]: So if you're enjoying this, please give it a thumbs up, bottom right if you're new, hit the logo and subscribe.
21:55
[SPEAKER_00]: And again, check out the links below if you want to get more involved and more detailed reports from our team, all that stuff's there for you guys to get more involved.
22:03
[SPEAKER_00]: Something that our team has called and been hot on all year and it was a great call and you got it super early again if you were inside the community and you even got it early if you're a podcast listener to be honest, but obviously inside the community first you were
22:18
[SPEAKER_00]: of hyper-liquid and it looks like there's talks of trying to bring this on shore.
22:25
[SPEAKER_00]: So some U.S. customers can get involved.
22:30
[SPEAKER_00]: What are you seeing here from the hyper-liquid team?
22:34
[SPEAKER_02]: That's, I think the most interesting topic right now, right?
22:38
[SPEAKER_02]: Because for a while, it was this idea that man, they've been able to grow so much and they've been able to see so much success.
22:46
[SPEAKER_02]: And that's largely without any access to the US market, at least not legally.
22:52
[SPEAKER_02]: So,
22:53
[SPEAKER_02]: What they were doing is seeing astronomical success and putting it these ridiculously positive numbers without having really any market share of the largest financial player in the world.
23:07
[SPEAKER_02]: So now what there is is there's an argument of how do we price in them getting access to the largest financial market in the world.
23:14
[SPEAKER_02]: all of the users, all of the capital, all that activity, what that means.
23:18
[SPEAKER_02]: And the reason why this effects hyper-liquid so specifically is because of the way that their tokenomics are structured.
23:26
[SPEAKER_02]: What that means is that
23:29
[SPEAKER_02]: they put about 99% of the money that they make into these buy-back and burn processes, where they're getting the tokens and they're taking them off the market with the majority of the money that they make.
23:42
[SPEAKER_02]: So if they're making more money and they have more users and then those users are causing more activity, the activity is causing more fees, the more fees that they're making, the more they're buying back, and
23:52
[SPEAKER_02]: I think the better that that works for token appreciation and removing tokens from that supply.
23:57
[SPEAKER_02]: And so people are trying to price that in and say, OK, well, if they have this huge influx from the largest financial group in the world, which is the United States market.
24:09
[SPEAKER_02]: How do we kind of price that in?
24:11
[SPEAKER_02]: And I think that's what people are trying to do here.
24:13
[SPEAKER_02]: Now, it was such a curveball because the way that hyper liquid works, how would you get them in all of their products into the US without having some sort of KYC, right?
24:23
[SPEAKER_02]: Know your customer.
24:25
[SPEAKER_02]: I don't think we have an answer to that question yet.
24:29
[SPEAKER_02]: My guess would be Tvo, is that you're gonna have a slightly different version of hyperliquid in the US.
24:35
[SPEAKER_02]: It won't be the full access that people overseas would know and love and that people have used.
24:44
[SPEAKER_02]: I think you're gonna have a slightly different product, a slightly different version of it.
24:47
[SPEAKER_02]: You're not gonna get all the bells and whistles.
24:49
[SPEAKER_02]: It is gonna be more harshly regulated.
24:51
[SPEAKER_02]: You're not gonna have all the different features and options and everything.
24:55
[SPEAKER_02]: You know, even if they are doing seeing half as much success as they would if they were to just launch in a full, I still think that that's a really really big positive for them.
25:04
[SPEAKER_02]: And the thing here is, again, no one really knew how that was going to be able to work.
25:09
[SPEAKER_02]: Like, how do you set up something which is inherently risky, right?
25:13
[SPEAKER_02]: Because you have prediction markets, you have leverage to markets, you have these different futures products and perpetual products and things that are typically very, very high risk.
25:24
[SPEAKER_02]: Or you can even lose more than you put in.
25:26
[SPEAKER_02]: It's not just like normal crypto trading, which is already volatile.
25:30
[SPEAKER_02]: It's saying let's take that to the next extreme.
25:32
[SPEAKER_02]: Let's make it more volatile, more risky.
25:34
[SPEAKER_02]: But,
25:36
[SPEAKER_02]: You know, how do you kind of regulate that in a different way that's still yours compliant?
25:43
[SPEAKER_02]: So we don't know all the answers to it, but listen, I'm a big fan of hyperliquid.
25:47
[SPEAKER_02]: I think that if people want to trade these products, they should, they should absolutely know the risks.
25:52
[SPEAKER_02]: But I'm a huge fan of saying, hey, you know,
25:55
[SPEAKER_02]: people could kind of be able to do what they want within reason, and the fact that the current administration is willing to propose that idea and say, hey, let's kind of try to come to some sort of conclusion, let's try to get them in the US.
26:09
[SPEAKER_02]: If you are a hyper liquid holder, you gotta be stoked about that news because it just kind of expands market share quite a bit.
26:18
[SPEAKER_00]: 100% you've got to hope it's not like a Binance US where it's, you know, it's just not
26:26
[SPEAKER_02]: That would be my fear is that they can't let's talk worst case scenario, right?
26:32
[SPEAKER_02]: This is not what is actually happening.
26:34
[SPEAKER_02]: We're just theorizing the worst case scenario here.
26:37
[SPEAKER_02]: I think the worst case scenario would be they say, hey guys, we're going to show you a hyper liquid US.
26:42
[SPEAKER_02]: And it's just like normal spot trading crypto, right?
26:45
[SPEAKER_02]: It's like, oh, I can go buy Bitcoin and I can sell Bitcoin.
26:48
[SPEAKER_02]: I can buy and sell hyperliquid and maybe I do some prediction market things and like that's it, right?
26:54
[SPEAKER_02]: That's really all that there is.
26:55
[SPEAKER_02]: And you don't get the full suite of features.
26:58
[SPEAKER_02]: One of the big things that people like about hyperliquid is that you can trade different kinds of perpetual contracts or other leveraged contracts.
27:05
[SPEAKER_02]: on not just crypto, but just about anything, right?
27:07
[SPEAKER_02]: You can trade it on, you know, metals and stocks and, you know, cryptos and all these different asset classes, you can trade these perpetual contracts 24-7.
27:17
[SPEAKER_02]: You can get constant access to any financial market that you want with a pretty,
27:23
[SPEAKER_02]: pretty large variety of leverage.
27:25
[SPEAKER_02]: And that's one of the things that people really like about hyperliquid.
27:28
[SPEAKER_02]: So, you know, worst case scenario, I think they make it like a very basic, simple exchange and interface.
27:35
[SPEAKER_02]: And then a lot of the features that people like hyperliquid for aren't used on there.
27:39
[SPEAKER_02]: Now again, I don't think that that would happen.
27:41
[SPEAKER_02]: It would kind of defeat the whole point, but I would be watching out for that.
27:45
[SPEAKER_02]: Because of that is the case, then I think there would be a little bit of disappointment.
27:50
[SPEAKER_00]: makes sense and it's something we will obviously continue to cover just like some news coming out of the major banks the old school banks here the old guards if you will but 21 major global banks including Bank of America City Goldman Sachs, Deutsche Bank and UBS just committed to launching a joint stable coin company targeting a USD denominated stable coin looking to
28:18
[SPEAKER_00]: So, some big names on their Brendan, and we know stablecoin and payments, and that's how we think these crypto rails are going to be integrated into the world, and people are going to be using crypto without really knowing that this is definitely one of those areas.
28:43
[SPEAKER_02]: Yeah, you know, we need to do some more research.
28:45
[SPEAKER_02]: This news literally just broke like not too long before we hopped on here.
28:50
[SPEAKER_02]: I think that this tells us a couple of things.
28:52
[SPEAKER_02]: I would imagine that this has the back end of it ran on Ethereum.
29:00
[SPEAKER_02]: The other thing I would say here is that this really solidifies the state of stable coins.
29:05
[SPEAKER_02]: Stable coins right now is probably one of the more underrated sectors.
29:09
[SPEAKER_02]: It's what everyone wants to talk about, it's what everyone wants to use, it's whether you're talking about agents using this or banks using this or the average person using this or fill in the blanks, right?
29:20
[SPEAKER_02]: Stable coins through the Genius Act and it wants to be kind of furthered through the Clarity Act.
29:25
[SPEAKER_02]: Seems as if it's going to be one of the next core forms of crypto as we scale into the future, right?
29:31
[SPEAKER_02]: There's like the infrastructure itself, there's stablecoins, there's tokenization, there's prediction markets, there's a few other ones out there that really feels like it has growth and sticking power.
29:42
[SPEAKER_02]: And despite that, I think that the stablecoin space is still relatively,
29:48
[SPEAKER_02]: I don't know, undervalued might be the right word, where you look at a lot of the stablecoin infrastructure, and it's still like so far away from where it once was in terms of valuation.
30:00
[SPEAKER_02]: And it seems as if the ball from everyone that matters is kind of rolling towards this future where it's a really, really big part of where we're going to be.
30:12
[SPEAKER_02]: So if I had to predict and say, you know, hey,
30:16
[SPEAKER_02]: Where is the stable coin ball rolling?
30:17
[SPEAKER_02]: I just don't I've only seen it really kind of grow and get better news over the last year or so and this is another example of this right 21 major global banks Bank of America city Goldman Sachs Doishabank UBS all these big players saying hey we're gonna have a joint stable coin here and we're gonna try to get this thing live by the first half of next year
30:42
[SPEAKER_02]: You have to be looking at who benefits off of that the most.
30:46
[SPEAKER_02]: And what that will do for the whole of the stablecoin industry because if they set up the standard, you better bet that obviously there's going to be competition.
30:55
[SPEAKER_02]: And I think that there's a different group of players that can benefit.
30:58
[SPEAKER_02]: You know, maybe that's USDC, maybe that's Tether.
31:00
[SPEAKER_02]: Maybe that is this specific play.
31:03
[SPEAKER_02]: Maybe it's those specific companies.
31:05
[SPEAKER_02]: I think there's a lot of different ways to look at this.
31:07
[SPEAKER_02]: The way I would frame it,
31:09
[SPEAKER_02]: is where is the ball rolling?
31:12
[SPEAKER_02]: And what does this tell us about the bigger picture?
31:14
[SPEAKER_02]: I think it tells us that the bigger picture here is that obviously cryptos here to stay.
31:18
[SPEAKER_02]: Stable coins are here to stay.
31:20
[SPEAKER_02]: The infrastructure that runs that is here to stay.
31:23
[SPEAKER_02]: And it also tells me that they really want to use this and that they see a need or a want for this.
31:29
[SPEAKER_02]: So, for all the people out there who are nervous about the state of crypto and stablecoins and regulation and all this, I don't think you would be having Bank of America and city and Goldman Sachs and UBS and Deutsche Bank and all these people building on it, growing this thing, investing so much time and money and resources and hiring, there's just so much that goes on to launch a product that they know that there's already competitors in.
31:55
[SPEAKER_02]: I think that
31:56
[SPEAKER_02]: The reason for that is because they are trying to get market share of what they think is going to be a very big essential space at some point in the future and where we're at right now is we're still at the fairly early stages of that where we're still in the setup process right this is the announcement.
32:12
[SPEAKER_02]: of them in the setup process.
32:15
[SPEAKER_02]: It's not something that is even launched yet.
32:17
[SPEAKER_02]: It's not something that is even closely fully matured yet.
32:20
[SPEAKER_02]: We're in the setup process for a lot of this.
32:23
[SPEAKER_02]: And so I think that what people have done is they've heard of stablecoins, they've used them.
32:27
[SPEAKER_02]: But I don't think that the average person out there has fully,
32:31
[SPEAKER_02]: Fully has a proper understanding of where this could be and how long that that could take, and I think that that bit of a longer time horizon about how long it could take us to get there, and how big the market share could be.
32:44
[SPEAKER_02]: I think that's what maybe causes people to lose interest.
32:48
[SPEAKER_02]: is because this isn't something that's going to be instant gratification.
32:51
[SPEAKER_02]: It's not something that we're even going to have an answer by by the end of this year.
32:55
[SPEAKER_02]: We might not even get the start of this process until next year.
32:59
[SPEAKER_02]: But I think when you start to say, okay, well, what about the year after that?
33:02
[SPEAKER_02]: What about the year after that one?
33:04
[SPEAKER_02]: What about a couple of years down the road when this ball's really starts to get rolling?
33:08
[SPEAKER_02]: And you have all the big banks and asset managers and these different players using this stuff.
33:13
[SPEAKER_02]: I think that's kind of the framework that I have.
33:16
[SPEAKER_02]: So,
33:17
[SPEAKER_02]: If that doesn't get you excited, I'm not sure what it will, but again, zoom out here that the time horizon needs to be expanded a bit.
33:26
[SPEAKER_02]: I think we need to think big, but there's a lot of potential that comes out of here.
33:31
[SPEAKER_02]: The ripple effects are really what I think matter, but it's not going to be something that happens in the next month or a couple of months.
33:40
[SPEAKER_00]: Yeah, and it's not going anywhere.
33:42
[SPEAKER_00]: Last thing here is, you know, JP Morgan, pet rock, Bitcoin, JP Morgan, Jamie Diamond, friend of the show.
33:49
[SPEAKER_00]: Still looking for great candidates to join the digital asset team at Chase and JP Morgan Chase.
33:54
[SPEAKER_00]: They're looking for executive directors, vice presidents, associates, so again, these major banks, they're building stable coins.
34:00
[SPEAKER_00]: They continue to build out their team.
34:02
[SPEAKER_00]: The crypto thesis is not going anywhere contrary to what you might be hearing on other news networks
34:10
[SPEAKER_00]: Shoot down and take stabs at the crypto buzzword and let's end it on a fun note here shout out to Twitter Twitter fan friend Artemis Twix listening to crypto 101
34:28
[SPEAKER_00]: I'm talking about prediction markets and portfolio tools rather than just betting.
34:33
[SPEAKER_00]: Looks like he took our conversations and turned it into his own use.
34:37
[SPEAKER_00]: So on prediction markets, tweaks chain, very fun stuff, man.
34:42
[SPEAKER_00]: But yeah, I just always appreciate anybody who listens, just to give a shout out on X.
34:48
[SPEAKER_00]: We're always interacting out there and we had a couple of them come through.
34:50
[SPEAKER_00]: this week.
34:51
[SPEAKER_00]: I have another one we'll bring up on Friday with Brian.
34:53
[SPEAKER_00]: I'll give him Brian a shout out.
34:54
[SPEAKER_00]: But again, it's it's always super cool to have engage listeners in an awesome engaged community.
35:00
[SPEAKER_00]: Again, check out the links in the description if you want to get more involved with Brendan Bryce and the entire team.
35:05
[SPEAKER_00]: That's going to do it all today for our Tuesday rundown.
35:09
[SPEAKER_00]: We always appreciate you guys joining us.
35:10
[SPEAKER_00]: One last call.
35:11
[SPEAKER_00]: Thumbs up.
35:12
[SPEAKER_00]: Bottom right hit the logo and subscribe if you're new.
35:14
[SPEAKER_00]: But that's all for now.
35:15
[SPEAKER_00]: Keep an eye out.
35:16
[SPEAKER_00]: We're going to publish another interview this week.
35:19
[SPEAKER_00]: I think it's Coinbase.
35:20
[SPEAKER_00]: The one you guys did last week.
35:21
[SPEAKER_00]: Coinbase AI, super, super awesome in every Brian, uh, Brendan and Bryce did last week.
35:26
[SPEAKER_00]: So that's going out and then we'll be back on Friday with another rundown.
35:29
[SPEAKER_00]: But that's all for now.
35:31
[SPEAKER_00]: Bye, everybody.