Latest / The Paul Barron Crypto Show / Rate Cut Potential in December🚀Crypto Market Update

Transcript

Rate Cut Potential in December🚀Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Rate cuts are back in play. What does this mean
• 0:02
  Speaker 1: for the crypto market today, We'll break it down for you.
• 0:04
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• 0:46
  Speaker 1: into the topics today because we're going to really talk
• 0:49
  Speaker 1: about where the FED is going and how this plays
• 0:51
  Speaker 1: into the current market position. If you look at the
• 0:54
  Speaker 1: status right now, Bitcoin of course extends gained gains arise
• 0:58
  Speaker 1: above eighty nine thousand, and of course eth was up
• 1:01
  Speaker 1: over six percent. All of this kind of looking into
• 1:04
  Speaker 1: what the Fed's likelihood of a rate could could be.
• 1:08
  Speaker 1: And if you consider that, just as a reminder, everybody
• 1:11
  Speaker 1: has pretty much been going in on the dip. For
• 1:13
  Speaker 1: those of you a brand new a crypto that was
• 1:15
  Speaker 1: your first gift from the crypto community is being able
• 1:18
  Speaker 1: to get in on some of these better prices, both
• 1:21
  Speaker 1: on Bitcoin, eth, XRP, you name it. Everything was on
• 1:24
  Speaker 1: sale over the last several days. Of course, how does
• 1:27
  Speaker 1: this play into where the Fed could be going? Let
• 1:29
  Speaker 1: me go into this next clip because it breaks down
• 1:32
  Speaker 1: a lot of analysis on why Chair Pale might be reconsidering.
• 1:36
  Speaker 1: Take a look.
• 1:37
  Speaker 2: Fed's December policy decision, looking now to be blowing more
• 1:41
  Speaker 2: decisively towards a rate cut despite the possibility of a
• 1:44
  Speaker 2: significant number of descensions of the December meeting, comments by
• 1:47
  Speaker 2: leading FED officials and reporting by CNBC suggests the FED
• 1:51
  Speaker 2: is on balance more concern with the weakening job market
• 1:54
  Speaker 2: than it is inflation running too hot. To be sure,
• 1:57
  Speaker 2: there's a lot of voters on the committee that i've
• 1:59
  Speaker 2: either opposed to out writers supported causes approach to cuts
• 2:02
  Speaker 2: that could mean multiple descents in December, but Governors Myron
• 2:05
  Speaker 2: Waller and Bowman and now President Williams look ready to
• 2:08
  Speaker 2: vote for a cut. Williams view likely affects Powells that
• 2:11
  Speaker 2: the FED will remain somewhat restrictive even after a cut.
• 2:15
  Speaker 2: So what's happened. The probability is keep getting higher. They
• 2:17
  Speaker 2: have been down as low as thirty three percent before
• 2:20
  Speaker 2: Williams talk. Now they're at seventy three for December, and
• 2:23
  Speaker 2: that same cut as an eighty two percent probably happening
• 2:26
  Speaker 2: by January. One way the centers could be convinced to
• 2:30
  Speaker 2: support to support the Ray cut is position the Fed
• 2:32
  Speaker 2: depending on the data for a January pause. Waller, who's
• 2:35
  Speaker 2: a strong supporter of a December cuts, yesterday the FED
• 2:38
  Speaker 2: should go meeting by meeting in January, so maybe that
• 2:42
  Speaker 2: ends up being a pause. Becky, I don't know if
• 2:44
  Speaker 2: you make decisions this way, but which decision would you
• 2:47
  Speaker 2: feel worse not having made? And I think the way
• 2:51
  Speaker 2: this balance is out is if the jobs data is
• 2:54
  Speaker 2: really weak, the ones that we get after the FED meeting,
• 2:58
  Speaker 2: I think they'll regret more not having cut for the
• 3:00
  Speaker 2: jobs mark for the jobs market than they would having
• 3:04
  Speaker 2: not cut because they're concerned about inflation being around three percent.
• 3:08
  Speaker 1: That I am in agreement with. If you look on
• 3:11
  Speaker 1: which side of the blade you might fall, because this
• 3:13
  Speaker 1: is really what you're dealing with is a very very
• 3:16
  Speaker 1: sharp market. What's amazing to me is the retracement here
• 3:20
  Speaker 1: within the poly market. Let me kind of zoom in
• 3:22
  Speaker 1: on this and show you guys when this occurred, because
• 3:24
  Speaker 1: as of last week, we were setting on November twentieth,
• 3:28
  Speaker 1: a twenty five basis points decrease twenty two percent. What
• 3:33
  Speaker 1: we were looking on the no change was seventy six percent.
• 3:37
  Speaker 1: Now look what happens right here. You start to see
• 3:39
  Speaker 1: this move and then there's the flip. There's the twenty
• 3:41
  Speaker 1: five basis points decrease going up to sixty five percent,
• 3:45
  Speaker 1: and then of course it's just been climbing from there
• 3:47
  Speaker 1: and as we report today, eighty four percent right now
• 3:50
  Speaker 1: on poly market. So most likely we're going to see
• 3:54
  Speaker 1: a December rate cut. Now what does that look like
• 3:56
  Speaker 1: in January? Because I think this is another factor. Even
• 3:59
  Speaker 1: if you look at jen Or, even though it did
• 4:00
  Speaker 1: dip down, it's still well over fifty percent. Zooming on
• 4:04
  Speaker 1: that for you guys, still over fifty percent on a
• 4:06
  Speaker 1: no change, and then of course that kind of puts
• 4:09
  Speaker 1: into the position that they were talking about there on CBC,
• 4:12
  Speaker 1: is that these governors could say, hey, go ahead and
• 4:14
  Speaker 1: make the cut. Now, it sets you up for a
• 4:17
  Speaker 1: pause in January. And remember that's the end of January,
• 4:21
  Speaker 1: so you're going to see quarterly earnings coming in. You're
• 4:23
  Speaker 1: going to see a lot of things coming in after
• 4:26
  Speaker 1: the end of the year, which will give the Fed
• 4:28
  Speaker 1: a little bit more breathing room going into the end
• 4:30
  Speaker 1: of January of being able to make the right move
• 4:33
  Speaker 1: as we head into a very busy spring season going forward.
• 4:38
  Speaker 1: Other things you have to look at this, of course,
• 4:40
  Speaker 1: is the theory, and this is a concept we've talked
• 4:43
  Speaker 1: about before, is the shadow FED, because remember, everything is
• 4:46
  Speaker 1: barreling down toward the potential, well, I shouldn't say, the
• 4:50
  Speaker 1: eventual replacement of Chairman Powell. And of course you look
• 4:54
  Speaker 1: at that along over with what Trump's been doing in
• 4:57
  Speaker 1: terms of announcing saying, hey, I've got the next Federal
• 4:59
  Speaker 1: Reserve chair. I think I do. Obviously he's been talking
• 5:03
  Speaker 1: about this, well, many people have been talking about this
• 5:06
  Speaker 1: shadow chair and also kind of the shadow FED in
• 5:09
  Speaker 1: general because a lot of these moves maybe are pushing
• 5:13
  Speaker 1: this dissension that we're seeing so much, and we're starting
• 5:16
  Speaker 1: to see a little bit of a left versus right
• 5:19
  Speaker 1: kind of scenario play out in the FED. I want
• 5:21
  Speaker 1: to go to a clip real quick, because this is
• 5:23
  Speaker 1: Scott best at kind of breaking this down.
• 5:24
  Speaker 3: Take a look, and Andrew, I'll tell you one of
• 5:27
  Speaker 3: the things in terms of the criteria that I've been
• 5:30
  Speaker 3: looking for that I have morphed a bid on in
• 5:34
  Speaker 3: the fall and when we started with eleven candidates is
• 5:37
  Speaker 3: in talking to these candidates, I realize the FED has
• 5:40
  Speaker 3: become this very complicated operation. It's no longer just a
• 5:45
  Speaker 3: price setting of money. There's this very complicated calculus between
• 5:51
  Speaker 3: the monetary policy balance, the balance sheet, and regulatory policy.
• 5:58
  Speaker 3: And we've really emphasized in the interviews what's the interplay
• 6:04
  Speaker 3: for that calculus in terms of the best way forward
• 6:09
  Speaker 3: for the American economy and what is what is each
• 6:15
  Speaker 3: person's point of view in terms of protecting the American people,
• 6:20
  Speaker 3: protecting the economy, and moving forward with the dual mandate.
• 6:24
  Speaker 3: I think it's time for the FED just to move
• 6:26
  Speaker 3: back into the background like it used to do.
• 6:31
  Speaker 1: Interesting statements there by bessent because he is getting to
• 6:35
  Speaker 1: this point of where the FED should move into the background.
• 6:38
  Speaker 1: I don't know that the Federal Reserve will ever move
• 6:42
  Speaker 1: back into the background, because they have been one of
• 6:45
  Speaker 1: the narratives of global macro that everybody is following. And
• 6:49
  Speaker 1: I'm talking about every country out there is looking to
• 6:52
  Speaker 1: the United States and what is happening there now. The
• 6:54
  Speaker 1: real question is how does this play out with Trump's
• 6:57
  Speaker 1: strategy to basically maintain or get control of the FED.
• 7:02
  Speaker 1: There's two things that could go on here. One, if
• 7:05
  Speaker 1: he does get control of a positive move in terms
• 7:09
  Speaker 1: of yes men at the Federal Reserve, many people would
• 7:12
  Speaker 1: look at that and say that's very uncertain for the markets,
• 7:15
  Speaker 1: and in most cases a lot of investors don't like that.
• 7:18
  Speaker 1: The other comparison that you could look at is maybe
• 7:21
  Speaker 1: a strategic step in meaning slowly taking control or getting
• 7:26
  Speaker 1: the right kind of people in the FED that would
• 7:28
  Speaker 1: align with the Trump administration. Maybe that would be a
• 7:32
  Speaker 1: softer play into the markets. I still don't know how
• 7:34
  Speaker 1: that's going to respond, because I anticipate that Trump will
• 7:38
  Speaker 1: be more like a wrecking bull, and that is getting
• 7:41
  Speaker 1: all the way into May and seeing drastic drops in
• 7:44
  Speaker 1: the federal reserve rate overnight rate, so this could play
• 7:48
  Speaker 1: out either way.
• 7:49
  Speaker 2: Guys.
• 7:50
  Speaker 1: One thing to watch though, is this right here, and
• 7:52
  Speaker 1: that is the government shut down still setting up for January,
• 7:55
  Speaker 1: but not necessarily a high probability as of yet only
• 7:59
  Speaker 1: twenty seven percent, and it's been declining a little bit
• 8:02
  Speaker 1: from holding at thirty one. This is one that will
• 8:05
  Speaker 1: be interesting. But remember DC operates on different time than
• 8:09
  Speaker 1: we do. It all of a sudden, it's going to
• 8:11
  Speaker 1: be an emergency thing, and that's usually what you get into,
• 8:14
  Speaker 1: which is the narrative and the news cycle that controls
• 8:18
  Speaker 1: how a lot of constituents vote. The other thing I
• 8:21
  Speaker 1: want to get into was Trump's healthcare fake out because
• 8:25
  Speaker 1: there was a big announcement. He came out, did a
• 8:27
  Speaker 1: lot of posturing around this whole big shift, and then
• 8:30
  Speaker 1: of course it got changed. Take a look, we're.
• 8:34
  Speaker 4: Learning President Trump is planning to unveil a new healthcare proposal,
• 8:37
  Speaker 4: could include a temporary extension of the Enhanced Affordable Care
• 8:41
  Speaker 4: AC subsidies, which are due to expire at the end
• 8:43
  Speaker 4: of the year. Zach, thanks for being here. As I noted,
• 8:45
  Speaker 4: we are very much still waiting for specifics here, but
• 8:49
  Speaker 4: I'm sorry this has actually been Sorry, Zach, we're getting
• 8:51
  Speaker 4: breaking news while I'm talking to you. I have learned
• 8:54
  Speaker 4: that the White House is postponed. It's inspected. Unveiling of
• 8:58
  Speaker 4: this new healthcare proposal was expected to be unveiled today.
• 9:03
  Speaker 2: Yeah.
• 9:04
  Speaker 1: I saw this over the weekend and it was interesting
• 9:07
  Speaker 1: because you had a lot of people that are very
• 9:09
  Speaker 1: pro Republican and just you know, retweeting and saying, oh, yeah,
• 9:12
  Speaker 1: this is it. This is going to be the shift
• 9:14
  Speaker 1: that Americans need in terms of healthcare, and immediately the
• 9:17
  Speaker 1: Republicans pretty much struck that down, got Trump to retrace
• 9:21
  Speaker 1: on this. This is a big deal because I feel
• 9:23
  Speaker 1: like it does put the Republicans at a disadvantage when
• 9:27
  Speaker 1: you think about how they're going to deal with the
• 9:29
  Speaker 1: situation of extending the healthcare and this that impacts the markets,
• 9:33
  Speaker 1: because the markets do respond to these kind of things.
• 9:36
  Speaker 1: So this will be interesting to see how this actually
• 9:39
  Speaker 1: gets done, whether or not Trump and the Republicans will
• 9:43
  Speaker 1: come to an alignment on this that can also align
• 9:45
  Speaker 1: with the Democrats. There is a lot still brewing. Another
• 9:48
  Speaker 1: thing that you want to play into the market and
• 9:51
  Speaker 1: how you're looking at your investments is of course looking
• 9:54
  Speaker 1: at the AI trade. Now, this is one that we've
• 9:56
  Speaker 1: talked about before, but this is a little bit unusual.
• 9:58
  Speaker 1: I would agree with Cobec on this one. And Vidia
• 10:00
  Speaker 1: is now down six percent. This was after earnings was
• 10:03
  Speaker 1: flying high just last week. Remember in video actually outperformed. Meanwhile,
• 10:09
  Speaker 1: the SMP is now up point two on the day. Now,
• 10:13
  Speaker 1: there could be a couple of things here that you
• 10:14
  Speaker 1: really have to consider, and maybe the market has started
• 10:18
  Speaker 1: to look at this incestuous idea of financing your customers
• 10:24
  Speaker 1: so they can buy your product might not necessarily be
• 10:26
  Speaker 1: a great thing. And I understand we are in the
• 10:28
  Speaker 1: early days of major involvement in how AI is going
• 10:32
  Speaker 1: to be integrated into the broader market and also the
• 10:35
  Speaker 1: broader strategies around where tech is going. But this is
• 10:39
  Speaker 1: never you know. I'll give you an example of this.
• 10:42
  Speaker 1: Back in the late nineties early two thousands, Dell did
• 10:45
  Speaker 1: this a lot, and they were building a computer Titan business,
• 10:50
  Speaker 1: and they started financing a lot of the retailers to
• 10:52
  Speaker 1: sell Mordell's and essentially that was great for them for
• 10:56
  Speaker 1: a while, and then all of a sudden it was
• 10:58
  Speaker 1: not great for them, and That's the question. I wonder
• 11:01
  Speaker 1: if Nvidia is facing now as we continue to see
• 11:04
  Speaker 1: them backstopping a lot of their own customers and no
• 11:08
  Speaker 1: really end in sight in terms of how this is
• 11:10
  Speaker 1: going to end up. So could we be seeing an
• 11:12
  Speaker 1: aibubble playing out because this will affect crypto in a
• 11:15
  Speaker 1: big way. Look at this right here, This might be
• 11:18
  Speaker 1: telling the tail. Apple down two percent, this off the
• 11:21
  Speaker 1: all time high, Google down two. You can kind of
• 11:23
  Speaker 1: see Amazon down fifteen, big deal, Microsoft down fifteen, in
• 11:27
  Speaker 1: Vidia down sixteen, twenty off on Tesla, Meta twenty five,
• 11:32
  Speaker 1: pallunteer twenty six, and Bitcoin down thirty three off of
• 11:35
  Speaker 1: its all time high. But Ethereum forty five percent down.
• 11:39
  Speaker 1: That is a sale. That right there is a sale.
• 11:41
  Speaker 1: Coinbased down forty six Last up here, micro strategy down
• 11:45
  Speaker 1: sixty nine percent. And if you consider that along with
• 11:49
  Speaker 1: Michael Saylor's strategy in general, the stock is bleeding. He's
• 11:53
  Speaker 1: not backing down off of this bet. You look at
• 11:55
  Speaker 1: a couple of points in the highlight here over sixty
• 11:58
  Speaker 1: percent on the year, strategies share are up by more
• 12:00
  Speaker 1: than five hundred percent. This of course is looking at
• 12:03
  Speaker 1: the long term. But Apple recorded one hundred and thirty
• 12:05
  Speaker 1: percent gain in that same period, So there are benefits
• 12:09
  Speaker 1: to this. The real question is are investors willing to
• 12:13
  Speaker 1: hold this long term? Are they willing to go that
• 12:15
  Speaker 1: extra mile to be able to support what Michael Saylor
• 12:18
  Speaker 1: has been doing. Other people say, no, you've got JP
• 12:21
  Speaker 1: Morgan potentially on a short here. I don't know that
• 12:24
  Speaker 1: is a short as big as they're claiming, And I
• 12:28
  Speaker 1: definitely do not think that if we saw a pomp
• 12:30
  Speaker 1: of fifty percent that that would ever put JP Morgan
• 12:34
  Speaker 1: at risk of bankruptcy, So that I think is just
• 12:37
  Speaker 1: a little bit more of sensationalism. The point is is
• 12:40
  Speaker 1: that this is like any other trade. You're either in
• 12:42
  Speaker 1: it long, you're in it short, or you're in it
• 12:44
  Speaker 1: to hold for a long period of time. Where are you, guys?
• 12:47
  Speaker 1: Let me know in the comments down below. Hit them
• 12:49
  Speaker 1: down there. We always love to get your feedback. By
• 12:50
  Speaker 1: the way, if you're not subscribed to the channel, make
• 12:53
  Speaker 1: sure and do that right now, because this is the
• 12:55
  Speaker 1: place to catch all the news around crypto tech and
• 12:59
  Speaker 1: how this is changing the financial industry of the future.
• 13:02
  Speaker 1: Other things you got to look at within micro strategy,
• 13:04
  Speaker 1: This is kind of interesting strategy will definitely be removed
• 13:07
  Speaker 1: from the MSCI, and I think that hurts micro Strategy,
• 13:13
  Speaker 1: and I think it hurts them in the sense of
• 13:16
  Speaker 1: validity to Wall Street. And this is another problem, which
• 13:20
  Speaker 1: is what Ted was talking about here. I love this
• 13:22
  Speaker 1: guy's ex handle, but strategy not a real business volatility
• 13:27
  Speaker 1: product for hedge funds. We're seeing a lot of people
• 13:29
  Speaker 1: now starting to play this in the wrong way, which
• 13:32
  Speaker 1: is mostly in a short position. Remember Tesla was in
• 13:34
  Speaker 1: this kind of hunt in their early days where Tesla
• 13:38
  Speaker 1: had a lot of shorts. Elon was costly fighting against them,
• 13:42
  Speaker 1: and eventually it broke out for Elon, but mainly it
• 13:44
  Speaker 1: was on the principles of where that business was going.
• 13:48
  Speaker 1: And of course now it made it look like this
• 13:50
  Speaker 1: was a great bet. But the question is is does
• 13:52
  Speaker 1: micro Strategy have a narrative like that. According to most
• 13:56
  Speaker 1: not necessarily, because what you've got is basically a business
• 13:59
  Speaker 1: that's holding bitcoin, and that is pretty much it. Let
• 14:02
  Speaker 1: me go to a clip real quick, because this explains
• 14:04
  Speaker 1: a little bit more. Take a look.
• 14:06
  Speaker 5: The market could be very skeptical of the prospects of
• 14:09
  Speaker 5: that crypto itself because a stock is a discount to
• 14:14
  Speaker 5: the future, and then a crypto token is a discount
• 14:17
  Speaker 5: to the future. So the stock in theory is going
• 14:21
  Speaker 5: to be signaling price expectations about the crypto, maybe even
• 14:26
  Speaker 5: before the crypto does. That's why if someone's trying to
• 14:28
  Speaker 5: figure out when bitcoin bottoms, they're actually better off watching
• 14:32
  Speaker 5: micro strategy.
• 14:33
  Speaker 1: Okay, so when you listen to that clip, there's two
• 14:35
  Speaker 1: things here. One, of course is and he's right, I
• 14:39
  Speaker 1: will agree with tom on this is that when you
• 14:41
  Speaker 1: have an asset like MicroStrategy that is declining in the market,
• 14:45
  Speaker 1: it does hurt the narrative of the underlying asset. Now,
• 14:49
  Speaker 1: the other thing that he's also maybe prepping for, because
• 14:52
  Speaker 1: this is something that he also talked about in that interview,
• 14:55
  Speaker 1: is if you think about all the dats that are
• 14:57
  Speaker 1: currently in the ETH ecosystem, there's a lot of junk
• 15:00
  Speaker 1: in there. Could he be setting up to acquire some
• 15:03
  Speaker 1: of these dats which would give him the benefit of
• 15:06
  Speaker 1: a better market position around eth. This, of course would
• 15:10
  Speaker 1: shine a big light on B, M and R to
• 15:12
  Speaker 1: become the new micro strategy of Wall Street. Maybe there's
• 15:16
  Speaker 1: a bigger plan going on here with what Tomley is
• 15:19
  Speaker 1: up to. We'll see he goes further in this interview
• 15:22
  Speaker 1: and this topic on where the FED is and how
• 15:26
  Speaker 1: it relates to ethereum, take a.
• 15:27
  Speaker 5: Look, Uh yeah, Macro's is actually really a big deal, Chris.
• 15:33
  Speaker 5: You know, crypto was the first really to sniff out
• 15:36
  Speaker 5: like and it's going to be responding to a FED
• 15:39
  Speaker 5: right and if the FEDS remains hawkish and executes policy error,
• 15:46
  Speaker 5: you know, that's bad for crypto crisis. That's why it's
• 15:50
  Speaker 5: really important for anyone involved in crypto understand that what
• 15:57
  Speaker 5: the Fed's going to do is a big deal. I
• 16:01
  Speaker 5: think the FED is in a very difficult spot because
• 16:04
  Speaker 5: if there wasn't what was what looks to be is
• 16:07
  Speaker 5: political interference, I think the FED would be cutting without question.
• 16:13
  Speaker 5: Now the ethereum and bitcoin are public tokens, and so
• 16:20
  Speaker 5: their price isn't going to be purely anchored on fundamentals.
• 16:23
  Speaker 5: You know, they're going to be reflecting investors' perceptions. There
• 16:29
  Speaker 5: is downside maybe to twenty five hundred, but that that's
• 16:33
  Speaker 5: minor compared to the upside of trying to discount a supercycle.
• 16:37
  Speaker 5: So we think eth can be seven thousand, nine thousand
• 16:41
  Speaker 5: by the end of January, and that's that's a huge
• 16:43
  Speaker 5: recovery move, but that's also pretty typical of what could
• 16:46
  Speaker 5: happen in the fourth quarter.
• 16:48
  Speaker 1: All right, A couple of things within that clip. He
• 16:50
  Speaker 1: does get into the point of the FED having a
• 16:53
  Speaker 1: very interesting position right now because it does affect crypto,
• 16:56
  Speaker 1: and crypto is one of the ones that sniffs out
• 16:58
  Speaker 1: what's happening in terms of policy errors for the FED
• 17:01
  Speaker 1: quicker than any other asset. One thing many of you
• 17:04
  Speaker 1: would say is, well, Paul Hey, Tom Lee's been calling
• 17:06
  Speaker 1: for all time highs by end of year for both
• 17:09
  Speaker 1: bitcoin and ethereum. Granted that is the case. I would
• 17:12
  Speaker 1: agree with that under certain conditions. Is what he has
• 17:15
  Speaker 1: kind of been falling back on. I disagree in the
• 17:17
  Speaker 1: sense because he's been very bullish, but him pushing this
• 17:19
  Speaker 1: into Q one isn't at the very least an interesting
• 17:24
  Speaker 1: reposition on the market. And he's a little bit less
• 17:26
  Speaker 1: bullish on ethereum than he was previously, so clearly he
• 17:30
  Speaker 1: understands the impact of the macroeconomics playing into this. All right,
• 17:34
  Speaker 1: So I want to go to this last clip, which
• 17:36
  Speaker 1: is Kathy Wood talking about both bitcoin and also quantitative
• 17:41
  Speaker 1: easing and the impact that's going to have to take a.
• 17:42
  Speaker 6: Look, maybe it would become half the market cap of gold,
• 17:47
  Speaker 6: it would take some share from gold, or maybe expand
• 17:50
  Speaker 6: the market. Well, that market has doubled, so I don't
• 17:55
  Speaker 6: think our bull price should change all that much. We
• 18:00
  Speaker 6: should have been quicker to say all things equal on
• 18:03
  Speaker 6: CMBC the other day. So I just wanted to clarify
• 18:06
  Speaker 6: that we are very bullish on crypto assets, but we
• 18:12
  Speaker 6: know that they are the most susceptible to liquidity draw downs,
• 18:20
  Speaker 6: and I described earlier. We have a number of reasons
• 18:24
  Speaker 6: for liquidity draw downs now, but we think that they
• 18:28
  Speaker 6: will be cleared by the end of the year and
• 18:31
  Speaker 6: hopefully by December tenth when the FED uses all right.
• 18:35
  Speaker 1: Of course, that was Kathy Wood addressing her previous statement
• 18:38
  Speaker 1: she was talking about even on CNBC where she had
• 18:41
  Speaker 1: adjusted Bitcoin down but didn't allocate for the market penetration
• 18:45
  Speaker 1: that we've seen another asset, so I can get where
• 18:47
  Speaker 1: she's coming from there. I guess the real question is
• 18:50
  Speaker 1: if we continue to see micro strategy moving down in
• 18:53
  Speaker 1: the market, if they get delisted, those kind of things happening,
• 18:56
  Speaker 1: what would be her position around bitcoin at that time?
• 18:59
  Speaker 1: Will she continue to hold this bullish narrative or because
• 19:02
  Speaker 1: remember she's holding both assets, both in ethereum as well
• 19:05
  Speaker 1: as bitcoin. Let me know what you guys think, how
• 19:07
  Speaker 1: she's gonna fall on which side of the asset war
• 19:11
  Speaker 1: that's going to be going out there. Okay, this is
• 19:13
  Speaker 1: another piece of news that hit the market. Klara of course,
• 19:16
  Speaker 1: introducing klarna usd. This is their first stable coin. The
• 19:19
  Speaker 1: other thing they're going into is being able to purchase
• 19:22
  Speaker 1: crypto with loans thirty day, almost like payday loans that
• 19:26
  Speaker 1: are interest free. And the idea is, and I'm not
• 19:29
  Speaker 1: supporting this, guys, for those of you or even considering this,
• 19:32
  Speaker 1: but the point being is that there are those who
• 19:34
  Speaker 1: don't have access to digital assets right now because they
• 19:37
  Speaker 1: don't have the liquid to go out and do it.
• 19:38
  Speaker 1: This could give them very light exposure. Even if it's
• 19:42
  Speaker 1: only one thousand dollars, if you were willing to lose
• 19:44
  Speaker 1: five percent of that. So if you think about that
• 19:46
  Speaker 1: fifty bucks, all right, you could go out and say,
• 19:49
  Speaker 1: I'm willing to lose five percent of this if the
• 19:51
  Speaker 1: market doesn't go up in thirty days, But if the
• 19:53
  Speaker 1: market goes up ten I'm up ten percent. So those
• 19:56
  Speaker 1: are the kind of scenarios that could be going into
• 19:59
  Speaker 1: Clarina's strategy and let me know if you guys would
• 20:01
  Speaker 1: even use this. I think most people on our channel
• 20:04
  Speaker 1: would probably not go in this direction, but maybe you're
• 20:06
  Speaker 1: a brand new crypto investor and this might be the
• 20:08
  Speaker 1: route for you. Hit some comments down below, let me
• 20:11
  Speaker 1: know how you would do it. All right, one last
• 20:13
  Speaker 1: thing here, guys, I want to jump on with Polymarket.
• 20:15
  Speaker 1: As you see here, they just got CFTC approval for intermediation.
• 20:18
  Speaker 1: This of course paves them into the United States. One
• 20:22
  Speaker 1: thing to consider though, is back to the point that
• 20:25
  Speaker 1: we were talking about at the beginning of the show,
• 20:27
  Speaker 1: is the amount of instability that is happening around this
• 20:32
  Speaker 1: FED rate cut. And I know that there's some announcement
• 20:34
  Speaker 1: now that just got broke on Twitter, is that Kevin Asset.
• 20:38
  Speaker 1: Hasset could be the new FED chair. Many people would
• 20:41
  Speaker 1: say that could be bad for crypto. That also could
• 20:43
  Speaker 1: be very hawkish for a rate cut in December. So
• 20:47
  Speaker 1: you can see the craziness that we're going to look
• 20:50
  Speaker 1: at between now in December the tenth a lot of swings.
• 20:53
  Speaker 1: So make sure you guys are subscribed to the show,
• 20:55
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• 20:58
  Speaker 1: That's the Baron Market Edge. You guys, of course can
• 21:00
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• 21:03
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• 21:06
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• 21:09
  Speaker 1: And of course you're not following me out there on
• 21:10
  Speaker 1: X it's at Paul Baron. We'll catch you next time
• 21:12
  Speaker 1: right here on the Paul Baron Show