The Wolf Of All Streets - Bitcoin Crashing! Crypto Nightmare! Is the Worst Yet To Come?

Episode Date: February 25, 2025

Bitcoin and the entire crypto market are crashing—what is going on?! I'm breaking down this unprecedented crypto nightmare with my friends from Arch Public, Andrew Parish and Tillman Holloway. Plus, they’ll provide an update on the $10K algorithmic portfolio. Don't miss it! Unleash algorithmic trading with Arch Public: https://archpublic.com/  Andrew Parish: https://twitter.com/AP_Abacus  Tillman Holloway: https://twitter.com/texasol61  ►► EARN CRYPTO REWARDS WITH ME! 👉https://roundtable.rtb.io/shortUrl/7mrpCKr 🔥𝗟𝗕𝗔𝗡𝗞 𝗘𝗫𝗖𝗛𝗔𝗡𝗚𝗘 - 𝗡𝗢 𝗞𝗬𝗖 𝗥𝗘𝗤𝗨𝗜𝗥𝗘𝗗! 𝗖𝗟𝗔𝗜𝗠 𝗨𝗣 𝗧𝗢 𝟱𝟬% 𝗧𝗥𝗔𝗗𝗜𝗡𝗚 𝗕𝗢𝗡𝗨𝗦! Join today & get rewarded! Start trading to claim up to 50% in trading bonuses!! 👉https://www.lbank.com/activity/ScottMelker-Cashback?icode=4M3HD  ►► JOIN THE FREE WOLF DEN NEWSLETTER, DELIVERED EVERY WEEKDAY! 👉https://thewolfden.substack.com/   ►► Arch Public Unleash algorithmic trading. Discover how algorithms used by hedge-funds are now accessible to traders looking for unparalleled insights and opportunities!  👉https://archpublic.com/  ►►TRADING ALPHA READY TO TRADE LIKE THE PROS? THE BEST TRADERS IN CRYPTO ARE RELYING ON THESE INDICATORS TO MAKE TRADES. Use code '10OFF' for a 10% discount. 👉https://tradingalpha.io/?via=scottmelker  Follow Scott Melker: Twitter: https://x.com/scottmelker Web: https://www.thewolfofallstreets.com/ Spotify: https://spoti.fi/30N5FDe   Apple podcast: https://apple.co/3FASB2c   #Bitcoin #Crypto #MarketCrash The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. This video was created for entertainment. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this video constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.

Bitcoin is trading back to levels not seen since November of 2024, which is really not that long ago, but has people in a major panic because we're trading below 90,000. I would argue that if I told you six months ago or even a year ago that we'd be trading above 90,000, you'd be celebrating. But here we are in the depths of an emotional bear market, probably because all coins look like absolute

stir fried shit and continue to die and have probably never really seen a bull market of their own in this cycle. Luckily, I don't have to sit here and cope by myself because I have Andrew and Tillman to do it for me. You guys don't want to miss yet. Another great Tuesday morning show with the boys. Let's go. What is up everybody? I'm Scott Melker, also known as the Wolf of No Streets because there's no streets left. It's over.

Look, I changed my intro for these guys. So I get, just came right at it. Stir-fried shit, that one came to my mind, right? When I said it. This is what happens when I'm like, extreme lack of sleep and suffering insomnia. The jokes just get better and better. You're the one who's supposed to be not sleeping, Andrew.

You had your 17th child. Yeah, it is. I've lost track. I've got to be honest, I've lost track. At this point, whenever something like this happened, hey, pull out all the stuff we used a few years ago. We're going to reuse all that stuff. Pull it back out.

I think he's inspired by Elon, the new baby. I was going to call him the Nick Cannon of algorithms. I'm keeping the Nick Cannon. All right, that was a low blow. That was a low blow, okay. I'm working on keeping the globe populated, all right? I'm doing my part. I'm really doing my part.

Oh, by the way, and I'm raising these folks to be crypto investors so that we don't have moments like this in the future. Wow. See, this is good because Tillman, he's going for mass extraction from birth, which is what we've seen. You have more children so that you have more people to eventually, you know, dump liquidity. Well, if you've ever been in the room when a C-section happens, I would think mass extraction kind of actually works for that. These are bear market conversations. Okay, so let's get started here. We've got Bitcoin currently trading at the very unpopular price of $88,754. ETH at 24.13, down 10% in 24 hours.

Solana is apparently an SPFs jail cell, just taking it at 13% here. By the way, SPF's back. I don't know if you guys saw that. This is big news. SPF tweeting for the first time today in two years, FTT soars but the rest of the market crashes. Coincidence? Or can we once again blame SPF tweeting for the first time today in two years, FTT soars but the rest of the market crashes. Coincidence?

Or can we once again blame SPF because I want to for price action being shit? Look at this guy. He comes out of nowhere from jail to talk about his sympathy for federal employees. Delusion has a name and that name is SPF, right? The guy's been in jail for over a year and he hasn't learned even one lesson. You know, the first lesson when you get into a position

like that is just shut up. Just shut up and be introspective and try and take a look at where you've been, where you've come from, all the damage that you... it's not lost on me that he's tweeting a few days after FTX has returned capital to everyone. Right? Yeah, maybe I'll be popular again. Maybe they'll like me a little bit. There's the delusion, right? Therein lies the delusion. So this guy is sitting there thinking

there has to be a second act for me or a third act or whatever act he thinks he's gonna be on in the future. And the idea that, well, Ross Ulbricht got a pardon, so maybe I can get a pardon in some way because we returned the money and that's the angle that we'll use. We returned money to people, so I'm gonna get part. It's sad, really.

It's sad to see because he's not learned anything. One of the funny narratives was that there's conjecture that somehow like did he got him access to his phone not kidding because they're the same yeah yeah well as i understand it you know uh prisons now offer phones and tablets and all sorts of stuff um even though they're you know generally removed from the overall internet, they still have access, they have digital access to stuff. So I'm not at all surprised that-

Evolution, they used to say don't drop the soap, now you don't drop the phone. That's right. I don't know the answer. Dude, his life in there must be just, I mean, I wanna see that movie. It's gonna be crazy. Well, I want to see that movie, you know, it's gonna be a great movie. I would just say that if you look at the odds of him getting a pardon, he probably has the

greatest odds in the next four years that he'll ever have. And so, you know, it's absolutely a fight for his freedom. He's trying to have a voice. And, you know, I... There's no chance it's gonna happen, as far as I'm concerned, but at the same time, you can't, you know, blame a guy for trying. He's definitely, you know, without that,

he's gonna spend the rest of his life behind bars. Yeah, well, his parents are lobbying hard for that pardon, but it seems like they're about to lobby their ways right into the next cell if they're not careful. If I was his parents, the last thing I'd be doing is trying to shine a further spotlight on their own actions. Yeah. Yeah, go under ground. Go away. Stay away from the spotlight. No reason. Okay, so but if this isn't SBF's fault.

But if this isn't SBF's fault. Yeah, I mean, we're in a position now where at scale, there can be, you know, selling that happens in any particular asset. Once you become a meaningful asset class in the world of traditional markets, a lot more people have access to that asset buying and selling. So you'll see days where there's you know a billion dollars of ETFs that are purchased and there's a half billion dollars of ETFs that are sold. That's the

nature of now liquid markets that aren't meaningful meaningfully manipulated by the likes of SPF and CZ on a go-forward basis, right? Well, they just have new market makers and not manipulators, market makers. And here's the thing, like, I think the real story is like who's selling, not so much is there selling. Cause there was $1.3 billion of leverage positions

liquidated in the last 24 hours. That's a big cookie to go after, especially if you're a legacy institution that hasn't accumulated your position yet. That's a tree worth shaking, if you will. And if you have no choice but buy into a bull market, which I think everyone thinks that we are, if you're going to be buying into a bull market, you want as deep of a discount as you can get.

Well, how do you create those discounts? By liquidating a lot of people because you're getting a two-edged sword in that regard. You're getting all of the cash proceeds of those opposite positions and you're starving out your competition to buy back in at the lower prices. Like they're all broke. They, they leveraged their position. Are you saying that big money moves markets intentionally? I'm saying, you know, barring a miracle when you read headlines like I've read this morning like Citadel once

Citadel teamed up with Charles Schwab and Fidelity Investments to become a market maker for the crypto space. Well how does a market maker become a market maker? They have to have enough position to inject liquidity in the market. They're going to have to accumulate a hell of a position is the bottom line. And so how do you do that if you're Citadel? This is 101. This is the first class, first day on campus. Shake the tree.

Yeah, for sure. Just so you know, Diddy's phone is too slippery to handle. Great comments over here. This is my favorite though. Didn't you guys chill Ethereum lately? I think you mean chill and I think he actually meant to spell Ethereum correctly. Who paid you for that? Bybit? OK. Yes, guys, I still like Ethereum here, to be honest. I still think it's going to do exceptionally well. And I got paid one point.4 billion by North Korea

that was hacked from by but you guys are unbelievable. If you think that influence are getting paid to have an opinion on market. Well, some some perspective associated with this current dip. I was at a Bitcoin event in California in late October. and part of the event that you know there was we were we were set up in clusters and each cluster had to make a bet that by the end of the event where would Bitcoin be and at the moment I think Bitcoin was trading at 69k I'm certain it was. 59 420. Yeah and so some people are like well it'll be 71 by the end of the event in two days, it'll be at 68. But think about that from a contextual standpoint,

that was less than six months ago, folks. That was six months ago that we were at 69K and we're at 88 this morning. So context is important. It really is remarkable to be in a position where we've flipped the script where institutions are doing their version of rushing towards the markets that are cryptocurrencies to make a ton of money associated with the capital that moves through the cryptocurrency markets, whether it's Citadel, whether it's JP Morgan, whether it's State Street, whether it's Citi,

whether it's all of these organizations that are doing their best to offer not only product but also offer the rails that cryptocurrency can and cannot move in traditional markets. So the sentiment is very very different in institutional hallways because they see an opportunity to make a ton of money. You know they see a remarkable opportunity to make a ton of money. Whereas you know the fear and greed index I think on crypto coin market cap is like at 25 right now. So retail is like kill me now and institutional is like hey cool class we. Class a week to make a ton of money on let's go do that.

No, they're not tweeted about that. Yeah. They're in bloodlust right now. They want more blood. Just keep slitting throats is it if they saw a big block of margin, marginable positions, they'd go after it right now. You wanna see the big block? Yeah. If Ethereum goes to about 1900, if it drops slightly below 1900,

there's a free $340 million waiting for them. To whoever wins that prize. Oh God. I'm getting paid to tell you guys to short Ethereum to 1900. Markets seek liquidity pools. That's just the way it is. It's like water runs downhill. It's nature. Well, and again, that that type of graphic is is not necessarily

bearish. If anything, it's bullish because there's a massive amount of capital waiting to buy it at that number, assuming that it's going to rocket back higher and create a return that's meaningful for those organizations that are waiting at 1900 that's the real story behind that graph right so yeah it's the Seinfeld episode where the coats going on sale on Monday and you've got insider information like there's going to be a big sale like you know get get ready for the sale is the way I look at it unless you don't like Ethereum. If you like Ethereum, if you think that Ethereum is going to play an important role in

this you know landscape of crypto going forward then you know it then it's the second largest by market cap. It can't be ignored. It's been up there for a very long time. It's been responsible for probably as much development in the space as any other chain. So if you believe the overarching value proposition of Ethereum, you should be looking at that chart and saying, Oh, man, there might be a massive sale on Ethereum. Oh, man got paid. How much did Vitalik send you that my lady? $0

that people are getting actually paid by like Ethereum. Guys Satoshi sent me a few stats for shilling Bitcoin all these years. Fuck, I finally knew that my sponsorship from the Satoshi. I think that tells you something though, to be honest with you, like I have an opinion about Ethereum

and it's not rooted in price. It's rooted in the fact I used it a lot. I used it to experiment in all of the ICO craze. I used it to experiment in the NFTs. Like I've used the product itself and I've definitely lost more on Ethereum in fees and all the things associated with using it than anything else. But here's the thing, I know the warts, I know the value proposition, and I also

know the undercarriage of the car too. And that's what's formulating my opinion as whether it's going to be around 10 years from now and whether there is a use case that it fits so well that it's going to continue to dominate in regards to market dynamics and market percentage. Yeah, I think it will eventually do just fine. Obviously, just circling back to this, the Bitcoin ETFC over half a billion dollars in net daily outflows amid crypto price route, I think last week was another half a billion. So roughly a billion dollars, I think in the last six to seven trading days, I could tell you we were talking about leverage being wiped. Another reason we're seeing all this and

obviously some downside is something we talked about with Matt Hogan on spaces yesterday is the basis trade. Basically, the basis trade goes through these phases where it makes a hell of a lot of sense to be long spot and short futures to basically make a lot of money. Marcus Thielen from 10X Research who I've had on here quite a few times, there was an article about him yesterday,

he said he thinks about 50% of ETF buying was the basis trade. Well, that gap has closed where it doesn't make that much sense anymore. So those people, unfortunately, are going to sell their ETFs that they were buying to take advantage of that free yield on the basis trade. This isn't necessarily like paper handed retail selling there.

This is just market dynamics and people taking advantage of these arbitrage opportunities and when those trades disappear for a while, they close them down. Yeah. Hedma and Quant funds do this like crazy. So when you see 13F filings from Renaissance Tech or Citadel or whatever, and they've got whatever, $400 million worth of Bitcoin ETFs, they're not holding that as a long-term hold. In that moment where they had to file the 13F,

that's what they had on their books. And it has much more to do with a couple trades again like this basis trade. Renaissance Tech doesn't hold anything for more than about a day. So Matt is absolutely right that there is there is a portion of the Bitcoin ETF trade that is a basis trade and there'll be evolution versions of that type of trade and that type of movement in Bitcoin as an asset class but again let's go back to the fact that there is now a growing ecosystem around Bitcoin and TradFi remember that the last before this this week's version of it with MicroStrategy the previous

week MicroStrategy raised money from Morgan Stanley, Goldman Sachs, Citigroup and Barclays. That's very different than the second tier banks that they have been raising money from. So we now have the biggest global institutions on the planet competing to get their hands on in four, five, six, seven different ways associated and adjacent to Bitcoin. That's a real thing, right? That's absolutely a real thing. So, you know, I also find it hilarious that we're in this, you know, the world's falling apart moment associated with price and the

figure ingredient index has tipped so far almost FTX level numbers when in reality we're down what 20 ish percent? Off the high. Yeah in previous cycles this moment was like down 45% or 52% or 71% this is this is this is comical Franklin. We is comical, Franklin. We were at 73 last month. We were at meet and greet, and now we're at extreme fear. That is really, really hilarious. I think last time we were at extreme fear, we were in the 50s. I saw a tweet about it. I can't confirm the truth because, you know,

not everything you read on X is true, but it felt right. The deck is getting shuffled and it's getting shuffled from tier two players to tier one players and that's going to trigger huge liquidity events. It's going to be a violent shaking, if you will. Grayscale was the vast majority of those outflows in ETF and those are legacy people. Those aren't new, fresh. I'm putting this as 1% of my portfolio and so there's just a new buyer that's in town and the market's been so hot that we still have a lot of crypto speculators. We still have a lot of people playing on big margin. And when that gets attractive enough for the big fish to go out of their way to make it

happen, it's going to happen because you can't create new supply. We can't go Bitcoin, let's do 50 million, let's do 100 million. There's no new supply. So they have to create the supply from creating fear. And that's exactly what this is. But relatively speaking, I mean, like you guys are saying, this is a pretty minor dip. If you've been around for a while, this is like nothing. I think this time it's just that like all coins are dipping and they're already down

like still 80 or 90%. So I think that you're just seeing that, you know, the bulk of participants in this market are not grown up to have Bitcoin. I was making this argument yesterday on spaces. Some of it. Yeah. And I basically said, like, I don't think 90% of the people who would describe themselves as like crypto natives or full-time participants even own a sat. Yeah, I think that most of them got wrecked on NFTs. Now they're getting wrecked on meme coins. They're deep in Solana and other layer ones. But I don't think it's like the past where people are denominating their portfolio in

Bitcoin is don't own it. So they've missed there's been no bear bull market at all. But it will the retail's different. It's unhinged from from institutional. Yes, this go round. First of all, let's take a moment till man with the data drop on the gray scale being the bigger portion of that. That that well, I think they were like 60 million yesterday of of the outflows.

I'm not used to that kind of alpha coming from Tillman. That's that's a big deal. I'm impressed personally. Big numbers. Well listen, the story of this, I've been wondering how they were going to accumulate their position because Citadel coming in, like that should be on the headline of all headlines. There's no bigger news to me than that honestly. When Bloomberg reports that Citadel and two of the other biggest institutions on the face of the earth, financial institutions, are coming in to be market makers, that's going to cause some blood to get in the streets. But it's a great problem to have. I mean, those are the most sophisticated market makers that exist on the face of the earth.

And if they're willing to come into our market and play the game, it means they're anticipating a lot of volume, and I mean a lot of volume. To be clear, it doesn't mean they're bullish on crypto. They're bullish on making money on crypto. Well, they have to be bullish on the adoption of crypto, which, you know, what's the difference? It's a distinction without a difference

as far as I'm concerned. Well, they're just following BlackRock and Larry Fink in that space, right? So BlackRock and Citadel are joined at the hip in opening up the TXSE, the Texas exchange. It's gonna compete with all the other exchanges and that'll happen sooner rather than later. And again, crypto has moved traditional finance

in a way that most people haven't taken notice of, right? So Charles Schwab going to 24-5. So 24-hour trading, five days a week. That's a movement that would not have happened without the existence of crypto overall. All the other exchanges slash broker dealers will end up going to that number as well. And then at some point, my guess is that the Citadel Black Market Initiative in Texas will be a 24-7 type of deal.

We almost have 24-7 trading, again, people don't know this, but we have 24-6 trading in the futures markets, right? So there's a little bit of space in Saturday to Sunday where futures markets don't trade. So it already exists, there's already some guardrails that exist there. So we'll get to that moment, but again, crypto has been the one that's that's pushing this into the well and speaking of the futures market, I think 500 million of was liquidated in futures contracts. So 500 million of the 1.2 billion was Bitcoin on futures that that's an interesting listen that I just I look at the the shift in This cycle versus the last three cycles that I witnessed and it's radical

I mean, it's that the players are all the biggest players are in the arena. They have all taken center stage they're fighting for center stage and The the games afoot. Like if you don't think, you know, big drops are gonna happen when big players get involved, then you don't understand market dynamics because that's how they accumulate their position. They can't even play without doing stuff like this. So I look at it as a huge positive and I also look at it as a huge positive that Bitcoin is weathering the storm It has enough support that we are holding ground very well compared to other cycles and

Compared to like the like you said the altcoins Bitcoin dominance is going up and it's going to continue to go up and that's kind of the key indicator of this that What's different about this cycle is that the institutions are driving it and they're driving it in Bitcoin. It is a, by the way, we've seen, again, having been through different cycles, the meme coin, like you said, that market getting absolutely fried. That's not different than the ICO markets back in 2017. Yeah, mean, v chain, dragon chain, you know, the everything that had a chain connected to it.

How much is your pudgy punk penguin worth today? Those are worth a lot, I think, actually, but you're rich. It's everything. Why pointing out the best of the best. I was gonna say, I think you pointed out the only good one but I'm so still with a lot but how

much is your like languishing lion? Uh no, my was a beaver. Like, I have no **** idea. My chilling chameleon. That's that's I need to find out how much my children. You don't own one of those? Yeah. I bought the supply, buddy. I own the entire supply.

I bought up a quarter of it. One day, man, that's going to pay for your kids' college education. He's quartered the market of Chile chameleons. Yeah, so again, we come back to in these moments. This is where real money is made and the best investors that have ever lived, the best traders that have ever lived, you know, they have axioms that remain true. When there's blood in the streets, you buy.

When everybody's... Yeah, when everybody's fearful and scared, that's where you gobble up as much as you possibly can. Whether it's the Warren Buffett's of the world or Larry thinks of the world, whether it's the Paul Tudor Jones's of the world. You know, these guys make moves when there is real volatility and volatility to the downside. And then they hold those positions much longer than most people hold those positions. So anybody that's buying now

a large percentage of those folks, when we go back to 101, 103, they'll exit those positions. But people that buy a ton now, and are the Paul Tudor Joneses of the world, they're going to hold until it's up to 170 at least, right? Larry Fink thinks it's going to 500 to 700k over the next four years. So, you know, it's a difficult thing to do as a human because humans are consumed by either fear or greed, the latter being a motion that's more powerful than the former. So it's the kind of thing where it is very difficult to do, but if you can pull it off, you end up being somebody that's in position to have benefited from moments like this. You know, that that that the picture that you showed that showed, you know, that greed was at 73 one month ago.

And we're now at fear 25. I mean, that's just that's a remarkable thing. I mean, that that that is a microcosm of the human condition right there the microcosm of the human condition It absolutely is yeah It's it's like anything if you're chasing it you're behind it and if you're chasing price You're always gonna feel behind it and like the the the most prudent method that everyone deploys that have significant means, you know, these big institutions aren't buying 40% of their stack in one purchase or in one month

or in six months. They're accumulating. They're buying the dips. They're looking at it as something that they want to own. If you want to own bricks, if you want to own cars, if you want to own clothes, clone shoes, what's the best way to accumulate them? When there's big sales.

And so, you know, you can determine what a big sale is to you and you can factor that in and you may be more prudent than the next guy and you may wait for a 15% dip in price before you start buying. Somebody else may accumulate if there's a 3% dip because they have a larger stack to accumulate the bigger stack that you have to build from scratch, the longer it's going to take you to accumulate, especially if you don't want to incur risk along the way or want to, you know, avoid as much risk as possible. Yeah, well, what am I slightly pivoting one of my best friends, he may work in an institution that we've mentioned today, he may have been there for a very long time, the CEO's name may rhyme with Ben Triffin.

It might be called something that rhymes with shitadel. And as usual, I get the Monday, AM, five o'clock text, what's up with Bitcoin, dude? And I say, yeah, it's not doing too great today. What do you think? And he said candidly, you know, and he might know some things, said candidly the opinion on the street right now

is that people are absorbing the Bybit hack. Everybody in crypto knew about it last weekend, but Wall Street found out that one of the biggest exchanges got hacked for $1.5 billion yesterday. That's when they found out because by bits not in their news feed. He said quietly. Nobody likes Trump's policies very much on Wall Street, even though they outwardly say so because they're obviously fearful. But as much as we all like deregulation, all those things long term in the short term market, hate uncertainty

and people are very scared what he'll do. And number three, they think that the Trump and Libra token, which they've only seen kind of casually as side stories have really fucked this market. Yeah, there's- I've heard this a number of times from, and I'm not talking about institutions that are trying to buy Bitcoin or add,

just like market narrative as to what's happening right now Trump they think is horror has been horrible for crypto short-term But will be very good for it long term as all the actual policies and people is put in place Yeah, so all due respect to your friend, but most of that commentary is relatively stupid Because Trump coming to power and the markets the crypto markets knowing he's coming to power Have pushed Bitcoin from you know the mid to late 50s Trump coming to power and the crypto markets knowing he's coming to power, have pushed Bitcoin from the mid to late 50s up to the hundreds.

The adjustment and regulation associated with the SEC being defanged, pro Bitcoin people being put at all the different agencies that have to do with money, and have pushed Bitcoin and crypto to new highs just, oh, by the way, you know, let's call it a month ago. So you know, being a prisoner to the moment doesn't make any sense. You know, Trump has completely removed enormous amounts of regulatory heft on the shoulders of the, not only the asset class, but innovation associated with crypto and AI

and all the others. So while they may have gotten comfortable with nothing happening and regulators saying no to everything for four years, there's a shift and a change and opportunity that exists. And while middle management guys may be, have some interesting commentary, their bosses like Ken Griffin's

and Larry Fink's of the world are rushing into this space as if it's a gold rush. So there's my thoughts on his big. Well, I just think it's- Like I said, long-term. They do believe that everything he's going to do will absorb long-term, but they think all the like, every day we have no idea what we're walking into and launching meme tokens, maybe not great.

Yeah. Well, I would agree. I think in the short term, doing those things highlights the dangers of the technology rather than the really the value of the technology or the efficiency Delta that it can create. And so it's just like anything. There's an educational curve that Wall Street is on that we've already been on. Like I'm not fooled into thinking that all coins are created equal, whereas I think a lot of them still are and I think that the natural progression of having things like the Libra coin blow up and everyone's face and the Trump coin and all those things that that's only gonna teach them more about Bitcoin in my opinion, it's gonna take a little bit of time and there will be negative sentiment Because they don't understand the difference. But ultimately, you know,

the technology speaks for itself and it continues to echo the same tune for the last 16 years and it will continue to echo it into eternity. And that's the beauty of the network that Bitcoin is, that those other ones aren't. And so I think the dominance level is gonna get that much more. I do think guys like Larry Fink understand that. I think that he's also not short-sighted enough to understand that tokenization is here and we're gonna have to tokenize everything

if we wanna create markets that are open 24 seven that don't have a bunch of people behind the screen, pushing buttons. The only way to create those automated workflows is through smart contracts, through this tech. And so, you know, the future is here. It's not going anywhere. But in the meantime, there is a lot of head fakes that are going to cause a lot of people

to have negative sentiment. I think there's two ways to look at the Bybit hack. Like, yes, there is one side of the coin where you're like, how could they get hacked? And if they could get hacked, anybody could get hacked, right? But really, if you think about it, in another context is, like, they got hacked because people knew they were holding $.5 billion dollars worth of Ethereum and that makes a very attractive you know mark if you will. The whole point of this industry is you can be as decentralized as you want. Out of convenience because they serve a lot of customers they're forced as a business model to not be decentralized. If they were just cold storage walleting all of this coin

and not moving it around every day to provide liquidity to a market, then there would have been no issue. The issue is that they're playing a role that's never been played before and I would take the stance that they have done an exceptional job at absorbing it. The fact that they have one-to-one coverage and was back up to fully operational in 12 hours, show me a legacy exchange. Actually, I mean, as far as withdrawals, they'd never, I don't even think it was 12, I think they've never stopped servicing withdrawals.

So it was pretty incredible. They never stopped servicing withdrawals, but there was about a 12-hour delay basically. Yeah. And so, I mean, that's remarkable. So, you know, if you're thinking, oh yeah, Bybit got hacked, that's negative news. Yeah, that's negative news, but here's the positive spin on it. They're so big that they absorbed it in 12 hours in its business as as usual and it's not going to affect any operations going forward. It's only going to affect their future VC endeavors.

They're not going to make the same capital investments into peripheral businesses that they were at once were. That's ridiculously bullish in my opinion. That's insane compared to what we experienced with FTX where they didn't have, they didn't have one safety protocol in place. They didn't know what to do. They also didn't have anyone's money. Exactly right. The, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, It is a, it's an exercise because there was an enormous amount of folks in crypto and other exchanges that came to, that were on the ready to assist by bit in the process

and very, very quickly. Whereas in the traditional financial world, not only does that not happen, but they have to go to government. It takes months and months and months for the government to potentially act and provide a backstop and all the while their competitors are trying to eat them and destroy them in the process in hopes that they're going to acquire them right so very different responses in the world of crypto versus traditional finance, which again, bodes well for the crypto space from a long-term standpoint.

I worry about that, honestly. When I heard that I was on Spaces with the CEO of Bybit, and he was talking about all the people that did come in and help, and I'm all for that, right? We don't want to have market disruption beyond what is necessary, but that market disruption points to need, and that need gets solved by innovation.

And that's a better outcome than shoestrings and duct taping in the emergency. And I do worry about contagion issues like you know I know one of the groups that lent them a lot of I think 10,000 Ethereum or you know a lot of Ethereum maybe even more than that 30,000 Ethereum did it without a paperwork just on a handshake just say hey y'all pay us back when you can you know if if if it was a one-two punch hack, all of that liquidity would be sucked out too, and it would be bigger. Like, there

needs to be firewalls that are created in this industry just like there are in every sophisticated market, and you can't breach those. And so, you know, in the future, I think this points to a massive need, and Michael Saylor could be the person to do this in spades, is do insurance products for holdings, like step in with cash that you've earmarked on the side, just like Bybit did. And Bybit did it, they self-insured and did it very successfully, but you can't expect everyone that's a startup to do that. So there's this real need for like, okay, if you do get hacked,

what kind of protocols do you have in place to avoid getting hacked? And what kind of assurances can you pass to your customer in the form of insurance coverage? I think that's gonna be a standard that will have to be addressed here in the next 12 months. I mean, you live in Colorado, you know, you remember the weed days when you do whatever you wanted at the state level, but you couldn't put it in a bank.

So you're running around with cash and you were basically self-insured by the cash that you had because you couldn't get insurance for your business. Kind of in that phase to some degree. It's not like I can go out in China probably and get the assets that they're holding insured. It took a lot of people by the way to kind of plug this hole. Oh yeah. I'm looking, BitGet gave them 40,000 ETH,

Mexi 12,652 ST ETH, Binance 11,800 ETH. I read, I know that like, Falcon X and Galaxy helped them on the OTC side to actually buy back what they bought at all plugged about 80% of the hole. But luckily, we also have the structures in place that they didn't just go on the open market on their own exchange and like buy, you know, $1.4 billion worth of ETH. But it's still the Wild West to some

degree. In this case, though, you know, being a relatively decentralized industry where people were friends, it benefited probably more than if this was an FTX type situation. Yeah, my response would have been a bankruptcy. This would have been an immediate bankruptcy. Probably a domino effect through a lot of other companies as well. a domino effect through a lot of other companies as well. And my response to Tillman's response would be at no point in your long answer, did you make it, you know, it's I think that the involvement of crypto at large, yeah, it's Adam Sandler reference, yeah, I say it to him often so I Think crypto being involved in holding somebody up

Again, look at the differences between You know finance and FTX from you know, it's called three years ago You know massive massive differences and responses to certain things which goes to the quality of you know liquidity associated with You know crypto exchanges then versus now right so all of those

Helpers would have nothing to do with by bit if they even had a sniff I just don't know the terms of the help. And it makes me nervous that other consumers' money is being put at risk, is I guess the point. If I don't know whose money that is, if that's all profits that they're sitting on, that they have full control over, great. But there's active ways that sophisticated markets, you know, quantify this risk, insure against the risk and manage it. That doesn't involve like a red button where he pushes it and it wakes up everyone in the industry and says, we need liquidity. That doesn't

evoke confidence in me. That evokes fear in me because it's not systematic. It's not. Oh yeah, this was like call up all your friends as fast as possible. That's what I mean. Like, you know. There was no automated system that says these exchanges send us this much to plug this hack.

Now granted, I will say that from what I can tell, the only reason why they did that was just to avoid customer service interruption, basically. They still had the money. They could have made good on all of this and continued operations. Yeah, it was a service that withdraws quickly. I mean.

Exactly. So I don't think they could have handled any better, so I'm not nitpicking on them. But I am saying that the industry, if it can happen to them, it can happen to anybody. And unfortunately, the vast majority of companies that if it did happen to them, this would be an extinction event. It points to the fact that there's some gaps of coverage that we need to address in this space is the bottom line. So yeah, that would be my two cents.

So yeah, that would be my two cents. Yeah, well, maybe it's a good time to pivot to what you should be doing automatically when the market is dipping. Yeah. To that. Yeah, we, well, I mean, listen, we've, yeah, we've built, we've built processes and we've built algorithms and strategies

that feast on moments like this. And again, you go back to the fear and greed issues, right? So if you're using a tool, ArchPublics Crypto Tools and announcing today that we're launching Ethereum and Solana algorithms alongside the Bitcoin algorithm that can do all the things that we've talked about the Bitcoin algorithm doing. But if you have processes set up and in place that are buying the dips when

you're down two and a half, three, four, five percent without you having to think about it, that are also selling the blow-off tops without you having to think about it, but doing both of those in a way that you have a net long bias so you're still stacking that particular asset That removes all the quote-unquote When do I sell when do I buy? I don't know what I'm doing And now the fear and greed is nearly under zero because I I have no idea what to do Right so to have a tool where you're making decisions outside of a moment where fear or greed or panic

is at the highest levels, where you've given some real thought as to, I wanna accumulate this, I wanna accumulate that, or I want to slowly sell some of this as a percentage, and I wanna accumulate some of that as a percentage. Having tools that allow you to do that makes these moments feel like opportunities as opposed to problems. Yeah, they're moments to take advantage of but not done with a knee-jerk reaction. It's

like methodically laid out beforehand and when it's like having a fishing lure with a bobber in the lake, when the fish comes it pulls the bobber down and you're notified. So it's completely emotionless is the main part and you can customize it to your preferences. You can say again I think that Bitcoin is on sale when it drops by 10% in a seven-day period and that may be your rule and you can set it to set those parameters and forget it And guess what when it drops by 10% in seven days It's gonna trigger a buy order and it's gonna trigger a buy order to the quantity that you would like or the dollar amount that

You would like it's completely customizable But the best way to really get your hands on it is that we've made it free to use. So if you want to buy up to $10,000 of Bitcoin every year for eternity, there will be no cost for you to use our software. Just go to our website and click on the Bitcoin algo and we'll be happy to teach you how to use it and set you up with the knowledge base that we have as it pertains to the feature sets. And then seeing is believing. You'll determine how valuable it is to you going forward.

But it really is something that retail has not been given the same toolbox that trading desks have as it relates to automation and setting up those automated buy schedules. And our crypto-iogos are truly institutional level tools and here's why we're able to say that. So it's not, most people think of an algorithm as a binary algorithm that creates a binary output. Our crypto algorithms, you can set up five or six different versions of how you want to buy or sell or trade a particular asset that are all happening at the same time They may have different time preferences. They may have different Price preferences they had may have different size

Preferences as it relates percentages or dollar numbers But you can have five different strategies working inside of our algo. You can't find that anywhere else. That is institutional level evaluation of a particular asset and then making, you know, taking trades associated with that asset in ways that are as sophisticated as you want to be with it. And, you know, giving the retail an opportunity to get their hands on something like that for free. It's never been done in this space. It's just, it's never.

I have a really important comment here. I'm sorry. I have to. Okay, ready. I don't want you to show your program. Just tell us that the bull market's over. Guys, this product is amazing, but tell me the future now or I'm fucking out of here. But listen, the reason why this product is amazing, but tell me the future now.

Now, listen, the reason why this product exists is because nobody knows if the bull market's over there, but you don't play the game like that. We'd be liars if we told you we knew it doesn't, it doesn't exist. Andrew, you had tweeted this as he the guy on the right or the guy on the left? The guy. Yes. Shut up and tell me the exact price of Bitcoin in six months, or I'm reporting you to the you know, again,

not only is our Bitcoin algorithm and the entry level version of it free, you can set up a bunch of instances, but also our Ethereum and along with it are free for you to use and it is listen We want people to be involved with Bitcoin. We want people to be involved with crypto We want people to come up with a version of what they think is a plan and then allow Something a tool to to walk that out for you If you don't have a plan, you're going to get hammered, right? You're going to end up as the guy on the right in that previous set up. It goes back to something that I tell people. I don't ever meet anybody that says, I own too much Bitcoin. I always meet people that say including myself boy I wish I had bought more when I heard about it and boy I wish I had more now and you know

Like Andrew said this is something that if you set your goal in in the version in the software itself The goal is gonna be met it does it for you so if you want to own one Bitcoin by X date and you want a purchasing schedule that you can work with and look at Exactly how much that's going to take out of your monthly budget, this has all of those planning tools in it. So you just put the variables in and it's gonna show you exactly

what the historical performance is inside of TradingView. So you're getting third party verification from the biggest trading platform. Yeah, and another reminder that 77% of all trades across the entire globe everywhere are done algorithmically. They're done by computers. There's a reason why there's like four people on the floor of New York Stock Exchange these days.

Nobody needs to be there. That, you know, two decades ago, there were 5,000 people down there shouting at each other, whoa, whoa, whoa, whoa, whoa, whoa other that doesn't happen anymore it all gets done by computers so that has been siloed in the world of institutional banking for 40 years we've brought it to to retail folks folks watching the show and anybody else you know and and then you know taking away the last proverbial gate associated with this and making it free.

So you have the opportunity to get your hands on it and use it and test it. And, uh, yeah, we, we, we love what we do and we'll continue to, to create products so people can benefit. That's an archpublic.com for those of you who, uh, can't read. It's right there. It's app archpublic.com, those of you who can't read. It's right there, it's archpublic.com, but there's a lot going on here. It's funny, we keep sharing the Bitcoin algorithm, all the money's kind of being made in the concierge program,

but hey, you know, I appreciate that we keep sharing the very free, very successful products. It's a good thing. Well, listen, there's so many things, seeing is believing, and this is user-driven software. They can get their hands on it. They can control it. They can manipulate it any way that they like. They can turn it off and turn it on. They control their money. There's nobody else in control. We don't hold any funds. We don't know when you trade with all of it. So there's a lot of things that we anticipate being questions in people's

minds. And so seeing is believing with the free program allows you to, to, to absolutely know exactly what you're getting into, and to answer all those questions for yourself, and to feel really good about the answers. Yep, absolutely. So I find all thoughts. It's a great comment here that somebody said that these guys would tell you the Ben's Al is the man of the year. That's the CEO of Bybit. I know Ben, dude, and my take on this was man, good, good job of the

recovery, but you shouldn't have gotten hacked in the first place. They fucked up the hat guys like there's no, I just to be clear, you can praise somebody for the result, but you can still say this should have never happened. They didn't have their protocols in place and it shows you the risks of leaving coins on exchanges or trusting centralized entities and that you should self custody.

Those two things are not inconsistent, but yeah, they messed up the hat. Well, there's a huge topic we didn't discuss, and maybe we should touch on it, but are they going to roll back the chain? I mean, that to me is a massive, massive question that has to be answered in the very short order. I think 10% of the Ethereum has already been liquidated through, you know, mixers and the like. And so I've seen Samson and Vitalik and a bunch of other heavyweights on Twitter

talking about rolling it back. Vitalik was not talking about it. Yeah, yeah. No, he wasn't talking about it, but a lot of people were talking at him about it. Oh, yes. Yeah, and I guess the question is, are they going to, and I personally think it's a damned if you do and damned if you don't scenario for a theory.

I think they're kind of screwed either way, because if you don't roll it back, you're looking at the largest aiding and not a theory. I'm like this. This isn't an a theory. I'm half. This is a human being centralized system hack that happened to steal Ethereum. If they had stole a whole shit ton of Bitcoin, what would the conversation be? That's like pretending by these maxis that Bitcoin's never been stolen in size. It just enters. Pull it back. Yeah. Well, listen, I don't know the right answer. I don't pretend to.

I just know that this is going to be good for Bitcoin is the way I look at it. And I also know that like, the fact that they even are talking about rolling it back points to centralization. It kind of blows them up either way, right? And it's not a position I would wanna be in. Oh man, I agree. But it's just that the tribalism is funny funny seeing exactly who was screaming for the rollbacks because they just basically, I mean, they're like low key trolling, right?

They're making the exact point that you did. A Bitcoin match is saying roll it back or tweeting at Vitalik about that is basically telling you there's the possibility that you could roll it back, which is what they want you to know. But there's these unintended consequences to the crypto market that do have to be addressed and they have to be addressed in big ways. Like the fact that you can launch a, that the president of a country can launch a meme coin

and extract hundreds of millions of dollars out of the US economy on a Friday night, that has to be addressed. And the fact that terrorist organizations, you know, the Lazarus Group, is that the one that is, I guess, taking credit for this? I mean, North Korea, like, they're going to, $1.6 billion, something has to be done to where they can't spend that money on bad things as I guess the point And you know if we don't as an industry come up with really good solutions outside regulators will That is a you know a foregone conclusion Yeah, man, what a shit show this industry the What the price of it? What the price of it? Yeah, absolutely.

Guys in the comments, I love you. If we dunk on you, you know, it's like brotherly love. We love you all. It's not an insult. You're welcome to come back except for that one guy. No, you can all come back. We're not blocking you. But listen, if you want the answer to Bitcoin crashing, crypto nightmare is the worst yet to come.

Altcoins, there's very little signal right now to predict an altcoin bottom. I still think that most valuable altcoins will do exceptionally well, personally. I think Ethereum will do well. I think these are dips to buy generally with a long timeframe in mind, but don't come back in a week and be like,

so long as 10% down last year. Yeah, so if you made it this long in this stream and you want a little bit of signal, would it be the worst idea in the world to take the assets that are in the field, BlackRock, a little thing that they're doing over there in that particular fund, and take those tokens and be involved with those if black rock is accumulating assets to build

Potential products on and I think you know, there's four or five of them inside of that little grouping Those seem like reasonable assets to take a good look at right mean coins in the light. That's a tough spot But you know if you align yourself with what BlackRock is doing good grief. This one this one's better. spelled it so well. You can all shapes and sizes I get to say reply guys they're all over the place.

I'm gonna be honest the 1.5 billion in liquidations, that was me. I was using this. I was using this, the liquidator. This is what you guys are doing in the chat. Anyways, Andrew has a baby to go take care of and Tilvan is know go buy more Bitcoin and I have shovels in Colorado that's that that's the news of the day in

Colorado every day in February. Meeker is the guy who sends VDM's of financial advice that's probably accurate. Scoot Meeker would like you to join his private telegram group send me one. He'll send you two. Fuck, so bad. Vinny would like to know if that's a flashlight. No, it's a water gun, but I like where your head's at, buddy. Guys, we are done. I can't do it anymore. Thank you, Tillman. Thank you, Andrew. Everybody check out ArchPublic. ArchPublic.com. We will see you next week. Bye. See you guys.