The Wolf Of All Streets - Bitcoin Is In Opportunity Zone | But Here Is Why You Should Buy Ethereum Now

Episode Date: September 6, 2023

James Butterfill, Head Of Research at CoinShares, and Chris Inks, TexasWestCapital, are breaking down the crypto market for you to make the most out of it.  James Butterfill: https://twitter.com/jbutterfill Chris Inks: https://twitter.com/TXWestCapital ►► JOIN THE FREE WOLF DEN NEWSLETTER, DELIVERED EVERY WEEK DAY! 👉https://thewolfden.substack.com/   ►►OKX Sign up for an OKX Trading Account then deposit & trade to unlock mystery box rewards of up to $60,000!  👉 https://www.okx.com/join/SCOTTMELKER  ►►THE DAILY CLOSE BRAND NEW NEWSLETTER! INSTITUTIONAL GRADE INDICATORS AND DATA DELIVERED DIRECTLY TO YOUR INBOX, EVERY DAY AT THE DAILY CLOSE. TRADE LIKE THE BIG BOYS. 👉 https://www.thedailyclose.io/   ►►NORD VPN  GET EXCLUSIVE NORDVPN DEAL - 40% DISCOUNT! IT’S RISK-FREE WITH NORD’S 30-DAY MONEY-BACK GUARANTEE. PROTECT YOUR PRIVACY! 👉 https://nordvpn.com/WolfOfAllStreets   ►►COINROUTES TRADE SPOT & DERIVATIVES ACROSS CEFI AND DEFI USING YOUR OWN ACCOUNTS WITH THIS ADVANCED ALGORITHMIC PLATFORM. SAVE TONS OF MONEY ON TRADING FEES LIKE THE PROS! 👉 http://bit.ly/3ZXeYKd  Follow Scott Melker: Twitter: https://twitter.com/scottmelker   Web: https://www.thewolfofallstreets.io   Spotify: https://spoti.fi/30N5FDe   Apple podcast: https://apple.co/3FASB2c   #Bitcoin #Crypto #trading  Timestamps: 0:00 Intro 3:00 What’s going on with Bitcoin? 7:40 Binance’s train wreck 15:30 Ethereum ETF pump 24:30 Good news in crypto! 31:30 DXY dollar index 35:00 Crypto market update 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.

The crypto fear and greed index shows a 40, which means that people are once again fearful. But I would argue that we need a apathy indicator showing that people have just left. They're apathetic. We have time-based capitulation. The longer it goes, the more likely they are to just leave and never come back. And this just reeks of 2015 and 2019. We've been here before. Does the fact that we have low volume and low interest mean

that we are in fact in an opportunity zone and this is the time to seriously start buying? Historically, that is the case. And while we are all excited in a bull market and there's FOMO and everybody wants to be a part of this, we all know that the best things are being built in the bear market. The best news often comes in the bear market. It just doesn't move price. We have Solana doing a partnership with Visa to move USDC for cross-border payments. We have El Salvador starting to teach their children about Bitcoin in schools. There's so much good that's happening. It just gets buried in the apathy and the depression. I've got one of my favorite guests here today who can actually put data behind all of this, James Butterfill, of course, and then Texas West Capital, Chris Inks, on the back half

of the show to look at the charts and see what we should be looking at from a trading perspective. You guys don't want to miss this one. Let's go. Or I should say just apathetically, casually drop one of your fingers on the like button because we know that's the attitude. Listen, we were on Crypto Town Hall yesterday. Our Twitter space is that we do at 10, 15 a.m. Eastern Standard Time. And in the background, it was like even the hosts were capitulating. Our whole team was like, this is so boring. There's nothing to talk about.

Who are these guests? They're morons. There was one guy up there who had 400 followers. i don't even know how he got on stage and he was screaming about how jim kramer in 2006 had pointed out that everything was manipulated in markets and that meant that crypto had to go to three thousand dollars i literally i never do this i told the guy you sound like an idiot and took him off the stage. I mean, we were at the lowest of the lows, which means there's only one way to go, which is up. But yeah, it's hard sometimes to show up every day and be inspired by this space when everyone around you is apathetic, but there's actually really good news. And like I said, these are the moments

historically when you actually want to start looking at the quality projects that are being built at Bitcoin, because we know we will get yet another halving and likely another cycle, and that the bull market inevitably will come again. That's my perspective, but I'd love to talk about it with James Butterfill from CoinShares. James, how are you today? Good, thanks. Yeah. I absolutely agree on the... It was interesting. I was on LinkedIn the other day and I posted this article on Sunday's blog article about why Bitcoin is in the trading doldrums.

And we spent a lot of time trying to create a sort of accurate set of volumes data. And that's taken ages to do. There's a lot of wash trading that goes on so but we've we've come to sort of a greed set of exchanges that we can trust because we trusted exchanges data and it's interesting on linkedin someone pointed out oh yeah the trading doldrums you see them exactly during or just before halving periods and actually that's not a bad timer looking at it you do tend to see these periods of these doldrum periods just prior to halving periods. And actually, that's not a bad time looking at it. You do tend to see these periods of these doldrum periods just prior to halving. And now we're what, eight months away, seven months away. It's not a bad observation. I think my argument against that would be, well,

it's perfectly known. People know that the halving is about to occur. That's right. Is it priced in? Right. I guess. I mean, I wrote literally my newsletter this morning. Everybody should know I have a free newsletter I put out five days a week. 2023 is 2019. I mean, this was the topic because it was so depressing to me hearing about it, but everything that was exactly similar in these four-year cycles and why, well, this exact topic to be frank is that there's nothing new here under the sun. This is exactly what happens every single time we're going into the halving year, which is crazy because we spend so much time talking about the macro and all the things surrounding it, but maybe this one

thing is enough. Honestly, there is a groundswell of interest in the halving though. I'm getting an increasing number of calls from journalists talking about it. Although it's still way away, I think towards the end of this year, everyone in their outlooks, the big crypto outlooks for 2024, all the subjects are gonna be about halving. I think it's just gonna become a complete frenzy

by about March next year. So many people are gonna be talking about it and a lot less people were talking about it in 2019. And I think it's going to become a really big event, although it's well known, it'll be a really big event this time. That in my prediction, when you talk about it in that manner

is going to be a sell the news event, right? Because we all know that the halving itself is nothing. It takes six months for that actual reduction in supply to matter. This is one of those things where the halving goes and it's like Y2K. Yay, and the world didn't explode. Nothing changed. It'll build up to it.

I bet it'll sell off. And then we'll slowly build through September and October. That's where it'll be at. There's really big questions. We've been meeting all the top mining companies. And we're going to publish a mining report, which we do most years. And we were thinking about subjects.

And we've been floating those ideas to various mining companies. And one of the ideas was what happens to miners after the halving. And revenues, obviously, we all know are going to be literally halved. And so we've been creating a cost curve, looking at those right at the end of the low of the cost curve, right at the top of the cost curve. Who's going to hurt the most? And I think that is a really big question this time.

Clearly, some miners are in a position where it is going to be incredibly difficult, incredibly tight for them next year. Some are well capitalized from a cash perspective going into this, but others, it's going to really hurt. It's going to be very, I do expect there to be a potential drop in hash power, or at least the transferring and ownership of hash. Right in the comments. I'm more excited about the hash rate dump. I'm talking about they sell the news. Soon as we see the miners capitulate and unplug the older machines, then we know the pump is on. I think I actually agree

with that. I think it'll be an immediate sell-off and it will take a little while to recover. And then we just head into the next bull market. You guys went very deep though in this article, or you, I should say, not even you guys. Bitcoin traded volumes on trusted exchanges, Bitcoin volumes on trusted exchanges, Bitcoin trading by category, stable coin share of Bitcoin volumes, exchange market share of Bitcoin volumes. I mean, you went really, really deep here. So you did a very quick TLDR. What did you learn from digging in deep to all of it? There's a lot of different facets. Why are we in the trading doldrums? Per quarter, we were trading like $10 billion a day. And then Q1, Q2 this year, we're down to like $7.4 billion a day. So big drop.

And a lot of it can be attributed to Binance. So Binance actually benefited massively from FTX, its volumes there. And it pushed its market share up to 80%. But since it ended its fee holiday, since we had all the regulatory crackdowns, its volumes have fallen to 30% market share. So dramatic decline.

It's not necessarily gone anywhere either. So, you know, that is one thing, one big reason. And then a regulatory crackdown has made people a lot more cautious. Yeah, you're bringing up this tweet. This guy has a real thing against you. It's really funny, Travis. Yeah, you're bringing up this tweet. This guy has a real thing against you. It's really funny, Travis. So Travis, he's a friend of mine, actually.

And he was one of the biggest FTX creditors. His hedge fund, Ikigai, was a very popular, very successful hedge fund. And he lost almost everything that was sitting on FTX because he was trading there. And he has seemingly sort of become the anti-CZ, I think, as a bit of PTSD from it. But he's a very smart, very good guy. And this is indisputable. I can dispute some of the takes that we see from some of the people who are so anti-Binance, but this is Binance's slow train wreck towards implosion. I can't say they'll implode, but a lot has happened if you look at this bullet point by bullet point with Binance over the time. Someone, we were having this discussion just earlier.

He's got an ax to grind, but he makes some good points. I would say that then the question becomes, is it systemic? Is it a problem for the broader crypto industry? The fact that its market share of trading volumes has fallen from 80% down to 30%, I think it's still one of the biggest exchanges, but it's still a bit of a comfort that if they did collapse, I don't know if they will. If they did, it wouldn't be as bad. Yeah, that's what I was saying to you before. I think this is good news. A slow train wreck is a lot better than an FTX collapse. I mean, if Binance is down to 20,

15, 10% of market share, I don't know that it'll go that low, but it could. 80 to 30 is massive, right? And I think we've seen a general trend of centralized to decentralized exchanges as well. We all know that Uniswap is outperforming, at least as far as volume Coinbase, month over month, over month, over month, that if a DOJ action comes, if CZ steps down, if Binance collapses as an ecosystem, we want them to be as small as possible when that happens. I'm not saying it will, but if it does, 80% market share, that's the end of crypto. 30%, we can tolerate that and probably get get through it i mean some of the changes some of the other interesting insights i thought i thought were interesting is the collapse well not quite

collapsed but the big drop in the stable coin market share crypto of bitcoin volumes um so again it was around 90 market share it's dropped to around 60 today and a lot of that is the lack of use of BNB. It's very high. If you scroll back up a little bit to the chart on, not that one, the next one up there, that is the DXY index. So it's trade-weighted dollar index against the market share of stablecoins. Now, there is a correlation there. So when people have a high appetite for the dollar, i.e. when rates are rising, stablecoin market share really picks up. So it is linked to the dollar. And, you know, this year we've seen a bit of a drop off in appetite for the dollar index. And actually, that's part of the reason why I think we've seen a drop off in stablecoin market share.

And perhaps why we've seen, you know Bitcoin is the volumes are trading a bit lower. There are less people trading the dollar Bitcoin pair at the moment. Preston Pysh, I wonder how much of that has to do with the banking collapse and the FUD around stable coins and the general sentiment around Tether. But my gut says that this is just the exact same symptom of the 2019 bug, right? That it's this part of the cycle right before halving 2019 to 2023. People are wondering where the title came from. I mean, this is where the guy said in this report, by the way, saying crypto exchange volumes fall to 2020 levels as institutional funds hemorrhage. That's what you

would expect right around the having. Historically speaking, we are in the opportunity zone and smart buyers in the past have been very profitable, perching assets whilst volume and interest were so low. That's our title right there. Bitcoin is in the opportunity zone. This guy said it, we said it. I agree personally, but that doesn't mean I don't think that you might get a lower price on Bitcoin at some point in the next year. Yeah, I think, you know, having spoken to so many of the large miners recently, they're saying, we asked them, what are you doing towards the halving? And they say, well, what do you think is going to happen? And they say, the answer is we don't know, which is quite worrying. But I mean, I think it's generally they don't. And that's why a lot of them are now hoarding.

They're not, they're not. If you look at hash power recently think it's generally they don't and that's why a lot of them are now hoarding they're not they're not if you look at hash power recently it's not declined much oh sorry it's not really increasing anymore they're just holding fire they're waiting to see what happens and just being playing a little bit cautious um but certainly yes historically you know they will cite oh okay well after the halving actually prices tend to do quite well six months afterwards and um i think there's an element of truth to that, certainly, or self-fulfillment, self-fulfilling prophecy to some extent. Yeah. I mean, to wrap a bow around this topic, how are the institutions that you're speaking to talking about it outside of the halving right now? I mean, this exact same article, you scroll down, it says it seems like to me, institutions are most likely to be the next wave of capital

to enter the crypto economy. So we were just talking off air earlier. You know, I think coming towards the year end, what are the price catalysts? Perhaps weaker macroeconomic data in the US,

prompting an early than expected rate cut. So next year, though, rate cuts will happen. And also highly likely we have then the next delay from the SEC will be up and they'll have to answer again as to why they don't want to approve a spot Bitcoin ETF. So next year, we'll probably see at some point a spot Bitcoin ETF approved. That combined with a halving actually i think is is quite a

good kind of environment for bitcoin price appreciation so these two big events i think would be very supportive you know if you look at um crypto fund flows when a spot when a future space etf was launched in the united states the pro shares won a billion dollars in the first week you know and not many people want to own a futures-based ETF, but a physically backed one, a lot more people do. It ticks the due diligence boxes of so many more fund managers. I think when that occurs,

you could see a much larger amount of inflows. And some people, we just have to- Yeah, I think we all agree, yeah. Go ahead. We have this discussion about Grayscale as well, because, you know, Grayscale is trading about, I think about a 20% discount to NAV at the moment. And, you know, the answer was, wouldn't we just see a flood of people selling out when that NAV drops to zero?

And I think actually, no. The people are buying. There's a lot of trading turnover in Bitcoin ETFs at the moment, including the Grayscale closed-end fund, because I think there's really diverse opinions in there. A lot of people saying, I want to buy the Grace Scully closed-end fund now because it's trading at 20% discount. While others are saying, I'm done with it. I'm fed up with this. But I think if you want to buy Bitcoin at a 20% discount, take a gamble that the ETF is going to be approved. That discount to NAV will close.

Yeah, I agree with that. But the thing that people seemingly are not talking about as much, which is a great article right here, buy Ether instead of Bitcoin to ride ETF momentum, crypto research firm says. And the argument here, which we've talked about before and seems to now have just kind of disappeared into the Ether, no pun intended, is that we have Bitcoin futures ETFs that makes an Ethereum ETF futures more likely even than a Bitcoin spot ETF. So if you're believing that there's going to be ETF hype in general, why not be playing the Ethereum side of that? Yeah, I mean, I think that's right. There's no grounds for the SEC preventing the launch of an Ethereum ETF because they've allowed it with Bitcoin.

One slight thing, difference is that they're staking you potentially in an ETF and that might complicate matters. They might call it staking as a service. Does it pass the Howey test or not? There might be a few complications around that side of it. Yeah, I agree with that, obviously. And we've had the narrative that now with the Grayscale decision, the SEC could theoretically go and take back the futures ETFs rather than start approving spot ETFs. It's a non-zero chance. I don't think it's very high, but it certainly is. That would be a bit childish. That would be a bit childish. Yeah, it would be pretty aggressive. It would be pretty aggressive, definitely.

Now, listen, I want to talk about this. The ARK, one of their futurists, I didn't realize that ARK had futurists working there, but that's a pretty cool title to have. See, it's US attempts to wound Bitcoin hurting long-term interests. I mean, this seems somewhat obvious, right? But basically, he had a great quote here. Now I need to find it. Trying to kill Bitcoin because it threatens the supremacy of the US dollar system is like trying to kill language translation technology because it threatens the supremacy of English. I quite like that point. Yeah. I mean, it is unstoppable. And I think that is actually a reason why many clients hold it, partly because it's a dollar hedge to some extent. But this idea that it's going to just take over the dollar completely, I don't think

is well-founded either. You'd be going to a Bitcoin standard and economically that has challenges. You know, central banks actually can help control economies. But I kind of think it is unstoppable and it's something the state can't control. So I do think, you know, well, we see many investors holding it for that exact reason. Yeah, I agree. And we've talked about obviously sort of the institutional money

being potentially the next wave. That's what you're focused on. Well, we've had sort of a gaping hole since we saw the BlockFi's and the Genesis type companies collapse, which is actually lending for institutions. Coinbase creates new crypto lending service geared toward large investors. This was basically divulged when they filed with the SEC and they had already raised $57 million for this program. So they somewhat quietly did this. These are over collateralized

loans. So were some of the ones in the past, but basically loaning to institutions who want to be able to use their crypto as collateral, the same way you can use your art yacht or securities portfolio. I mean, I think we all agree that in theory, when done right, Bitcoin itself is pretty pristine collateral. But there's been this gaping hole, like I said said in the market. Is this big news that Coinbase is actually creating this and trying to fill that hole? I know there are

already some institutions some financial institutions that will allow will can take collateral Bitcoin is collateral already.

Off the top of my head I can't think exactly who they are but some quite big financial institutions have already offered this. But yeah Coinbase is in the crypto world is much higher profile. It's a smart move by them.

The question is, will they also take illiquid altcoins as collateral, which has been a massive problem already for DeFi? Obviously, we've seen curves still sort of apparently dangling on the edge with very few people talking about it. And then we've also seen, obviously, what happens when companies take a coin like FTT as collateral for loans, allowing Sam Bankman-Fried to get away with effectively financial murder. Right. So like, is there a needle that Coinbase needs to thread here to do this in a responsible manner? Or could this become yet another form of contagion? I don't know. I mean, I think the problem with a lot of the other cryptos or altcoins are that the volumes are incredibly low, massively low compared to Ethereum and Bitcoin. And so it's much harder to trade those. And also, I think broadly sentiment amongst altcoins has been incredibly mixed this year.

You have to think fundamentally too, some of them are just copycats of Ethereum or Bitcoin, which one is going to win out. And then the game is always the market size, the market share, and Bitcoin and Ethereum have massive market share. I think you can quite rightly point out dysfunctional elements of Bitcoin,

dysfunctional elements of Ethereum, but they have the market size right now. It's hard to rationalize, I think, opposing the other altcoins as collateral. Yeah. I mean, there's a reason that BlackRock is choosing Coinbase for their surveillance sharing agreement and potentially for their custody, right? This is the only company that can probably pull this off, I would say, in the United States right now, outside of Bank of New York, Mellon and State Street, the biggest custodians. Is this a good thing for Coinbase? I know they're

custodian BlackRock assets, but they won't be necessarily trading them with Coinbase. Yeah, I think it's almost a separate business. Yeah, I don't think it has much to do with the other side of Coinbase's business that the SEC's been so skeptical. You might see, if BlackRock becomes a big thing in trading, then isn't that to the detriment of Coinbase? I'm not sure. Yeah, I mean, that's true.

It's kind of like sleeping with the enemy in that regard, I think. Speaking of sleeping with the enemy, this story, I have to share it. You don't have to have a comment on it, but it's just very triggering. A $700 million bonanza for the winners of crypto's collapse. Lawyers, right? We all know I've talked about how many times I can't, I've lost my mind talking about, obviously, the Voyager proceedings, but how much these bankruptcy lawyers have made

because of the collapses of FTX, Celsius, Voyager, BlockFi, and others. $700 million. I mean, FTX, $326 million in fees already, and they're not even close to resolution. I mean, Voyager, at least, is a low $88 million, and we got some money back. And then you dig into these firms, I mean, $126 million, $111 for Sullivan and Cromwell, 101 million for Kirkland and Ellis. And in every single one of these cases, the customers and consumers would have been better off if they had just liquidated on day one. Yeah. I mean, they're incredibly complicated. And if you're a holder of FTX and you're waiting for the wind-up of assets, you're going to be sitting around for quite some time,

two, three years, maybe longer, to get those assets back. And that's partly because it's complicated bankruptcies. Lawyers do very well. Yeah, I mean, FTX is an incredibly complicated wind-up. So in a way i would say i wouldn't want to be a lawyer but yeah financially it'll be great for that yeah i mean what was that number 326 million for ftx already it hasn't even been a year guys so listen that's doing the math that's well that's probably 1.4 1.3 1.4 million dollars a day if you amortize it on lawyers since the collapse.

Yeah. And if you're a financial bankruptcy lawyer, a lot of the crypto, which is probably most of them are in this space, cryptos are very much an alien thing to them. So it's going to take them a long time to get their heads around. Yeah. I mean, the creditors are literally paying these law firms to figure out crypto. It's like you're their R&D department and you're offering the funding. I mean, it's very sad. It was very funny. I can't remember the exact quote. I don't know if you know who Tiffany Fong is, but she's the one who SBF was always talking to in the DMs and she was sharing them publicly and he continued talking to her. But she basically said that she posted a thing and it was from documents that the lawyers had spent 70 days deciding whether to sue her for slander or something, you know, against SBF and against FTX.

They decided not to, but it cost them millions of dollars to discuss suing her. And she's a creditor. She said, I'm paying for the lawyers to decide whether to sue me or not. Yeah. Fantastic. Yeah. Fantastic. Yeah. And there's been other stories like that. I remember there was a guy, Celsius, now I'm blanking on his name, but he said that basically they had spent $4 million to sue him for $2 million. I mean, just to show that this has nothing to do with the customers. This is just about lawyers billing, man. It's crazy. I can't wait to ask

Chris about this when he gets on because he's quietly a lawyer. He has a legal degree. He won't admit that he's a lawyer, but he does have a degree. But there's two pieces of actually good news that I wanted to share here that I find interesting, I think would be probably bigger in a bull market and are just going unnoticed. Solana jumps on Visa stablecoin announcement as Bitcoin and other cryptocurrencies remain flat. I mean, listen, I don't think this is so massive. Obviously, they've already been testing with Ethereum, but they did pilot this, Visa. And Visa has come out and said, this may be a superior way for faster, cheaper transactions, talking about crypto in general, and then adopting Solana for it. Yeah, you get this couple percent move on Solana,

which is down 90 something percent, obviously from all time highs. But we keep seeing, like I said, these things building in the bear market, Visa, PayPal, all these companies, meaningful adoption. These aren't just jokes. These are real things they're spending money and time on. If there's one thing that Solana's got going for it, it's that it is really well connected in the finance industry. And this Visa deal is just emblematic of that. I have times been a little bit cautious about Solana, partly because if you look at its downtime, it's been not great at all. And it's a very centralized, decentralized network.

But that said, if you look at the fund flows, it's a very centralized decentralized network um but that said if you look at the fun flows it's a darling amongst investors it's of the old coins including ethereum it's had the most fund inflows year to date is definitely the most favored asset amongst institutional investors outside of bitcoin at the moment so you know yeah right so yeah it's uh it's uh yeah sentiment is uh aside from my view sentiment is very positive on now i i may have like people may miss this but i thought this was what i just pulled it up because it made me think of it as one of the best tweets i think of the entire year austin federa is the head of the solana uh blockchain the association like obviously for doing grants all that stuff people totally missed the news. Base was down yesterday, right? And it was being based, which is Coinbase's layer two and base

experiences stall and block production, right? And for people who know, Solana was never down. It just wasn't confirming blocks fast enough or whatever the proper term is. They had the same thing. Austin said, it's only an outage if it comes from the Solana region of San Diego County. Otherwise, it's just a sparkling stall in block production. So for anyone who's a champagne snob, you can't call it champagne unless it comes from France. But very funny, him basically pointing out that everybody is all over Solana anytime the network slows down. But when it's Coinbase at its base,, not even a news story. Yeah, exactly. So not unique to Solana. But it happened literally yesterday for hours base wasn't working base

was basically offline. And for some reason, maybe it's just the market or the expectation. Nobody's talking about it. And one last story I want to talk about really quick, because I think it's very cool. And I talked about the intro El Salvador to introduce Bitcoin education in schools by 2024. It's coming from a nonprofit NGO, Mi Premier Bitcoin. I cannot do Spanish accents. I won't try butchering it. Partnered with the Ministry of Education of El Salvador to include Bitcoin in its curriculum. And they're training thousands of teachers and looking to first do this with tens of thousands of students. I find this absolutely astounding. I know I don't think it moves the needle, but I think the fact that two and a half years later through this terrible market, El Salvador is still very

committed to their adoption of Bitcoin and doing all the right things to show that a nation state can take this. And more importantly, we get absolutely, I don't know how it is in England, but in the United States, we get absolutely zero financial education. They're already down to teaching about Bitcoin. We can't even get them to teach people about credit card debt in the United States or how to balance your checking account or what GDP is or why inflation matters. And they're teaching their students about Bitcoin. I think this is incredible. Like I said, I don't think it moves the needle, but I just love the story. I really want to see the curriculum on this. It's going to be interesting. I wouldn't surprise

me if someone like Alex Glasling from Human Rights Foundation has had some sort of input into this because I love hearing his tweets. But yeah, I'm very keen to see the curriculum. Yeah, me too. But I think, I just think it's sort of a heart warmer for us to end our conversation on. I think it's really great. James, thank you so much for all your insights or anything I might've missed. I think we, for, for, for this market, we, we covered a lot for 30 minutes because, you know, sometimes it's hard to get three minutes out of a conversation, but we did have some

things to talk about. James, thank you as always. I'm sure I'll see you back here. uh on uh on twitter space it's very soon by the way you're going to singapore next week by a chance for token 2049 i've never been to a crypto conference in my life not yet good for you here you're doing it right james thank you man and that's all we got obviously on the the news half. And I really do think that this is an opportunity zone. I have a feeling that when we start looking at the charts, Chris might actually agree with that sentiment. But first, I just want to bring him on and ask him why are bankruptcy

lawyers the worst, man? Lawyers? Yeah, I see. You got to unmute yourself. I caught him by surprise. Now we can just look at Chris. Hey, do we have any, I still don't hear you. So we might need to work on sign language. Do you guys hear Chris? I don't hear Chris. Can you hear me now? Can you hear me now? All right. We'll let Chris continue to try to figure this out. I'm sure it will work. But I have a feeling at least that he hasn't turned into a mega bear since we spoke last week. Yeah, Cloud Casino. James is a pimp.

I've never been to one in my life. He saved that money for Bitcoin like a pro. I don't know if we can make the- Can you hear me now? Yeah, you're good. All right. Did you blow on the cartridge? Man, you know, yeah, pretty much. I tested it before I went on here.

It was fine and whatever. I had to plug it back in. So we're good. No, first thing, real quick. Let me just make sure I say real quick. I am not a lawyer. Please nobody sue me. I am not a lawyer.

I do not hold a bar card. I do have a law degree, though. I got to be careful on that. He's playing one on TV right now. Okay, he's not a lawyer. I do have a law degree though. I got to be careful on that. He's playing one on TV right now. Okay. He's not a lawyer. But you know, yeah, I mean, bankruptcy is bankruptcy, right? I mean, it's there supposedly, in this case for the creditors, but at the end of the day, it's an industry in and of itself. And it's not cheap. Law is not cheap. And we say sometimes about lawyers making a lot of money and some do, but it's not cheap when you have to go hire experts and do all this foot travel and you

have to hire all these people to go through the documents. I mean, sometimes millions and millions of documents. Did you see they hit SBF with 4 million payments of discovery? Yeah, it's crazy. I mean, so when you have to pay all that, it gets really expensive and it's just, it's stupid. It's just out of hand. It gets crazy, but it is what it is, right? What are we going to do about it? Yeah. Hey, do you have a buying chance? I want to start, I just don't want to surprise you, but I want to start at the dollar because to me, the dollar is really critical level right now. So if you've got a DXY chart, the reason I say that, by the way,

is just because we've got these lower highs and we're breaking that last kind of lower high there, at least trying to, right? This man ended up being an SFP or something, but 50 MA here on the weekly, which we've not been able to break back above in almost 10, 9, 10 months, and now trying to push that level and right at it, you can see there. So I just want to know your thoughts, because we all know that a lot of things hinge on what the dollar does here. Yeah. So, um, big picture just for people that don't, I mean, this is the count, there's five waves up, up through, you know, our target that we had. Um, if, if you look at it,

it's, it's where we would expect it is the, uh, the 200, uh, extension there off wave two there. I mean, so, you know, for all intents and purposes, this is five waves up. And so coming back, the odds that we're done here at not even 38.2 are really, really low. When I look at this, what it looks like to me, I mean, it's really, yeah, you know, broke over that recent swing high there. And I'll zoom in in a minute here. But really, we're right around the weekly pivot. You know, we could get a little bit further up here, but I think what we have here is just an expanded flat or a flat of some sort. And I think, you know, we'll come on down here, at least again, toward that 93, 94 area, at least if not 90 to get the 50% retracement.

If we jump in here to the weekly, yeah, again, looking in here. Yeah. See, it looks kind of bullish yeah yeah i mean you know it looks like it but i mean you know again uh weekly stoke rsi is topped out you know and overbought there um you know volume isn't really expanding or anything it's just kind of staying level as it's gone up here so no it's not like we have this large kind of like push of of demand coming in and this right here, by the way, is the dollar futures chart, not the DXY. I was going to ask, I was like, where are you getting volume? Yeah, exactly. That's why. But yeah, so I mean, we've got this range here. I think worst case

scenario, we kind of head up here around 105.87 or maybe even 106.70, but I think that just about does it. I think, you know, we're still then caught in this kind of area right here. That's been the real kind of, this has been the real resistance right here, you know, coming up through here and all again. So I think, you know, that's kind of where we get to, and then we just kind of continue on down. Again, the odds that we're going to, you know, be done with a pullback here, you know, not even at the 38 to retracement doesn't make a whole lot of sense on a wave too. It can happen. It can happen, but until it does, I don't, I think, you know, we're looking good here. I've

got five, got a flat. So, um, yeah, I mean, maybe it just gets rejected right here. I mean, maybe this is it, right? It's at that line. It's right at the 50 MA. Maybe it sort of sinks throughout the rest of the week. And there we go. But so it wouldn't concern you at all to break up to 106 and sort of take out above those lower highs. No, as a matter of fact, I wouldn't even really become concerned about a further breakout unless we were getting up.

You know, I would start to start thinking about if we got above that 78.6 and about 111.22 if we got up there then i would go okay well maybe somehow this is some really short small abc kind of thing and we're heading up but until then um you know it should just be a pullback uh with further downside to go before the, you know, rally up higher, I guess there. So yeah. Yeah, perfect. Okay. So now that I put you on the spot with the dollar, what did you actually want to talk about? Yeah, no, no, no. I wanted to talk about that. As a matter of fact, I wanted to show that bigger picture. So people got an understanding, you know, of, of kind of really where we are instead of just locally, it's easy to get caught up locally. But I mean,

this is, you know, the bigger picture here. Um bigger picture here um and so you know again pulling back there makes a lot more sense i don't even know i mean i still think downside even if it breaks up i think that gives us this stock market correction everyone's been looking for five ten percent and then continue right yeah well so here's something um I've got this BlackRock chart here. This is the quarterly. Um, and, uh, according to what we've got here, as far as account goes coming from this, um, this, um, January of 09 low, like great, uh, financial crisis low it had. I mean, we've got a target. This is Blackstone to be clear, Blackstone, not BlackRock, right? Yeah. Yeah. Blackstone. Yeah. Yeah. Yeah. And, uh, thanks. Makestone, not Blackrock, right? Yeah, yeah, Blackstone.

Yeah, yeah, yeah. And thanks. Make sure, yeah. But, I mean, they've got a target. I mean, we've got a target up here around 237 or so. And that's looking good because right now we're only sitting at 108. So, I mean, I like this chart a lot. You know, we're just breaking out through this quarterly pivot here.

Impulsively, we've got good breakout going. So I think we've got a good target on that. And then as far as stops go here as well, I like the Spider Select Sector Fund for Technology here. It's the XLK. And basically, I mean, we could get a rejection and come on down further. And if we do, before we hit the 179.05, we'll look to potentially hit 156 here at that 50%. That's also a clear demand zone right there from that breakout on the left. Yeah, yeah, exactly, exactly.

But if we break above this 179.05, we should be looking up here at 195. And that's just five of three. And that continues to align with everything else we're looking at. You know, if we pull up, um, you know, the spy, we've, we looked at that before again, five of three coming up, um, you know, all those, uh, stocks and indexes and whatnot are all kind of looking there at that five of three. So, you know, we get a three, we get a pullback for four, and then we'd still get a five up. Um, and that's it or that's just one of the next five up. So a lot of possibility potentially still sitting in there. Yeah.

So you're thinking more upside on stocks, basically. Yeah. So that means that we probably see more downside on the dollar, right? Well, you know, so when we jump over here to crypto again here, I've been talking about Prime and I had a different count, which had us this peaked out right above our target area up here, almost four dollars. I've adjusted that count and it looks like we've still got a five dollar sixty cent target and potentially even a secondary target at six and a half dollars there.

But, um, you know, we're at three 90 right now. So that's a good move up coming in on that. I like the pullback to the, uh, the daily pivot here in this nice three candles coming off there after we kind of went sideways, we, you know, printed a tweezer bottoms here as doji's and just kind of took off volume expansion. It looks great. Um, now that doesn't mean straight up from here. We could see, you know, a bit of a pullback and then go up. But, uh, Now that doesn't mean straight up from here. We could see a bit of a pullback and then go up, but ultimately I think we do run up there five, six, and then maybe even six and a half. Y'all were talking about Sol, which was good because I had Sol in there because I was going to say again, that Visa partnership thing. Sol was one of the better runners the

other day. Also has bullish divergence. This is the thing i noticed by the way on like almost every altcoin chart i was scanning i'll just show you real quick i mean i just happened to bring up solana obviously lower lows on price obviously higher lows on rsi there i think uh let me think uh matic uh egold which you brought up last week same thing building even more right there. Injective, same thing. Building bullish divergence. Matic, oversold with clear bullish divergence. I mean, sentiment is in the dumps. I'm not saying these are like, I'm not saying the bottom is forever in, but I'd be pretty surprised right now if we didn't get a nice bounce, everything. And Bitcoin has the same, by the way. Yeah. Yeah, exactly. No, I mean, that's what it's

all about. You know, this is a great show you guys out on because it's things that I've been talking about lately, you know, is the sentiments in the dumps, you know, and everybody's, you know, just like, oh, it's going to go down or I don't even care anymore. And, you know, and people just kind of go away and, you know, Twitter gets real quiet, you know, and we're sitting out there still doing our thing. And there's a few people out there that are following you or follow me that are still doing their thing. But most people generally are out because most people got in on the hype. I mean, it's what they do, right? You get in at the top, you finally get out at the bottom, you swear it off, you get back in at the next high. It's kind of crazy the way human nature works. But you know, when you trade long

enough, you see this over and over again. And, you know, the players may change, but they're generally the same people over there. They're like NPCs, right? It's like the same one over and over again. Yeah, yeah. And so, you know, you just kind of you kind of go through it and you try to convince people this time around that it's the same thing as every other time. And they argue, and they complain, and they say it's not. And then it happens, and you do it again the next time.

It just is what it is. But, yeah. So for Saul, for me here, it's an interesting place. It's about halfway here between the pivot and the S1 here on the daily. um if we get rejected uh before we're really breaking out impulsively above that pivot i think we get the i think we get the reversal at the uh about 17 dollars and 66 cents or so at that s1 pivot i think we'll get the you know about the reversal there but if we do get an impulsive breakout above the pivot we just need to see fall through 2568. Um, and that gets us up here around 8435 as the next, you know, as the, uh, we've got it a one, two, and then one, two here. So this one, two, three up there

at 8435. And a lot of people here are probably going, Oh, whatever you're an idiot. You're so stupid. Yeah, I know. I was stupid over here at nine, nine and some change when I said bye. Right. It said 30 to 15. And then we got 15. I said 30. So we ended up hitting, what, 32-13 so far. But, yeah, I mean, Saul, I think I don't see any reason to be overtly bearish on it like everybody seems to be. I think a lot of it has to do with Sam and all that, but it is what it is. And I got one other chart here that pumped here recently, yesterday or today, is EM it is. And one other thing, I got one other chart here that I, that pumped here recently, yesterday was, or today is ENJ

here. And so, you know, I think we work our way up to. Classic engine. I said, these are classics. Yeah,

yeah, yeah. But you know, we had to, look at this pump though. I mean, geez, it's a.

I didn't even see that. It's huge. That's what that's, this was just. 30%, 20, 30%. 20, almost 25%.

I think wave three is up there around about 0.3065. And then we got a wave five up there around 0.3293 at least. But that then just becomes the beginning. You get up there, you kind of pull back and then you're breaking out and heading higher. I think it's set well. I like the pullback. Let me zoom out here to the weekly.

This nice zone it pulled back into right here from all the way from where it opened. From across here was the resistance, as you can see previously back in 20. Tagged it here for the pop here. Trying to cross bullishly here on the weekly. Again, bullish divergence you were talking about. Here it is on the weekly here.

Bullish divergence right at the low volume node. I mean, everything is textbook right here. I think this thing just kind of continues to run up there now. So, yeah, you saw it there. You mentioned it as far as alts go. A lot of bullish divergences across them, especially the larger timeframes. I think things could get a little interesting. And with everybody being so down about everything, it's the perfect time, right?

Yeah, I absolutely agree with that. Yeah. Anything else that you're looking at right now? I mean, I didn't see that engine. I wonder, I know engine is gaming based, and we had this sort of narrative of late that there was this gala games and the co-founders are suing are suing each other and now everybody's moving into other gaming coins from there so we saw kind of these moves up in try to remember naka whatever the hell that is i guess maybe now engine and and other gaming coins so maybe that's a part of this is that that volume is flowing from one to the other

pull back always have a narrative back 61 8 i mean it's you know it's exactly what you say aiming coin. So maybe that's a part of this is that that volume is flowing from one to the other. Pullback 61.8. I mean, it's, you know, it's exactly what you say, golden pocket. So I mean, you know, you play, you play your probabilities, right? That's what trading is about, probabilities. Absolutely. Anything else you're looking at or are we, we're good to go? No, I think, I think that's the big ones. I think just the general idea is, is just been great with your title of the show here, which is again, apathy and, and everybody's kind of in crypto here, just thinking, you know, either it's going to go down further or I just don't care anymore. And you know, that's usually if you're a trader, that's usually what you're looking for. Those are the times where you're going, okay, well, there may be a, there's likely a bottom somewhere in this area. And so it's time

to pay attention. I think, you know, if you're still here right now, pay attention. Now, this is the time. Totally agree. I mean, thank you so much. I'm glad we got your mic to work. Yeah. Yeah. So it's the Nintendo. We blow on the cartridge, you hit the machine, you do all the classics, man. Always great to get your insight and to know that nothing to panic about here. I do think that we're in the opportunity zone. Like I said, I mean, even if it drops 20, who cares? Yeah, yeah. I mean, new bull market coming. As long as you're not leveraged, you might care if you're leveraged, you know,

but otherwise, I think you're good. Yeah. All right, man. Thank you so much. Take care. All right, guys. That's all I got for you today. Of course, we'll be back tomorrow,

9 a.m. Eastern Standard Time and on Twitter spaces in about 30 minutes at 1015. Always a pleasure to catch up with both James and Chris. And of course, all you guys, thank you so much for tuning in. I will see you tomorrow. I hope you're going to come back, right? You're not going to leave me here. All right. Let's go.