The Wolf Of All Streets - Crypto Crash. Bear Market Or Correction? | Joshua Frank

Episode Date: April 20, 2023

►►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/ ►►BITGET GET UP TO A $8,000 BONUS IN USDT AND GET MASSIVE DISCOUNTS ON TRADING FEES! 👉 https://thewolfofallstreets.info/bitget ►►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 ►► JOIN THE FREE WOLF DEN NEWSLETTER, DELIVERED EVERY WEEK DAY! 👉https://thewolfden.substack.com/ Today's guest is Joshua Frank, the co-founder of The Tie, the leading provider of information services for digital assets, aka the Bloomberg of crypto. https://twitter.com/Joshua_Frank_ 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 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 market crashed overnight, and apparently that means we are back in a bear market and people are already tweeting under my tweets asking if I'm waiting for 15, 12, and 10k Bitcoin. But calm down, people. It moved $1,000. But it does beg the question whether we've seen a real turn in the market here, whether this is just a healthy retracement, and what is yet to come. Also, in case you guys missed it yesterday, the chairman

of the SEC, one Gary Gensler, was murdered in broad daylight on the floor of Congress. And I'm going to be honest, man, I'm here for it. I loved every second of it. I watched it. I have about seven of the videos here for us to peruse if we so desire. We've got a lot to cover and I've got my favorite guest, Joshua Frank, here to do it with me. We're going to actually run through the Daily Close newsletter that we do together to break down all the news and data that we're seeing right now and tell you how that's actionable. You guys don't want to miss this.

Let's go. Let's go. channel and gently caress the like button gary gensler got killed yesterday just absolutely slaughtered listen i don't believe anything's going to change but still man it was fun to see a bit of accountability uh the attacks and honestly man i just needed i think we needed it you know we need to know that we weren't the crazy people who think that in our echo chamber, who think that the world is against us. It's nice to find out that there's people in Congress who think the world is actually against us. But as I said, we have a lot to cover today. So I'm just going to bring on our amazing guest, Josh Frank. What's up, man? How are you today? I'm doing all right.

All right. Doing better than recent, given given the experience that we got to have yesterday in Congress. You know, it's improved, I think, general mood in the market. Yeah, I mean, I think that we can all just went to sleep with a smile on our faces. I don't, I mean, the headlines here, I'm going to go ahead and bring it up. So, like, this is the Daily Close newsletter. A bunch of you guys are obviously subscribed to. We're going to talk news. So this is the most trending news obviously from last night it's the first story the headline is that republicans rip sec chief for crypto lawsuits i don't even think this is like a partisan thing at all i mean i guess the few people who did it

in this case were republicans but like it's so irrational and crazy at this point what he's pulling off that this should be a nonpartisan issue in my humble opinion yeah i mean it came from the hill for what that that specific headline so you know tends to be a more political political publication but i think if you look across the board i mean the conversation wasn't necessarily political in nature though it was led by republicans so factually, that's a correct statement. Yeah, pretty, pretty incredible to see. I mean, you know, Gensler got complete beating. But the thing that I keep in mind is, you know, all of these congressional hearings are just parades of pushing whatever their own agenda is. And it's never really a dialogue or conversation.

Like Gensler never even had a chance. I'm not defending Gensler by the way. No, he had a chance when Elizabeth Warren gave him the questions in advance in the previous hearing. Right. Right. Right. Correct. Correct. But like, you know, you think about like the TikTok CEO who went up there and he actually had good answers, but they didn't let him answer any of those or address any of those questions. Right. So it's basically you're put out there to be slaughtered and you can't even

defend yourself. And it was great. I loved it. But better him than me. And I'm not sure if you saw the video. It was a representative. I saw it either yesterday or the day before saying exactly what you are, that all the outrage on Capitol Hill is fake. Did you see that video? I did. It's a representative. And he says he basically sits down like a selfie video, and he says all the outrage you see, negativity, it plays well in the press. He's like the public hearings, you see these guys go nuts, they're negative. And then you go into the private hearing, and everyone's like best friends and talking rationally about the issues. Yeah, it's politics.

That's politics. Pretty crazy to have like a junior politician go out and say that, though. It was pretty nuts. So that was obviously the first story. I don't want to waste your time with watching all the videos. I will waste everyone else's time when you leave. But they're great. Everyone who hasn't watched the video should stay till the end of this and let Scott kind of show them. But it looks like there's a ton of other regulatory news that kind of hit headlines yesterday in different countries with the UAE accepting crypto license applications,

the Israeli central bank looking at a digital shekel, which is really interesting to see. I mean, I think you had kind of posed the question, I think, when you posted this video, is the bull market over? What's going to happen, right? And I think what we saw yesterday in at least the US is that there is a ton of negative regulation and regulatory uncertainty as it relates to crypto. Gensler couldn't answer the question, is Ethereum a security or commodity? He could have, he refused to, right? But what we're seeing kind of broadly, and it's interesting to continue, like I continue to monitor this on a daily basis.

It's interesting to see all of this positive regulation that's coming towards crypto or at least regulatory clarity outside of the United States. I think Mika in Europe is a great example of that. Clearly, the UAE, the Hong Kong government is taking a more positive stance to digital assets. And I think all of these things are positives for crypto. And keep in mind, obviously, we want to have the US government have positive regulation and embrace the industry, because a lot of the institutional adoption can come from the US. That's where most of the major institutions are. But in spite of that, we've continued to see the crypto market grow in part because of positive regulation outside of the US. And I'm curious to get your take there. Yeah, the Israel story here, obviously, UAE. I mean, it's very clear. We talk about here all

the time. US is just getting left behind because of an irrational political hatred from the incumbents because they were embarrassed by Sam Begman-Fried. And that's exactly what the congressmen were saying yesterday in the hearing, which is that, like, the questions were like, Gensler, like, you know, like, do you agree that the U.S. is getting left behind? Basically exactly what you're saying. Are we losing some of our best companies to China?

Is China and the CCP party trying, like, CCP trying to take advantage of the situation, right? And Gensler just sat there and didn't really say anything. And it got, you got to show that clip. That was a great one. Yeah. I'm increasingly convinced. I really am increasingly convinced this time. I mean, everyone I speak to sort of agrees that this is literally Sam's fault. I hate to go there because I thought, but like,

if you really look a year ago at the conversations we were having, listen, consensus is next week. Right. I mean, I guess it was in July last year, so it's only been nine or 10 months. But the conversations were around favorable proposal of the Lummis and Gillibrand bill and the very reasonable White House executive order asking to present clarity with positive language. This all shifted when the people who met with sam were embarrassed and now they just can't say anything positive because it's too politically risky that's really what i believe at this point i think we would have gotten some favorable regulation or at least like a favorable tone and more reasonable things and now it's a shit show yeah i mean look and we have some from

some people within the sec and some people within Congress, right? But the majority is not pro-crypto at this point in time, which is frustrating. But the great thing is for all of the listeners in the United States, you will have the opportunity to exercise your democratic will to go vote against all of these anti-crypto legislators, which is great. Obviously, you can't vote against Gensler, but Gensler is appointed. Yeah, I don't think that if there's a regime change that he's going to last long.

And you also, I mean, even here, Britain could see crypto-specific regulation in the next 12 months, right? Coinbase, Brian Armstrong from Coinbase posted a day or two ago that he was over there meeting with them and that he could potentially move the company offshore from the United States. I mean, Britain should be aligned with the United States. That's why I just believe that this is an SBF thing at this point. Yeah, you might be right. I mean, but look, it's a $1.3 trillion asset class that the U.S. I don't mean to laugh, but I just got served an ad on camera for Jim Cramer's 2023 Investing Outlook.

Should we subscribe? We should subscribe and we can do the reverse Jim Cramer ETF live on air. And then the other story that is not here, I think, because it broke this morning, obviously was the story that there's settlement between the BIS and Bank of England on a blockchain, effectively for a like international central bank digital currency. Well, I think that's the thing that we've been monitoring. I mean, I would be surprised if that doesn't make trending news on the newsletter today. But, you know, that's the thing we've been watching for a while is this real enterprise adoption, enterprise use case. I mean, you know, that's the thing we've been watching for a while is this real enterprise adoption, enterprise use case.

I mean, you know, we saw last week Avalanche announcing their partnership with, I believe it was T. Rowe Price, Wellington, and a few other large asset managers and institutional market participants to, you know, do, you know, some finance on chain, right? And to actually do some securitization of assets on chain in a testing environment. And that's something that we're continuing to see, which is blockchain adoption by institutions. And in this case, banks. And we're kind of seeing that here with Israel looking into a CBDC with the digital check now.

So despite the uncertainty in the market, we're seeing some adoption here. But I think what's interesting is this macro futures section, because again, yesterday, we saw Bitcoin go up and the NASDAQ, S&P and gold go down. And so obviously, Bitcoin on a daily basis is not always going to be correlated to things. But actually, I have up on my screen here, which is interesting to take a look at. I'm looking at the correlation of Bitcoin to gold. This is 30, 60, 90 day, one year. It's just this column on the right. So the correlation over the last 30 days is 0.31, and it's significantly less going back over the last year. So Bitcoin is certainly not behaving exactly in line with risk off asset like gold. If I go into the S&P 500 here,

the correlation of the S&P 500 is actually significantly higher over the last year. That started to break down. And if we look, it's actually NASDAQ. The correlation with NASDAQ has kind of consistently been the highest. So crypto is performing a bit more like a tech stock. And it's interesting to monitor this. I mean, I wonder. Point three is not even that high, though.

Point five is pretty high. Point three is still relatively correlated. So, yeah. Yeah, it's not. None of these correlations is pretty high. 0.3 is still relatively correlated. So, yeah. Yeah, it's not. None of these correlations are that high. And I think that's important to note, which is that Bitcoin isn't. There's all these headlines about what's going to happen with the Fed.

And that's certainly moving the market, you know, when these Fed meetings happens and when there are changes in expectations for rate hikes. But I think outside of that, there's a lot of activity that's going on in crypto outside of the United States. Right. And as we move away from the United States, that also means we're moving away from less institutions. Right. They're obviously European institutions. They're Asian institutions. But when more institutional adoption is here, when we see positive U.S. regulation and regulatory clarity, we're going to see Bitcoin at least starting to take shape and become more correlated to something in the market. We're not there right now, though, which is kind of the important thing. And so that's the thing I'm continuing to monitor is on a daily basis, are we seeing Bitcoin be more correlated to basically tech stocks, to the broader market, to risk off assets.

Yeah, I think that's interesting. And also just every single one of those that you showed, when you look at the 30, it's just becoming less correlated over time. Right. Yeah. With the exception of gold actually became slightly more correlated, but gold is a lot of sense in a banking collapse. Yeah.

But it's more correlated with the NASDAQ than gold right now. So keep that in mind. So I don't think Bitcoin is a risk on or risk off asset at this point. I think it's kind of, well, it's clearly a risk on asset in that it's not behaving like risk off assets, but it's not. It's kind of hard to see, you know, like 30 day correlation is very short memory. It's like, what have you done for me immediately lately? Right. So you kind of have to look at longer term correlations where Bitcoin is kind of behaving on its own right now. I'm literally just looking at how you found this metric. There's so much

stuff in the tie that I've never seen. And so it's under Bitcoin risk. Got it. So I can these are the things that, uh, you know, every time I talk to you, I find new stuff, but I think the story here though, is that, listen, this came out at eight o'clock last night right bitcoin was thirty thousand four hundred dollars it's a snapshot of the previous 24 hours it's not telling you what's going to happen necessarily in the future it gives you some ideas so what happened right i mean the title here is crypto crash bear market or correction now we're down you know a thousand dollars lower all coins obviously bleeding yeah i look the market moves in mysterious ways sometimes and it's hard to know what what's happening and what's going on um for the longest time crypto has been really moving in uh on on on asian hours i can pull that up really quick, actually. Give me a second here.

So we can look. This came out about eight hours ago. But if we look at over the last couple of weeks, the blue line is Asian hour tradings. The gray line is US hour trading. The yellow line is European hour trading. So we have seen broader outperformance for Bitcoin onTH on Asian hours. But what's actually interesting is we're starting to see a lot of the alt movement has happened on US hours, at least recently in the DEX space, in the gaming metaverse space, which is kind of interesting to monitor. Again, it's not super significant. But I mean, in terms of what we kind of saw in the newsletter, something that I kind of immediately stood out to me was two things.

The first is this outsized, this outsized trading volume on, or on, on, on STE. So we saw a lot of conversation around that. And that, that makes sense. I mean,

to kind of go into, you know, I saw at least it was listed. I saw it was listed on BitGet. That just hit my, my feed. I think today that it was listed there, But I don't know if it was also listed somewhere else. I don't know if it was listed somewhere else, but I think a lot of the conversation is occurring around, you know, East staking now, right? So, you know, we had the Shanghai upgrade a few days ago and something that's really interesting to see.

So we're looking at red is net withdrawals from Shanghai. Green is deposits and the blue line is net. So what we've actually seen over the last couple of days is a growth in the amount of ETH that's being staked. So everyone was freaking out that the Shanghai upgrade was going to kill Ethereum. Everyone was going to pull their money out. And here we are, you know, you know, we started on the 12th, starting on the 17th, five days later, which is actually when full deposits were enabled, full withdrawals were enabled, not partial withdrawals. We've actually seen an increase in deposits. And there's a lot of conversation because if we look at if we look at here, right, if you look at Lido, it's a huge. Oh, I actually just unselected it, but it's a huge percentage of the staked ETH. And the question is, all right, what is going to happen to that? So the ETH that's staked with Lido is not unstakeable yet. It's not going to be until about May 15th. There's a lot of conversation kind of around what's going to happen there. That's about a third of the total ETH that's staked.

How is that going to kind of impact the market? I'm literally over here like adding, taking notes for myself or my dashboard when we talk about this because I honestly don't. There's an ETH staking dashboard. You can just add the whole dashboard. Yeah, I know. Okay. So that, I mean, that's an incredibly bullish narrative, one that we both predicted. Right. I thought it was complete nonsense that everybody who had staked their coins without knowing they'd ever be able to unstake them was going to magically withdraw and sell at a loss on the same day, which you can't even do. Keeping in mind, if you were staking ETH before you were able to withdraw it, you're not going to, like you're a long-term bull on Ethereum, right?

And so now you can deposit ETH and there's a path to you being able to withdraw it,'re not gonna like you're a long-term bull on ethereum right and so now you can deposit eth and there's a path to you being able to withdraw it which is really interesting so so so with the like you see the obviously the tweet volume and that's something that i show like when i'm that i look at really often trade volume and tweet volume uh increase so the the trade volume excuse me like when you see sd like that how what what's actionable it's actually it's actually putting it on your radar yeah sorry Is that putting it on your radar to say, Hey, I should be watching this or is that like, yeah, the way that I interpret this. So you can see I'm taking what's in the newsletter and then I'm doing a little bit more digging. Right. And I'm trying to figure out,

like, I'm using this as a starting point for what's potentially interesting or what's worth looking into. So, you know, one of the things that I noticed, for example, which is kind of similar is the, um, the asset that's being searched for the most over the last, uh, 24 hours is Arbitrum. And that was really interesting to me because Arbitrum was only up about 4%. Its volume was only about $1.1 billion, but not, so not super interesting. I went into Arbitrum though. And one of the things that I noticed is a huge amount of the volume. This is something I've been talking about for a while. I don't know if I talked about it on your show. But over 25% of the volume was coming from the Arbitrum Korean won pair on Upbit.

And this is kind of this. Yeah, we talked about that. The Koreans, man, they go for it. This is kind of like, yeah, it's kind of this just like weird thing we're seeing. Like the fact that Arbitrum traded two times as much on Upbit yesterday, like in the US, two times as much as Bitcoin, sorry, two times as much as Bitcoin, there was double the trading volume on Arbitrum. So it's kind of an interesting thing to look out for. And something I'm continuing to look into is when something pops up as being a trending token, I'm going and you can go into like, this is going to take you to CoinGecko. Like you could even use CoinGecko. It doesn't matter which website you're using, right?

You can go into markets and you can see like, wow, that's like 23% of its volume came against a Korean won pair, which is something that's really interesting and worth kind of taking a look at. And that's the thing I'm continuing to look at is, you know, when we see these assets surging, why are they surging? Where are they surging? Is that a pattern? If it's

a pattern, should I actually be looking at up bid on a daily basis and getting a sense of what retail traders in Korea are actually looking at? And that's not necessarily a narrative forever, but it's a narrative now that I'm paying attention to. No, but these monster moves that we've seen of late on select alts have had that same trend. XRP, when it moved recently, it was like 70% or something. Yeah, I actually, I have some notes on that. So I actually, um, that was like, uh, two, maybe two or three weeks ago, if I remember correctly. Yeah. So I actually have some notes on this. So this was really interesting. It's when we saw this giant move up, uh, right here on, on, I know it's a little bit

hard to see everyone. So I apologize when we saw this giant move up here on, uh know it's a little bit hard to see everyone, so I apologize. When we saw this giant move up here on XRP, this is up it. This is just Korea, right? It did about, I think I have the numbers here, 1.8 billion in trading volume in Korea against the Korean won. On the same day, Binance, which is the largest exchange, which has 90% market share, only did 1.7 billion globally in volume. So that move was brought forth by Korea. And it's something that I'm continuing to look into is like, all right, what is going on? Are the assets being talked about being traded in this market? And I'm not saying that this is a trend that's going to last forever. I want to clarify. But something that's really interesting, because we saw the same thing when

Solana ripped the other day. And we saw the same thing. We're seeing the same thing with a lot of other assets. And actually, if you go into Upbit here, I mean, you can see it's kind of interesting assets. It's XRP, Dogecoin, Stacks was having a lot of volume as well. So it's something that I've been at least looking at personally. I wonder why. I mean,'s because there's more of a self-fulfilling prophecy. But if you can see those spikes like this in advance, it should tell us a lot. Yeah, I mean, yeah, it's interesting to continue to watch for. And Dogecoin, that continued volume out of that market, right? Speaks to kind of that gambling mentality. But with really kind of back to your question, right?

With everything that I'm looking at, I'm trying to get a sense of why, what is going on, right? Using this as a starting point for kind of ideas and idea generation right like like this is maybe today this wasn't the most interesting thing but this looks at what are whales accumulating the most over the last day right now with some euro uh stable coin which is kind of interesting and there's actually a lot of there there's a couple stable coins there's also gemini usd in there there's actually a lot of, there's a couple of stable coins. There's also Gemini USD in there. There's nothing particularly interesting. Wells are accumulating fracks.

But what I want to look at is on an ongoing basis, what are the wells or the biggest holders in the market buying, right? What are the insiders doing? Because that's what I want to be taking a look at. And we've seen examples of tokens that have like, you know, the increase in ownership by wells is like 70 or 80% in a day. And again, with everything, it's a starting point. And then I'm going to go look into it in a day and again with everything it's a starting point and then i'm going to go look into it research it and figure out if that's a trade i

want to make yeah i i'm looking at the uh i'm looking at the trending searches which is right below that now dude talk to i like all i see on my timeline is this peppy shit i i can't tell you that i i know what mcpepe's is but we can take a look but i do know that this is pepe coin or something right and it but is this now now i'm literally questioning because there was pepe is this pepe's is that different this is i think this is different this is this thing only has 12 million market cap yeah there's pepe all i've heard about is pepe pepe is actually now the number one trending search mick pepe was yesterday. We've moved on. Sorry, McPepe, we've moved on.

But I saw that, all I know, I saw someone post that there was a wallet, I think, that had a $250 investment in Pepe. And it was worth like 400 grand and the person hadn't sold any. And if you like go to the Pepe website, it literally says on the website, this has no intrinsic value. It's complete trash. We made it as a joke and we're just doing it again, man. Listen, I can't even go to the website and do that.

Yeah, there you go. Exactly. It's probably down now. Um, but here's the, no, this is Mick Pepe's website,

which is literally like McDonald's for Pepe guys. I'm sorry that we're doing this, but we got to talk about what's, what's happening. I, I want you to know this is not financial advice and I'm not buying for Pepe. Guys, I'm sorry that we're doing this, but we got to talk about what's happening. I want you to know this is not financial advice and I'm not buying McPepe, Burger Pepe, Wendy's Pepe, whatever the hell other Pepes are going to come out. Polite, dude, we just like crypto GPT, like market cap of 250 million just to that GPT in it. Now we got Pepe meme coins. These are usually actually, I would love to see the data. I'm sure we don't have it, but I'm going to dig in on how many times when we

see a really completely ridiculous meme move like this, how often that's a local top of the entire market. Yeah. I think I remember so many times, like if Doge finally made a huge move, that was it for a while. Yeah. Well, I mean, that was the Doge SNL episode was really the top of the last bull market, right? When everyone thought Doge is going to run up to a dollar when Elon was joining SNL, didn't and the whole market kind of crashed. So here's the comment of the day. The frogs took over the dogs. Are we about to suffer through six months of frog meme coins it's it's possible i mean i don't know i still remember remember the food coins back in uh 2020 uh tacos and tacos and yams yeah yeah i mean that's how we that's how we got sushi swap to do guys we're just riffing

here but do you have any idea now what's going on with SushiSwap? I need to get Jared Gray back on here, the head chef, but they basically got a Wells notice, right? No, actually, beyond a Wells notice, actually sued, and he was personally named and sued, and then they were putting together a fund to refund people. Are you updated on what's happening with Sushi, not to put you on the spot? I'm not updated on the S happening with sushi not to put you on the spot i'm not updated on um i'm not to update on the sushi swap uh situation i'm i'm a i'm a disgruntled holder who bought sushi swap at ten dollars it's currently a dollar twelve that now you made me look and uh i didn't tax off

harvest any of it like 89 drop it's fine yeah it's not not too bad come on you'll that that could come back in like a day that could come back in like a day you could text it a day i think uh dude dude is there anything else you're dying to talk about or should we watch some gary gensler videos what do you want to do i don't i don't i don't know if there's necessarily anything else uh in particular i mean you know happy to kind of to chat more about the market i mean i think yeah think, yeah, let's do that. That, that is the topic here. I think that this is just a little correction and people are spazzing. That's what I think. And I think that, uh, but what do I know? But I think that, uh, we have some very,

very, like even just looking at a chart, I'll just bring up a chart. Not that you really care, but, uh, and I, I mean, I write a newsletter, you know, we do this every day. I mean, 25,000 to, well on this chart, it's 25, yeah, 25,000 to 12. That's when we made a higher high in the market. Like if you even any kind of technician who looks at this chart says that's just dying to be retested and you want to see like key levels that are broken, retested as support. So I've been expecting 28,6 and 25.2.12. I write about it every single day to come. I wrote an entire newsletter myself,

separate from this one yesterday, about how I could smell the greed and it was time for a retrace. And that was 12 hours before it happened. Yeah, I mean, I think anytime you see the top trending coins be McPepe's, you know, I think to your point, it's, you know hey i think i

think i probably said this last time or i've said this before it's my favorite thing right which is when when no one's talking about crypto by bitcoin when everyone's talking about bitcoin by shit coins when everyone you know when your grandma starts talking about crypto run uh i don't i don't think i don't think we're at that point yet in terms of like, there's not this mass retail interest. I mean, you know, I think a great proxy for that is Coinbase volume and everything is way down. Right. So we're not at that point yet. But I think the market is desperate for shit coins like crypto. People love gambling and they're just dying.

Like once Bitcoin moves, there's kind of this like, all right, Bitcoin move. Now everything else can kind of rip and we're kind of at that point in the market. And I don't think we're at like a sustainable Bitcoin move. Like there's not like a fundamental reason why Bitcoin moved. I mean, there's a few different reasons that we can talk about.

There's the SVB collapse. There's a fact that people are afraid of banks, right? And in that narrative, no one's talking about anymore. That was like so one month ago. There's the, you know, hey, we don't want to hold stable coins because we're afraid of stable coin issuers so that's done let's yeah it's kind of done right i mean if you look at it i mean i have a chart here actually um uh tether's supply is actually like at an all-time high so uh that

narrative is kind of bust now you You can see that here really quickly. I don't know if they can see it, but I can see it. Yeah, here I got it right here. Yeah. So, you know, you can look at it like stablecoin. So the green line is Tether. So blue is USDC. This is on Ethereum. So USDC stablecoin has dropped from 40, you know, has dropped, you know, quite considerably in terms of like, you know, dropping from $48.2 billion to $30 billion. BUSD has gotten absolutely tanked because of the NYDFS shutting it down. But USDT is starting to rise again. And so if the concern was really, hey, stable coins are so scary, let's run, I feel like USDT would be going down and not up in terms of supply. So something that I think is

just kind of worth noting. But I think broadly speaking, I mean, there's a lot of different things going on in the market, right? I mean, I think a lot of the institutions have been like, I spoke to a fund this morning, which was like, yeah, we're a VC fund, but we just decided to become a liquid hedge fund while we wait for the market to recover. Literally everyone. Everyone. We've got your money, so we might as well just start trading. Yeah. And take two and 20 on the Bitcoin we're going to hold. So like, there are some reasons that I think the market went up.

I think it's a combination of different things. But we talked about last time on the episode and that you had a couple of guests that gave some great points, which is it was in a low liquidity environment, right? There's not a ton of volume right now. There's not a ton of liquidity. If you think about it,

like institutions are the ones institutions the ones that are going to trade the most they can theoretically trade the most volume but like as a u.s institution where are you going to trade like coinbase and what else like if you're most futures i guess i mean that they're not but that's where you could but sure sure i mean we could talk about cme futures i mean we can dive into data on it. But, you know, I don't know. I mean, I don't I don't think there is like some massive reason for a bull market to kind of start here. Right. So I don't know. I'm skeptical on the sustainability of this rally. I agree. I think I think now we like this is that it is not literally a prediction, but I would not be surprised, I should say,

if now we literally just chopped between like 25 and 32,000 for the next six months, that would surprise me. Yeah. I mean, well, that's what kind of, we were kind of chopping in a range and then escaped. I mean, you know, to kind of look at this really quick, I should just keep sharing my screen to not make you do this. But this is the last thing I'm going to share. I mean, this is really interesting. So you talked about CME. And so what this chart is looking at

here, this is looking at CME Bitcoin. And specifically what this is looking at is leveraged fund is a hedge fund. And 100% means they're as long as they've ever been in terms of they're taking long positions. Zero is they're as short as they've ever been. Right now hedge funds are about 58% long. Indecision and chop. There's nothing crazy. Asset managers are incredibly long, but keep in mind that that's the Bitcoin ETF,

which is not a short ETF. So that's why it's always going to be kind of 100% now. It's just the ETF. Yeah, what's interesting though is on Ethereum, if we're buying ETF. bit more short, but they're still a net longer Ethereum than they are Bitcoin. So keep in mind, this is just institutions trading on the CME, but it's something that I like monitoring in terms of relative to how long they've ever been. That's all the metric is showing you. How long are they now? Yeah. And futures volume was much higher than Ethereum over the past. I mean, I was much higher on Ethereum than Bitcoin over the past week. There was much more volume, which is a pretty rare thing, right?

When you see that, but it aligns pretty well. Yeah, I mean, I think that this is a healthy correction. I just think it's, A, it's nuts to start calling for 10 grand or 15 or whatever. And I think it's equally nuts to start talking about 50 and 60 and 70. Yeah, yeah, I agree. One more thing.

Sorry, you're going to kill me. No, please, I'm not going to do it. I literally have to push one button. Ready? Oh, I agree. One more thing. Sorry, you're gonna kill me. I literally have to push one button. Ready? All right, so this is one more thing. This is actually a better chart. So this is showing you hedge funds longs versus short. You know, on this is the total amount of shorts on the CME that are coming from hedge funds, the total amount of longs, the total amount of shorts on Ethereum that are coming from hedge funds actually exceeded. But this is the last date is April 11th. This gets published every two weeks. So this is actually the day before Shanghai. So I'm very curious as to how this is going to. So hedge funds kind of got this trade wrong, which is interesting to note.

We heard everyone was taught. I mean, that was the narrative was that this was going to crash the thing for anyone who like wasn't deep in the weeds i think which is just makes my brain hurt yeah and i mean bitcoin is is you know hedge funds are are a much larger percentage of shorts than longs but but keep in mind this is all gets skewed by this asset manager category this is like the day the etf was launched that's why. Right, of course. Yeah. It's just interesting to me that people really thought that everybody was going to just dump their ETH the day that that happened.

It seems like just the dumbest narrative. Yeah, I mean, look, I explained last time how it actually works. If you listen to the last time I was on, which was like last week or something, like how it physically works, because it's not even possible. It would take about 520 days because of the way that investing on Ethereum works for all of it to even hit the market anyways. And now people are putting more money in. I mean, we've seen that over the last couple of days,

we're seeing net deposits into e-staking, which is great. And it's incredibly bullish, because if you think about it right now, about 15% of Ethereum is staked. But if you compare that to Solana and other assets, it's closer to 65%. That's the average for other proof of stake networks, which means a huge amount of Ethereum supply might leave the market. And so, by the way, I have zero position in Ethereum. I was on a show the other day and people were saying I was pumping Ethereum. I have zero exposure to Ethereum. I was on a show the other day and people were saying I was pumping Ethereum. I have zero exposure to Ethereum. You're such a maxi.

Why are you such a maxi? Zero exposure. Zero exposure to Ethereum. But with that said, the fact that we're only at about 15% staked, that could go up to 65% or 70% if we start to get to numbers that mimic like Cosmos and Solana and some of these other proven stake networks means there's a lot more staking to come. And, you know, there is going to be the staking too. It's going to take a while to unstake. So I think it is, you know, look, you obviously have to believe that ETH is the true value, right? But all else equal the fact that more people are staking, you know, that's generally, you know, theoretically should be a better side for price. So after our conversation on Thursday, I got like a textbook worth of angry DMs from a friend of

mine who's a very, very known and very hardcore Bitcoin maximalist. Like, it was so angry about our stream that he had watched the whole thing that we were, quote unquote, the four of us were pumping and promoting Ethereum, as you said, because we were being bullish on Ethereum. And I started to like, try to have a rational conversation about it. And I said, you know, listen, like this has nothing, literally nothing to do with Bitcoin. This is a moment. It's a thing that's happening. We can't like, even if I wanted to like, which I don't, but we can't like pretend it didn't happen. It's not disappearing because you're, you can't will it away. And he said to me flat out, any mention or promotion of Ethereum is a direct attack on Bitcoin.

I think that's, I think that's, that's what's wrong with crypto these days. And, and that's not a shot at the individual person you were messaging. He's my friend. He's my friend. But I think, I think the I think the fact of the matter is the pie is really small. It is really small.

We're talking about a $1.3 trillion. And that was yesterday. We're probably even below $1.3 trillion. That's probably like 1.15 or 1.2. We're at 1.23. $1.23 trillion. And that's bullshit. Because if you think about it,

there's things like that GPT token and all these other scammy things that are accounted for 250 million of it yeah right right and there's a lot of this right and are these tokens actually as liquid as we think they are you couldn't actually sell all of the crypto tokens in the market for 1.23 trillion dollars right so very small market and so it doesn't make sense to be attacking other things in the ecosystem we should be attacking the scams and the stupid things and all the dumb shit that exists. I think you and I love talking about it.

Yeah, it's my favorite conversation. It's the best conversation to have, right? But I think the idea that like Bitcoin is tiny. It's like a 20th the size of gold, if not smaller, right? It is a tiny asset class, right? And Ethereum is even smaller than that, right? So to think that, you know, to think that, you know, none of these conversations are attacking any particular asset, right? You know, obviously, we want to have real assets in the

market that accrue value that, you know, do something in some way beneficial for the world, even if that's making money trading them. But we don't want to promote garbage. And also keep in mind, out of the $1.23 trillion, probably $200 billion of that is stables. So it's really a trillion dollar asset class. It's incredibly small. And so we have to grow the entire pie. If the market for altcoins grows, if the market for Ethereum and alt L1s grow, right, I think the market for Bitcoin will grow as well. And I think it's important to keep in mind the narrative for Bitcoin is incredibly different than the narrative for Ethereum, right? Bitcoin is like this, you know, Bitcoin is hard money. You know, it's money that can't be messed with or whatever all

these different sayings are. I've been a Bitcoin holder for seven years, right? I mean, I believe in Bitcoin, but that doesn't mean I can't believe in anything else. Yes, it does. Well, I guess you're not. You are a heathen. Yeah. And you're not allowed to. Yeah. I mean, so on that end, I know you got to go in like two minutes for everyone else. So I've obviously been doing these Twitter spaces on Tuesday, but I recently, maybe a month ago, I had Jeff Booth on one of the panels, maybe five, six weeks ago. And it was sort of a healthy discussion. And he's obviously believes in Bitcoin only his premise being that all the things we're building elsewhere can be built on Bitcoin as a better base layer. Right. But regardless, that's Jeff Booth. So he reaches out to me afterwards. He sends me an email and he says, listen, man, here's my phone number.

Like you have it. Call me. I want to convince you why you're wrong. Right. He's like, I want to tell, I want to convince you as a friend, like why your premise about these other coins is wrong. So what I did is I'm having him next Tuesday on spaces and I'm just going to let him convince me publicly. Like why have that conversation privately? And I have loose, you know, know strong opinions loosely held maybe he can convince me i i have my doubts but i'm gonna have that conversation publicly and let him uh convince me that uh i should be bitcoin only right and i think that that'll be healthy for some people and of all the people he's very pragmatic and rational about it so i think it

could be a good conversation but uh i do not view uh ethereum shanghai update as an attack on bitcoin sorry no but if it was up to gensler yesterday he'd also be bitcoin only based off of all of his uh his conversation i know i gotta hop but i know that's that's what you want to get into oh i'm literally gonna yeah yeah i'm gonna let you go all right guys so obviously everything we were showing you there was in the daily uh the daily close we'll talk about that a little bit more later, but Josh and I, we worked really hard to put that together and we're going to keep you coming back more often to, I think, give you some insight, give us some insight. And we want feedback, right? So we get, you know, there's a free trial with it, right? You don't like it. Don't sign up. We're looking, all we're

looking to do is provide you with some interesting insights every single day to help get you started to look at the market, to help you make sense of the market. And it's an ongoing living and breathing thing, right? So super thankful for all the early adopters. Yeah, we've gotten some great feedback. And for anyone who's given us feedback and commentary, because we're taking that, we're going to add to the product. We're going to make it better. And we realize we did a terrible job at explaining how to use it, which is why we kind of came on here to do that.

But yeah, we'd love your feedback. And the goal is to take a lot of the things, I was showing you our institutional platform, but to take a lot of those core features of the institutional platform and simplify it and turn it into something that I'm even using every day. And I know Scott is as well. I use it every day. That's where I start when I go to the terminal.

So yeah, perfect. Well, thank you, man. I know you have a call literally in like 30 seconds. So thanks, Josh. So you guys want to watch some Gensler videos? Do you guys want to see what happened when Gensler was asked if Ethereum is a security? Let's watch that. Ether is one of the most popular digital assets and powers of the Ethereum blockchain. Back in 2018, then-SEC Corporation Finance Director Bill Hinman stated that he believed Ether was not a security. Last month, CFTC Chair Benham expressed his view that ether is a commodity. The state attorney general of New York asserted in a court filing last month that ether is a security.

Clearly, an asset cannot be both a commodity and a security. Do you agree? Commodity. Community. Actually, all securities are commodity under the Commodity and Exchange Act. It's that we are excluded commodities. But I would agree that a security might be also an excluded commodity and an included commodity. I'm sorry.

But you can be both, but not really. But like maybe, but like sort of maybe. OK, so do you recognize how would you categorize either then? I think that the general sweep of what congress did not just in the 30s but as amended i'm asking you sitting your chair now to make an assessment under the laws as exists is ether a commodity or a security without speaking to anyone i know you've repeatedly said you're not going to speak to one, except you've spoken to one, Bitcoin. So I'm asking you to speak to a second one, the second largest market cap here.

And speaking to the tokens, there's 10,000 to 12,000. If there's a group of entrepreneurs in the middle and the public is anticipating a profit based on the— I'm asking a specific question, Chair Gensler. I said this in private. This should be no shock to you i'm asking this question is it an is ether a commodity he literally told him that he was going to ask him this question in private okay anyways quantity or security and again it depends on the facts and the law and if there's a group of i'm asking about the facts and the law sitting in your seat and the judgment you are making and so uh mr chair

i think you you would not want me to prejudge because i'm always you have prejudged on this you've taken you've taken 50 enforcement actions we're finding out as we go as you file suit as people get wells notices on what is the security okay that's video number one. Oh, man. So, like, I told you I was going to ask you this question. Gave you the chance to prep and respond. But if you look at all the assets in the world, some of them are assets that are not assets. Okay, wait, what else do we got here? I really like this one, guys. I want to give you some context. Gary Gensler, we applauded when he was hired,

if you guys remember, when he was appointed. He was appointed. When he was appointed, we applauded him because he was a master of blockchain. He had taught a course on blockchain and Bitcoin. He understood that Bitcoin was not a security. This guy gets it. He's totally in the weeds. He's one of us. One of us. Do you have digital wallets or own digital assets? I don't believe under our ethics rules they do. Do you own digital assets or have a digital wallet?

I don't own any crypto assets. All of my securities holdings are actually digital because they're held by a broker-dealer and they're digital there. Have you ever owned Bitcoin or another digital asset? No. And so maybe here, I'm guessing most folks on your senior staff, I'm guessing you included, have bought or sold stocks, but none of them have owned, or none of them currently own crypto assets, but are in the process of making rules and regulations on crypto assets. That'd be a fair assumption? I couldn't speak to that. I actually at MIT taught a course called Blockchain and Money.

I taught multiple courses called Crypto Finance and other courses as well. But you didn't own any crypto? No. You taught the course, but you weren't a user in the product? I did not own crypto assets. They're a highly speculative asset. I'm not asking for your view on it. I'm just saying you're in the business now of making rules and regulations regarding digital assets, but you've taught a class on it.

You've never personally owned a digital asset, including Bitcoin. The only digital assets I have is my bank account and my brokerage accounts, but no crypto. Very good. Thank you. On July 13th. What a humongous bitch. What a humongous dick, asshole face. Guys, I have a huge announcement. I'm starting a culinary school, but I've never actually cooked anything. What the fuck, man? Seriously, I'm sorry to say bad things about dearest Gary and to use bad words, but how did MIT even allow this poser to teach a course on blockchain and Bitcoin if he's never even, like, you've never even been like, I'm going to get a Coinbase account, a wallet.

I'm not going to send a Bitcoin from one person to another. Send a couple sats, test it out. Can you imagine? Can you imagine finding out that your professor, that you paid hundreds of thousands of dollars to take a class from, had literally never taken the five fucking minutes to figure out the technology he's teaching about my god what should we watch next i don't even know i like warren david warren davidson here just has a mega amazing quote from hotel

california record by the way warren davidson is the one who's calling for uh gary gensler to be fired and for basically like the SEC entire structure to be changed. Here we go. To protect investors and abuses of power, make it clear that we need to restructure the Securities and Exchange Commission. The failures are many, but let me cite some of the abuses. You have more than three million proposals a month. You inappropriately provide inappropriately short comment periods. You have unworkable and unlawful ESG disclosure mandates on the market.

You have essentially a Hotel California rule for crypto where you can check in anytime you like, but you can never leave. You have endless discovery with no resolution and no clarity for the captives in the market. You have unworkable proposals for overhauling equity market structure, a de facto ban on crypto through proposed custody rule. You have high staff turnover, unhappy people leaving your office, and unhappy companies and capital leaving our country. To correct a long series of abuses, I'm introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an executive director that reports to the board where all authority would reside. Former chairs of the SEC will be ineligible under my proposed bill.

You can't even apply. And this isn't just my take. It resonates across the political spectrum. The American people want democratic access to capital, retail investor participation. You can't just exclude retail investors from markets and claim it's for their own good. Our markets need to function and flourish, and I yield back. Yeah, he got served. Fully served, right? Listen, there you go. Use a commission. Use a commission. That's it. But like,

your comments, exactly. I'm a surgeon, but yet to perform an operation or better yet, I'm going to teach a bunch of surgeons, but I've never even held a staple, right? I mean, this is insane.

But yeah, Warren Davidson's on par there. You can check out anytime you like, but you can never leave. First go out. That was Hotel California. Will that bill pass?

No, never. Obviously. Come on, man. Nothing's going to happen because of this hearing. Let's be real. Okay. Let's see. Okay.

I'm going to save the absolute serving later for, I think this is the same as Ethereum. What's this? Oh, about 35 seconds. Is there anything? Okay. Thank you guys. You got this.

This is, this is the one where Gary Gensler blames the entire U S banking collapse on crypto. Yeah. About 35 seconds. Is there anything you'd like to share with us to us if I yield my last 30 seconds to you? Don't yield him your time. He's a chump. If I could just note something about you.

You mentioned your hearing about the recent events in the markets. And I would note there were three banks that failed in those handful of days, those last four or five days. And two of those banks, the first and the third that failed, Silvergate and Signature, were engaged in the crypto business. I mean, some would say they were crypto banks. And the third, the biggest, Silicon Valley Bank,

actually when it failed, you saw this country's, the world's second leading stable coin had $3 billion involved there, a deep peg. So it's interesting just how this was all some crypto narrative as well. Thank you. And my time is up. Thank you, Mr. Chairman. Fuck you, Gary. Ah, what a disingenuous cuck. I hate this guy. God damn it.

Shouldn't have done this. I would have a bad day. Can you imagine the nerve? First of all, USDC de-pegged on exchanges, but Redemption's never de-pegged, so it was always worth a dollar. So shut up. But like the nerve, you guys seized signature bank on a Sunday without it even failing because it was crypto. I love it. You guys collapsed a bunch of crypto banks

and now we're saying crypto collapsed the banks. My God, what an asshole this guy. Okay, well, listen, man. Here's the just full spray from Emmer. This one's long, but let's get a taste. Here we go. Chair Gensler, I have a lot of questions in a limited amount of time, so if you could keep your answers to either a yes or a no, that will allow us to get through as many as possible, sir. From your perspective, is it more difficult now for the digital asset industry to access financial products and services in the United States

than it was, say, two years ago? Sir, I'm not running one of those businesses. If they came into compliance, I think that would be it. I'm reclaiming my time. The answer, sir, is yes. Do you think you and the SEC have had a role to play in that? Maybe. Maybe. Do we have a role to protect the American investor and the capital markets? Reclaiming my time, sir, you have played an obvious role in that. During your tenure at the SEC, how many rules has the SEC finalized that actually accommodate the existing regulatory framework and are specifically to the digital asset industry so the crypto market can come into compliance? It's our rule books that are on the books for years, so we have not finalized any new rule specifically with regard to crypto. We've proposed some things in best execution.

We've also... Sir, reclaiming my time, the answer is zero. And how many enforcement actions has the SEC levied against digital asset companies during your tenure, sir? 497. Today. I think it's probably 40 or 50. The answer, sir, is about 55. My understanding is that the biggest crypto failure in history is probably FTX at $9 billion. Were you the chairman of the SEC when FTX collapsed? Yes. And how many times did you meet with FTX prior to their collapse? I think my public record shows two. You met at-

What about your private record? Twice. And arguably- Private? The second biggest crypto failure in history was Terra Luna. public record shows too you met it what about your private record twice and arguably private the second biggest crypto failure in history was tara luna who was the chairman of the sec when tara luna collapsed sir we had brought uh you were sir reclaiming my time you were there are five members on the commission do you believe your speeches and interviews are to serve as the official position of the sec there uh i can only speak for myself when I'm speaking.

Again, sir, in a statement on the SEC website, you are quoted saying, the Kraken staking as a service enforcement action should make clear to the marketplace that staking as a service providers must register. But again, you haven't provided any rules for how that can be done. I must remind you, service providers must register but again you haven't provided any rules for how that can be done I must remind you your public statements are not

regulations it's not responsible to expect the American people to assume your statements are a substitute for rules do you agree with this statement regarding the digital asset industry the SEC needs additional congressional authorities to prevent transactions, products, and platforms from falling between the regulatory cracks. I think that it's a largely non-compliant field. Sir, again, I asked you to comply with my questions, and I'm asking you if you agree with that quote. And I'm going to tell you, I quoting you from an august 3rd 2021 article where you uh and i believe you told uh congressman hill earlier that you need congressional authority to regulate

stable coins and stable coins happen to be a significant percentage of the crypto market so the question is when were you telling the truth to mr hill or me? You've got to start answering these questions in a more transparent manner, sir. Does it concern you, by the way, that your approach to the digital asset industry is actually driving this industry out of the United States? We're trying to drive it to compliance. And if they're not complying with the laws, then they shouldn't be offering their products. Reclaiming my time. Madam Chair, I would like to enter into the record this Wall Street Journal article from April 14, 2023, detailing China's ploy to open its banking system to crypto firms in an effort to seize an opportunity created by our hostile regulatory environment, which, Mr. Chair, you're a big part of.

Without objection. Chair Gensler, FTX was domiciled abroad and so is Binance, yet American consumers still had access to both. You can't really think that pushing this industry abroad is going to protect American consumers when it hasn't several times in the past on your watch. You say the crypto market is rife with non-compliance. However, existing SEC rules make no sense for blockchain-based companies, and following them would actually kill these businesses. Your regulatory style lacks flexibility and nuance, and as a result, you've been an incompetent cop on the beat, doing nothing to protect everyday Americans and pushing American firms

into the hands of the CCP. Your intention to work against SEC mission and put American investors in harm's way has been made very apparent, sir. It's been a year and a half since you've appeared before this committee. You need to answer to Congress about the issues that you've had with the SEC staff union, the work environment you've cultivated, the SEC that's led to hemorrhaging of senior staff, the intellectual inconsistency of your regulatory treatment towards Bitcoin spot ETFs and your politicization of capital formation opportunities for your treatment of certain specs.

And that's just to name a few. Yeah. Benny Hill, man. Dog and Pony Show. Absolutely clown. Tom Emmer did not even take a breath. It was like that scene in Ace Ventura. Yeah, you know what I'm talking about. Ray Finkle, Einhorn.

Yeah. I mean, I mean, listen, man, I wouldn't want Gary's job at this point. All that money, all that power, but you still got to sit there and take that shit in public. I wouldn't survive it. I've had some bad days in the public spotlight. I'll know how Gary goes home. Like, do you think his wife is like, you're still hot.

You're still hot, baby. Even though you just got trashed publicly, you know, come to mama. I don't know, man. She's not looking at him the same anymore.

And she hasn't liked him for 30 years. I don't know, man man this guy's got to go all seriousness like at least there's a few people who actually see what's going on they've laid bare everything that we've been saying here for months and years revy says it's mama hillary we all know Elizabeth. Smithers. The guy's got to go. I'm not confident that we'll see any change anytime soon, but at least it was nice to see the guy take an extremely public beating. Right?

It reminds me of the part of Game of Thrones, walking down the street naked. Shame. Shame. Shame. it's good anyways guys i i gotta go man i gotta go that was fun check out the daily clothes right down below josh and i went through it maybe we'll have josh back i i his insights are really really tight so maybe we'll keep doing that. Shame. Shame. Shame. Hope you guys have a wonderful day.

Shame. Let's go.