Podcast Summary: “We're a Tweet Away from a 15% Dump” | Markets Outlook by CoinDesk

Date: October 31, 2025
Host(s): Jen Senasi, Andy Baer
Guest: Sarah Santiago (CEO and Founder, Inversion)

Episode Overview

This episode centers on the persistent fragility of the crypto market, spotlighted by sudden volatility triggered by external events—such as policy announcements or even influential social media posts. Sarah Santiago of Inversion joins the hosts to discuss the post-rate cut environment, macro and regulatory shifts, the evolution of the stablecoin sector, and how “real world” applications may finally move crypto beyond its “casino” reputation. The conversation covers the ongoing trend of institutional adoption, M&A in the crypto and fintech space, and the promising (but still nascent) end game for blockchain technology.

Key Discussion Points

1. Market Volatility and Triggers

• Volatility is “Normal”: Santiago repeatedly stresses that crypto’s extreme volatility is par for the course. Seemingly minor events—especially high-profile tweets or announcements—can move prices dramatically.
  • “We're a tweet away from bitcoin and alts dumping 10, 15% or more.” – Sarah Santiago, [03:02]
  • “It doesn't take much. We're a tweet away or an announcement away from a lot of volatility up or down, and that's just normal. We'll continue to be normal for this asset class for the next couple of years.” – Sarah Santiago, [00:00], [03:02], [02:33]
• Fed Rate Cuts and Political Environment: The hosts and Santiago agree that rate cut discussions have become highly politicized, intersecting with economic issues like tariffs and triggering unpredictable market responses.

2. Institutional Adoption and Market Structure

• Crypto is Here to Stay: Institutional buy-in is irreversible, with major banks (e.g., JP Morgan) now offering direct crypto exposure and BlackRock’s ETF launch marking a major inflection point.
  • “We're not going to go back to a state of the world where crypto is no longer viable for businesses.” – Sarah Santiago, [05:07]
  • “BlackRock's launching the ETF told you everything, right? ... Jamie Dimon now... clients of JP Morgan can now have access and buy crypto directly.” – Sarah Santiago, [05:07]
• M&A Boom: 2025 sees a surge in M&A involving payments, stablecoins, and infrastructure, with both financial and fintech incumbents racing to establish a strategy.

3. The Stablecoin Opportunity and “Abstraction” for Users

• Future of Stablecoins: There is broad experimentation (companies launching their own chains and coins), but the eventual goal is simplicity and invisibility for end-users.
  • “The infrastructure will be invisible. The end customer will not care, can't pronounce Solana or Ethereum today, won't care where the transaction gets settled.” – Sarah Santiago, [07:37]
  • “When you board an airplane, do you really care if it's a Boeing aircraft or an Airbus aircraft?... You just care to go from point A to point B.” – Sarah Santiago, [07:37]
• Moving Beyond Financialization: While trading and “casino” behaviors have stress-tested blockchains, Santiago believes “real world” applications—particularly with stablecoins—are the future.
  • “If [betting] is the best thing we can do, we’re not worth $3.4 trillion.” – Sarah Santiago, [11:19]

4. Diversifying Use Cases and Fee Generation

• Need for Diverse Blockchain Applications: The health of blockchains like Ethereum and Solana depends on reducing fee reliance from speculative trading, instead enabling recurring business use like payments and transfers.
  • “You would want to see diversification away from [gambling] concentration more into payments for businesses, transfers of value amongst businesses. On the stablecoin side. That alone can be a massive category.” – Sarah Santiago, [13:32]
  • “We need to get that right because if in five years time we're still deriving 100% of the fees from very speculative reflexive crypto assets, then this industry is not relatable.” – Sarah Santiago, [14:08]
  • “Ethereum should not be worth 500 billion... If you don't show meaningful traction beyond that narrow use case, I think it's going to be very hard for the market to justify evaluations.” – Sarah Santiago, [14:08]

5. Inversion’s Acquisition Strategy and Real-World Impact

• Targeting Utility Businesses: Santiago reveals that Inversion is actively acquiring traditional businesses—especially utilities (like telecom companies)—that have wide distribution and customer access, aiming to layer stablecoin-powered financial services on top.
  • “Core utility services like telecom are very interesting to us because it allows us to take that business... no reason why a telco can't be a bank with a digital wallet with stablecoins.” – Sarah Santiago, [15:23]
  • “We're looking at businesses in Latin America and Asia, those are the markets where we see immense demand for stablecoins...” – Sarah Santiago, [16:11]
• Consumer-Centric Vision: The goal is to “acquire businesses to acquire the users and introduce them to a better way than they had previously.” – Jen Senasi, [16:46]

6. Market Reflection and Predictions

• Key Inflection Points: The market saw a wake-up call around October 10 (an eventful Friday and a regulatory turning point), reaffirming volatility and the need for caution.
  • “Is there almost a before and after of October 10th? Was there a sense of false security in the markets before? Where do we sit today?” – Jen Senasi, [16:46]
  • Santiago sees “last November” as a more important catalyst, when the regulatory environment turned 180° positive for crypto. [17:21]
• Looking Ahead: Despite ongoing fragility and volatility, Santiago is bullish for 2026 and beyond, citing continued M&A, rising ETF inflows, and a “secular trend” toward broad technology adoption.

Notable Quotes & Memorable Moments

• On Market Volatility:
  • “We're a tweet away from a 15% dump... That's just normal.” – Sarah Santiago, [03:02]
• On Institutionalization:
  • “We’re not going back… BlackRock’s ETF told you everything.” – Sarah Santiago, [05:07]
• On Stablecoin Abstraction:
  • “The end customer… can't pronounce Solana or Ethereum today, won't care where the transaction gets settled.” – Sarah Santiago, [07:37]
• On Moving Past the Casino State:
  • “It's only a casino right now, but we've battle-tested the technology with this use case. Now it's time to wake up… and utilize it in more value-enhancing ways.” – Sarah Santiago, [11:19]
• On Inversion’s Business Model:
  • “No reason why a telco can't be a bank with a digital wallet with stablecoins because you live with a customer 24/7.” – Sarah Santiago, [15:23]
• On the Future:
  • “We’re in a secular trend. Over the next 20 years, everyone’s going to use this technology. How we get there is going to be ups and downs, but the trend line is very, very strong and upright.” – Sarah Santiago, [17:21]

Timestamps for Important Segments

• [00:00] – Opening thoughts on market fragility and volatility.
• [01:32] – Recent market events: Fed rate cut, correlation with tech sector.
• [03:02] – Discussion on how market sentiment can change rapidly (“a tweet away from a 15% dump”).
• [05:07] – The irreversible wave of institutional crypto adoption.
• [07:37] – Discussion on the end state of stablecoins and blockchain “abstraction.”
• [11:19] – Debate on casino-like speculation vs. real-world deployments.
• [13:32] – The necessity for diversified blockchain business models.
• [15:23] – Inversion’s acquisition focus and geographic targets.
• [16:46] – Reflection on October 10 event, lessons learned, and 2026 outlook.

Conclusion

This episode provides a candid, pragmatic view of the crypto market’s current state. While the guests acknowledge ongoing “casino”-like speculation, they express optimism for broader mainstream adoption—including stablecoin-driven financial services for the masses. Institutional buy-in and regulatory clarity are creating a sturdy foundation, and as blockchain infrastructure becomes further abstracted, the goal is to onboard ordinary consumers with genuine utility, not just speculation.

For listeners seeking context and where crypto is likely headed—and why “a tweet away from a 15% dump” may be the norm for now—this episode is a must-listen.