The Wolf Of All Streets – Macro Monday: "Bitcoin CRASHES To $74K As Global Chaos Erupts! Worst Yet To Come?"

Host: Scott Melker
Date: February 2, 2026
Guests: James, Dave, Mike

Episode Overview

In this special "Macro Monday" episode, Scott Melker and his panelists (James, Dave, and Mike) dissect the tumultuous week in global markets as Bitcoin plunges back to $74,000 amid widespread chaos—ranging from fresh revelations in the Epstein documents, commodity routs, and rumors surrounding the Fed chair to looming questions about monetary policy, inflation, and global economic stability. The conversation moves deftly from high-level macroeconomic themes through the mechanics of metals and crypto markets, highlighting historic volatility, psychological market factors, and the shifting role of risk assets.

Key Discussion Points & Insights

1. Bitcoin’s Dramatic Crash & Market Volatility

• Bitcoin's price tumbled to $74,000, levels not seen since April 2025, reigniting fears that the worst may be yet to come.
• Similar volatility hit gold and silver, with metals behaving "like the worst altcoins at the dead bottom of the market" (Scott, 00:02).
• Panel debates whether Bitcoin leads risk assets lower or is now less volatile than traditional "safe" assets.

Notable Quotes:

• "Bitcoin crashed to prices not seen since April ... Are we once again seeing signs of, of the end times?" – Scott Melker (00:02)
• "That's the question... is bitcoin again, once again at the tip of the risk spear telling us, hey, be aware there are market dynamics that we've got to be careful of." – Dave (09:23)

2. Commodities Mayhem: Gold & Silver Crash

• Silver experienced a 41% drawdown in just a few days; gold dropped sharply too.
• Market mechanics, derivative/futures pricing, and global disparities (especially between US, India, and China prices for silver) exacerbated volatility (Scott, 10:52).
• Conspiracies about JP Morgan manipulating silver resurface; the impact of margin calls and failed breakers is discussed.

Notable Quotes:

• "Before Dave jumps in ... JP Morgan manipulating silver again ... We obviously know that." – Scott (06:20)
• “Silver is now 60% industrial ... In the past was 50 or below ... The prices have shifted everything and it's probably going to go back to 50 notably.” – Mike (07:19)

3. The Warsh Factor: New Fed Chair Rumors

• Kevin Warsh is floated as a likely next Fed chair; seen as pragmatic/hawkish.
• The panel unpacks whether Warsh’s approach is rattling markets and causing the metals and crypto rout.
• Discussion reflects on the limited tools left for US monetary policy, given high deficits and global instability.

Notable Quotes:

• "The only door ... is to print more money and keep the interest rates lower. It's, everybody is turning Japanese." – Dave (36:31)
• "They're going to lose the long end in a way that looks like some of the charts you see at a Weimar Germany. Right. They can't afford that ... They want more investment here. They want to run our GDP as hot as possible." – Dave (34:59)

4. Market Structure, Risk, and Sentiment

• Ongoing bear market stress, "capitulation" among retail and even large-scale investors.
• Historical comparisons to 2008 and previous crypto winters; the importance of understanding when volatility signals systemic risk rather than opportunity.
• Panelists warn not to ignore fundamentals, despite short-term volatility.
• Crypto winter sentiment at extremes: "Greed and Fear Index down to 14" (Scott, 28:10).

Notable Quotes:

• "What's going on in bitcoin is the same ... you have time based capitulation. We are in the middle of something that takes time. And everyone who believes that you're going to see a V shaped recovery ... they're the ones who get wiped out." – Dave (25:46)
• "Every crypto crash in history ... they always seem like the end of crypto and they always become rounding errors in the long run." – Scott (30:34)

5. Market Technicals and Macro Perspectives

• Technical breakdowns: Support at $74,000, but below that lies potential for deeper falls (Scott, 28:26; Dave, 28:10).
• Focus on stock market and volatility’s key role:
  • "Nasdaq 180 day volatility is 15%, lowest in eight years ... If you’re buying risk assets, you’ve got to expect that level to stay ... not a good idea." – Mike (03:55)
• Warnings about “false hope,” urging caution: “Hope is the worst trade” (Mike, 32:11).

6. Structural Changes in Metals and Crypto Markets

• The metals market is now increasingly influenced by industrial demand, especially for silver in batteries and technology.
• Market differences between physical and derivative pricing, echoing the days of the "kimchi premium" in crypto (Dave, 15:49).
• Crypto is compared to previous years: "The silver market looks like the bitcoin market did in 2017, only worse" (Dave, 15:49).

7. US Fiscal Policy, Deficits, and Political Cycle

• US faces record debts maturing; government can't afford to lock in long-term high rates, so treasury focus shifts to short-term bills (Dave, 46:04).
• Political consequences for policy: gridlock, inability for serious fiscal reforms, and the ever-present drive to print money.

Notable Quotes:

• "The cost is our bond Yields are, are 200 basis points at least above everyone else with the exception of the UK which is a total dumpster fire." – Dave (51:23)
• “The fourth turning is upon us ... the entire can down the road continue to take out debt. Debt fueled economies are coming to an end.” – Dave (50:33)

8. AI, Productivity, and Deflation Pressures

• Panel explores AI-driven productivity as both a blessing and deflationary risk: “The productivity miracle is ... bringing deflation at the same time” (James, 41:12).
• Concerns about AI’s impact on white collar jobs, economic inequality, and the ability of the US to grow its way out of debt.

9. Rotation Narratives and Market Psychology

• Widespread misconception that money rotates seamlessly from metals to Bitcoin after crashes—the panel strongly dismisses this as wishful thinking (Scott, 59:57).
• "The rotation is when silver gets boring again ... You don't leave when you have this massive waves and incredible volatility out there... we got a long way to go for boring." – Dave (60:29)

Notable Quotes & Memorable Moments With Timestamps

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 00:02 | Scott | "Bitcoin crashed to prices not seen since April ... Are we once again seeing signs of, of the end times?" | | 06:20 | Scott | "JP Morgan manipulating silver again ... We obviously know that." | | 15:49 | Dave | "[The] silver market looks like the bitcoin market did in 2017, only worse. Yep, think about that." | | 28:10 | Dave | "Look, the greed and fear index this morning. We're down to 14... It looks pretty bad." | | 36:31 | Dave | "The only door ... is to print more money and keep the interest rates lower. It's, everybody is turning Japanese." | | 41:12 | James | "The productivity miracle is ... bringing deflation at the same time. This is ... a spot that I don't think we've ever been in, in modern finance." | | 59:57 | Scott | "The coping narrative in the bitcoin community is that once silver and gold top, everything's going to flow into bitcoin. And you made the very simple statement, you kind of said, what profits, right? Because if this thing falls off a cliff, ... that money is just destroyed. There's nothing to rotate." | | 60:29 | Dave | "No, of course not. The rotation, as it were, is when silver gets boring again. This isn't a rock in a pond. This is an asteroid in the ocean." |

Timestamps for Key Segments

• 00:02–03:55 – Recap of the week’s volatility, headlines, and opening remarks on Bitcoin/metals crash
• 03:55–11:39 – Analysis of Warsh as Fed chair, metals collapse mechanics, and conspiracies/manipulation
• 11:39–19:28 – Detailed silver market breakdown (fundamentals, structure, historical context)
• 21:30–32:57 – Gold vs. Silver, “rotation” analogy, longer-term market cycles, psych of bear markets
• 36:31–46:57 – U.S. deficits, political gridlock, future of monetary policy, bonds vs. inflation, "turning Japanese"
• 48:22–54:19 – The fiat system, global debt, reserve currency privilege, fourth turning framework
• 54:19–59:10 – Bitcoin as collateral, crypto regulation, the fate of ETH and Altcoins, rotation myths
• 59:10–62:11 – Closing reflections, host’s personal trade recap, discussion on market sentiment and psychology

Episode Takeaways

• The panel sees 2026 as a pivotal, deeply unpredictable year, with historic volatility reflecting fundamental shifts in macroeconomic and market structures.
• Traditional hedges like gold and silver no longer offer safe harbor during market stress, at least temporarily.
• Crypto, once the ultimate risk asset, is now seen as less volatile than many traditional markets—marking a regime change.
• US fiscal reality, political wrangling, and the rise of AI-driven productivity are colliding, pushing the boundaries of conventional economic wisdom.
• Persistent market “hope” in the face of deep structural risk is criticized; panelists warn that volatility and pain may not be over.
• The speculative narrative of rotation from metals to crypto is debunked—during major selloffs, liquidity is destroyed, not rotated.
• Despite the gloom, the long-term outlook for structurally sound assets like Bitcoin remains positive, even if timing the bottom is nearly impossible.

Overall Tone:
Candid, charged, and even sardonic—panelists mix hard-boiled market analysis with industry banter, occasional gallows humor, and a heavy dose of skepticism toward prevailing financial narratives.