Podcast Summary

The Wolf Of All Streets w/ Scott Melker

Episode: "Bitcoin & Crypto 'Have Bottomed' As Investors Prepare For This Major Event!"
Date: January 7, 2026
Guest: David Young, Coinbase

Episode Overview

Host Scott Melker is joined by David Young of Coinbase to dissect the current state of the crypto market as 2026 kicks off. The discussion centers around analyst calls declaring a market bottom, the upcoming Clarity Act markup in the US Senate, evolving altcoin momentum, institutional adoption, and the deeper implications of recent policy shifts, ETF flows, and sector-specific trends. The dialogue is smart, skeptical, and laced with practical market insight.

Key Topics & Insights

1. Market State as 2026 Begins

• Bernstein analysts claim that Bitcoin and crypto have bottomed out — a view David Young shares with some caveats ([00:01], [03:09]).
• The closing weeks of 2025 were marked by technical pressures, notably tax loss harvesting and ETF outflows. Inflows have returned since January ([02:03]).
• Scott Melker: “Buy when there’s blood in the streets, even if it’s your own…” ([03:00])
• There’s a sense of range-bound price action and cautious optimism. Both agree a melt-up to new highs isn’t immediate, but the bottom may be in ([03:42], [04:45]).

2. Macro & Regulation: Catalysts and Uncertainties

• First half of 2026 appears favorable due to macro trends, liquidity, and prospective regulatory clarity. The second half is murkier, clouded by the upcoming US midterms and Supreme Court decisions on tariffs ([04:45]).
• David Young’s time horizon for clarity: “My visibility kind of ends around the April, May area, to be honest with you…” ([04:45])

3. Altcoins, ETF Flows, and Rotation

• Recent momentum shows altcoins, especially blue-chip names like ETH and SOL, outperforming BTC. ETFs for Solana and XRP have garnered consistent inflows ([06:16], [09:32]).
• Discussion on whether alt momentum signals a healthy market or merely risk-on speculation until regulatory clarity shuffles the winners ([06:47], [07:31]).
• Scott jokily addresses wild price predictions: “If it’s going to 250 [ETH], then XRP is going to like $10,000.” ([08:34])

4. Fundamentals vs. Hype & Investing in Crypto

• Ongoing debate: tokens vs. equities. Are investors pivoting from pure tokens to tech equity and even tokenized assets? The lines between TradFi and crypto are blurring ([11:12]).
• Institutional participation is broadening, with JP Morgan and Morgan Stanley moving into crypto ETF creation and product issuance. Regulatory clarity is making it easier for TradFi to get involved ([21:49], [24:46]).
• “Every institution now has a plan… Nobody anymore can afford to not have a crypto plan.” – Scott Melker ([25:07])

5. Clarity Act & US Policy Shifts

• Markup of the Clarity Act (expected Jan 15): A pivotal event, but step-laden and not assured to become law quickly. Potential government shutdown remains an overhang ([14:32], [15:32], [17:34]).
• Notable explanation of committee processes and the hurdles legislation faces even after markup ([15:32]).

6. Stablecoins, Banking, and Regulatory Wrestling

• Stablecoin yield and rewards remain hotly debated, with banks/lobbyists fiercely resisting yield features to protect their core business ([19:03]).
• “We’re still, even in clarity, talking about whether we can get yield on stablecoins, right?” – Scott Melker ([19:03])
• Banking industry lobbying is actively shaping the ultimate market structure bill ([19:25]).

7. MSCI, ETF Productization, and Institutional Clout

• MSCI’s decision not to delist BTC treasury companies removes a key bearish overhang ([21:49]).
• Morgan Stanley filing for multiple crypto trusts, including Ethereum, signals growing institutional conviction ([20:35]).
• Major banks are compelled to act by client demands and competitive pressure (“You can’t get an F in crypto…” – [23:33]).

8. Market Structure: From DAT 1.0 to DAT 2.0

• The Digital Asset Treasury (DAT) market saw “bubble” conditions in early 2025. The next phase (DAT 2.0) will involve more sophisticated, tradfi-like commodity strategies — not just “buy and hold” ([30:37]).
• “Block space itself is valuable…we haven’t necessarily traded it as the commodity that it is.” – David Young ([31:36])

9. Internal Crypto Sectors, Prediction Markets, and DeFi Growth

• Sectors like prediction markets, stablecoins, and perpetual swaps (“perps”) are stealth drivers of growth ([34:28]).
• Uptake of perps and 24/7 markets is blurring the line between retail and institutional strategies — and new capital is rotating from altcoins into these primitives ([35:23], [37:03]).
• “Prediction markets have effectively been one of the silent killers of the altcoin market…” – Scott Melker ([36:32])
• As yield rates fall, more capital is expected to return to risk assets in crypto ([37:03]).

Notable Quotes & Memorable Moments

• Scott Melker [03:00]: “Buy when there’s blood in the streets, even if it’s your own…”
• David Young [04:45]: “My visibility kind of ends around the April, May area, to be honest with you…”
• Scott Melker [09:32]: “I don’t know if that’s the XRP army that’s buying the ETFs or institutions... but there’s clearly been very steady interest.”
• Scott Melker [13:40]: “$250,000 ETH... would be a roughly $30 trillion market cap... sometimes things come out of people’s mouths that [are] incomprehensible.”
• David Young [27:38]: “We’re in a much better place than we were in 2024 and 2025...”
• Scott Melker [25:07]: “Every institution now has a plan… Nobody anymore can afford to not have a crypto plan.”
• Scott Melker [36:32]: “Prediction markets have effectively been one of the silent killers of the altcoin market.”
• David Young [31:36]: “Block space itself is valuable… we haven’t necessarily traded it as the commodity that it is.”
• Scott Melker [17:34]: “Just reminds me why I like buying bitcoin and holding it in self-custody, just in case.”

Important Timestamps

• Market Bottom & Macro Picture – 00:01–06:47
• Altcoin Rotation & ETF Flows – 06:47–10:06
• Token vs. Equity & TradFi-Crypto Merge – 11:12–13:05
• Clarity Act Process & Impact – 14:32–17:34
• Stablecoin Regulation & Banking Lobby – 19:03–21:49
• MSCI, Morgan Stanley, and Institutional Entry – 20:35–25:41
• Digital Asset Treasury: From 1.0 to 2.0 – 30:37–34:28
• DeFi Primitives & Internal Sector Growth – 34:28–37:03
• Prediction Markets, Capital Rotation & Future Catalysts – 36:32–39:18

Conclusion

This episode delivers a realistic, detailed picture of 2026’s crypto market landscape. There’s optimism that the bottom is in, but nobody’s calling for moonshots. Regulatory clarity is crawling forward, TradFi is coming online in force, while capital rotates between altcoin narratives and emergent crypto-native financial primitives. Meanwhile, “old school” speculation is moving into new markets like prediction protocols, and major bank adoption is both a reflection of and a catalyst for more maturity. The conversation offers a pragmatic and thorough market tour for anyone following crypto’s next moves.