Podcast Summary: The Wolf Of All Streets

Episode: Bitcoin DROPS Below $69K Again! Is The Bottom In??
Host: Scott Melker
Guests: Mike McGlone, James, Dave
Date: February 9, 2026

Episode Overview

This episode dives deep into the recent volatility in Bitcoin’s price, which tumbled below $69,000 after a significant failed rally past $70,000. Scott Melker and his panel (Mike McGlone, James, and Dave) analyze whether the recent rebound is a true bottom or just a “dead cat bounce” in a broader bear market. They also broaden the conversation to examine the macroeconomic environment, including U.S. Treasury dynamics, stablecoins, gold and silver markets, and shifting global financial power plays—offering an expansive context for crypto investors.

Key Discussion Points & Insights

1. Bitcoin's Price Action: Is the Bottom In?

• Major Dump Followed by Equally Aggressive Recovery
  • Last week saw Bitcoin’s largest weekly down candle by price with record volume, followed immediately by a high-volume recovery. This has left traders and investors divided on whether the recent lows are a solid bottom or just another temporary bounce.
  • [06:31] Scott Melker: “One of the rare times when I want to actually focus on bitcoin first because the price action last week was absolutely absurd.”
• Bearish vs. Bullish Narratives
  • Mike remains notably bearish, likening current dynamics to those preceding previous market corrections in other asset classes. He’s watching for further declines unless macro conditions convincingly reverse.
  • James points to technical levels (such as Bitcoin’s 200-week moving average) but is cautious about overleveraging, underscoring the asset’s risk-on correlation with equities.
  • [12:32] James: “If you have a long term view, great, then I don’t think you have anything to worry about. But if you need cash and you’re plowing into these things with leverage, be very careful.”
• Market Psychology & Misinformation at Cycle Bottoms
  • Dave highlights how the proliferation of wild takes and misinformation (e.g., theories about “paper Bitcoin” suppressing price) is typical of market bottoms.
  • [07:46] Dave: “At bottoms, you see a crescendo of stupidity just like you see a crescendo of stupidity at the top. But it’s a different kind of stupidity at the top… At the bottom, you get not just bears, you get people who pull out these idiotic narratives that make no sense.”

2. Spot Bitcoin ETFs, Market Mechanics, and “Paper Bitcoin”

• ETF Impact & Misconceptions
  • The group debunks the common fear that “paper Bitcoin” (derivatives/futures) is suppressing the real spot price, clarifying that Bitcoin’s spot market is what drives futures—opposite to gold & silver.
  • [12:32] James: “Spot Bitcoin ETFs have to actually own the corresponding NAV worth of bitcoin underneath… Spot ETF buying is actual money going into bitcoin.”
• Basis Trades & Options Activity
  • Many institutional players employ basis trades—holding physical BTC and hedging with paper. Options, especially during last week’s crash, were used for risk management, not to suppress prices.

3. Recent Market Sell-Off: Causes & Reset

• Leverage Wipeout, Hedge Fund Activity
  • Last week’s swift drop and rebound are attributed to methodical risk-off moves by professional traders and risk managers, rather than retail panic or forced liquidations.
  • [24:06] Dave: “It was spot-led, algorithmic-led, professionally traded… It’s when professional investors are liquidating, not liquidation engines.”
• Signs of a Market Reset
  • Large amounts of leverage and weak hands were shaken out, setting up potential foundations for a bottom, if not an immediate reversal.

4. Macro Environment: Bonds, Yields, Fed-Treasury Dynamics

• Treasury Accord and Yield Curve Control
  • The panel discusses speculation about a renewed Fed-Treasury Accord, which could see further collaboration to manage treasury issuance and contain long rates.
  • [26:08] Dave: “They’re talking about the Fed becoming a… backstop to buy every single T bond that the treasury floats out there…”
• China’s Treasury Selling & De-Dollarization
  • China’s directive to banks to reduce US treasury holdings hits the “event” threshold, seen less as immediate dollar replacement and more as reshaping global demand for Treasuries.
  • [37:53] Scott: “Chinese holdings of Treasuries dropped to lowest since 2008… Chinese banks to begin selling and limit purchases of U.S. government bonds.”
• Macro Trades Emerging
  • Mike calls the compression in Treasury bond volatility the “macro trade of a generation.” He sees potential for significant moves as global demand shifts and US policy pivots.

5. Precious Metals & Risk Assets

• Gold and Silver in Market Context
  • Panelists debate gold overheating, silver’s upside potential (particularly due to industrial demand, e.g., batteries, solar), and relative prospects compared with BTC.
  • Arguments emerge over whether moves in gold are cyclical or now reflect secular (enduring) shifts amidst central banks favoring gold.
• Correlations With Risk Assets
  • Bitcoin, currently, is behaving like a risk-on asset, moving in tandem with equities and risk sentiment—a trend that may persist until broader macro tides shift.

6. Stablecoins, Financial Regulation, and Banking Power

• Rise of Stablecoins
  • Discussion highlights the ongoing “flipping” of Ethereum by Tether and the growing dominance of stablecoins as both investment and settlement vehicles. Regulatory and political clarity is flagged as the pivot point for future explosive growth.
  • [28:00] Mike: "Once Trump flipped and we all realized peer to peer cash with a highly volatile digital asset that's highly speculative. When I can get the US dollar it's like didn't make sense…"
• Banking Lobby vs. Crypto Innovation
  • The panel is divided on whether US banks will succeed in stalling stablecoin innovation to protect their yield-capture models.
  • [49:38] Dave: “As it stands, the banks want to be able to issue stable coins and have it illegal for them to pass on yield to the customer. That’s their biggest fear.”

7. Structural Shifts in the Economy

• K-shaped Recovery, AI Transformation & Market Employment
  • The group touches on how tech giants are reporting record profits even as layoffs mount, a result of AI-driven productivity. There’s debate about how (or if) policy will succeed in re-incentivizing small businesses and widespread prosperity.

Notable Quotes & Memorable Moments

• [07:46] Dave: “At bottoms, you see a crescendo of stupidity… This time it was the Epstein compromising bitcoin core developers, which is insane… This is exactly what happens at bottoms.”
• [12:32] James: “Spot Bitcoin ETFs have to actually own the corresponding NAV worth of bitcoin underneath. They’re just not getting it…”
• [19:49] Dave: “The notion that paper bitcoin is suppressing the price is completely nonsense… Markets move up, they move down. None of us have crystal balls.”
• [24:06] Dave: “It was a different trading pattern than people in Bitcoin are used to… it’s the difference between when professional investors are liquidating and when liquidation engines are liquidating.”
• [26:08] Dave: “The biggest issue we have here going forward is that we’re running multi-trillion dollar deficits. The treasury has to find a way to stuff channels with all that paper…”
• [42:10] Scott: “My favorite maglonism is 10k bitcoin. Not a big deal. Okay, pretty big deal.”
• [43:54] Dave (to Mike): “That was such a… I don’t even know the word for it. Chart criminality… To compare the price of an asset in raw terms without taking into account that we have more than doubled the amount of dollars underneath it…”
• [49:34] Dave: “Everything we’re talking about... comes back to, and will continue to come back to, debt. The whole market is driven by debt and bonds.”
• [57:18] Dave: “I don’t understand why stock market volatility has anything to do with bitcoin versus gold… Unless there’s an intuition or a rationale, otherwise it’s overfitting.”

Timestamps for Key Segments

• 00:02: Introduction, theme of episode—Bitcoin’s failed breakout and macro context.
• 01:35: Mike recaps macro data, signals ongoing bearishness for crypto and precious metals.
• 06:31: Scott: Breakdown of Bitcoin’s huge loss, high-volume rebound, and possible inflection point.
• 07:46: Dave: Hallmarks of market cycle bottoms and ridicule of “paper Bitcoin” suppression theory.
• 12:32: James: Simplifying ETF mechanics; warnings against misinformation and overleveraging.
• 19:49: Dave: Deconstructing last week’s leveraged liquidations and professional risk management.
• 25:46: Dave/Dave & Mike: Speculation about a Fed-Treasury Accord, yield curve control, and macro “trial balloons.”
• 37:53: Scott/Dave: China selling U.S. Treasuries; global debt market risks.
• 42:10: Mike and Dave: The “macro trade” for Treasuries, chart bugbears, and recalibrating risk.
• 49:34: Dave: Stablecoins, Basel rules, future regulatory unlocks for bitcoin and bank capital requirements.
• 59:39: The philosophical split: Sound money, fiat debasement, and whether belief or history wins.

Tone & Style Notes

• The conversation is informed, at times combative and snarky, mirroring the personalities of seasoned market analysts and traders with decades of scars and conviction.
• The episode balances technical analysis, fundamental macro, and policy/regulation—often blurring the lines between “trading call” and “philosophical stance.”
• Humor and self-deprecation accompany strong disagreements—especially between Mike and Dave—keeping the discussion dynamic and engaging.

Conclusion

This episode tackles the confusion engulfing Bitcoin after a period of outsized volatility, deftly tying in professional trading realities, misleading narratives, macroeconomic winds, and regulatory pivots. Listeners will come away with a nuanced understanding of why Bitcoin’s future—like that of precious metals, Treasuries, and stablecoins—can’t be divorced from the broader currents of global finance. The panel urges patience, critical thinking, and humility, reminding all that paradigm shifts and structural resets in finance unfold over years, not weeks.

Further Listening Suggestion:
For more on how AI, technology, and shifting global policies intersect with trading and crypto, check upcoming episodes with special macro guests and regulatory insiders.