← The Wolf Of All Streets
The Wolf Of All Streets
Bitcoin Explodes, Wall Street Capitulates, Trump Cashes In On Memecoin Frenzy
00:17:17
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NLW
Bitcoin continues to make all time high after all time high while melting faces. We're likely to get stablecoin legislation very soon. Trump's having a meme coin dinner. And even Jamie Dimon has capitulated and is going to allow J.P. morgan's customers access to Bitcoin trading. It's the Friday five. Let's go, let's do foreign. Hey guys, it's me and it is not actually Friday. It is Thursday evening. NLW is traveling and I have a kids graduation on Friday morning. So I decided to do the Friday five on a Thursday. And here we are Thursday afternoon and boy do we have a lot to talk about right now. Price of bitcoin has pushed almost to 112,000American dollars. God knows what the price will be when this is actually published on Friday morning. But bitcoin continued to make all time high after all time high after all time high. And of course all of this, all of this in the face of stocks kind of wobbling a little bit up, a little bit down, sideways oil crashing, gold kind of sideways yields way up, dollar dropping, it's complete mayhem. Bitcoin doesn't care because it's the most beautiful uncorrelated asset that has ever existed. I actually did a recording Today with Mike McGlone on Market Mavericks and he basically said I got it wrong on bitcoin. I think that's a signal. We have a blue sky breakout and nothing but prices going up. Yes, on Sunday actually I said I didn't really buy the price action low volume. I thought maybe we would get a retracement wrong. Charts don't matter. Signals don't matter. When you have a fundamentally bullish asset like bitcoin and it is pushing, you do not want to be the complete and unadulterated dumbass who decides to try to pick up a few pennies in front of this steamroller. Don't short, don't sell. Because all you've ever had to do, and I've been saying this since I started, is buy some bitcoin and wait. Bitcoin new all time highs. It's a thing of beauty and it's definitely the story of the week. But there's a lot of attached to that story. Of course we have spot Bitcoin ETFs attracting 609 million in net inflows. As bitcoin renews all time high. We've added a sustained run of inflows here, usually 500 million to a billion a day. So this isn't necessarily the Biggest news, but it does show that both retail and institutions are back and they're back in strength. Now we know that a lot of this is because of the carry trade. Earning a 9% yield basically by shorting the June futures and getting long spot Bitcoin, or getting long an ETF, specifically a BlackRock ETF is basically free money for a hedge fund or an institution that's looking to play that trade. That probably has a lot to do with this spot buying also had a lot to do with the outflows that we saw for a couple weeks, maybe a month ago because that trade had unwound in April, the yields were down. Sub 4%. Wasn't even worth it. Cause you could just go, go buy some treasuries and earn 4 or 5%. Quick reminder that Bitcoin now is an institutional asset. And we're going to see institutional trading around it, which means that we're going to see these patterns and these trades like this that start to affect price, especially of these ETFs, because these ETFs are the tool that everybody's using to do it. Now, in the midst of all this mania, we have yet another huge target from Standard Chartered. And this of course, is because sovereigns are getting indirect bitcoin exposure via MicroStrategy. And that means we're going to $500,000. Okay. They've showed quite a lot of evidence actually that sovereigns around the world are buying MicroStrategy as a proxy for Bitcoin. In the same time, we've also seen the sovereign wealth fund in the UAE buying over $500 million in Bitcoin twice, which is obviously really good news. However, I'm not sure that Sovereign's buying MicroStrategy is going to send Bitcoin to $500,000. I would say it's more likely that sovereigns getting access to ETFs and actually buying Bitcoin could do this. And I believe there's a $500,000 target by the end of Trump's presidency. So this is not immediate. I think we all know that we're eventually going there, but I think we're grasping at straws if these are the narratives that we need to say it. Guys, insane week. Bitcoin pushing all time highs. Pinch yourself, enjoy it. You've been here for a long time. You've been buying and holding and chilling and it's worth a celebration. One of the reasons a lot of people pointing to for why bitcoin must have gone up this week, it had to go up for a reason. Right guys? We had to have a catalyst. That catalyst obviously not the fact that we are likely to get a stablecoin bill. I said this before. I've been asked this in a few interviews. It's amazing that the genius bill is likely to pass and we finally got it to the Senate floor for debate. But the deregulation of crypto and stablecoin legislation coming and the administration being pro crypto that's been priced in for months and months and months. This is not the reason that bitcoin is going where it is right now. It's not like this is a bitcoin strategic reserve bill. Oh and by the way, even when we got an executive order on a bitcoin strategic reserve or a strategic bitcoin reserve, price didn't even move right. So it is huge news, I think that we are going to get this. You guys may have remembered that not long ago it seemed like it was smooth sailing. Blue skies, unicorns, puppies and cotton handy for stablecoins. But then a bunch of the anti crypto army got together, wrote a little letter and somehow got the first vote on this for cloture, which is a made up word that nobody's ever heard before. It's not couture and it's not closure. Apparently it's clotor cloture. That vote failed by one vote because Rand Paul and Holly joined all the Democrats and voted against it. Well then after that it passed cloture resoundingly when they made a couple little concessions and deals because that's what you do in politics. And now it's on the floor for debate. Elizabeth Warren stood there in disbelief pointing at people going full wicked wits of the west trying to get the Democrats on board, but they're not having it. This is going to pass. We're going to get stablecoin legislation and it is going to be a thing of beauty. Our friend Matt Hogan says stablecoin bill could pave the way for a multi year crypto bull market. I'm here for it. You've heard him say we don't need to dig too deeply into it, but I think he's right. And that brings us some hyperbolic predictions about stablecoins. The biggest Citigroup predicts stablecoin supply could hit 3.7 trillion by 2030. Wow. I think we're just north of 200,000,000 billion right now. So there's more than a 10x by 2030. Listen, I think that huge growth in stablecoins is inevitable, especially Once they get legislated and people all around the world start to adopt them, we've seen how fast this grows. 3.7 trillion is a large number, even Standard Chartered 2 trillion by 2028. I guess that gives us two years after that to get a couple more trillion or one more trillion and reach the prediction from Citigroup. And then JP Morgan of course coming in with the ICE and saying nah bro, JP Morgan cast out on trillion dollar stablecoin forecast even with US regulation advancing. But to be fair they were like maybe this goes to a trillion but like 2 and 3.7 are too much. Okay man, I'm fine. If we get a trillion dollar market cap for stablecoins collectively I think that we help will have done quite well. But it looks like this legislation is coming. It is somewhat inevitable at this point and it's yet another promise really delivered by this administration, but more importantly by the senators and those in the House who have been pushing for this even since the last administration. We all understand that stablecoins are the low hanging fruit to be regulated and legislated in the United States and in this industry because they basically are just dollars, right? And they're going to contribute to hyper dollarization, to the proliferation of the dollar all around the world in countries where people are starving for dollars and can't get access to cash, this just works. Oh and by the way, when we run out of governments to buy our debt that's now been downgraded by Moody's and every other meaningful agency, stablecoins will step in there to buy United States treasury and make billions doing it. White House crypto's our David Sack says stablecoin bill will unlock trillions for US Treasury. That's the side where they're going to be buying these en masse. Oh and by the way, in case you missed it because the news cycle is so insane, Hong Kong also passing a stablecoin bill today to establish licensing regime amid global competition. This happening here, it's happening there, it's happening everywhere. It's coming. So the next story, which by my count is number three, is one that's way over my head because I'm not enough of a degen to really deeply dig in. But SUI based token prices plunge. I'm at 223 million Cetus Protocol exploits. I was on crypto town hall this morning and they were explaining this and all the words and liquidity pools and whatever and in my mind I was just like I could feel myself becoming more of a bitcoin maximalist because. Because all of this stuff is so dumb. This is not Sui's fault. This is a dex on Sui. To my understanding, they had a liquidity pool hacked for $223 million. But how do you manage the risk or understand the risk of what you're doing in crypto and in defi if some hacker or North Korean can come in and just ruin it all for you? Like how do you even assess smart contract risk or exploit risk or all those things? It's an important reminder that the bulk of your portfolio should always be Bitcoin. Even if you deeply believe in one of these platforms, if you're going to gain exposure to any of these things, it should be relatively small to the rest of your portfolio because there's always that nine, always that non zero risk that you just get absolutely annihilated. Here's the tweet from CETIS Protocol, which I'm going to be honest, never heard of this shit till today. As of earlier today, we have confirmed that an attacker has stolen approximately 223 million from CS Protocol. We have took immediate action to lock our contract preventing further theft of funds. 162 million of the compromised funds have been successfully paused. Congratulations. We're working with the Sui foundation and other ecosystem members right now on next step solutions with the goal of recovering the remaining stolen funds. Majority of impacted funds are paused and we are actively pursuing pass. Yeah, you guys got robbed. You guys got robbed. People are losing money. Their token went down. All the other tokens went down. Just a reminder, shit happens in the crypto space and man, it can be really, really ugly. I mean, I've never even heard of some of these tokens that went down like 50% lo fi and hippo. I'm out, bro. And speaking of things I'm out on. Donald Trump draws global crypto investors with $148 million meme dinner. 222. 211. Just north of 200 of the highest holders of Trump coin. Get sit down and have dinner. It's 220 with Donald Trump. So we obviously saw this being bid up by the likes of Justin sun right here obviously is very involved in World Liberty Financial with the Trump Suns and he is the number one holder proudly. I wonder if he's bringing that banana. I hope he is bananas for all now. But obviously Justin sun saying, hey, proud to be number one and I'm here for it. I'm going to be there at the dinner. Now there's been a lot of attention drawn to this Dinner, of course, because obviously, A, it made the price of the Trump token go up as people bid to be a part of it. But B, first of all, 111 million of this comes from the top 25 who get some extra benefits and tours and access to the president. But B, is that more than half the people, apparently, although they're attached to addresses, so this isn't confirmed, are foreign nationals. They're not United States citizens. This is pissing off a lot of people in the government. Listen, you all know that I'm no huge fan of the Trump meme coin. I was one of the first people to say that I thought it was a gratuitous grift when it came out days before his presidency. Never comfortable with it. But listen, with Trump, this is what you get. We get all the deregulation, the best parts of the legislation, we get his deep belief in this and him delivering his promises, but you always get a hint of grift. That's going to be personal profit that comes with that. And he's a businessman. It's what we expect. I'm not even saying it as a criticism. I'm just saying that that's what you get when it comes to the Trumps and their family being so deeply involved in crypto. Some people say that most of his net worth at this point is in crypto, but leading many to wonder if these people are buying the token to sit down at a dinner to potentially have influence on on the President. If this is a way for a foreign government to grease his pockets, they can get things that they want. First of all, that latter. Okay, maybe, but, like, I don't think anyone's sitting at this dinner and, like, pitching something to Trump that he's buying. So I think that's nonsense. Listen, I think that this is just a bit of utility for his meme token, a way for them to make a whole bunch of extra money and a way for people who are super fans of Trump to get closer to him. But Maxine Waters definitely doesn't agree. Even Cynthia Lummis, by the way, said it gave her pause. So this isn't particularly popular with his party. I don't think it's a great idea. The optics are bad. But it's Trump, man. This is what he does. Waters bill targets crypto corruption hours before Trump's Meme COIN gala. Now get the name of this bill. Stop Trading Retention and Unfair Market Payoffs in crypto act of 2025. Like, dude, couldn't you have just chatgpt this to we don't like Trump making money in crypto act because that's all this is basically saying that the bill would ban the president, vice president, lawmakers and immediate family members from owning a proportion of a digital asset. That would allow them to unilaterally make changes to the digital asset, among other requirements. Trump's crypto con is not just a scam to target investors. It's also a dangerous backdoor for selling influence over American policies to the highest foreign bidder. For all we know, Russia, China, or even North Korea could be buying Trump's crypto. Does he secure favors from the White House? First of all, dude, if you got money and power, you can get in touch with politicians anyways, so I'm really not buying that part. And I remind them, as a nonpartisan, that no politicians should be profiting not only from crypto, but also from stock trading on insider information from companies that are overseen by committees that they rule, like Nancy Pelosi and others. Come on. Listen, I. I agree generally with the idea of this, but making this some specific thing about Trump and crypto is nonsense. When politicians profit from literally everything that happens all the time that they have inside information on. And the final story that we have right now, this guy, Jamie Dimon, says JP Morgan will allow clients to buy bitcoin, but firm will not custody it. Good news for whoever is going to custody it, because this is 90 million customers of JP Morgan having the door open to them to be able to participate. Now, we know that the wealthiest clients of JP Morgan already had access to bitcoin trading. Now this is going to all of their customers. Now, you might scratch your head and think, Jamie Dimon, he's been a huge fan of crypto. No, Jamie Dimon hates bitcoin. It wasn't so long ago they said I'd shut crypto down. That was in December of 2023. He's likened it to smoking. People have the right to smoke. Doesn't mean I support smoking. He's gotten flustered in interviews that, I don't want to talk about this. I'm never talking about it again. It's a scam. All the worst things you could possibly. But at the end of the day, you know what Jamie Dimon likes? Making money. And you know what Jamie Dimon hates? Losing customers. And you know what Jamie Dimon's customers are demanding to make money in crypto. And therefore he has to capitulate and do what's best for JP Morgan and for his customers. And that's to give them a deep, deep hit of some of that sweet, sweet bitcoin. Guys, what a week it has been. I know that we cooked through this show and it was recording. A whole lot could change by tomorrow, but I did want to make sure that you got your taste of the Friday 5. Guys, it has been an honor and a journey this week, and I will see you back for Macro Monday, 9am on Monday. See you then. Bye. That's dope. Let's go.