← The Wolf Of All Streets
The Wolf Of All Streets
Bitcoin, Gold & Silver Collapse Amid EXTREME Market Pressure! Worst Yet To Come?
00:40:13
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- [00:01]
A
In a sign of extremely healthy markets, bitcoin, gold and silver absolutely crashed and collapsed and dumped to the floor yesterday. And continued on today. What the hell is going on with global markets and is this a signal of worse things yet to come? I'm going to dive into all of this on my newly minted solo show. Here we are, the Friday 5, with me and nobody else. Because there's nobody left except for me. Let's go.
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B
Let's do, Let's do.
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A
Good morning, you delectable, delicate little darlings. It's wonderful to see you here on a day with such positive news to discuss where we can talk about the importance of our favorite assets and how silver and gold are amazing hedges against all the insanity of the government. Actually, I had a tweet yesterday. I think that pretty much sums it up. I'll just go ahead and show you. Breaking everything. That's basically how we were feeling yesterday. We had one of those rare days where all of a sudden markets seem to actually make sense. We didn't have random things going up and random things going down and dollar down, bitcoin down, silver up, gold down, bonds, interest rates, everything just dumped. But we saw some absolutely insane price action yesterday, which left us right about here, at least for the crypto market. Bitcoin currently trading at a not so healthy price. There's a price of 82,690American deflating. Well, I should say inflating or debasing dollars. We have Ethereum at 2007 30. That's just a terrible price. Like that's a bad price. XRP at $1.75. Looks like it accidentally like cheated with the girlfriend of a WWE wrestler. Just got a beating. I honestly, I don't even know what to think when I look at these crypto prices. It is disgusting out there. But once again, this is not now just a story about crypto. I'm going to show you a little something going on in the silver market. This is the silver chart for 36 hours, which if you're looking shows a 22% spread, a high of $121. Currently trading back down at 98. Traded down as low as $94.84 or something like that. Silver is supposed to be boring. Last I checked, this was supposed to be something that slowly moves. You can use high leverage on silver because no big deal, it's never gonna be exceptionally volatile. Well, here we are, Silver showing why it's aptly named the Devil's metal. In a 36 hour period, traded in 22% range. This isn't fundamental. It's pure speculation. People will get so wrecked. Guys. The price action on silver is reminiscent of the worst shitcoins that we had in the most volatile alt seasons in 2021 or 2022. You should not see a 22% move in a 6, 7 $8 trillion asset in a matter of of hours. I mean, just to give you some context about how quickly it crashed yesterday, we have a quick video here. Check this out. I mean, this is bananas. That's silver. That is silver. That is silver. So spare me the, like, endless debate. I've had it with everybody on the show. Silver, the most important industrial metal, it's rising because of the proliferation of lithium ion batteries and the importance of it in bicycles and kids contact lenses. Dude, there is no reason that silver stayed at the price of $20 for a few decades and then all of a sudden skyrocketed to 120 because all of a sudden it's more industrially important than it was last month. That is a joke. That is cope. Silver is rising for the same reason that altcoins rose in the past. It's because it catches a bid. There's fomo. Your grandma calls her friend who's also a grandma, and she buys silver. Who tells the Uber driver to buy silver. It tells your bar silver, who comes to you and tells you to buy silver. And we know how that story ends. Mike McGlone was on the show just the other day saying, hey, dude, silver's going to 50 bucks. It's at 120. It's going to 50. And when Bitcoin was 126, I was pretty publicly out here saying, everybody thinks this is going way up. I feel like this might be a market top. I have my bids at $88,000. By the way, those were too high. Could have bought lower. Yeah, Bitcoin from 126 to 88, silver is going to do the same thing. In my very humble opinion, I think you will have the opportunity to once again buy silver at 50 bucks because there's absolutely no reason that silver is currently trading at this high of prices. But what's absolutely insane when you look at this silver price action is that all markets for silver are not created equal. This actually reminds me of 2017 when Bitcoin was making a high at 20,000 on one exchange. It'd be on a 16,000 another. We had the kimchi premium. That's not racist. I didn't make that up. That's what they usually called it in South Korea where you could buy Bitcoin for 27,000 South Korean dollars. One whatever. $27,000 was the top price in dollar denominated in Korea when it was 19,000 in the United States. Different countries pay different prices for things. Well, here you go. Western silver prices pulled back from 120 to 105. Make that 95. Shanghai silver prices advanced from $134 to $136. Indian silver prices rose from 119 to $129. Asian buyers are paying a 10 to $22 premium. Demand for physical silver is still strong. So this makes you wonder if this is just like we've seen in markets in the past, if this is just insane leverage being repeatedly repeated, repeatedly rinsed in the silver market just like we've seen it in the past. So why is spot milk silver market still apparently healthy while the leverage silver market and futures and paper silver is going all up and down? All I can tell you is that's not a sign of a healthy market. People keep telling me that silver and gold are sniffing out the problems with the economy. Bullshit. Silver and gold are just going up, wildly up and down because speculators have lost their damn minds. And we're at the beginning of the fourth turning, probably the end of the fourth turning actually. And when people are speculating and gambling on literally everything, it's a sign of the fact that they don't feel like they can get ahead and that their money is not working for them anymore. You don't have to look too far back in history to see signs of rampant speculation being the end times for market cycles. The Weimar Republic before massive or during massive hyperinflation. In Germany before the World War, people were literally like had their inflating German money in wheelbarrows and they were gambling on literally anything they could find. Why? Because, well, if the money's worth nothing, you might as well at least get go use it to try to hit 100x at the casino and be able to go buy bread the next day. I'm not saying that we're in that same Environment now in 2026, but these kind of things are signs of market crashes and negative things to come. And it used to all be native to the crypto casino. In the last few years we had crypto as the main place for people to speculate, for them to gamble. It didn't matter how old you were, you could access a decentralized exchange, didn't matter how rich or poor you were. You could launch a meme coin or trade a meme coin for fractions of a dollar. You could gamble on all coins. Well, guess what? Now you can gamble on the weather tomorrow, which apparently is going to be absolutely terrible everywhere. That's become a new thing. But you can gamble on the weather tomorrow. Why do you need to go buy a altcoin or a meme coin that's been launched that's named after Trump's 14th dog? It makes no sense. You don't need to do it. You know that that game is fixed. Why not just go bet on the weather or go gamble on silver and gold futures with all of your friends? I don't think that this is a sign of a particularly healthy market. I mean, it's just nuts when you look at what happened yesterday. Six trillion erased in 60 minutes. Gold wiped out, nearly three trillion. Silver erased, nearly 790 billions and P500 loss, nearly 780 billion. NASDAQ wiped out 750 billion. Crypto market erased, 100 billion. It's like nothing. 100 billion. Come on, insane. Crash at US market open. And what blows my mind still, I mean, we've talked about this a lot, but if you take a look at the amount of leverage that's being wiped out still in crypto on a day to day basis on these moves, it's just astounding. Yesterday we once again had many multiples of the FTX liquidations on crypto exchanges around the world. The last I checked and it's continued to rise. It was at like 1.8 billion in a matter of two hours or something. Remember, FTX itself was what, 1.2 billion after FTX, 1.2 billion. We do that in our sleep on a Tuesday night. Where's all this money coming from? Especially after the liquidation event of 10:10 when we saw $19.2 billion of leverage liquidated from crypto markets. It's absolutely astounding that there's that much money left circulating in the crypto market. But here we are. So listen, we could talk about silver all day.
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B
It's.
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A
I don't know how I just did that for 10 minutes. So dumb. So dumb. Every day I'm like, we're not going to talk about silver smelting. Town hall, our new show, and then we end up just talking about silver. But I really feel it's just important to warn people. Don't get caught up in the like, silver all of a sudden is the most important asset in the world narrative. When you know it's just A bunch of degenerates that are gambling it to try to get ahead. I mean, that's obviously what's happening here. So listen, we are going to go back now. I'm going to actually look at my show notes for the first time today, which I never look at literally ever, ever. But we have Trump and we have a new Fed chair. So first we have Trump yesterday with market legend Jim Cramer, everybody's favorite talking about crypto. Let's see what Trump had to say right here.
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B
Your embraced in crypto very different from the previous administration. Strategic Petroleum Reserve, like for crypto?
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C
Yeah, I think so. We're going to do something great with crypto because we don't want China or anybody else, and not just China, but others are embracing it and we want to be the head. We're going to be ahead of AI. We're going to be way ahead of AI and we've got to produce tremendous amounts of electricity.
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A
How many times did he just say head in front of his wife?
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C
Know that it's unbelievable when you think that we need more than twice what we already have. If you think that's pretty. For a specific industry. But we'll be able to do it. We have Lee Zeldin in charge of the environment. He's going to be giving us very.
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A
I didn't know Led Zeppelin was in charge of the economy. That's awesome.
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C
Strong approvals, I think. And he's going to make sure everything's good and clean and proper. But he's going to give us very fast approvals.
- [11:03]
A
I don't know what he just said, but it sounded bullish for crypto. I would be honest. I never really know what he's saying, but very clear that he's still sticking to the crypto. Will be the United States with the crypto capital of the world and lots of energy and made in America. And we're going to do great things in crypto. So that's encouraging. And finally on the tail of that, we got. We got the big announcement everybody's been waiting for. I am pleased to announce that I'm nominating Kevin Warsh. Who didn't. We have like a whole bunch of other Kevins. We had a Kevin Hassett, we had Rick Reeder rider. I don't know who sounds like one of DMX's friends. That's how rough Rick Ryder rolls. We had Rick Ryder from Blackrock as of Yesterday was like 80% chance. And all of a sudden we get Kevin Warsh out of nowhere here. But Kevin Warsh to be the Chairman of the Board of Governors of the Federal Reserve System. Kevin currently serves as the Shepherd Family Distinguished Visiting Fellow in Economics at the Hoover Institution. What? And lecturer at the Stanford Graduate School of Business. He's a partner of Stanley Druckenmiller at Duquesne Family Office, LLC. Reese received his A.B. from Stanford, J.D. from Harvard. Okay, so Kevin is a really, really smart guy right here, obviously. And Kevin Warsh has had a lot of things to say about bitcoin in the past. So, listen, we can talk about the fact that he tends to be actually more of a hawk. A lot of people are surprised, actually, at this pick, because Kevin, even though he does believe in rate cuts, he also believes in tightening up the Fed balance sheet, getting a lot of these assets off the books. He's a bit all over the place, but he's a bit more of a hawk than a dove, historically, which is not the kind of person that we thought Trump would choose. But if you're a bitcoiner, he's got some pretty sweet things to say that you're going to want to hear about. Let's go.
- [12:50]
B
You made reference to Bitcoin, and I thought I heard a little bit of condescension that people are buying bitcoin in these things. But doesn't it? Charlie Munger, this is two, three years before he died. Charlie Munger attacked it, called it evil, in part because it would begin to undermine the Fed's ability to manage the economy, or it could provide market discipline, or it could tell the world that things need to be fixed. Bitcoin does not make you nervous? Bitcoin does not make me nervous. I can hearken back to a dinner I had here in 2011 with someone who is another guest on your show. I won't say his name. Okay. I just did. Mark Andreessen, who showed me the white paper that was the original white paper. I wish I had understood as clearly as he did how transformative Bitcoin and this new technology would be. Bitcoin doesn't trouble me. I think of it as an important asset that can help inform policymakers when they're doing things right and wrong. It is not a substitute to the dollar. I think it can often be a very good policeman for policy. And if I were to speak more broadly to what did Charlie Munger and others perhaps have in mind? There is a proliferation of securities that go under all sorts of names. Many, if not most of them are not worth what they might be being traded for. So what did Charlie say? And maybe his pal Warren, say there's the innovators, the imitators and the incompetence. There are real innovators that are happening in and around that new technology. And what I would try to impart towards businesses and bankers is that the underlying technology that Mark showed me in that white paper or tried to show me in that white paper, it's just software. It's just the newest, coolest software that will provide us an ability to do things that we could never have done before. Can the software be used for good and evil? Yes, both like all software. So I don't cast dispersions like that. If there's a final point, it's these technologies are being built here. I don't just mean on Stanford campus. I believe in the United States and the world's most talented engineers from China and Europe and everywhere they come to the United States even now to try to build this stuff. And my view is by building it here, that gives us an opportunity to be more productive and create something very special over the next decade.
- [15:26]
A
Guys, that's the guy who's replacing Jerome Powell. Jerome Powell didn't say those things about bitcoin. We must protect this man, another Kevin, at all, at all costs. The good news is he's already wearing a helmet, so he shouldn't be too easy to injure. If that hair is, I wish I had it. I'm going to be honest, kind of a little bit of Lloyd Christmas going on. Not quite the full bowl, but definitely a bit of a helmet head going on there. But yeah, I think it's very clear that Kevin Warsh is probably going to be a net positive for crypto. I mean, now that we let Michael see, like in cftc, Paul Atkins, we got war shower here. I mean, Kennedy and every single member of the United States government, literally, like without exception, whether it's financial or otherwise, every head is a pro bitcoiner. There's a, there's a reason for that. Because bitcoiners are smart, 87% more attractive to women. We smell great and people love us. And so for that reason, Kevin Warsh obviously is going to be a standout and all those people in government will as well. But we have a very bitcoin favorable Fed chair here, as you can see here. I mean, not going to show you this video, but he said if you're under 40, Bitcoin is your new gold. I think the bigger problem right now is that the new gold has been gold. We were promised that bitcoin was digital gold, that it could trade like digital gold. I never said that, by the way. I think it has the qualities of gold, but never expected the price action. Then you take a look at the parabolic rise of gold here. And obviously bitcoin has not been doing this right. I mean, gold made the rise from 2000 to 5000 basically in a year given. You should not see a top like this on gold the last two days. Very, very scary for markets. But the problem with bitcoin's narrative and that meme I've showed you over and over and over again this week of Leonardo DiCaprio is that we were all right about the debasement trade. We just somehow were seemingly wrong so far about which asset to buy as a result. Because the original asset to protect yourself from debasement is gold. And gold is doing what gold's supposed to do. And sadly, bitcoin has not participated in that pro in that, in that process. Now when I participated in the debasement trade, I didn't realize that meant that all the all coins I held would be living in the basement or that because of the price action, I would be living in debasement at my parents house. That would be bad. We don't have basements in Florida, so that actually can't happen. If you dig into the basement in Florida, in the ground, build a basement, you end up with a swimming pool. Because of the Florida aquifer. A lot of people aren't educated and don't know that about Florida, but we don't have basements here. So if anybody talks about the basement in Florida, they're generally lying. Or their house is built into the side of a hill. It's on a slant. Yeah, we don't have basements here. But gold, I mean gold has been going absolutely nuts. And once again, bitcoin has not been participating. And now you can also trade digital gold. As we talked about yesterday, Tether is hoarding gold like Scrooge McDuck. You can see Paolo Arduino who I'm interviewing on Monday with Bo Hinds two Tether Chads. You see him like, you know, doing a dive in the gold vaults like Scrooge McDuck and DuckTales of old. You're all old enough to have seen that show, right? I mean, everybody's hoarding gold and now you can trade digital gold and tokenized gold. It's leading a lot of people to say, hey, why the hell do I need bitcoin if I can literally already trade gold digitally? And I would like to remind you that the digital Paper gold that you're trading still requires a trusted third party to custody that gold somewhere. This doesn't solve any of the problems of self custody and freedom that bitcoin solves. So do not conflate those two things. When you hear talking heads on Twitter mentioning that narrative, it's wildly untrue. But if we're being intellectually honest, we do know that bitcoin price action has not followed. And let me tell you, we may be upset, but there's one guy that we all love who's having the time of his life. And I'm just show you a little clip of everybody's favorite gold bug.
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D
World is now pulling the rug out from under the US the dollar's gonna.
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A
We'Re gonna try that again. You heard it.
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D
But world is now pulling the rug out from under the US the dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold to back up their currencies. They're getting rid of dollars, they're getting rid of treasuries. We are headed for a economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. The biggest difference between the crisis that we're about to have and the one we had back then is this one is all in America. It's not going to be exported to the rest of the world. It's not a global financial crisis. It's an American financial crisis.
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A
I think Peter just shift himself on national tv. That guy is. Listen, Peter's a cool guy. Like I've sat, you know, Emmy and I, Emmy's here, the CEO is here. The CEO of Scott Melcher is here. Now in the comments we, we've, you know, sat with Peter Schiff and in Puerto Rico and the leisure shirts and had drinks and hung out and he's a really a nice guy to spend time with but damn, does he farm engagement from the bitcoin world. But listen, he's, he's been right. He's been right. Do I think he's going to be right about gold once again replacing the dollar? No, I think that's nonsensical. I think that that ship has sailed. But I mean his ship has sailed. I hope you guys can still hear me because I can't hear myself all of a sudden. There we go. My volume is back on. There we go. It's me, not you. He was, he was actually showing me pictures of the yacht that he was designing when we were in Puerto Rico and that was over a year ago. When gold was still like 2000 bucks. So if we want to talk about the boat sailing, he's going to be sailing on a much nicer boat than the rest of us. And sad to admit, but it is very true. I mean, we just need to embrace the gold bugs and we need the gold bugs to embrace bitcoin because there's been this narrative, obviously, that the inevitable conclusion of this gold and silver rise is that bitcoin goes up. Right? And I do think that some of that money will rotate. But if we're going to be honest, guys, there's no reason that the people who are buying silver and gold as speculators, because they think they're just going to sell it for hire. They don't understand it. Once again, their Uber driver told them to buy it. I'm getting calls about this stuff every single day. Those people don't just wake up one day and go, I need to take profit. And the thing I need to buy is xrp, right? Not to pick on xrp, even though we know that they're very easy to trigger if you do. But not to pick on xrp. It just popped into my mind. But there's no natural rotation from one asset class to another. That has to happen. And people can look at the chart. In the past, say gold went up, so bitcoin will go up next. I hope that's true, by the way, narrative wise, I think it makes a lot of sense. But you have to realize there's a lot of different homes that money can find. And Mike McGlone yesterday actually made an incredible point on market mavericks, which you should go back and watch. He said that everybody talks about a natural rotation, but if silver goes from 120 to 50, that money is destroyed. It's not rotating somewhere. It just literally disappears because people lose all of that money. And that's what generally happens when you have these wildly volatile moments. So I do believe there's plenty of reasons that bitcoin will go up. I'm buying it every day. I'm a massive bitcoin bull. But I don't think it's because silver bugs are going to wake up day and take profit and then decide to buy bitcoin. People who buy things speculatively don't rotate. They actually just ride the roller coaster all the way up and then all the way back down and sell for less than they bought it for. That's how this works. Retail does not make money on speculative frenzies. It just does not happen. I mean, just to illustrate how Popular this has all been right now and for some reason my buttons aren't working great, but you can see that amazing. Seven of the top 11 most traded ETFs are commodities. Gold, silver, Bitcoin. That's definitely a first. The GLD volume is a crazy craziest. That's about 50% beyond its old all time high record. Top 50 day all time for IBIT. I mean spy is up there, QQQ is up there. That's obviously the S P and the nasdaq. You see the iwm, which is the Russell Small small and the rest of it is basically crypto silver and gold. Like we've never had this much interest in it. And so I think we generally can assume how this is going to end in much more positive news, I guess maybe. U.S. senate Agriculture Committee Advances Clarity act in Party Line Vote so I saw a lot of excitement about this. There's no reason to get excited here. Okay, so first of all, we have the Senate Agriculture Committee has their Clarity acting committee that has now passed on a party line vote of 12 to 11. Not a single Democrat voted for this. Okay, just to be clear. And then we have the Senate Financial Committee has their own version that they can't even get the markup on the books, that they canceled the markup after Brian Armstrong and Coinbase pulled support. Right. And they can't come to any consensus and of course they're led by Tim Scott. So we need not only for this to pass beyond the Agriculture Committee, then we need consensus from the multiple committees to come up with one Clarity Act. It's got to go to Congress and it's got to be signed by Trump. And if you read into this, why are the Democrats saying no? Because they want defi rules and tokenization rules and all this garbage. But most importantly, as I will say once again, they want an ethics clause that says that Trump and his family and others can't benefit from crypto. They see this as a non starter. They will not sign anything that does not have those provisions in it. And Trump obviously has said he's never going to sign a bill that has any ban on him training or any ethics clause of any sort. This thing, until further notice, is DOA is dead on arrival. We shouldn't even have to continue talking about it, but we do because the talking heads will tell us that this is likely to pass. I mean, we had all these people over in Davos last week, Brian Armstrong and Jeremy Allaire, the whole industry, and Trump and David Sacks all saying we're Steps and steps and steps closer. And then everyone we've talked to who was actually at Davos and came back was like, there's zero tailwinds for this thing. It is not happening. We're going to keep cover, keep covering it because we have to. I still think it's very important that we get good legislation eventually, but I don't think that there's going to be any chance that these two sides come together to get this done anytime soon. Especially as we enter the season where people are much more concerned about getting, I don't know, reelected than they are about the crypto legislation. I mean, in the meantime though, maybe, maybe, just maybe this article is wrong. Having some technical issues here, man, here we go. CFTC and SEC joined forces on Project Crypto to modernize rules as Congress works on digital asset legislation. So Matt Hogan made some great points on this. We basically have a guaranteed three year period right now, at least with favorable regulation. So even if we don't get the Clarity act, even if one of the houses or both houses turn blue in the midterms and all of a sudden we have gridlock in the government, consensus among parties, which obviously means we'll never get legislation, we do have a guaranteed three year period where the regulators are extremely crypto friendly and can set a hell of a lot of precedent. And you may have remembered that in the past. Mr. Burns, aka Giggins are excellent. Mr. Burns, he did not want to work with the CFTC at all. He thought that everything was under his jurisdiction. There was a quote unquote turf war between the SEC and CFTC over whose right it was to regulate crypto and even more importantly, how they would actually approach that if given the chance. Obviously the CFTC was viewed as a much favorable regulator because Gary Gensler was a heaping. I've heard that from his wife as well, actually. Nobody likes him. But yeah, Gary Gensler just thought, hey, I'm going to go, you know, do the whole regulation by enforcement thing. I'm going to attack everybody. Binance, Coinbase, Kraken Consensus, you name it. We're going to just send out these things that nobody literally had ever heard of before, called Wells notices to everyone. Well now we have Selig at the cftc, very pro Bitcoin, Paul Atkins at the sec, very pro Bitcoin and crypto, very reasonable approaches to how they would regulate the industry. We had heard about Atkins Project Crypto. Well now the CFTC is also on board with Project Crypto. They just had a joint meeting and they are going to work together. God forbid two agencies work together simpatico to regulate the crypto industry. So if they can put in three years of favorable regulation, give companies the confidence to actually continue to build in the United States, this could become more important than the legislation itself. Although I still argue that we definitely need legislation on the books at some point. But more importantly, what Matt Hogan said that I wholeheartedly agree with and was something I've been saying for years. He said, listen, if we don't get this legislation on the books, and I would argue that even if we do, this is the three year period when the crypto industry actually needs to prove its worth and that it's viable and that it's an important technology and that adoption is meaningful and needed in the United States. I think Noelle Atchison stated it perfectly the other day on my show. She said the crypto industry needs to become too big to fail. Right? We have three years with favorable regulation where we can build whatever we want, regardless of what the legislation says. Because we know that nobody's going to attack the industry during this time if we can actually gain so much adoption that you can't kill it. That's really the secret to getting this done. We shouldn't ever be depending on the government in the first place. We need this industry to prove its worth. And let's be quite honest, if you've been around a while and you were like gaming NFTs, the metaverse, like none of this shit came to fruition at all. We've been sold such a shit deal of goods. I believed in all of it wholesale. Maybe a lot of that stuff will come around. But if we're being honest, most people who have touched crypto so far, unless they simply bought bitcoin lower, have left with a pretty bad taste in their mouth. And that doesn't mean that a lot of other things are not being built, that important things aren't being built. But right now, this is the time when we need to kind of circle the wagons and focus on the important narratives. The most important narrative, ironically, if you're a bitcoiner, is probably stablecoins, because let's be honest, those are just a digital fiat, which is the entire thing that bitcoin was created against. But stable coins, tokenization, real world assets, these are the things that could become too big to fail if the DTCC and these other agencies actually adopt blockchain rails for settlement. That is technology for the next 20, 50, 100 years that does not get reversed if we simply just sit here and scream and our assets go down and nobody builds anything. And the Ethereum guys fight the ripple guys fight the Bitcoin guys and a disjointed lobby. This could all fall apart if we don't take advantage of this extreme, extreme Goldilocks moment that we have right now. But I think it's important to remember that the anti crypto army is still here and alive. They may have been hiding for a little while, hiding in the corner like baby, but now they're coming back out. I mean, Elizabeth Warren is around. You got these people. I mean, Elizabeth Warren, she wrote a letter. We're back to having to read about Elizabeth Warren writing letters. Democrats PRESS DOJ Deputy OVER CRYPTO HOLDINGS Enforcement RETREAT Six Democratic Senators have accused Deputy Attorney Attorney General Todd. I don't know if it's Blanche or Blanchet. I'm going to go with Blanchet. Todd Blanchet of violating conflict of interest law by dismantling crypto enforcement while holding substantial digital assets. So this guy showed he held between 158,000 and 470,000 in crypto when he issued a policy memo easing oversight of the industry. So that was a while ago. So the good news is now he only has 15 to 47 dollars worth of crypto. So it's really not in his interest anymore because we know that that money is definitely gone. But they're saying that it was a conflict of interest for him to get rid of these enforcement actions. They've made the same claims about the SEC and Paul Atkins and Hester Purse and everybody over there, that they're being paid by the crypto lobby. And that's the reason that they're rolling back all these enforcement actions against Coinbase and Binance and everybody else in the industry. That is such nonsense. I've railed about this before, but let's just remember, yes, the crypto industry gave a whole lot of money in the last election. But why did they do that when they weren't political before they did that because the policies that were put forward by the last administration SEC were patently unfair and they were being attacked for no reason and being forced to spend tens of millions of dollars in litigation that ultimately was immoral and going nowhere. So can you say that the SEC and the Todd Blanchet. The Todd Blanchet, the deputy Attorney General that these guys, you know, had these policy because of their vested interest in crypto or the lobby? No, it's because it's sensible to roll these things back. And maybe they're just smart people who think crypto's okay. And not an industry that needs to be destroyed every five minutes. It's exhausting to deal with these people. And it's just very important to remember that the anti crypto army could be coming back in full force as soon as December. They are not gone. They are still alive and well. And it's time to really show what this industry is worth. Now we have another story here. I have not dug into this so deeply, but a lot of the reason that people think that markets are dumping right now is that the AI narrative is overheated. I've been hearing that for a very long time, to be quite honest. But OpenAI is reportedly burning cash fast with losses projected to reach 14 billion in 2026. Dude, that's just like an average crypto portfolio. And a possible cash shortfall by 2027. Analysts say AI profitability was overestimated as rising data center and inference costs could lead to a 207 billion industry shortfall by 2030. OpenAI to begin testing ads on ChatGPT in the US Imagine that you're like, ChatGPT, I have 107 fever and my legs itch. And it just serves you an ad for like, you know, 10 actin or something. But yeah, that's what's coming to OpenAI. They're gonna be testing ads. But clearly OpenAI needing to make some money right now. And you have BlackRock obviously here saying no bubble. BlackRock Sphinx sincerely believe there's no bubble company that has invested in AI bubble. There is no AI bubble. Funny, I'm not convinced that there is a AI bubble, but we did have Microsoft absolutely dumping the other day. And the reason that Microsoft dumped and kind of sparked this entire downside for the market yesterday, apparently it was Microsoft's fault is because of how much money they're spending on AI. And now people are starting to take a look at these large tech companies and saying, well, what if the demand doesn't actually arrive if they spend all this money? Or they're starting to handicap the fact that that demand or the actual usage will not arrive for a year or two or three years instead of a month or two or three months. And so markets are starting to price that in. But this was one of the worst drops for Microsoft ever. And strangely, they actually didn't even lose that much money. The earnings were not bad. It's just that their spending was up. And we've seen this with countless tech companies in, in the past. So it's just a couple more stories on the AI bubble here. Bank of America Says mountains of debt are piling up from the data center rush creating an air pocket. This is how I think AI bubble will unfold. It's not going to be a dot com style crash, but years of sluggishness driven by low ROI due to interest payments and overbuilding. I don't know man. I think AI is going to absolutely fly. But here's a really, really interesting chart. If you were wondering how big of a circle jerk AI actually is. There's actually a circle and you can see Nvidia jerking. Actually it looks like. So as I read it, OpenAI, Microsoft, Nebius. That's not a real thing. You made that up. Core Weave, Intel, Oracle, XAI Figure, AI, Mistral N Scale and amd. I guess they're doing the jerking because Nvidia is the receptor of the circle jerking of AI. But we've seen this narrative over and over and over again. It's like every one of these companies is reinvesting with the other company and doing a partnership and we're just basically seeing a massive washing machine of money leading many to believe how much real value is here or how much of this is basically just these companies pumping each other's bags endlessly to the moon. I have no idea. But clearly the AI trend is one to watch. I got some really good news for you guys. Bitcoin's back at a healthy price of $83,000. Feels good, man. Feels like we talked the market up today, if we're being honest. I think that if you believe in the law of attraction, the secret, if you sit here and you deeply concentrate on something and you think and you visualize it, that it will actually happen. And I think that all the incredible positivity of this, on this show, especially today, we probably talked the market up from like 82, 7 to 83 1. 83 2, 38 right now. Not that anybody's keeping score. Guys, I am not like I'm just going to be honest with you. I'm not worried about bitcoin, but I have a long term view. I mean you can take a look at a bitcoin chart. It's not great, right? I mean we obviously have a bit of a head and shoulders kind of thing going on. But like let's zoom in here, right? We haven't even swept the low of November, so that's support right there. If that loses, man, you just buy the hell out of this thing. Between 69 and 74 and you call it a day, right? That's the previous all time high. We Always visit that in each cycle. So that wouldn't be surprising. Yeah, the 200 Ma is looming below. But the point is I can go through all the charts in the world, we can talk about how bad they look. But the fact is, does anybody here think that it's over forever? And if it's not over forever, would you rather buy Bitcoin at $150,000 today where we thought it would be, or at $83,185? You could have bought it at 81,000 before I pumped the market today. But would you rather buy at 150 or 82? So either you are a speculator and a tourist and a short termer here convincing yourself somehow that you're in for the long haul, but actually we obsess about the price every day or you actually think this thing is going to go up massively over the next few years, whether it's today, in six months or in six years. And if you are a long term believer and you think that bitcoin is important, you should be buying the hell out of it at this price. Even if you think it's going to go down further. Because guess what, you might be wrong and it might not. But 83 is a really cheap price for bitcoin for where we all believe that it's likely going in the future. I just literally rambled about absolutely nothing for 40 minutes. I don't, I blacked out. I don't even know what happened. Felt good though. Solo shows are good. I looked at my, my guys where we were like sitting in here chatting before the show. I showed up a little late. I was like Holy crap, it's 8:51. We have a show in nine minutes. What are we talking about? So people are like, wow man, you, you know, you prepped really good. I'm going to tell you about my prep for shows. I show up 10 minutes before there's like this sheet with a bunch of stories. I open the tabs and then I go live and we wing it. But I believe that if you stay ready, you don't have to get ready. And so you know, we're covering this stuff all day. We talk about it, but yes, it's blacked out. Stream of consciousness as someone just said in the comments. I'm just ad libbing here but it was a good time. I am highly confident that we're gonna have bright times ahead. Hope you guys all have an incredible, amazing, tremendous, wonderful weekend. I know I plan to see you Monday for macro Monday.
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B
Let's do, Let's dope.