Podcast Summary: The Wolf Of All Streets

Host: Scott Melker
Episode: "Bitcoin Holds $111K! Is Uptober Over Or Is A Reversal Inbound?"
Date: October 16, 2025
Guest: Yago

Overview

In this episode, Scott Melker welcomes frequent collaborator and Bitcoin expert Yago to dissect Bitcoin's ongoing price volatility amid October’s ("Uptober's") famously bullish reputation. With price holding around $111,000 and significant leverage-fueled flushes shaking the market, they explore the narratives driving the current landscape—especially ETF inflows, leverage risks, decentralized alternatives, global adoption, and Bitcoin's growing importance in finance. The conversation moves from recent flash crashes and structural risks within exchanges to macro implications such as government holdings, tokenization, the interplay between AI and crypto markets, and the latest developments in DeFi and real-world asset tokenization—particularly on Bitcoin.

Key Discussion Points & Insights

1. Bitcoin Price Action & “Uptober” Narrative

[00:00–02:06]

• Scott sets the stage: Despite October’s bullish meme status (“Uptober”), Bitcoin remains volatile and rangebound, hanging around $111k.
• Dismisses the idea that Fed rate cuts or tech stocks are the critical drivers; suggests Bitcoin is operating on its own dynamic.
• Scott Melker [01:27]:
  “We got our own little thing going on here.”

2. ETF Inflows Amidst Volatility

[03:20–04:01]

• Despite price dipping 4.3% in October, ETF inflows are robust—over $5B in spot ETF buys.
• Suggests traditional investors and institutions seem unfazed by intra-crypto events and weekend liquidity crunches.

3. Recent Market Volatility and Flash Crashes

[04:01–06:52]

• Massive liquidations ($19B+ in hours), yet market shrugs off event—open interest remains high, and Bitcoin price quickly rebounded.
• Leverage remains rampant, institutional activity (CME futures volume) at records.
• Yago [04:01]:
  “If no one told you there was a flash crash and you looked at the charts today, you would have no idea… The market has for the most part just shrugged this off.”

4. Risks of Centralized Exchanges & Safer Trading Venues

[06:52–10:29]

• Both agree centralized exchanges, especially leveraged ones, are fraught with recurring risk: FTX, Mt. Gox, Bybit hacks, API failures, and ill-timed halts are regular, not black swan, events.
• TradFi exchanges and venues like Deribit (options-focused, not perpetuals-heavy) offer stronger infrastructure.
• DeFi has consistently outperformed both CEXs and TradFi for lending and trading. Smart contract-based protocols (e.g., Aave) handle liquidations and collateral more reliably.
• Yago [06:52]:
  “You are picking up pennies in front of an oncoming train and yet it continues.”

5. Decentralization, “DYNOs,” and Custody Innovations

[10:29–12:57]

• Subtleties in what counts as DeFi—decentralized protocols vs. “DYNO” (Decentralized in Name Only) platforms.
• Institutions increasingly engage in "off-exchange settlement," holding assets with custodians (Fireblocks, Copper) and netting out trades, reducing on-exchange risk—a service not yet available for most retail traders.

6. Need for True Decentralized Protocols on Bitcoin

[12:59–14:02]

• Building robust, decentralized financial infrastructure around Bitcoin is crucial for risk mitigation and ultimately for industry maturation.
• Yago [13:52]:
  “We can’t see maturation outside of TradFi until we get true decentralized systems and DeFi for Bitcoin, which is why this has been an obsession for me for almost a decade now.”

7. Government Bitcoin Seizures & The “Pig Butchering” Scam

[15:07–19:03]

• DOJ’s seizure of billions in Bitcoin from Cambodian scam rings makes the US one of the largest BTC holders.
• The scam involved coerced Cambodian workers in fraud sweatshops running romance and investment cons, amassing immense sums.
• Yago [17:13]:
  “You wonder, like, how big is the DJ market? There’s a sucker born every minute possible.”
• Scott questions the US’s legal authority to keep coins from international crimes; debate over whether these BTC holdings ever benefit victims or just pad US “strategic reserves.”

8. Tokenization of Real World Assets (RWAs) & Stablecoins

[19:23–24:34]

• Eric Trump and BlackRock both publicly signaling intent to tokenize real estate and launch tokenization platforms.
• The RWA tokenization market has 10xed in two years—from $3B to $30B.
  • RWA tokenization on Bitcoin (“Bitcoin OS”/”BOSS”) is imminent, promising decentralized, robust settlement for Treasuries, real estate, and other assets.
• Yago [20:51]:
  “The number one chain where people want to have long-term significant asset holdings is Bitcoin.”
• Stablecoins are the “gateway drug” to broader RWA tokenization; major banks launching Bitcoin/crypto divisions signals mainstream adoption is inevitable.

9. Why Retail Isn’t FOMOing and the AI Narrative

[24:34–28:08]

• Retail hype in this bull market slower than usual, much attention siphoned away by AI.
• Yago’s critical macro thesis:
  • AI’s commoditization of compute and intelligence will spawn massive productivity, create more capital, but reduce tech company margins.
  • The only asset to remain scarce in a world of digital/plentiful AI is Bitcoin.
• Yago [28:06]:
  “If you think AI is going to be successful ... the only thing that remains scarce in an AI world is Bitcoin.”

10. Bitcoin OS: The Road Ahead

[28:20–29:09]

• Major Bitcoin OS (BOSS) launch and token debut just weeks away; the platform aims to make Bitcoin the base layer for a global financial system and asset tokenization.
• Promise of a deep-dive episode into BOSS’s technology and vision, coming soon.

Notable Quotes & Memorable Moments

• Scott [01:27]:
  “We got our own little thing going on here.” (On Bitcoin narratives vs. TradFi news)
• Yago [06:52]:
  “You are picking up pennies in front of an oncoming train and yet it continues.” (On risky CEX trading)
• Yago [13:52]:
  “We can’t see maturation outside of TradFi until we get true decentralized systems and DeFi for Bitcoin … this has been an obsession for me for almost a decade now.”
• Yago [17:13]:
  “You wonder, like, how big is the DJ market? There’s a sucker born every minute possible.”
• Yago [20:51]:
  “The number one chain where people want to have long-term significant asset holdings is Bitcoin.”
• Yago [28:06]:
  “If you think AI is going to be successful ... the only thing that remains scarce in an AI world is Bitcoin.”

Timestamps for Important Segments

• BTC Price & Uptober macro discussion: [00:00–02:06]
• ETF inflows despite volatility: [03:20–04:01]
• Flash crash impact/market response: [04:01–06:52]
• Dangers of trading on CEXs / leverage: [06:52–10:29]
• DeFi reliability and differentiation: [09:53–10:53]
• Institutional custody & maturing infrastructure: [10:53–12:57]
• Why DeFi/Decentralization on Bitcoin matters: [12:59–14:02]
• DOJ Bitcoin seizure/pig butchering scam: [15:07–19:03]
• Tokenization and Bitcoin OS vision: [19:23–24:34]
• AI narrative and “the only thing that remains scarce:” [24:34–28:08]
• Bitcoin OS (BOSS) upcoming launch: [28:20–29:09]

Conclusion

This episode offered a rich, multifaceted discussion about Bitcoin's current volatility, infrastructure issues, the maturing crypto market structure, and transformative narratives like AI and asset tokenization. The conversation cut through market noise to highlight the deep structural shifts underway, how Bitcoin is integrating with global finance and technology, and why decentralization is more crucial than ever. The episode closes with anticipation for the imminent launch of Bitcoin OS—a project aiming to anchor the next era of decentralized finance directly on Bitcoin.