Podcast Summary: The Wolf Of All Streets

Host: Scott Melker
Guest: Jeff Garzik (Hemi, Block)
Episode: Bitcoin Holds $90K While Global Markets Remain On Edge! Dead Cat Bounce Or Reversal?
Date: November 19, 2025

Episode Overview

Scott Melker welcomes Jeff Garzik, a Bitcoin OG and current lead at Hemi and Block, to explore the fast-moving dynamics in the Bitcoin market during a period of global economic uncertainty. They dissect current market volatility, macroeconomic headwinds (like the unwinding yen carry trade and inflation), ETF outflows, yield opportunities, and regulatory shifts—all while pondering Bitcoin’s long-term role amid chaos and innovation in global finance.

Key Discussion Points & Insights

1. Bitcoin’s Volatility and Market Cycles

• Long-Term Perspective:

  • Jeff has been involved “since before bitcoin had a price” [02:38], offering key historical context.
  • Scott notes how Bitcoin is officially in bear market territory for 2025, challenging assumptions about traditional four-year cycles.
  • Quote: “Bitcoin’s in the red for 2025...this is supposed to be the boom year of the four year cycle.” (Scott, [09:10])

• Volatility as Opportunity:

  • “Bitcoin is a volatile asset right now...I’m loving it...Volatility is what this [DeFi] project loves.” (Jeff, [03:45])
  • Traders benefit from the ongoing volatility despite pain for long-term holders.

2. Trading, DeFi, and Yield Mechanisms

• DeFi Strategies vs. Traditional Carry Trade:

  • Jeff highlights innovations on Curve’s Yield Basis project, where users can leverage up to 2.5x in LP pools and potentially “eliminate impermanent loss” while earning 10%+ yield—even in a bear market [05:10-06:44].
  • Unlike classic carry trades, DeFi’s mechanisms bring unique risks and rewards accessible to more market participants.

• Yield for Institutions:

  • “Institutions are coming in, ETFs are coming in...the OGs wanted to give them bitcoin and maybe, you know, cash out a little bit before the next wave.” (Jeff, [07:36])
  • OGs are rotating to ETFs and institutional holders, while new buyers keep soaking up liquidity.

3. Macro Headwinds: The Yen Carry Trade and Fourth Turning

• Japan’s Unwinding Carry Trade:

  • The yen’s formerly ultra-low rates funded global markets; with Japanese yields rising, the “global unwind” creates unprecedented macro risk.
  • Quote: "That's a global unwind. So that's a massive headwind...But I'll bring a tailwind...the US government is using the US dollar and crypto stablecoins to extend the life of US Treasuries." (Jeff, [12:07-14:25])

• Fourth Turning Theory:

  • Explains systemic financial repetition due to generational amnesia. Each “fourth turning” brings opportunity for major change, and current trends suggest a contest between fiat and hard money (Bitcoin, gold) [12:07-14:25].

4. Stablecoins and Their Role

• Stablecoin Demand & Business Models:

  • Even as global rates shift, companies like Tether and Circle are poised to profit: “Tether famously has a couple hundred employees. Their revenue per employee is a hundred x what Goldman Sachs or any other company revenue per employee is.” (Jeff, [15:39])

• Regulatory Silliness & Revenue:

  • Regulatory restrictions ironically force stablecoin issuers to keep all yield, making their business extremely lucrative [15:39].

5. US Regulatory & Institutional Adoption Shifts

• Legal Environment Changes:

  • Banks can now hold crypto to pay for blockchain fees, a dramatic reversal from regulatory hostility just one year prior [19:34].
  • “The new US administration has really done a 180 on crypto...from crypto negativity to crypto positivity...crypto is open for business in the US.” (Jeff, [19:34-21:23])

• City & State Initiatives:

  • New Hampshire’s $100 million Bitcoin-backed municipal bond is seen as a meaningful step, possibly opening a new era for digital assets in government finance [21:23].

• Skepticism on Government Buying Bitcoin:

  • Jeff voices concern about strategic government Bitcoin reserves: “I don’t think the government should be buying bitcoin to generate a strategic bitcoin reserve...bitcoin and tax dollars ought to be in kind of two separate bubbles.” (Jeff, [22:17])

6. Building on Bitcoin: Hemi, Yield, and Institutional Utility

• Hemi: A Bitcoin Layer-2 for Yield

  • Jeff describes Hemi as a “Treasury grade execution layer for bitcoin...power lending liquidity and rate markets with transparency, not trust.” (Scott, [23:19])
  • Focuses on bringing native yield opportunities to Bitcoin without rehypothecation or custodial risk—a practical answer for holders and institutions [23:59-26:57].
  • Quote: “Bitcoin itself doesn’t have a native yield mechanism...You want to hold Bitcoin, you want to earn without a lot of risk as a Hodler, as a long term Bitcoin holder. And that’s what we’re addressing: the Bitcoin pragmatist.” (Jeff, [23:59])
  • Institutions value even 1–4% yield over 0%, creating a large new market.

• Yield Without Custody Sacrifice:

  • Non-custodial DeFi smart contracts enable yield while maintaining key control, although smart contract risk remains [27:23].

• Anticipating Institutional Demand:

  • Hemi prepared for institutional adoption once US courts cleared ETFs—a “zero to one moment” [28:33].

7. Regulation, Progress, and Crypto’s Future in the US

• Upcoming Regulatory Bills:
  • Scott notes optimism from politicians and Coinbase’s Brian Armstrong on a December crypto market bill.
  • SEC has removed crypto from its agenda for 2026—a clear sign of less regulatory overhang.
  • “We’re hiring in the United States...crypto job market is as hot as ever.” (Jeff, [30:48])

8. Bitcoin’s Origins, Maintenance, and Cultural Shifts

• Bitcoin’s Code Is Stable:

  • Jeff dispels claims of external influence, stating that since 2010, “the code has been in maintenance mode since Satoshi left” and only minor tweaks occur, not fundamental changes [33:21-34:41].
  • “We’re all polishing Satoshi’s gem at the end of the day.” (Jeff, [33:47])

• Lessening Maximalist Tensions:

  • Criticism from hardline maximalists is less impactful as the community matures and “new folks” enter the space [34:52].

• Craig Wright Discredited:

  • Both agree the legal system has finally settled Craig Wright’s Satoshi claims: “Thank goodness for it.” (Jeff, [35:31]).

9. Looking Forward: Inflation, Crisis, and Bitcoin’s Role

• Inflation and Stimulus:

  • The “money printer” is going strong—stimulus checks, rate cuts, and inflation loom [36:24].
  • Bitcoin’s role is “hyperinflation insurance,” not for mild inflation but protection when “inflation goes from 2 to 200%.” (Jeff, [37:20])

• Crisis Safe Havens:

  • “Bitcoin and gold, ammunition, tobacco and nails...alcohol too.” (Jeff, [37:57-38:17])

10. Bright Spots, Killer Apps & The Future

• Stablecoins & Markets:

  • Heavy innovation in stablecoins: “Competition always creates the, the gems...You got 100 stable coins, 95 will die and the remaining, hopefully peacefully.” (Jeff, [39:42])
  • Three killer crypto apps:
    1. Bitcoin (the token)
    2. Stablecoins (mainstream adoption)
    3. Prediction markets (PolyMarket)

• Bitcoin Beyond Earth:

  • Discussion veers into space: Garzik, who’s sent satellites into orbit, believes Bitcoin will go to the Moon and Mars, highlighting the affinity space sector workers have for crypto [41:01].
  • “Governance, jurisdiction and money comes into the conversation and that’s where crypto enters...space and crypto always going to be best friends.” (Jeff, [41:01])

Notable Quotes with Timestamps

• “Bitcoin is a volatile asset right now...I’m loving it” (Jeff, [03:45])
• “Institutions are coming in, ETFs are coming in...the OGs wanted to give them bitcoin and maybe, you know, cash out a little bit before the next wave.” (Jeff, [07:36])
• “Crypto is maturing...now that we’re integrated into the worldwide financial structure...we’re much more unfortunately correlated with the global macro.” (Jeff, [09:57])
• “It’s more, there’s going to be chaos, not doom...If I was the Hollywood writer writing the script, I wouldn’t say it’s straight to doom.” (Jeff, [17:08])
• “Yield is where it’s at. And how do you get that yield? ...When you have volatility you have trading fees. When you have trading fees, you have yield. Yield. So all of that feeds back into the long term Hodler narrative. You can get paid for hodling. That’s what yield is fundamentally.” (Jeff, [25:56])
• “Crypto is open for business in the US.” (Jeff, [21:23])
• “Bitcoin is...hyperinflation insurance...Inflation goes from 2 to 200 percent, bitcoin is absolutely your savior.” (Jeff, [37:20])

Engaging/Memorable Moments

• Tech Glitches & Humor:

  • Streamyard issues and funny anecdotes about software and Cloudflare failures demonstrate the headaches of dependence on centralized web services [00:00-02:27].

• Space & Bitcoin:

  • The episode closes with talk of bitcoin as a space currency: “We’re going to see cities on the moon very soon...Crypto and space always going to be best friends for sure.” (Jeff, [41:01-42:16])

Timestamps for Important Segments

• [00:00-02:38] — Intro, Cloudflare outage, decentralization humor
• [03:45-06:44] — Yield trades, BTC DeFi, and market volatility
• [09:10-10:59] — Four-year cycle skepticism, macro correlations
• [12:07-14:25] — Fourth Turning, Yen trade, macro systemic risks
• [15:20-16:25] — Stablecoin companies and falling rates
• [19:34-21:23] — US regulatory shift, banks holding crypto, optimism
• [21:23-23:02] — New Hampshire Bitcoin bond, strategic reserves discussion
• [23:19-26:57] — Hemi, Bitcoin L2 for yield, non-custodial yield
• [27:23-29:23] — Institutional use case, Hemi’s market timing
• [30:48-32:00] — Regulatory bills, US hiring, better environment
• [33:21-34:41] — Epstein rumors, Bitcoin’s immutable core code
• [36:24-37:49] — Money printing, inflation, and Bitcoin as insurance
• [41:01-42:16] — Space, Moon, Mars, Bitcoin’s future

Final Thoughts

This episode provides a sweeping look at Bitcoin’s current market dynamics, drawing on deep history, global finance, regulatory evolution, and tech innovation—peppered with humor and a tinge of futurism. Jeff Garzik’s seasoned, pragmatic approach contrasts the speculative noise and underscores bitcoin’s endurance and adaptability in a turbulent world. For listeners wanting perspective beyond the headlines, this is a nuanced, insightful discussion of what comes next for Bitcoin and crypto.