The Wolf Of All Streets: "Bitcoin Sentiment Cracks As Coinbase Posts Massive Losses & Capital Exits!"

Host: Scott Melker
Date: February 13, 2026

Episode Overview

In this solo “freestyle” Friday episode, Scott Melker dives deep into the shaken state of crypto sentiment amid headlines of Coinbase’s significant losses, market downturns, and contrasting optimism from institutional circles. Drawing on fresh insights from a recent industry conference, Melker unpacks media narratives, regulatory developments, the changing landscape of crypto investing, the explosive role of AI, and why retail and institutional moods couldn't be more different. The episode is peppered with candid anecdotes, dry humor, and Melker’s signature blend of realism and bullishness for crypto’s future.

Key Discussion Points & Insights

1. Crypto Market Sentiment and Media Narratives

Timestamp: 00:01–10:00

• Melker sets the stage: Sentiment is “in the dumpster” after Coinbase’s poor earnings.
• Despite surface-level negativity, institutional enthusiasm remains strong.
• Media Critique: Scott mocks Bloomberg's conference coverage:

  “Oh, Pomp's Crypto Pep Rally Turns into Coping Strategies Session. I mean, if ever there was a more ridiculous headline that belonged in the Onion or the Babylon Bee, this is pretty much it.” (03:15)

• Retail vs. Institutional Split:
  • Retail is “fearful, depressed, and sad”—the Fear and Greed Index recently hit an all-time low of 5.
  • Institutions at the conference viewed the downturn as a buying opportunity.
• Quote:

  “These were a lot of adults who are very interested in buying bitcoin at this price and who are bullish on the industry. They don't think that price being down is an indictment of the asset class itself.” (07:40)

2. Institutional Adoption & Buying Process

Timestamp: 10:01–16:00

• Scott recounts conversations with Matt Hougan (Bitwise) about how large allocations to Bitcoin unfold.
  • Institutional willingness to buy is often gated by their own holding period and client persuasion cycles, stretching over years.
  • Hunter Horsley's recent Bitwise tweet: A client finally deployed $11M in BTC after two years of discussion.
• Quote:

  “We have this sustained demand that's going to be coming for many years, but most of that has not unlocked yet...this process is just starting.” (12:00)

3. Regulatory Landscape & “Crypto Dad” Chris Giancarlo

Timestamp: 16:01–23:00

• Regulatory optimism: CFTC’s Innovation Advisory Committee is meeting every two weeks.
• Key Players:
  • Chris Giancarlo (“Crypto Dad”): Former CFTC Chair, pro-crypto, deeply involved.
  • Mike Selig and Paul Atkins: Now influential in pro-crypto meets with regulators.
• Quote:

  “The fact that this even exists is such a far departure from what we've seen in the past and shows that the regulators are very, very serious about this industry.” (18:40)

• Legislation Outlook: Clarity Act might pass (Giancarlo puts odds at 60/40), but likely won’t be popular in crypto circles.
  • Humor:

    “6040 is not exactly high confidence. You'd be sweating at the poker table if you were about to get your aces cracked at 60 40.” (21:15)

• Cynicism on the Genius Act:
  • Seen as codifying anti-privacy dystopian aspects into stablecoin law.

  • “We basically went partially China with our stablecoin legislation and we were too busy cheering and being excited about that...to actually look under the hood at what it said.” (22:10)

4. Venture Capital Trends & The Demise of ‘100x’ Hype

Timestamp: 23:01–29:00

• VC activity isn’t dying; money is shifting from hyped blockchain projects to stablecoin infrastructure.
  • $2B recently went into just stablecoin infrastructure.
• Scott highlights Dan Tapiero’s “late stage” private equity strategy—seeking 5–8x returns versus unattainable “100x” dreams.

• “The, the, the hundred X idea. Novogratz said it, that's pretty much gone from the crypto market. If you were here for a lottery ticket, you might be very disappointed moving forward...” (24:50)

5. The AI — Crypto Intersection and FTX’s Anthropic Investment

Timestamp: 29:01–37:00

• Dissects the $380B Anthropic valuation:
  • Feels media is forcing an AI/crypto synergy narrative, often artificially.

  • FTX’s $500M Anthropic investment, liquidated at bankruptcy, would have been worth $30B.

    “One of the best investments of the decade liquidated at the worst possible moment...this gives me major PTSD back to the days of [Voyager]...They liquidated all of our assets at the literal dead bottom of the market.” (34:30)

• AI is “very popular” now, so be cautious; by contrast, “crypto is not popular, so be excited.”
• Jordy Visser expects an AI valuation compression soon, advises focusing on “boring and unpopular” assets like Bitcoin.

6. Coinbase Earnings: Bullish Beyond the Headlines

Timestamp: 37:01–42:00

• Coinbase headlines: Revenue down 22%, $667M net loss, per-share miss.
• Melker’s take:
  • Bear market is about retail exiting, not fundamentals.
  • Coinbase’s “12 products with $100M+ annualized revenue” is a pivot to “everything company” status; institutional backbone is being built.

  • “This will be one of the biggest five or ten companies in the United States in the coming years... I still tend to see it now.” (40:12)

• Light-hearted rivalry: Robinhood touted 11 businesses with $100M revenue, prompting comparison jokes.

7. Governmental and State Adoption

Timestamp: 42:01–45:00

• Indiana advances bill to allow state retirement funds to invest in crypto ETFs—sign of mainstream adoption.

• Recurring question: Why doesn’t this bullish news translate to price action?

  “When prices inevitably start to rise, we will once again look back... and say, damn that was awesome. Like, those things really mattered.” (44:45)

• Institutions and states are adopting crypto; bullish regulatory climate persists.

8. Anecdotes from the Conference: AI, Dystopia, and the Future of Work

Timestamp: 45:01–55:00

• Late-night conversations with industry legends (Bill Barhydt, Jeff Booth, etc.) about AI’s impending disruption.
• Bill Barhydt:

  “I've been awake for 10 days just programming AI agents. It's going to get really gross, dangerous, scary out there...It's already the best chief of staff assistant I have. It does all of my legal work. I can fire basically everyone.” (46:50)

• Everyone expects AI agents to go “parabolic,” with most tasks automated; the backdrop is a “dystopian” few years (Jordy Visser).

• Jeff Booth’s tech-deflation versus government-inflation thesis:

  “A beautiful world of deflation does not work with a government that wants to survive and needs to print money...you're going to have endless money printing and systematic inflation...while in theory, you're fighting against the natural force of deflation and abundance.” (51:30)

• Candid humor about privacy invasions and sex robots:

  “Those optimist sex robots are going to do. I've seen those movies. Scarlett Johansson is coming for you and maybe on you, but I shouldn't have said that.” (52:50)

9. Closing Sentiment: Bear Market, Buyer Excitement, and Where We Go Next

Timestamp: 55:01–End

• Melker polled the conference: 85% believe the market has bottomed, only 2 foresee lower lows.
• He reiterates his conviction to buy the dip, regardless of further downside.
• Shouts out to Mike McGlone’s growing popularity for his bearish calls; jokes about Narnia and Rivendell.

• “There are a lot of people out there still with dry powder that are very excited to buy this dip. And regardless whether it goes lower or not, I am definitely one of them.” (57:23)

Notable Quotes

• On Market Fear:

  “This is the most fearful and depressed and sad and concerned that retail has ever been in the history of this market... lower than FTX, Celsius, Voyager, BlockFi.” (09:35)

• On Legislation’s Mixed Blessing:

  "The idea of having private digital cash right now is gone...we basically went partially China with our stablecoin legislation..." (22:15)

• On AI Disruption:

  “It's already the best chief of staff assistant I have. It does all of my legal work. I can fire basically everyone.” – (Bill Barhydt, recounted by Melker, 46:53)

• On Institutional vs. Retail:

  “There's a pro crypto or bitcoiner in every single level of the government and we're likely going to get deregulation so that the future of this country is actually growth and not stifling innovation...” (44:50)

Memorable Moments & Tone

• Melker’s dry jokes (“Indiana is a place—I don’t know, does anybody ever been there?” (42:40), “Scarlett Johansson is coming for you and maybe on you, but I shouldn’t have said that.” 52:50)
• Pop culture quips (Chappelle Show, Lord of the Rings, etc.).
• Open skepticism of media narratives versus on-the-ground sentiment.
• Candid conference anecdotes, highlighting both optimism and anxiety about crypto’s and AI’s immediate futures.

Key Timestamps

• State of Market Sentiment: 00:01–10:00
• Institutional Buying Mechanics: 10:01–16:00
• Regulatory Landscape & Legislation: 16:01–23:00
• VC Trends & Investment Returns: 23:01–29:00
• AI, Anthropic, and FTX: 29:01–37:00
• Coinbase Earnings Deep Dive: 37:01–42:00
• State Crypto Adoption: 42:01–45:00
• AI Dystopia & Future Tech: 45:01–55:00
• Closing Sentiment & Market Outlook: 55:01–end

Summary Takeaway

While headlines scream fear and losses, Scott Melker demonstrates that the real story is one of institutional resilience, growing state and federal adoption, and a maturation of both the crypto and AI industries. The path ahead may be “dystopian” and fraught with market pain, but seasoned participants remain strategically bullish, committed to building and buying. Melker’s bottom line: ignore the noise, follow the smart money, and be ready for opportunity—because these are the times fortunes are made.