Podcast Summary: The Wolf Of All Streets

Episode Title: Bitcoin Tests KEY $111K Support As Market Selloff Continues! Will It Hold?
Host: Scott Melker
Guests: Yago (prominent Bitcoin advocate and builder), plus other minor contributors
Release Date: September 25, 2025

Episode Overview

Scott Melker sits down with Yago to dissect the ongoing Bitcoin market volatility, especially as Bitcoin tests critical $111K support amid a broader market selloff. The conversation pivots from technical price analysis to structural shifts in the crypto mining industry, institutional adaptation, and the intersection of energy, policy, and global talent. Rather than focusing solely on price, the episode delves deeply into what’s actually driving the current state of Bitcoin—from geopolitics and energy constraints to the changing nature of institutional adoption and the aspiration for “institutional-grade DeFi” on Bitcoin.

Key Discussion Points and Insights

1. State of the Market: Testing the $111K Support

• Background ([00:01]–[00:48]):
  • Bitcoin has pulled back from recent highs around $117K and is now testing key support at $111K.
  • Market sentiment is mixed: “Still trading in a range but definitely showing some potential weakness here. Will this support hold? Are we about to go into a much larger correction?” – Scott Melker ([00:01])
  • Despite the turbulence, the environment remains one of heightened interest, especially among institutions.

2. The Changing Nature of Bitcoin Mining

• Miners as Data Centers ([01:31]–[03:44]):

  • Mining stocks have surged, spurred by news like Google’s stake in Cipher Mining and the narrative that miners are “data centers for AI”—not just BTC producers.
  • Energy is the New Battleground: Rising U.S. electricity costs (up 6.5%)—driven by demand from AI data centers—threaten the profitability of U.S.-based Bitcoin miners.
    • "Electricity in the US is getting more expensive... primarily because of the massive need for energy by the data centers, by the AI companies. They are just ridiculously hungry." – Yago ([02:20])
  • Outlook: BTC mining may become less viable in the U.S., possibly shifting back to China, which is investing heavily in power infrastructure.

• Mining Centralization Redux ([05:26]–[07:47]):

  • After China banned mining, fears of overcentralization there were replaced by concern about decentralization's impact.
  • Now, with China’s rapid infrastructure growth, mining could quietly return to Asia.
  • There’s lingering strategic risk for the U.S.—energy, tech leadership, and regulatory inertia.

3. Institutional Shift and Bitcoin as Counterparty Risk-Free Settlement Layer

• Growing Institutional Holdings ([09:37]–[10:25]):

  • 2.5M–6M BTC now held by institutional/professional money managers.
  • Demand grows for assets without counterparty risk; Bitcoin and gold are favorites.

• The Race for Institutional-Grade DeFi ([12:09]–[16:34]):

  • Institutions want the ability to:
    • Use BTC as collateral—without surrendering custody (“locked up as collateral, borrowing against it, but it stays locked in your wallet” – Yago [16:34])
    • Hedge, generate yield, and engage in options—all with less counterparty risk.
  • Platforms like BOSS aim to bring “institutional-grade DeFi” to Bitcoin, allowing programmable, custodian-integrated use cases for BTC.

4. Narrative vs. Reality: Where Is Institutional Capital Really Flowing?

• Bitcoin Remains King ([14:43]–[15:22]):

  • Despite loud narratives pushing Solana and Ethereum, “if you actually look where institutional capital is, it’s 90% Bitcoin and 10% Ethereum with almost nothing in Solana or anything else.” – Yago ([15:03])
  • Much-hyped “treasury companies” are overwhelmingly Bitcoin-centric (MetaPlanet, MicroStrategy).

• The Store-of-Value & Utility Hierarchy ([19:28]–[20:11]):

  • Market breaks down into:
    • Bitcoin: long-term store of value and institutional uses
    • Stablecoins: short-term store of value, payments
    • Everything else: casino-like asset trading, smaller in comparison
  • “Plugging into that, that’s the biggest opportunity.” – Yago ([20:11])

5. Price Action in Context: The Illusion of Outperformance

• Why Bitcoin's Rally May Be Overstated ([20:26]–[22:17]):
  • When measured against other currencies/living costs, recent Bitcoin (and S&P 500, NASDAQ) gains are muted or even negative.
  • “Much of what we're seeing right now—like this bullishness... is actually an illusion because it's really the dollar that is doing really poorly." – Yago ([22:09])
  • The dollar has had its weakest year in decades; inflation and purchasing power continue to erode.

6. Macroeconomic Headwinds and America’s Structural Challenges

• Energy, Talent & Policy Dilemmas ([07:47]–[09:08]; [23:24]–[26:47]):
  • The US faces stagnation: energy price spikes, regulatory hurdles, skill mismatches in the workforce, and waning ability to attract global talent.
  • “The US’s superpower has been this ability to import and attract the world’s best talent. That is a critical strategic input.” – Yago ([08:29])
  • “If energy prices are going up, if the cost of industrial inputs is going up… that’s how you really get stagflation. And stagflation... took 20 years for the US to just sort of work its way back.” – Yago ([25:29])
• Federal Reserve: Losing Influence
  • Market participants may be overestimating the Fed’s ability to solve these structural issues. “The Fed is becoming less and less relevant.” – Yago ([23:43])

Notable Quotes & Memorable Moments

• On shifting narratives about China and mining:
  • “It’s like the most schizophrenic bipolar narratives that we always have surrounding China.” – Scott Melker ([06:26])
• On illusion of Bitcoin’s performance:
  • “Bitcoin’s been extremely disappointing… When you price in euros or Swiss francs, S&P 500, NASDAQ have all underperformed.” – Yago ([20:39])
• On institutional priorities:
  • “Not pretend DeFi, but institutional grade DeFi integrated deeply with custodians, with the institutions, which allows you to utilize BTC as collateral.” – Yago ([12:09])
• On the ultimate application for Bitcoin DeFi:
  • “If they can create a smart contract where BTC is locked up as collateral, and it only moves if I don’t pay back the loan… That’s super exciting. That’s a multi-hundred billion dollar market.” – Yago ([16:34])
• On the realities of US decline and stagnation:
  • “The productivity growth, the economic growth, the ability for people to live a middle-class lifestyle…those vanished in the 70s and they’re not back.” – Yago ([25:29])

Timestamps for Key Segments

• State of the Market / Bitcoin Testing $111K: [00:01]–[00:48]
• Miners & Energy Crunch / Google Enters Mining: [01:31]–[03:44]
• Shift to Institutional Holdings and Counterparty Risk: [09:37]–[10:54], [12:09]–[13:35]
• DeFi on Bitcoin & Institutional Adoption: [12:09]–[16:34]
• Narratives vs. Reality in Institutional Flows: [14:43]–[15:22]
• Store-of-Value Market Hierarchy: [19:28]–[20:11]
• Bitcoin Price Performance in Real Terms: [20:26]–[22:17]
• Structural Macro Challenges/Stagflation: [23:43]–[25:42]

Conclusion

This episode provides a masterclass in macro-crypto analysis. Rather than simple price forecasting, Melker and Yago take listeners behind the curtain of institutional Bitcoin adoption, the intricacies of mining economics now entwined with AI and energy politics, and why the most important innovations may come from making Bitcoin programmable in ways that matter to large, risk-averse investors.

Yago’s refrain—that Bitcoin’s promise is real but its price action and narrative are heavily distorted by global macro and policymaking failures—offers a sobering, nuanced, but ultimately bullish perspective for long-term builders. The episode ends on a reminder to focus less on the daily news cycle and more on understanding the tectonic shifts going on beneath the surface.