Podcast Summary: "BlackRock Outflows Explode! Is Crypto About to Crack?" | The Wolf of All Streets w/ Scott Melker

Date: November 19, 2025
Podcast: The Wolf Of All Streets
Host: Scott Melker

Overview

This Crypto Town Hall episode, hosted by Scott Melker, tackles the recent turmoil in crypto markets, sparked by record outflows from BlackRock’s Bitcoin ETF and ongoing debates about cyclical market behavior. Industry figures weigh in on regulatory developments, market structure, institutional adoption, and the growing separation between Bitcoin and the wider altcoin market. The episode maintains its trademark irreverence, skepticism, and depth, while closing with an extended AMA on Bitcoin OS, a technology aiming to make Bitcoin programmable and more versatile.

Key Discussion Points & Insights

1. Cloudflare Outage & Market Access Inequality (00:00–02:22)

• Scott Melker opens by joking about internet instability after Cloudflare’s outage, which temporarily locked out retail crypto traders from exchanges like Coinbase and Kraken.
• Dave notes that professional traders with direct access bypassed these issues:
  "The professionals were able to play, and retail was kept out." (00:47)
• Both hosts lament the persistent risk of exchange outages and highlight this as a reason for decentralized, robust market infrastructures.

2. Are Crypto Markets About to Crack? (02:22–03:38)

• Scott & Dave clarify the episode’s alarmist title:
  "The answer… is crypto about to crack? If the question was, is Bitcoin about to crack? The answer would be definitively no. Crypto is a different story…" (01:53)
• They argue that many tokens have already “cracked,” with little utility or foundation support remaining.

3. Regulatory Updates & SEC’s Approach (03:38–14:38)

• Perri Ann (Chamber of Digital Commerce) provides historical context on crypto regulation, mentioning SEC Chair Paul Atkins’ new project addressing token taxonomy and best practices (04:00–08:00).
• She recalls the 2017 ICO era and early industry–regulator collaboration on frameworks for token launches, KYC, and stablecoins.
• She interprets SEC policy shifts as distinguishing between true digital asset securities and tokens outside the SEC’s scope:
  "Most tokens are not in the SEC's jurisdiction. Some are...The issue… is which ones are in and which ones are out. Getting that clarity has been the most important thing to solve." (06:38)
• Dave presses on the challenge posed by legacy securities rules (like accredited investor requirements), wondering if safe harbors and regulatory sandboxes are coming.
• Perri Ann reaffirms the market’s top regulatory priority is clarity, predicting sandbox conversations will come in “phase two.”
• Discussion expands to the ambition for a “Super App” (everything-in-one trading platform) and Elon Musk’s possible plans for X.

4. Media Narratives, 60 Minutes, and Regulatory Dysfunction (14:38–24:18)

• Austin discusses the shift in mainstream media coverage:
  "The headline would have been ‘crypto bad’…Now they’re actually keeping it significantly more narrow." (15:03)
• He points out ongoing regulatory fragmentation and complexity, especially post–Dodd Frank, which complicates U.S. markets for both traditional finance and crypto.
• Dave sarcastically reflects on the “consolidated audit trail” fiasco:
  "15 years later, still being argued about … even if finished … it still wouldn’t include futures … That's the status of regulation in Washington." (18:17)
• Panel agrees that regulatory clarity in crypto may soon surpass that in legacy finance.
• Jokes about 60 Minutes crafting narratives for attention; audience is partly to blame:
  "The whole media ecosystem … If you think it's anything other than entertainment, you've misunderstood what's going on." (20:03)

5. Political Undertones & Double Standards (23:19–24:18)

• Panelists criticize mainstream media bias, referencing the Trump campaign’s lawsuit against 60 Minutes and questioning the fairness of crypto figures’ treatment compared to traditional bankers:
  "It can't be that it's illegal when crypto does it, but it's legal for banks to do it. You've got to pick one." (23:19 – Austin)

6. BlackRock ETF Outflows & Market Sentiment (24:18–29:13)

• Dave interprets record BlackRock outflows as a retail-driven, possibly contrarian signal:
  "It feels way more bottomy than toppy … These are retail outflows as opposed to institutional." (24:28)
• Matthew uses technical (Elliott Wave) and macro indicators—like FX trends and expectations of Fed rate cuts—to argue for a market bottom, possible Christmas rally, and Bitcoin leading new all-time highs:
  "In general, I think things are just about to turn around … I believe all-time highs for Bitcoin, for Ethereum, for quite a few others." (26:34)

7. The Fate of the Four-Year Bitcoin Cycle (29:25–43:01)

• Yago and Scott discuss whether the historic “Bitcoin four-year cycle” remains intact.
• Yago notes:
  "We are at the cusp of a huge revelation … Has the four-year cycle broken or are we still in that paradigm?" (29:25)
• They highlight declining volatility, record outflows, and structural changes in institutional and crypto fund participation.
• General consensus: Altcoins have dramatically underperformed Bitcoin; the four-year cycle model is rapidly losing relevance.
• Breakdown of how AI-driven equity performance has skewed overall stock market returns, with only a handful of tech giants responsible for 2025’s positive index moves.

8. Macro Reflections & Banking Regulation (43:20–52:04)

• Dave says:
  "You can't have a cycle and claim there's a four-year cycle with Bitcoin based on the halving…" (43:25)
• Identifies ongoing “meta-cycle” shaped by politics (Trump, Biden policies), Basel Committee monetary regulations, and the growing global acceptance of Bitcoin as “pristine collateral.”
• OCC letter reportedly allows banks to custody small crypto amounts for gas fees—a subtle endorsement of institutional adoption not yet fully factored in by the market:
  "This turn by the OCC … is a nice little crack in the door that gives banks exposure to crypto … gives … institutional credibility." (50:35 – Carla)

Notable Quotes & Memorable Moments

• (01:53) Scott: "Is crypto about to crack? … If the question was, is Bitcoin about to crack? The answer would be definitively no. Crypto is a different story."
• (06:38) Perri Ann: "Most tokens are not in the SEC's jurisdiction. Some are. … Getting that clarity has been the most important thing to solve."
• (18:17) Dave: "15 years later, still being argued about … even if finished … it still wouldn’t include futures … That's the status of regulation in Washington."
• (20:03) Austin: "The whole media ecosystem … If you think it's anything other than entertainment, you've misunderstood what's going on."
• (23:19) Austin: "It can't be that it's illegal when crypto does it, but it's legal for banks to do it. You've got to pick one."
• (24:28) Dave: "It feels way more bottomy than toppy … These are retail outflows as opposed to institutional."
• (29:25) Yago: "We are at the cusp of a huge revelation … Has the four-year cycle broken or are we still in that paradigm?"

Bitcoin OS AMA: The Future of Programmable Bitcoin

(53:16–76:11)

Introduction to Bitcoin OS

• Yago (founder/developer) outlines an ambitious mission: Bringing programmability, scalability, and privacy to Bitcoin without changing the core protocol by integrating zero-knowledge proofs.
• Key features:
  • Programmable tokens, privacy features, cross-chain rollups (ex: integration with Cardano, Litecoin)
  • BOSS token as a gas token akin to ETH gas, enabling compute and transaction execution on Bitcoin

Notable Exchanges

• (60:48) Yago: "Privacy is not something built into the system yet. … But what this allows us to do is … take any piece of software, turn it into a verifiable proof using cryptography, and then turn it into a smart contract on Bitcoin."
• (64:31) Yago: "For that to be something I can do and still see value in the BTC, I need to be able to utilize it as collateral … I need to be able to lock it up, borrow against it, stake it … and not have to trust anyone else."

Institutional Adoption

• Over $300 billion in BTC is institutionally managed; institutions want programmable, trust-minimized solutions (67:46).

Roadmap & Call to Action

• Next: Launch of Bitcoin rollups, further chain integrations, and growth of community tools via Discord/Telegram/Twitter (@btcos).
• Vision: Unifying all of crypto around Bitcoin as the “Internet of value.”

Timestamps for Key Segments

• Cloudflare Outage & Market Access: 00:00–02:22
• Regulatory Changes & SEC: 03:38–14:38
• Media Coverage & Bias: 14:38–24:18
• BlackRock Outflows & Sentiment: 24:18–29:13
• Bitcoin Cycle Debate: 29:25–43:01
• Altcoin Market Performance: 39:05–43:01
• Meta-cycle, Basel Committee, OCC Letter: 43:20–52:04
• Bitcoin OS AMA: 53:16–76:11

Tone & Style

• Conversational, candid, and deeply informed—panelists don’t hesitate to mix technical analysis with irreverent humor, skepticism, and philosophy about the future of money and markets.

Final Thoughts

This episode asks if crypto is about to “crack,” and answers with nuance: Bitcoin remains robust and increasingly institutional, while much of the altcoin market languishes under regulatory uncertainty and lack of utility. Regulatory clarity is slowly emerging, legacy finance is stymied by its own complexity, and the four-year cycle dogma is on the ropes. In parallel, technological innovation—represented by Bitcoin OS—may drive the next wave of user and institutional adoption, integrating all of crypto’s disparate tools onto the world’s oldest and most secure blockchain.

For more, follow @scottmelker and the show’s recurring guests on X (Twitter) and check out Bitcoin OS at @btcos.