Podcast Summary: The Wolf Of All Streets – BTC Worst Q4 in 7 Years. Bottom or Breakdown? #CryptoTownHall

Date: December 23, 2025
Host: Scott Melker
Special Guests/Panelists: Brian, Paul, Mark, Sasha, David, Alexi, and others

Overview

In this special "Crypto Town Hall" episode, Scott Melker and a rotating panel of experts from finance, trading, and crypto dig into Bitcoin's disappointing Q4 — reportedly its worst in seven years. The conversation weaves through market catalysts, regulatory hurdles, privacy tech, quantum computing FUD, institutional flows, and the outlook for DeFi on Bitcoin. The last segment features Build on Bitcoin (BOB) founder Alexi, who outlines his vision for unlocking real DeFi utility for BTC holders. The panelists alternate between caution, bullishness for 2026, and frustration at the ongoing sideways action, all while dissecting what might finally spark the next big move.

Key Discussion Points & Insights

1. The Market Malaise: A Sideways, Narrative-Driven Bitcoin

• Market Doldrums:
  Scott opens with a reflection on the lack of volatility and enthusiasm, noting everyone is waiting for a real catalyst while BTC chops between $86K–$92K.
  “…as much as there is to talk about each day it feels like there's less and less to talk about as bitcoin effectively trades sideways and institutions close their books up for the year…” ([00:00])

• Minor Price Spikes & Their Causes:
  Panelists debate whether the recent $2K–$3K uptick is meaningful. Discussion includes whale buy activity, short squeezes, and looming central bank policy, especially Japan.

  • Kelly: “We are seeing data that there's a little bit of a short squeeze in terms of the price action up to this 90k level… I'm still looking for, you know, a retest back into the mid to low 80s… likely a swing down into somewhere in the 70s.” ([01:12])

• Fed Governor Comments as Catalysts:
  Brian mentions a temporary pump likely tied to a dovish statement (“rates are 50 to 100 bips above neutral”) from Fed Governor Chris Waller, but everyone agrees that without a real, sustained catalyst, sideways action will continue.

  • Brian: “I don't know how true this is, but I'm seeing this latest mini spike being attributable to comments from Fed Governor Chris Waller… the market could be running with that.” ([05:20])

2. Regulatory & Structural Catalysts for 2026

• Clarity Act (Crypto Regulation):
  The panel is unified: nothing big happens until regulatory clarity, possibly via the Clarity Act, triggers true institutional engagement.

  • Brian: “…that could lead to the mother of all bull markets…big institutions have been a bit loathe to really experiment with blockchain based technology just because it comes with heightened legal and regulatory risk…” ([06:45])

• Grayscale’s “2026 Digital Asset Outlook”:
  Scott reviews the report’s top themes for 2026 (e.g., monetary debasement, regulatory clarity, asset tokenization, privacy solutions, AI convergence, and a focus on staking/yield).

  • Scott: “A focus on sustainable revenue. Investors seek out staking by default. These are all the things. I think we've been pounding these 10 things on this show repeatedly for months.” ([16:55])

3. New Tech: Privacy, Layer 2s, and Post-Quantum Security

• SEC’s Endorsement of Privacy Tech:
  Paul highlights “bullish” regulatory mention of zero-knowledge (ZK) privacy — a shock for many, as privacy coins are typically seen as a legal headache.

  • Paul: “Government officials would actually… promote additional privacy in the crypto ecosystem… implying that the transparency of blockchains is hindering its adoption...” ([07:31])

• Layer 2 Solutions for Bitcoin:
  Mark and others argue that scalable, user-friendly Layer 2s (potentially delivering privacy or self-custody benefits) will be key to mass adoption.

  • Mark: “If there's a window onto a better UI for bitcoin where people can have that self custody and have layer twos emerge… that is really the biggest part.” ([10:07])

• Quantum Computing FUD:
  A long detour exposes growing market anxiety around quantum security. Technical panelists agree: it's not an imminent threat, but fear can cause irrational market moves.

  • Paul: “The most powerful technology is not necessarily the one that wins… people are afraid of that narrative to start unwinding some of their crypto positions…” ([20:16])
  • Scott: “If quantum computing issues are realized, if they can hack the Bitcoin network, we're going to be very low on their priority list…” ([20:51])
  • David: “There are ways that blockchain can be secured with quantum resistant ciphers without necessarily having to burden the network as a whole…” ([27:51])

4. Institutional Flows and the “Great Rotation”

• Old vs. New Holders:
  Kelly describes a slow “great rotation” where OG holders take profit into demand from new institutional players (Blackrock, Abu Dhabi, etc.).

  • Kelly: “...feels like we're in... the great rotation new foundation setup... seeing many old players... rotate out... while we're also seeing a new establishment really set a base here.” ([12:59])

• DAFs & Treasury Companies (DATs):
  Fierce debate over whether digital asset treasuries (especially those beyond MicroStrategy) will add value or fade due to oversupply and weak value accrual mechanisms.

  • Brian: “You a have 200 of them. So it's a simple rule of supply and demand. Not all of them are going to take on this premium multiple when you're oversaturated…” ([36:55])
  • Brian: “One of the reasons why we chose to be underpinned by Solana is there, you know, we do have that as a way for us to create value…” ([37:25])

5. Key Quotes & Panel Moments

• On Broken Market Cycles:
  Gary: “4 year cycle I think is complete made up story and I'm so glad it's falling apart now…We have to go through a stage where there are no organic crypto buyers, which makes the market weak.” ([24:33])

• On the Perennial Hopium:
  Scott: “I'm bullish on 2026, but right now it's kind of like, you know, mind your P's and Q's, hop in rooms, learn stuff, get, get in here and be patient.” ([03:45])

• Comic Relief on Failed BTC DATs:
  Gary: “Dude, what a trash investment… Some of these just broken companies, you know…” ([36:02])

6. Spotlight: Build on Bitcoin (BOB) – Unlocking Native Bitcoin DeFi

(with Alexi, CEO/Founder) – [43:19–59:55]

• BOB’s Vision:
  Bringing full DeFi utility to Bitcoin, making BTC as composable and productive as ETH in DeFi — without requiring users to trust third party custodians.

  • Alexi: “Bob is building for Bitcoin what Revolut did for fiat. We're building the rails to make Bitcoin… more productive.” ([43:36])

• The Problem:
  Most BTC sits idle. Wrapped solutions and centralized products are clunky or risky. Bitcoin holders have few ways to use their assets natively in DeFi.

  • Alexi: “Bitcoin sits idle. And that's essentially a problem, right? There's a huge gap in the markets, but there's demand…” ([45:09])

• How BOB Works:
  BOB is a “hybrid chain” utilizing BitVM to create actual Bitcoin L2 rollups. Users can one-click deploy BTC into DeFi apps across chains in a self-custodial, trustless manner.

  • Alexi: “Bob's mission is to enable bitcoin to be used in defi in a native manner. And this is possible through something called bitvm…” ([48:59])

• Token Utility & Governance:
  The BOB token is integral for node operation, security, DAO governance, and offers benefits like lower fees and access perks.

  • Alexi: “It's also a piece that's super relevant for governance. We want to make sure that value ultimately accrues back to the DAO…” ([54:02])

• Dealing with Skeptics:
  BOB isn’t for maximalists who never want to move their BTC — but for the huge cohort that does want to deploy it without core trust risk.

  • Alexi: “The cool thing about bitcoin is that you can do whatever you want with it… Not everybody will use it, but at the same time… there is clear demand.” ([47:40])

• Success Metrics:
  The big milestone: more BTC actively used in DeFi than locked in ETFs.

  • Alexi: “Success for us looks like that by the end of next year we have the full stack live and operational with all products that a bank would offer you, normally offered for bitcoiners in a truly trustless manner…” ([56:54])

Notable Timestamps

• [01:12] – Kelly discusses whale buys, short squeezes, and potential further retracements
• [05:30] – Brian on Fed messaging as a (weak) price catalyst
• [07:31] – Paul on SEC’s surprising privacy endorsement
• [16:55] – Scott recites Grayscale’s top themes for 2026
• [20:16] – Paul on quantum FUD influencing actual portfolio flows
• [27:51] – David explains possible quantum-resistant upgrades for blockchains
• [32:32] – Brian and Mark debate whether digital asset treasuries (DATs) matter in 2026
• [43:19+] – Alexi from Build on Bitcoin explains BOB and native Bitcoin DeFi vision

Recurring Themes and Closing Thoughts

• Institutions will define the next era, but not until there’s regulatory clarity
• Layer 2s and privacy enhancements are bullish developments, but won’t move price near-term
• Quantum computing is a distraction for 2026, but narratives can move markets regardless of tech reality
• Bitcoin DeFi: The "BOB model" is quietly building infrastructure that could be transformative once users and liquidity arrive
• The market is stuck in "chop" until a real, multi-layered catalyst emerges — patience and education are key

Final Memorable Quote

• Scott Melker:
  “Touch grass... Get hobbies. Hang in there guys.” ([11:15])

For More:

• Build on Bitcoin
• Scott Melker’s Twitter
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