Podcast Summary: The Wolf Of All Streets – "Crypto Markets Set To Explode As Bitcoin Approaches $95K!"

Release Date: April 25, 2025
Host: Scott Melker
Guests: NLW

Introduction

In this episode of The Wolf Of All Streets, host Scott Melker delves deep into the current and future landscape of the cryptocurrency market. Joined by NLW, they explore a range of topics from Bitcoin’s surge towards $95K to the intricate dynamics between political figures and financial institutions affecting the crypto space. The conversation is rich with insights, expert opinions, and forward-looking predictions that offer listeners a comprehensive understanding of where the crypto markets might be headed.

Bitcoin's Ascension and Market Predictions (00:00 - 04:06)

Scott Melker opens the discussion by highlighting Bitcoin’s impressive climb towards the $95,000 mark, noting that altcoins are also following suit. He emphasizes that the anticipated explosion in crypto markets is less about immediate price movements and more about long-term industry potential. A pivotal point raised is the projection by Deloitte that the global tokenized real estate market could balloon to $4 trillion by 2035.

Scott Melker [00:00]: "Bitcoin is pushing towards $95,000 and for once altcoins are seemingly following along... predictions of what this industry can look like in the coming years."

NLW echoes the sentiment, stressing the inevitability of tokenization as a cornerstone of crypto growth. She cautions against viewing tokenization merely as a hype cycle, advocating instead for recognizing it as critical infrastructure that will underpin future economic activities.

NLW [02:16]: "Tokenization... is just critical infrastructure that's clearly coming... the economy and assets are going to be increasingly crypto economy and crypto assets."

The hosts agree that the true test will be whether these advancements are accessible to everyday investors or dominated by legacy institutions, potentially limiting broader participation.

Political Influences: Trump vs. Powell and Beyond (04:06 - 09:29)

A significant portion of the episode focuses on the tug-of-war between former President Donald Trump and Federal Reserve Chair Jerome Powell. Scott Melker refers to the unfolding drama as “Trump versus Powell,” although he acknowledges the broader geopolitical tensions involving China.

Scott Melker [04:06]: "Trump versus Powell, but I think we could probably just put it as Trump versus, because obviously we also have Trump versus China."

NLW delves into Trump's contradictory statements about Powell, noting the complexities these interactions introduce into market sentiments. She suggests that Trump’s rhetoric may be more about creating a scapegoat than signaling genuine intentions, which in turn causes market jitteriness.

NLW [05:10]: "Trump seems sincere when he says, no, of course I'm never going to fire him because he just wants the punching bag... markets did not like that being sort of like the new source of antagonism and acrimony."

Scott discusses the polarized views on whether Trump's potential actions against Powell would destabilize markets or, conversely, lead to a more favorable stance towards the Fed if a dovish commissioner were appointed. He personally aligns with the viewpoint that ongoing antagonism from Trump could erode faith in American financial institutions.

Scott Melker [06:29]: "If he fires Powell or continues that rhetoric, markets are going to crash because there's a lack of faith in the dollar and a lack of faith in American institutions."

They also touch upon the evolving trade relations with China, highlighting Trump’s fluctuating statements and the subsequent confusion they create among investors and policymakers.

Scott Melker [07:18]: "Trump says he spoke with China. Trump says trade deals are going well... China, US not having any talks on terrorists... What the hell is going on here?"

Institutional Interest and the Rise of 21 Capital (09:29 - 13:37)

The conversation shifts to the burgeoning institutional interest in Bitcoin, exemplified by the emergence of 21 Capital—a competitor to MicroStrategy—announcing a Sailor-like fund with a commitment of 42,000 Bitcoin. Scott Melker praises the involvement of industry figures like Jack Maller as a vote of confidence in Bitcoin’s viability as an investment vehicle.

Scott Melker [09:29]: "It's another institution saying that what strategy doing is a viable opportunity to gain more bitcoin... notable to me is who's in the partnership."

NLW highlights the dual-edged nature of this development. While institutional accumulation signifies growing confidence and investment in Bitcoin, it also raises concerns about the concentration of power within a few large players, potentially influencing market dynamics and accessibility.

NLW [11:18]: "People have been nervous about having another, you know, highly powerful kind of accumulator in the space... fascinating to me how much conversation an otherwise sort of just very... has brought up."

The discussion underscores the excitement within the crypto community about institutional support, juxtaposed with apprehensions about market manipulation and the influence of major entities like Softbank and Tether.

European Central Bank's Stance on Stablecoins (13:37 - 16:43)

Scott brings attention to the European Central Bank's (ECB) concerns regarding stablecoins, particularly in the context of US Dollar hegemony. He references a headline from CNN Business that illustrates the tension between the ECB and the European Commission over the potential destabilizing effects of stablecoins on the Euro.

Scott Melker [14:07]: "Commission livid as ECB warns of crypto apocalypse under Trump."

NLW elaborates on the internal discord within European institutions, noting the lack of consensus between the ECB and the European Commission. She explains that US politicians are increasingly viewing stablecoins as tools to expand US Dollar dominance, adding another layer of complexity to the regulatory landscape.

NLW [14:37]: "Europe is getting increasingly freaked out about... stable coins as a destabilizing force for the euro... US Politicians are now officially adopting the sort of recognition that stable coins are a tool of expanding US Dollar hegemony."

The hosts discuss the broader implications of this regulatory friction, pondering how it might influence global financial systems and the adoption of stablecoins.

Banking Licenses and Stablecoin Legislation in the US (16:43 - 19:44)

The episode explores the surge in US-based crypto companies seeking banking charters in anticipation of forthcoming stablecoin legislation. Scott references multiple headlines from the Wall Street Journal, highlighting major firms like Circle, Bitgo, and Coinbase pursuing bank licenses.

Scott Melker [16:43]: "Crypto firms plan to apply for bank charters or licenses... stablecoin turf war, Bank of America, Tether and Circle battle to shape US rules."

NLW provides context, explaining that crypto institutions have long sought integration into traditional banking to unlock new financial opportunities. The current flurry of applications suggests that these companies are preparing for stringent regulatory requirements, possibly mandating bank charters to operate within the evolving legal framework.

NLW [17:03]: "Crypto institutions are ambitious... they want to use crypto to take over the rest of the economy... potential that the way that this legislation goes with stablecoins is that you have to have some version of a bank charter."

Scott adds that acquiring a banking charter, even if the likelihood is low, offers strategic advantages and safeguards against future regulatory shifts.

Scott Melker [18:02]: "If this could be there, even if they only view it as a 5 to 10% chance, get that banking charter, it can't hurt."

Federal Reserve Withdraws Crypto Guidance (19:44 - 20:15)

The final major topic covers the Federal Reserve's decision to withdraw previous guidance related to crypto assets and dollar tokens for US banks. Scott notes the mixed reactions from the crypto community—some viewing it as a victory, while others remain skeptical about the Fed's true intentions.

Scott Melker [18:28]: "The Fed is still part of the anti crypto army. Don't believe this. They're still coming after us."

NLW advises caution, suggesting that while public signals are optimistic, there may still be underlying challenges and uncertainties within regulatory bodies.

NLW [19:20]: "Signals are positive... but there's clearly some challenges... be cautiously optimistic."

Conclusion: Market Outlook and Volatility (20:15 - End)

As the episode wraps up, Scott and NLW reflect on the overall market sentiment. Despite Bitcoin’s near-term price surge, the ongoing political and regulatory uncertainties contribute to an environment of volatility. They advise listeners to celebrate short-term gains while maintaining a defensive and optimistic stance for long-term investments.

Scott Melker [20:15]: "There's going to remain a lot of uncertainty and volatility for a while."

NLW [20:31]: "It's going to be volatile for as far as the eye can see from where I'm sitting."

The episode concludes with a reminder to follow NLW for further insights and a light-hearted farewell from Scott.

Key Takeaways:

1. Bitcoin's Growth Potential: Bitcoin approaching $95K is a significant indicator of market optimism, with altcoins following suit. However, the true potential lies in long-term industry developments like tokenization.

2. Tokenization and Real Estate: The tokenization of assets, particularly real estate, is projected to transform the economic landscape, potentially reaching a $4 trillion market by 2035.

3. Political Dynamics: The interactions between Donald Trump and Federal Reserve Chair Jerome Powell introduce significant uncertainties, influencing market stability and institutional trust.

4. Institutional Engagement: The entry of major institutions like 21 Capital, Softbank, and Tether into the Bitcoin space underscores growing institutional confidence but also raises concerns about market concentration.

5. Regulatory Landscape: The European Central Bank’s apprehensions about stablecoins and the surge in US crypto firms seeking banking charters highlight the evolving and complex regulatory environment.

6. Future Volatility: Despite positive developments, the crypto market is expected to experience continued volatility due to political, regulatory, and institutional factors.

Notable Quotes:

• Scott Melker [00:00]: "Bitcoin is pushing towards $95,000 and for once altcoins are seemingly following along."

• NLW [02:16]: "Tokenization... is just critical infrastructure that's clearly coming... the economy and assets are going to be increasingly crypto economy and crypto assets."

• Scott Melker [06:29]: "If he fires Powell or continues that rhetoric, markets are going to crash because there's a lack of faith in the dollar and a lack of faith in American institutions."

• NLW [11:18]: "People have been nervous about having another, you know, highly powerful kind of accumulator in the space."

• Scott Melker [18:02]: "If this could be there, even if they only view it as a 5 to 10% chance, get that banking charter, it can't hurt."

• NLW [19:20]: "Signals are positive... but there's clearly some challenges... be cautiously optimistic."

This episode provides a thorough examination of the intersecting forces shaping the cryptocurrency market, offering listeners valuable perspectives on both the opportunities and challenges that lie ahead.