Podcast Summary: Extreme Fear! Crypto Dumps while Metals Crash! (#CryptoTownHall)
Podcast: The Wolf Of All Streets
Host: Scott Melker (absent; this episode hosted by "Dave")
Date: January 30, 2026
Episode Theme:
The panel tackles recent volatility and "extreme fear" across crypto and metals markets in the wake of a new Fed nominee (Kevin Warsh), a sharp selloff in metals, mounting macroeconomic uncertainty, shifting correlations, and the implications for risk assets, energy, and the future of decentralized finance.
1. Episode Overview
With host Scott Melker absent, Dave leads a wide-ranging panel discussion focusing on:
- The panic selling in crypto and metals
- The market’s reaction to the Fed's new nominee, Kevin Warsh
- Shattering of historic correlations (gold/silver vs. Bitcoin)
- Macro forces shaping volatility and risk appetite
- The role of stablecoins, regulation, and energy in the evolving market structure
“Extreme fear at 16. So we're getting lots of panic – panic is when traders make the most money. So let's get into it.” – Dave (00:38)
2. Major Discussion Themes
A. Market Outlook: Volatility, Fear & Fed Policy
- Mike McGlone opens with the importance of volatility, describing current markets as a "trader’s environment."
- The new Fed nominee, Kevin Warsh, is seen as more hawkish, with panelists speculating that his appointment will result in tighter policy and likely more market volatility.
- Metals (particularly silver) and crypto are both experiencing sharp drawdowns, with silver hitting highs and then crashing back down.
- Dave notes, “You have to basically have volatility stay real low and the S&P 500 to stay above 7,000” for these rallies to continue. He advises “testing shorts” at current levels. (03:54)
- Mike McGlone: “It’s a bear market, everything’s trending lower and you don’t sell in the hole. You wait for bounces.” (04:44)
B. Decoupling of Historic Correlations
- Eladio and others observe a breakdown in the long-assumed correlation between Bitcoin, gold, and silver since the October 12th deleveraging.
- Dave: “It’s undeniable... Besant and Warsh are clearly aligned and clearly understand that we need to do multiple things to grow out of the debt.” (07:09)
- Eladio: “The correlation that we, that we have from risk assets and bitcoin are spot on when it comes to traditional assets...” (05:43)
C. Bitcoin as “New Gold” for a Generation
- Discussion of Warsh’s position: not “anti-crypto,” but nuanced.
- Dave quotes Kevin Warsh: “He calls bitcoin an important asset… it's not a substitute for the dollar, but can serve as a very good policeman for policy… the new gold for people under 40.” (08:12)
- Bitcoin is increasingly regarded as a macro asset and a “canary in the coal mine.”
D. Silver, Oil, and Energy Debate
- Gary questions strong historical price correlations (e.g., if silver is $90, crude oil must be $300), arguing that these relationships are obsolete due to technological change.
- Dave notes battery technology (like Samsung’s using 32 oz silver per electric car) could drive massive new demand for silver, but mining capacity can't keep up.
- Mike McGlone: “Silver reached the highest level ever versus oil and versus copper… those are priced in. They’re extreme. They’re probably going to pull back.” (14:43)
- Expectation: Silver could revert to $50, and “the long term high put in yesterday might last for a decade.” (15:13)
E. Macro Rotations, Manufacturing, and Crypto
- Andre posits current moves in metals/performance imply global reflation, notably led by China, and eventual rotation from gold into Bitcoin as risk appetite returns. (20:26)
- Risk cycles: “Bitcoin gold relative performance tends to cycle with global risk appetite. If you have a risk on, Bitcoin tends to overflow gold and vice versa.” (23:36)
F. “Seven Wet Diapers” Analogy and the Bitcoin Thesis
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Mark uses a humorous analogy for Bitcoin’s resilience:
“Is there debasement? Is there good hash rate? Are the miners operable? Is the thesis intact? We have seven wet diapers as far as the bitcoin thesis is concerned.” (24:43)
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Bitcoin’s infrastructure and role in energy and data is discussed, with nods to AI and U.S. industrial policy.
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Dave: “Bitcoin is a very important component for stabilizing grids... If you understand we’re going to a world where electricity becomes the single most important part and driver, then you position yourself.” (27:28)
G. Stablecoins, Tokenization, and Financial Plumbing
- Stablecoins (esp. Tether) called the most enduring trend in the crypto space, with predictions that “Tether this year is going to flip in Ethereum” and potentially become #2 behind Bitcoin. (35:02)
- More assets moving on-chain will disrupt banking and financial business models, reducing the relevance of legacy banking margins.
H. Correlations: S&P 500, QQQs, and Crypto
- Continued debate over how and when Bitcoin’s price cycles reflect or diverge from equities and major tech stocks.
- Andre & Mark: QQQ to BTC correlation at 0.7, but performance can diverge, showing “high correlation, high underperformance.”
- Eladio: “Bitcoin will bottom before the NASDAQ 100.” (39:14-40:51)
I. Liquidity & Macro Machinery
- Robert: The real driver is liquidity growth (bank reserves up), not headline events or simple TA: “I don’t see Bitcoin as a transaction vehicle… I see it akin to M0, and we know it’s very liquidity sensitive… when bank reserves start to increase, Bitcoin does as well.” (42:13)
- Recently, Bitcoin even tracks the DXY positively – unusual for “store of value” comparisons. (44:00)
J. Market Pain and the Future
- Dave closes by speculating on how deeply recent moves have wiped out traders: “If the pain is in people who are wiped out and their money will no longer flow into these casinos, that is a big deal.” (48:04)
- Extreme volatility in metals and crypto is likely to continue; consensus is that the drawdown has shaken out much hot money, setting up for new cycles.
3. Notable Quotes & Moments
- "Extreme fear at 16. So we're getting lots of panic – panic is when traders make the most money." – Dave (00:38)
- “You don’t sell in the hole... You wait for bounces.” – Mike McGlone on bear markets (04:44)
- “Kevin Warsh… calls bitcoin an important asset. It's not a substitute for the dollar, but can serve as a very good policeman for policy… the new gold for people under 40.” – Dave (08:12)
- “The seven wet diapers… Is the thesis intact? We have seven wet diapers as far as the bitcoin thesis is concerned.” – Mark (24:43)
- “Bitcoin is a risk on asset… what we've seen over the past essentially 3.5-4 years is the business cycle has moved more or less sideways… this kind of reflation in metals is implying a significant re-acceleration in manufacturing activity.” – Andre (20:26)
- “Stablecoin is the key... the tokenization of risk assets gives crypto the biggest push into the future because it’s going to help us solve some of the reckless policies that we’ve introduced with fiscal spending.” – Eladio (29:01)
- “I think Tether this year is going to flip in Ethereum... It's been the most enduring trend in the whole crypto space.” – Mike McGlone (35:02)
- “I like to buy when everyone is fearful, when everyone is, you know, super bearish... that appears to be what I see when it comes to bitcoin right now.” – Robert (46:48)
4. Timeline of Important Segments
| Timestamp | Segment/Topic | |-----------|---------------------------------------------------------------------| | 00:38 | Introduction: extreme fear, panic in crypto/metals | | 01:39 | Mike McGlone on volatility, Fed nominee, metals, bear market setup | | 05:25 | Eladio on breakdown of gold/silver/Bitcoin correlation | | 08:12 | Dave on Warsh’s views, Bitcoin as “policeman for policy” | | 10:26 | Gary on silver-oil ratios, skepticism of historic correlations | | 14:43 | McGlone: Silver’s record levels vs. oil and copper, bear case | | 17:38 | Amateo: National debt, metals as risk, Bitcoin’s canary role | | 20:26 | Andre: Global reflation, China, risk rotation into Bitcoin | | 24:43 | Mark: “Seven wet diapers” analogy for Bitcoin’s thesis intact | | 27:28 | Energy, Bitcoin’s grid role, Trump on doubling electricity | | 29:01 | Eladio: Stablecoins, tokenization, fiscal recklessness | | 33:02 | Andre/Mike: Bitcoin's S&P/NASDAQ correlations vs. gold | | 35:02 | McGlone: The Tether/Ethereum “flippening” and future of stablecoins | | 39:09 | Mark/Eladio: High correlations but disconnect in performance | | 42:13 | Robert: Bank reserves, liquidity sensitivity, BTC vs. M0 | | 44:00 | DXY/BTC positive correlation, Bitcoin’s shifting macro role | | 46:47 | Robert: Sentiment extreme, accumulation on fear | | 48:04 | Dave: Extent of wipe-out in crypto/metals traders | | 50:13 | Humor: Powell says he doesn’t watch gold – top signal? | | 53:41 | Infrastructure, energy deregulation, long-term U.S. policy shifts | | 54:25 | Dave: Deregulatory impact, implications for sustained growth | | 55:29 | Outro / End of content discussion |
5. Conclusion
This episode is a fast-paced, deeply cyclical tour through the interconnected worlds of crypto, metals, energy, and macro policy. The mood is cautious yet opportunistic, with consensus that volatility and regime change are the new normal. The collapse of old market correlations, disruptive technology, and the evolving role of currency and financial infrastructure set the stage for the next phase of the cycle. Above all, the “seven wet diapers” analogy captures the panel's core advice: amid chaos and volatility, stick with the fundamental thesis—Bitcoin and a handful of assets may continue to serve as the best indicator of what’s to come.
For newcomers:
This summary distills the key actionable insights, colorful quotes, and most important moments from a dense and insightful markets discussion. Use the timestamped segments to dive deeper into specific topics.
