Podcast Summary: "Is The Bitcoin Bottom In? What's Next For Crypto?"

Podcast Information:

• Title: The Wolf Of All Streets
• Host: Scott Melker
• Episode Title: Is The Bitcoin Bottom In? What's Next For Crypto?
• Release Date: March 25, 2025
• Guests: David Young (Coinbase) and Andrew Parish (Arch Public)

1. Introduction and Market Context (00:01 - 00:57)

Scott Melker opens the episode by discussing Bitcoin's current standing at $87,000, approximately $10,000 above its recent bottom. He sets the stage by posing the critical question: "Is the bottom in? Was this just another normal 30% ish correction in a bull market, or should we be waiting for lower prices?" He introduces his guests, David Young from Coinbase and Andrew Parish from Arch Public, while humorously noting the absence of Tillman.

Scott Melker [00:01]: "Bitcoin is currently trading at 87,000 American dollars, roughly $10,000 above the recent bottom leading many to ask, is the bottom in?"

2. Market Uncertainty and Tariffs Impact on Crypto (00:57 - 04:32)

Scott and David Young delve into the current market's stagnancy, attributing it to awaiting clarity on impending tariffs and macroeconomic factors. David highlights the relief felt as uncertainties around tariffs begin to dissipate, allowing investors to reposition their portfolios.

David Young [01:58]: "With the prospect of that relief kind of coming, FOMC is now over. I think people are looking at the macro environment and saying, like maybe here is where we can start kind of putting some money into work."

Scott echoes concerns about the lack of true certainty, noting how political maneuvers can swiftly alter market conditions, making it challenging for investors to make informed decisions.

Scott Melker [03:00]: "Even if we get tariff quote, unquote, clarity on April 2, don't we all know that it could just change on April 3rd or any day based on a tweet or a comment?"

3. Bitcoin's Resilience and Institutional Ties (04:32 - 07:22)

The discussion shifts to Bitcoin's intrinsic stability amidst external uncertainties. Andrew Parish emphasizes Bitcoin's growing entanglement with traditional financial (tradfi) assets and narratives, underscoring the influence of significant players like Michael Saylor.

Andrew Parish [04:47]: "Bitcoin in particular has become very, very tied to tradfi assets and tradfi narratives because there are huge, massive tradfi hands that exist associated with bitcoin now."

Scott and Andrew explore Bitcoin's behavior independent of daily news, highlighting its steadfast nature despite market fluctuations.

Andrew Parish [05:31]: "Bitcoin just is. And so, you know, whether it's Michael Saylor and his movements... Bitcoin will react to it because he's a significant player at this point."

4. Michael Saylor and MicroStrategy's New Offerings (07:22 - 09:20)

The conversation transitions to Michael Saylor and MicroStrategy's latest financial maneuvers, specifically their new offering, Perpetual Strife, a cash dividend promising 10% returns. David Young scrutinizes the complexities and sustainability of such high dividends, especially amidst Bitcoin's variable performance.

Scott Melker [07:22]: "Is this getting to be too much? I mean, how many more instruments, how much more demand can there possibly be?"

David cautions that while innovative, such offerings may have been more suitable during Bitcoin's peak bull run, questioning their viability in the current market landscape.

David Young [08:14]: "This is something that I would have probably seen at the peak of the bull run... but it seems that he's still able to kind of raise cash through these means."

5. BlackRock's Expansion into Crypto ETFs (09:20 - 14:09)

A significant portion of the episode is dedicated to BlackRock's strategic moves in the crypto space. Scott announces BlackRock's launch of Bitcoin ETPs in Europe, marking its expansion beyond the U.S. This development signals increased institutional adoption and validation of crypto assets.

Scott Melker [11:42]: "BlackRock launches Bitcoin ETP in Europe following US success... very clear that BlackRock's not stopping and I think that's what's meaningful here."

David Young expands on institutional interest, revealing survey results where 87% of institutional entities plan to invest via spot and ETF ETPs by 2025, a notable increase from 75% in 2024.

David Young [12:38]: "We saw in 2024 it was somewhere around 75% that invest via spot and ETF ETPs. That number has gone up for the 2025 year to around 87%."

6. Potential Institutional Adoption by Large Corporates (14:09 - 17:48)

Andrew Parish discusses rumors of major corporations like Meta, Dell, and Apple considering adding Bitcoin to their balance sheets. He argues that such moves would transition Bitcoin from a mere investment to an essential corporate asset, enhancing stock performance and credibility.

Andrew Parish [16:29]: "Having Bitcoin on your balance sheet adds a plus plus to the overall performance of your stock... adds some level of street cred with a portion of your customer base."

Scott and Andrew speculate on the implications of these potential adoptions, with Scott querying if companies like Meta are indeed moving towards Bitcoin investments.

Scott Melker [16:33]: "Dell. Are these the people that could be buying bitcoin quietly? You were very specific."

7. Altcoin ETFs and Institutional Demand (17:48 - 24:11)

The focus shifts to the viability of altcoin ETFs. Scott poses the question of their demand, referencing the challenges in creating compelling narratives for tokens like Doge, XRP, and Solana compared to Bitcoin and Ethereum. David Young notes that while Bitcoin remains the primary attraction, there is potential for future diversification as the market matures.

Scott Melker [17:48]: "Do we need... who's buying these? What's the prognosis for these?"

David Young [20:04]: "So many of the new entrants on the institutional side are still pretty anchored to bitcoin. Maybe eth, maybe Solana at the margin."

Andrew Parish highlights the difficulty in convincing investment advisors to promote individual altcoin ETFs without strong, compelling narratives.

Andrew Parish [21:43]: "How do you create a compelling narrative that says hey... allocate capital to the XRP etf?"

8. Future of Crypto ETFs and Index Products (24:11 - 25:59)

Andrew and David discuss the inevitability of index-based crypto products, likening them to traditional equity indices. They anticipate that as the crypto market evolves, so too will the investment vehicles, moving towards diversified baskets rather than single-asset ETFs.

David Young [24:11]: "Future state where index products are going to be the norm, just like in equities."

Andrew Parish [25:59]: "Indexing ETFs over the longer term or will be a Bigger play again. Even BlackRock's done that."

9. Scott and Guests' Future Musings (26:49 - 30:56)

David Young shares his constructive outlook despite earlier optimism faltering. He believes that the market may reach its low in the coming weeks, laying the groundwork for future highs driven by positive fiscal developments and secular trends like AI. Scott adds that the collective sensitivity to market dips may be overstated, referencing Raoul Paulo's insights on liquidity delays influencing asset rises.

David Young [26:49]: "I think if this isn't the low, I think we're gonna get the low sometime in the next few weeks, and that'll be the low for the year."

Scott Melker [28:36]: "Maybe it's just because we've been hearing about the incoming recession that hasn't or maybe has happened for the last few years."

10. Promotion of Arch Public's Offerings (31:01 - 44:30)

A substantial segment is dedicated to Andrew Parish promoting Arch Public's algorithmic trading products. Both guests discuss the unique advantages of their algorithms, which outperform traditional trading methods by automating decisions and maximizing returns even in volatile markets. They highlight success stories and invite listeners to engage with Arch Public through a giveaway for industry conference passes.

Andrew Parish [33:07]: "Our algorithms and their executions do exactly what we say that they do... no competitor to us. These are institutional level tools for retail."

Scott Melker [39:07]: "Running the Bitcoin algorithm, you're up 17% on your Bitcoin and earn 7% cash on the side in the last 60 days."

They emphasize the accessibility and effectiveness of their products, encouraging listeners to download and utilize them to enhance their crypto investments.

Andrew Parish [41:20]: "Everybody should have access to bitcoin and own some bitcoin and that's why we do it."

11. Closing Remarks and Future Episodes (44:30 - 46:02)

As the episode wraps up, Scott teases upcoming interviews, including one with Charles Hoskinson, and reiterates the value of Arch Public's offerings. He expresses appreciation for his guests and highlights the continuous evolution of the crypto landscape.

Scott Melker [46:02]: "Guys, that's archpublic.com down below... See you guys tomorrow. Thank you and goodbye, sir."

Key Takeaways:

• Bitcoin's Stability: Despite recent corrections, Bitcoin remains resilient, buoyed by significant institutional interest.
• Institutional Adoption: Major players like BlackRock are expanding into crypto ETFs, signaling broader acceptance.
• Altcoin Challenges: While Bitcoin and Ethereum lead, altcoins face hurdles in gaining similar institutional traction due to weaker narratives.
• Algorithmic Trading: Innovations like Arch Public's algorithms offer retail investors access to sophisticated trading strategies typically reserved for institutions.
• Future Outlook: Optimism remains tempered with caution, anticipating potential lows ahead but confident in eventual upward movements driven by macroeconomic factors and technological advancements.

Notable Quotes:

• Scott Melker [00:01]: "Bitcoin is currently trading at 87,000 American dollars, roughly $10,000 above the recent bottom leading many to ask, is the bottom in?"
• David Young [01:58]: "With the prospect of that relief kind of coming, FOMC is now over. I think people are looking at the macro environment and saying, like maybe here is where we can start kind of putting some money into work."
• Andrew Parish [04:47]: "Bitcoin in particular has become very, very tied to tradfi assets and tradfi narratives because there are huge, massive tradfi hands that exist associated with bitcoin now."
• Andrew Parish [16:29]: "Having Bitcoin on your balance sheet adds a plus plus to the overall performance of your stock... adds some level of street cred with a portion of your customer base."
• Scott Melker [11:42]: "BlackRock launches Bitcoin ETP in Europe following US success... very clear that BlackRock's not stopping and I think that's what's meaningful here."
• Andrew Parish [33:07]: "Our algorithms and their executions do exactly what we say that they do... no competitor to us. These are institutional level tools for retail."

This episode provided a comprehensive analysis of Bitcoin's current position, the evolving landscape of crypto ETFs, institutional adoption, and innovative trading solutions, offering listeners valuable insights into the future trajectory of the cryptocurrency market.