← The Wolf Of All Streets
The Wolf Of All Streets
July Will Be Big For Bitcoin: Trump’s $3.4T Shift, BTC Treasury Mania & Stablecoin Frenzy
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The big beautiful bill has passed both the Senate and the House and is on its way to Trump's desk, which means the printer is about to go. Brrr. Bitcoin. Treasury companies are all the rage and probably the next bubble. Seemingly every company in crypto now wants to be a bank and more. This is a solo Friday 5. Let's go. Let's do. As you know, it is July 4th, the Independence Day for the American people and what a great day it is, which means this show is being recorded on Thursday night and NLW is not here. I still wanted to make sure that you had a show to watch because a lot has happened this week and what would a week be without the Friday five to end it? We're going to go ahead and start now. Cook right through these stories. We of course have the big beautiful bill. Trump wins broad economic policy shift as House passes tax bill. Now, I'm old enough to remember when Trump came into office and we cheered the creation of Doge, Elon Musk and Vivek. Remember Vivek? Vivek was a part of Doge at the beginning, if you recall how they were going to cut government spending like mad. They were going to go through every single agency. We were going to basically have austerity and a responsible government. And oh, reminder, there are no Republicans and Democrats, so just the unit party that has one very basic premise. Print, baby, print. When you have the ability to print the global reserve currency, you're going to do it. I know they say they're going to grow their way out of this, but let's be real, they're going to print like mad. We will probably get a whole bunch of inflation and the debt is going to continue to skyrocket. To which I say, obviously buy Bitcoin. I don't think that there is a president on the planet, a potential president on the planet, that can actually stop this train. As Lyn Alden likes to say, nothing political here, nothing against Trump, nothing against Biden. This is how the government works, this is how Fiat works and damn, we're going to have a higher debt ceiling and a whole lot of money printing and tax cuts will remain. Where's the money going to come from to pay for it? Printing money, obviously in the next story, we have a whole lot of companies that want to be banks. Ripple applies for US national bank charter as crypto eyes Next Frontier Stablecoin Issuer Circle applies for a national bank charter. Bitgo Ripple Joint wave of firms applying for US bank charters. There's Brad Harlot Brad Garlinghouse, Harlinghouse, Garling Gauss. There is Brad Garlinghouse, founder of Ripple. And why would they want to be a bank? Well, everybody wants to be a bank because being a bank is cool and it gives you a hell of a lot more control, to be honest. As we see the Genius act passing and we're about to get legislation on stablecoins, we're about to get market structure, there are still big questions as to who will be allowed to have a stable coin, who will be allowed to issue those stable coins, and how that's actually going to work. Well, this eliminates a lot of those questions because if you become a bank, you don't need to be worried about whether you need a United States bank to issue your stablecoin. Right? So you're just going to be able to create your own stable coin coming from your own bank, to be able to close the loop on the circle and do whatever the hell you want. But seriously, we don't know what the final results, what the final implications, what the final stipulations will be in the Genius act or any legislation that comes. What if they say that to be a stablecoin issuer or to be a custodian like Bitgo, that you need to have a specific banking relationship with a specific bank and that bank doesn't give you a banking relationship? We've seen this with operation choke point 2.0. What if they select four or five banks that you qualify to be able to use and you can't get a relationship going with those banks? No problem if you become one of those banks. That's why everybody wants to do this. There's also huge money to be made if you are actually the bank and don't have to pay predatory fees to the banks that we hate so much. In the next story right here, we have Solana's first staking ETF outpaces XRP and ETH futures and opening day performance. I think it actually outpaced the, the opening of the Solana Futures ETF as well. Now, I'm not going to get into the nuance of what kind of ETF this is. I talked about that with Matt Hogan today on Spaces. This didn't get approved in the same process that we've seen before. It's not a pure Solana staking etf. There's a lot of nuance, a lot of different parts to it, but Solana staking is part of it. And it did over $30 million, 33 million in trading volume on the first day that was on Wednesday. That's actually a relatively big number according to Eric Balchunas from Bloomberg and basically any expert that you could ask about this. Impressive numbers coming from what would normally be viewed as an esoteric and kind of random etf. And this shows that there may actually be a hunger for all of these ETFs as they come. We've seen reports this week that the SEC is considering a very transparent process to get approved for ETFs, largely for the top 50 crypto assets. So imagine if you know the steps and you're one of those assets, Tron Hedera, you name it, and you fulfill those steps, you can just go ahead and start launching these ETFs off willy nilly. It's going to be ETF Palooza. Do I think that there's going to be a hunger for these? No, no, I don't think there'll be a ton of demand for them, but I think there's going to be a lot of demand for creating them and we are going to see that. But still, I think that this is very bullish for Solana in general and very bullish generally for, for the altcoin market, if you still believe that there is one or will be one in the future. And we can dig more deeply into that in a few moments. We have the next story. Robinhood. Obviously I talked about Robinhood's amazing slew of announcements the other day. Perpetual futures coming, Ethereum, Solana staking coming, tokenized stocks all over the world except for the United States of course coming. But they said that they're launching tokenized stocks in the eu. We know Gemini, Kraken, Coinbase all talking about doing the same. Now if you watched my show earlier today, which will be yesterday, when you're watching with Yago, pointed out and David Young from Coinbase, we talked about some of the nuance with tokenized stocks. This is sort of 1.0. There's some actual issues there. Who custody is the actual stock? Who has ownership? Does your tokenized stock actually give you any form of of ownership? We don't know either way though we all agree that it's bullish for the path of crypto, that tokenized stocks will be a traded thing and that we don't need entities like the DTCC in the middle to do clearing if we can just trade directly. But this story is interesting because Robinhood is doing an incentivized giveaway for signing up that was giving away SpaceX and Open AI tokenized stock. Tokenized equity last I checked. OpenAI and SpaceX are private companies, so how are they going to do that? OpenAI saw this and said, here you go the story OpenAI cast doubt on Robinhood's new tokenized equity project. No surprise there. OpenAI advised caution to customers about Robinhood's offer for access to equity tokens for OpenAI, stating that the tokens are not company equity and OpenAI did not collaborate on or endorse the offering. Flex Glad Tenev, CEO of Robinhood, said hey. But he responded that while the tokens aren't technically equity, they give retail investors exposure to private assets and the firm will own the shares backing the tokens. The tokenized equity offerings have sparked debate about the safety and function of tokenized equities for retail investors and what those tokens actually represent. As I said before, having a tokenized share of something does not necessarily mean that you actually own it. You're probably actually trusting the a third party to custody and own the actual stock and when you want to trade it, to actually execute those trades on the real market for you, to me that's actually, as you think about it, adding another layer of complexity and once again adding a middleman. So I do think that this is Tokenization of Securities 1.0. Eventually I think we'll get to the point where you actually trade them directly and there is no third party in between. Step in the right direction. But clearly as you dig into this, not exactly what is the end game I think for tokenized stocks. Tokenized assets. Yeah, I told you we were going to cook through these. We have the final story, but I have quite a bit to say about this. This is actually an article from last week that says Bitcoin Treasury Madness signals the end of the current rally. Now we've had a lot of notable people and entities launching Bitcoin treasury companies, a lot of micro strategy wannabes who are trying to capitalize on a very clear trend that gives them a huge premium to the net asset value of the bitcoin that they hold. But it's not just Bitcoin treasury companies right now. It's Bitcoin treasury companies, Ethereum treasury companies, Solana treasury companies, XRP treasury companies. And we're going to get treasury companies for basically every asset all the way to down the line. Do I agree with this article? Bitcoin Treasury Madness singles the end of the current rally? No. That said, I think it will be a massive bubble. I just think we're earlier in the bubble and when that bubble pops people are going to get absolutely Wrecked. It's going to be just like the ICO madness of previous cycles. We are going to see mass insanity. And I really question who is going to buy all of these stocks. But structurally, right now, what most of these companies are doing is what's called a reverse merger. POMP did a reverse merger into a spac. You got every kind of meme you could possibly get in the stock market into one. But you find a dead company, like in the case of Nakamoto Kindly md, some basically publicly traded defunct medical company. You merge them, you turn them into a Bitcoin treasury company. It pumps up the stock massively, and the early investors and founders make a shit ton of money. That's perfectly fine. People make a lot of money. But it really is just like ICO 2017. Let's take a look at a couple of charts that we have here. Actually, I just want to look at one specific chart. This is a bmnr. What is that? Bit Mine Immersion Technologies. Now, you might have remembered earlier in the week we had a conversation about Tom Lee saying that Ethereum is the new Bitcoin. Freaking everyone out. Freaking out Bitcoin Maxis. Well, Bit Mine Immersion Technologies, this is the Ethereum treasury company that Tom Lee, who is now, like, apparently is the best KOL or influencer in crypto, was talking about and he's a part of. Well, on Friday, if you bought BMNR, you bought it around four bucks. Today it peaked at $160. Looking at the math here, that is a 3740% increase in six days. And two of those days were not trading days. Think about that. This is a company that, to my knowledge, doesn't even own Ethereum yet. But it's an Ethereum treasury company that went up 3,800% in six days while Ethereum did nothing. Why would a Treasury company go up 3,800% when the underlying asset that it's holding or doesn't even hold yet is not even moving? The answer, my friends, is very simple. This is alt season, and alt season is happening with crypto adjacent equities and treasury companies and the same people who are able to massively pump tokens in the earlier cycles that we've seen are now able to do the exact same thing with publicly traded equities on the stock market with a hell of a lot more volume and a hell of a lot more liquidity and and a hell of a lot more money that's willing to take these bets. Now, I recorded a podcast today with Rand Nooner which will be out on Sunday. He has been presented quite a few of these. I have two, but I haven't actually deeply looked. And he points out kind of he calls it a scam. I don't know if we call it a scam, but exactly the mechanics of how this works for early investors and it will blow your mind and definitely make you think twice about being overly excited about this trend. But like I said, I think we're very early in this trend. We're just finding out exactly how it works, how early investors are capitalizing. So as more money and more people flood in, they're going to repeat this right now we've talked about in the past this cycle might be different because so much money is coming into bitcoin, but it's coming in through ETFs and other institutional vehicles. And that money cannot trickle down into altcoins the way it used to. People used to get bored with bitcoin so they would say let's go buy some sort of altcoin and we're going to pump and dump these altcoins and get more bitcoin and go back. Same washing machine, same money. Well, we know that ETF money can't trickle down to coin 47 on coin market cap. Right? But it can trickle down into companies like Circle. So many people made so much money on Circle which pulled basically a 10x right after launching, obviously has now settled in a bit lower that now we have the same washing machine that used to cause altcoin cycles going through crypto equities. Coinbase made a new all time high miners. Here's iron. I mean if you bought iron on the 7th of April, you're buying at five bucks. It's at I don't know, right. 1690 after market today. This is the new alt season. I have very, very serious doubts that altcoins writ large are going to pump really ever again. The more that I dig into this. That said, if a Treasury company is a Treasury of a relatively mid cap or low cap alt, they will have to buy a hell of a lot of it. And that could be the buyers of your bags as Rand will point out. Listen, there's a lot of money to be made here. I would just say be very careful and don't be caught holding the bag because there will be bag holders to all of these treasury companies in the same way that there have been bag holders for altcoins since the beginning of time. We nailed that. 14 minutes 45 seconds to get through it. Since I am alone today I'm actually going to share a couple things with you before I go. I have a telegram group. It's not a scam as people think every time they see it. I know it's surprising telegram but it's really amazing. I'm in there every day. My team is in there every day. I actually get to engage with you guys directly one on one. Now people ask when you click on this bot, which is down in the description, what happens? You get a link to sign up for blowfin. It is globally available which is why we chose it. If we did not have either an exchange to gate it or if we didn't charge people money to join and I want it to be free, then you would just get millions and millions of bots and scams in there. So to gate it we signed up, we worked with Blofen who are amazing to launch this. So you just have to sign up. Takes about 1 minute. Enter your UID and join the groups. The community group and the one way channel where I share all of my favorite charts, all my favorite news, everything me and my team are looking at. Guys, if you like my content, this is the best place to see it. And one more thing because I think it's awesome. And it's the weekend and we're heading into July 4th defi spirits.com I am now one of the proud owners of this company and Bitcoin bourbon is one of the best bourbons that I have ever tasted. It took me years to actually become a part of this company. Years ago, Ryan, who owned it, reached out to me. I gave him my feedback on the bottle design. He sent me a bottle, I tasted it, it won awards. You can go on d5spirits.com check out Bitcoin Burpin. This thing is a amazing piece sitting there on your shelf. It's awesome. Go buy some guys. That's all I got for you today. Have an incredible holiday weekend and we'll see you back on Monday for macro Monday. Sam.