Podcast Summary: The Wolf Of All Streets

Episode: Major Bitcoin Setback As 182,000 Traders Are Wiped Out!

Host: Scott Melker
Guest: Chris Perkins, President of CoinFund
Date: January 21, 2026

Main Theme & Purpose

In this episode, Scott Melker and Chris Perkins break down the recent major Bitcoin price drop that triggered over $1 billion in liquidations, wiping out 182,000 traders. The conversation quickly expands to the broader uncertainty affecting global markets, regulatory battles in Washington, the transformation of crypto market structure, the “haves and have nots” dynamic in digital assets, and evolving institutional involvement in the crypto sphere. The tone is frank, occasionally irreverent, focusing on both immediate market events and structural trends shaping the future of crypto.

Key Discussion Points & Insights

1. The Bitcoin Setback and Massive Liquidations

• Immediate Market Context (00:01–03:00):
  • Bitcoin’s failed attempt to break past $94-98k led to a slide below $90k.
  • This triggered $1.08 billion in liquidations, impacting 182,000 traders—a scale comparable to historic events like the FTX collapse.
• Observations:
  • Scott is bewildered by persistent large-scale liquidations despite increased awareness of crypto market risks:

    "I have no idea how there's still a billion to be wiped out after all of the nonsense that we've seen over the past few months." (01:16)

2. Macro Backdrop: Political and Market Uncertainty

• Geopolitical Jitters (02:00–05:00):
  • Chris contextualizes the turmoil: “We’re in a max period of uncertainty,” referencing everything from global tensions to shifting alliances and ambiguous regulatory signals.
  • He highlights the transition from “retail” to “institutional” dominance in crypto.
• Quote:

  "It's a very uncertain time, isn't it?... The market order as we knew it is really coming apart." (02:00)

  "Institutions are marching forward... as the conditions settle. But man, we're in a period of max uncertainty right now." (03:33)

3. Bitcoin’s (Un)Correlation and Narrative

• Bitcoin’s Identity Crisis (05:21–07:13):
  • Scott and Chris debate whether Bitcoin acts as “digital gold” or simply as a risk asset.
  • Silver lining: Bitcoin seems uncorrelated to traditional assets but isn't capturing upside from global events—leading Scott to call it "a market of its own."
• Quote:

  “My silver lining is that Bitcoin is a market of its own.” (05:21)

4. Globalization, Tokenization & Blockchain as a Contrarian Force

• Contrarian Global Tech (06:05–07:13):
  • As the world “fractures” geopolitically and economically, Chris sees blockchain as a rare, unifying global technology.

  "Anytime you deploy a token onto the blockchain, guess what? It's instantaneously Global." (06:47)

5. U.S. Regulatory Landscape and the “Digital Asset Market Clarity Act”

• Market Structure Bill Debate (07:13–15:48):
  • The guests dissect the evolving congressional bill, industry lobbying, and political gamesmanship.
  • Key disagreements center on stablecoin interest, DeFi, the power of the CFTC vs. SEC, and political in-fighting, especially ethics issues relating to Trump and Democratic reluctance.
• Notable Quotes:

  "There's a 180 degree difference in the regulatory framework… Institutions need that to enter the space." (03:42)

  "A bad bill under Trump, who's obviously pro-crypto... is better than the inevitable bill because this will be a regulated industry whether we like it or not..." (08:30)

  “I can’t get anything through heading into midterms until the Trump ethics issues are addressed... It’s not a crypto problem... It’s an everything problem.” (13:08–13:51)

  “Honestly, we couldn't dream of a better SEC chair or a better CFTC chair... they are focused on doing the right thing.” (15:33)

6. The Evolving Commodity/Security Divide and ‘Haves vs. Have Nots’ in Tokens

• Futures as Regulatory Path (16:59–20:39):
  • Chris points out that futures trading will effectively "anoint" select tokens as commodities, granting clarity and attracting institutional capital.
  • Problem: only a small set of tokens are likely to receive this status, potentially freezing out much of the altcoin universe.
• Quote:

  “If you have a future, guess what? You're a commodity... now you have regulatory certainty for that asset.” (17:01)

  “You're going to have the world of have and have nots. Who are the haves? It's those alts with fundamentals, those alts with utility and those alts with futures. Those are the haves.” (19:47)

7. Institutional Adoption and Trading Infrastructure

• Liquidity, ETFs, and Institutional Flows (18:06–20:39):
  • Institutions require the ability to hedge; hence, the explosion in Bitcoin ETF options trading.
  • As regulatory clarity improves, “grown-up capital” continues to move in.
• Quote:

  "Institutional can't buy crypto right now because it's too damn volatile... When can they buy it? When they can trade basis, when they can hedge with futures." (18:07)

8. Education and Mainstreaming Crypto at the Elite Level

• Brian Armstrong at WEF (20:39–23:33):
  • The hosts react to a clip of Coinbase’s Brian Armstrong correcting a French central banker on Bitcoin’s decentralization and independence at the World Economic Forum.
  • Surprise at WEF platforms opening to crypto and Armstrong’s effective schooling of the central banker's misunderstanding.
• Quote:

  “He schooled that guy 100%.” (22:13)

9. Stablecoins, Dollarization, and Global Economics

• Stablecoins Reshaping Finance (23:33–25:05):
  • Chris foresees unstoppable global dollarization via stablecoins, with major geopolitical implications.
• Quote:

  “Stablecoins… now that we have post-genius, I think they're going to infiltrate the entire world and you're going to see more dollarization of the global economy and there's no stopping it.” (24:05)

10. Investment Strategies in a Fragmenting Token Space

• Venture vs. Liquid Crypto (26:20–34:28):
  • Chris discusses how CoinFund evaluates investments, focusing on strong founders and real utility, expecting fundamentals to matter even more.
  • The DATs model (digital asset treasuries) is explored—speculating on M&As, NAV trades, and long-term evolutions.

11. The Return of Retail and Path Forward

• Retail vs. Institution Dynamics (36:03–40:31):
  • Retail participation was crushed in the latest deleveraging event; recap of “institutionalization” trend.
  • The next true retail-driven bull run awaits higher prices to draw in new entrants.
• Quotes:

  "Retail is going to come back. I don't think people understand how badly retail was injured..." (36:03)

  "The retail that's going to... send Bitcoin to 200 or 250... that retail is not here yet... it only takes one thing to bring them back and that's a higher price." (40:08)

Notable Quotes & Memorable Moments

• Massive Liquidations:

  "I don't understand it, man... 182,000 traders get wrecked... almost as large as the entire FTX event." — Scott (01:15–01:28)

• Markets in Uncertainty:

  "Bitcoin is trying to figure it out... it's this balance between this frontier risk asset and digital gold." — Chris (02:41)

• On Crypto Policy Gridlock:

  “The policy issues will be solved. But I don't... know if the bill gets done. Why? Trump derangement syndrome.” — Chris (13:10)

• On Regulatory Certainty:

  "If you have a future, guess what? You're a commodity... gives you that certainty." — Chris (17:01)

• Brian Armstrong Schools WEF:

  "Bitcoin is the decentralized protocol. There's actually no issuer of it..." — Brian Armstrong, WEF clip (21:11)

  "He schooled him 100%." — Chris (22:13)

• Stablecoins' Global Reach:

  “Stablecoins... are going to infiltrate the entire world and you're going to see more dollarization of the global economy and there's no stopping it.” — Chris (24:05)

• On the Next Retail Bull Run:

  "Bitcoin goes to 130. All of a sudden your bus driver's buying bitcoin again. It’s that simple and there's nothing else to it." — Scott (40:22)

Timestamps for Important Segments

• 00:01: Bitcoin’s rejection near $98k and liquidations overview
• 02:00: Global uncertainty, political references, why markets are on edge
• 03:33: Institutions vs. retail in crypto’s market structure
• 06:47: Blockchain as a force against de-globalization
• 07:13: U.S. regulatory status; Digital Asset Market Clarity Act debate
• 13:10: Political obstacles for regulatory progress
• 17:01: Token futures, commodities, and institutional adoption
• 20:39: “Haves vs. have nots” for altcoins; role of ICE, Coinbase, and CME
• 21:01: Brian Armstrong vs. French central banker at WEF
• 24:05: Stablecoin-driven dollarization
• 27:11: CoinFund’s investment process for VC and liquid strategies
• 36:03: State of retail and institutional players post-October ‘10, 2025
• 40:08: The real trigger to bring retail back: higher prices

Tone & Takeaways

• Frank, Candid, and Informed: Both Scott and Chris blend expert commentary with irreverence (“I hope he [Gensler] dies in the fiery depths of hell.”) and pop culture asides.
• Emphasis on the Big Picture: Despite the immediate pain in markets, the conversation circles back to structural changes, long-term bullishness for blockchain, and a pragmatic view on regulation.
• Practical Advice: Investors are cautioned to focus on fundamentals and anticipate regulatory impacts that will divide projects into clear winners and losers.
• Humor & Cultural Observations: Frequent lighthearted and sarcastic comments make the conversation accessible despite heavy subject matter.

TL;DR

A multi-billion-dollar liquidation event marks another chapter of volatility and transition in crypto. Chris Perkins and Scott Melker see short-term pain as part and parcel of crypto’s journey toward institutionalization, regulatory clarity, and global mainstreaming. However, the space faces political inertia, fractured regulatory progress, and a looming split between establishment-endorsed tokens and everyone else. The return of retail, decisive policy agreements, and axes of innovation like stablecoins and tokenization are set to shape the industry’s next leap forward—assuming the price eventually entices the masses back in.