Transcription
We're at the beginning of one of the craziest eras in crypto. One in which almost every single bare case, save for some crazy recession which nobody can actually predict, has crypto and Bitcoin headed parabolically upwards for not just months like prior cycles, but years and decades.
We were both at the beginning of the rise of AI and the beginning of the end of a national debt spiral created by a baseless and fragile fiat debt-based monetary system. This is why Elon Musk got into this blowout fight calling Donald Trump a pedile. That's right. The lover's quarrel has descended into madness. And we're not going to really talk about that cuz who cares. The point is the trigger. The big trigger that set Elon to turn on his best buddy Donald Trump was this new spending bill by Congress being backed by the president that effectively allowed for an increased spiral of the national debt.
The thing about the debt is it's exponential. The longer you take to control it, the more difficult it becomes. Not just by 2x, but by 4x and then 8x and then 16. It multiplies. It doesn't add. But this is just the backdrop because as good as things look for Bitcoin, for cryptocurrency, they look insanely good for a specific sector of cryptocurrency. One that we've been highlighting, but we just got word today that it's going to be getting the regulatory green light, not just from Congress, but from the new SEC.
So, as we look at a linear regression of Bitcoin showing it's not even at its overextended period. This means that despite all of the excitement, Bitcoin has not yet entered into a parabolic extreme overvaluation phase. Despite all the tailwinds and the perceived unstoppable bull run, Bitcoin is still not in overvalued territory. Despite everything we know about the death of the fiat-backed debt-based system with this debt spiral that no longer has any breaks, Bitcoin is on pace now to break out versus gold. The traditional hedge against monetary debasement, the traditional way to get free from government money. This is what the chart looks like. And once it breaks free, it ain't never coming back.
And one announcement that I want to point out before we get into the meat of today's episode is that one of the biggest haters in the history of Bitcoin is Jamie Diamond. He's the CEO of the biggest bank in the entire country, probably the biggest commercial bank in the entire world. And despite hating on Bitcoin, literally for the entire last 15 years, the bank has quietly put out an announcement that they are going to be offering their clients the ability to finance their crypto ETFs. You can very soon put all of your savings into Bitcoin, into an ETF, and then take loans out against those holdings at one of the biggest banks in the world. Meaning you no longer have the problem of choosing between investing in Bitcoin and having free cash flow. You can actually use your Bitcoin as collateral. And this is going to be one of the biggest financial unlocks and strategies that we'll see in the entire world going forward. Bitcoin being acknowledged as pristine collateral. This entire debt spiral accelerating with this new spending bill.
But this last piece of the puzzle, one that I've been sounding the alarm on, but is now getting completely spotlighted by Congress and the SEC in the same day, is this: If you do not custody customer funds, you are not a money transmitter. Plain and simple. Our nonpartisan blockchain regulatory certainty act, which codifies this simple concept, has been added to the Clarity Act. Grateful for blah blah blah. The point is that this is the bill coming down the pipe for market structure, which effectively takes all of the regulatory risk away from DeFi.
And you might be thinking, okay, it's just Tom Emmer. Yes, he is the GOP majority whip. Yes, he is a very influential member of Congress, but he's also not a god; he cannot unilaterally pass legislation, and Congress is slow and painful to deal with. But that's not all. We actually have SEC Chair Paul Atkins saying that they are actively working on a way to exempt DeFi platforms from regulatory barriers. This is one of the biggest trends that we will see this year. It goes hand-in-hand with what we saw with the stable coin legislation. And with that stable coin legislation, we had one of the biggest IPOs that we've seen in the stock market in recent history and certainly in the history of crypto. Circle IPOed at just $31 and it traded as high as $140 within a matter of hours, just two days later. This is one of the biggest, most exciting IPOs we've ever seen. And it shows that Wall Street, that institutional buyers, that big money is hungry; they're salivating for crypto.
Despite what you're hearing out there, that nobody wants crypto, they just want Bitcoin, that is absolutely not true. Stable coins are one of the biggest waves that we will ever see in crypto. And this is the first chance that institutions have gotten to sink their teeth into it. This is just the beginning. And what it shows you is that institutions want regulatory clarity. They're not just going to buy into random stuff on chain wondering, hey, is this stuff going to be made illegal down the line? Because if the trade goes well, sure, you make a bag. But if the trade goes poorly, you lose your job. Nobody wants to risk their head. But once this stuff gets the regulatory green light, much like stable coins just got with the new stable coin legislation bill, we're going to see the same level of fervor of excitement for on-chain businesses, for real tech coins.
So, as we are here and we are waiting for the parabolic part of this market cycle, remember that all of this has happened with Bitcoin dominance soaring in the era of extremely restrictive Fed policy, in an era of sticky inflation and low growth. This is all what's happening and people are writing off altcoins as if it's never going to be possible.
Now, of course, you should be weighted into things like Bitcoin, like Coinbase, like Micro Strategy, Ethereum, Solana, the majors. That should be the majority of your portfolio so that you can sleep at night. But even though there has been this trudge, this extremely difficult path with altcoins, it's important to see the forest through the trees here. Institutions cannot get enough of crypto businesses. Crypto businesses do not have regulatory clarity yet. It is being actively worked on by the heads of Congress and it is supported by the president. Hell, the president has his own DeFi protocol and stablecoin. And this is what the charts look like when institutions finally get to have a taste.
So, believe me, believe me, I know there's some meme coins pumping. There's one or two of them that are doing well. There's Fartcoin. There's other coins. But when you look your grandkids in the eye and you say, "Hey, look, I was there. I was there at the beginning of AI. I was there when crypto got legalized," and they would say, "Oh, so you put all of our money into Skibbidity Toiletcoin. Why, Grandpa? Why?" And you would say, "Well, uh, this anonymous PFP on Twitter told me to." Are you insane? Have you lost your marbles?
Don't get me wrong, the altcoin cycle has not cycled like it normally does, and I can show you ironically why I think that is. But don't mistake what's happened over the last few months for a permanent trend. Nothing in crypto is permanent. And it's important that you look at where big money is flowing. No speculation. Big money flowed right into Bitcoin. Big money is flowing right into the Circle IPO. Institutions are thirsting for DeFi. They are thirsting for stable coins. They're thirsting for on-chain businesses and exposure.
Now, before I get into the coins that I like here, I want to once again affirm that, of course, this stuff is insanely risky. All of crypto is risky. No one can guarantee you returns, and the game has continually gotten harder. Even though we've had insane runs here on this channel, as you know, I've also gotten completely rinsed. This is part of the game. Sometimes you lose it all, sometimes you make insane gains. And I wouldn't be here doing this if I wasn't convinced that the biggest, most profitable part of crypto is ahead of us. Institutions, big money, the traditional system flows into crypto and pumps these nascent protocols to Valhalla, literally. But it won't be every coin. It will only be a select few coins, and your winners will dramatically offset your losers. But you have to be prepared for some losers. You have to understand that some coins will go negative 80, 90. Some will go negative 100%. But what I can promise you is that I'm riding in the boat with you and trying to win this game alongside of you.
Now, of course, some of you out there are watching this doing crypto, understanding that you're part of the future of money and truly owning your assets, but actually exposing all your data online by not using a VPN. Now, of course, most of you are smart. Most of you are geniuses watching this show. In fact, if you're watching this channel, you're probably directly related to Albert Einstein. True, true, truly savant. But some of you are out there operating at the paint-huffing level, the very disabled level of not using a VPN, which only costs a few dollars a month and can protect you from all kinds of cyber hacks, from getting your personal data leaked out there. You do not want your personal data leaking out there saying, "Hey, I'm a big crypto user. Come find me." Having true control over your money requires true responsibility. And again, my favorite VPN that I use all the time, you can always see it active here in my applications bar is NordVPN. I absolutely love it. And you can get a big fat juicy discount by signing up with the link below in the description of this video. It's a very cheap and easy way to protect yourself from online threats. And like I've said many times before, you can be forgiven for all kinds of mistakes in crypto, but not having a VPN, that's not one. Make sure you get a big fat juicy discount by using my link, and of course, it supports the channel, and I appreciate it. Thank you to NordVPN for sponsoring this episode.
Now, once again, I think fundamental season here is showing things like Maker, Syrup, Athena, Oiler, Pendle, these DeFi protocols that have strong market position. They are absolutely crushing it. And these are the types of protocols that I think are going to go absolutely bananas once market structure is there. Hell, you might even see Uniswap start to add more exotic tokenomics to their existing project. One of the big behemoths in DeFi.
Now, of course, I said holy blackcoded here because of course this feels almost too serendipitous that for the last year and a half in the silence while no one is focused on DeFi that the folks over there at Superverse have been grinding away at innovating around the DEX technology, making more fair launches and all kinds of new liquidity engine tools. This is an insane moment that Black Hole might be launching right as we're getting regulatory clarity for DeFi. This is an insane opportunity and once again a totally free opportunity for super stakers. Just the beginning of Super's journey into dominating the world of on-chain revenue businesses of DeFi protocols.
So, as we talk about coins here, remember on one side we're going to have an attention trade. On the other side, you're going to have a liquidity trade. In my opinion, the liquidity trade is going to be where the institutions jump to next. That's often approached as a yield trade. But what you see is that there is an extreme, extreme hunger for these types of businesses out of institutions. And at the attention trade, I believe there's a chance that they might leapfrog the L1 trade, not entirely, but to a large degree, and focus instead on DeFi, on other types of on-chain businesses that are a little bit more to identify winners, advantages, moats. I think that might be one of the spiciest takes of 2025.
But speaking of the L1 trade, one of the biggest performers that we brought to you 3x ago is Kita, and it hit uh what was this 1.7, pretty much 1.7. This seems pretty overextended. I think it's going to come down a bit. Again, anything over a billion for these early protocols is quite a lot, right? And they have almost all their FTV in market, or not not all of their FTV in market, but I think that they ended up having a really, really good run here. I think it hit almost a billion. Yeah, 700 million or so on-chain circulating. This has been a good run, and I think this thing will cool off. But again, one of the easiest on-chain holds and we brought it to you because of all the fundamentals. I think while there's some good cults and some fun coins to hold, people are pretty sick of there being no fundamentals. They're pretty sick of losing money on something that they can't really justify cuz they look in the mirror and they feel like an absolute clown.
And to me, this completely explains why during the memecoin super cycle, while Bitcoin is up only, we're seeing almost no love on YouTube. Because on YouTube, people are more excited about other stuff. And the derivative of the memecoin super cycle is that a lot of people have gotten cooked by money sort of rotating into meaningless stuff. You're seeing days in 2025 that have comparable subscriber numbers to 2019. I don't think you can really understand just how big of a deal that was. I was there all throughout 2019. It was very, very sad. It was very depressing. It was not a fun place to be in crypto. And to think that the lights have gotten this dim with retail, it just shows how much ground is there to be gained back once this stuff starts kicking off.
Now, I actually saw this tweet and it's funny because I think that this is part of an interesting trend. As much as I hate memecoins, the truth is that a lot of retail do hold meme coins. Speaking of which, a lot of retail hold Doge. And I think that this chart, it shows that, okay, as Doge last cycle uh broke trend, it broke its resistance downtrend here in 2020, it started flipping it into support and then it eventually broke its next line of resistance. I don't know if this is astrology or not. We can see that if it starts breaking its prior high from December 2024 here, I think that it could rock it up and start to challenge those other all-time highs, those prior all-time highs. Ironically, if you look at the chart overlaid of YouTube views and you look at YouTube views versus the price of Dogecoin, I find this to be one of the most interesting comparisons. And I'll keep it here as logarithmic so you can see here, but you can see here as it goes up, this white line is the price of Dogecoin and the bottom is all of the YouTube views combined from all the different channels. Now, if you actually take it off logarithmic to linear, you can still see that white line kind of overlaid. And you can see it almost exactly, exactly matches the pumps in YouTube views. As Dogecoin pumps, you see YouTube views pump, which means retail comes back with the pump of Doge. I think this has a lot to do with Elon sort of associating his brand with Doge, Doge's sort of super cycle that went on last cycle. I think the new memes have really destroyed people's confidence, but if Doge comes back, I think that people will be very excited about crypto again.
So, as much as I'm disappointed and I don't think the right place to be putting your money given the institutional order flow will be Doge, there's again two sides of the industry. There's the attention trade, things like Doge, and then there's the institutional trade, things like DeFi, things like Circle, things like Syra, Pendle, Athena, those types of protocols. And of course, what's coming soon, free for superholders, Black Hole. So each time we get these massive market pumps, you will see meme coins pump. You'll see that select crop. Remember, I've given you my favorites: Mog, fart, pep, Pangu, those are my four. I'm not going to break my back and constantly ape into 20, 30 different meme coins. I think that essentially memes have boiled down and people want to jump into just a few.
But the reality is that the big money that's powered this entire run-up, a multi-year trend where since 2021, Bitcoin dominance has just been parabolically up only, well, we will eventually see that roll over. And when that happens, I believe the attention and liquidity trade will go crazy. But even without this rolling over, right, this doesn't need to happen. I believe this can keep going up because we won't really need retail buyers to push these institutional flow assets like DeFi. I believe DeFi will benefit from all kinds of institutional order flow because they deeply understand finance and they will deeply understand decentralized finance, but they need the regulatory green light.
So, I think we're at this incredibly asymmetric point where DeFi protocols have an easy 10x in them as institutions gain access to these products through regulation. This is a huge, huge opportunity. Doesn't require you to speculate at all. You can simply look at who's been buying Bitcoin, what they did as soon as Circle became available to purchase and what is likely to happen as they are legally able to purchase DeFi tokens. I think it's going to be a golden era for DeFi. The true long sustained growth pattern for DeFi, which went through its extreme pump and dump phase in 2021, and now it's found product market fit, and it's going to grind up. And I don't think these are going to be the types of things that grind up just for a month or two. I think institutions will continually buy these assets like they're doing Bitcoin for years and even decades. This is the beginning of a very long trend. Of course, there will be downturns. There will be peaks and valleys. There will be pumps and dumps in the super cycle that I believe we're entering into. But that's just part of the game. And although some of these moments in equities can look really, really sketchy, as you zoom out, you realize that equities only go in one direction because they constantly add new money to the supply and that new money finds its way into good assets. That's what's going to happen in my opinion with DeFi and then other sectors as well as they become more mature.
I believe AI and gaming, RWA, those are the next sectors that will find this product market fit. I know a lot of people have been dubious about gaming, but slowly and surely we're seeing gaming actually have success. Mythical Games has a game, a FIFA game with real FIFA integrations and Adidas assets, and they generated $650 million in completed transactions from more than 7 million gamers in just the last month. So, you can't tell me that's not adoption. You cannot tell me that this stuff is not going to happen piece by piece and then eventually all at once. Super is the best asset in gaming and soon it will be benefiting from an entire ecosystem of DeFi, right on the verge of the beginning of what I think of as the first true legal golden era for these types of assets. This is an amazing sea change. Again, still very experimental, still very risky. Of course, understand that any single asset can face extreme, extreme downside. So, of course, only invest what you can afford to lose. Keep your portfolio weighted into things like Bitcoin, Ethereum, Solana, the majors, as well as things like Micro Strategy, Coinbase, and now Circle. These are your major big coins. These major behemoths, but at the same time, I believe the max gains, those 10xs, there's 20xs, and then even some 100xs. Projects such as Kea that come out of nowhere. Those types of assets are all around, and they will be driven, in my opinion, by fundamentals in the next era of crypto.
I hope you guys enjoyed this video. If you enjoyed it, make sure to click on this one popping up right now as you'll absolutely love it. And I'll see you very soon on the next episode. [Music]