LIQUIDITY SURGE FOR CRYPTO AS FED ENDS QT? BLACKROCK BITCOIN ETF SECRET REVEALED!

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The FED is set to end quantitative tightening in two days.
What will happen is the liquidity starts to surge into
the markets, and one economist is saying that the FED
will have to return to QE sooner than expected. And
you won't believe what Blackrock is saying about its big
point ETF for its business. And Coinbase has done something
very unique with stable coins and universal basic income in

(00:23):
New York? Could this be the future model as AI
and robotics takeaway jobs. I'll give you the details. Let's
get into it. Hey, everybody, welcome into the Thinking Crypto Podcast.
You're home for cryptocurrency news and interviews. I'm your host,
Tony Edward. On your way in. Please sit that subscribe

(00:46):
button as well as a thumbsup button and leave a
comment below. If you're listening on a podcast platform such
as Spotify or Apple, please leave a five star rating
and review. Folks, Let's take a look a bitcoin right now,
just over ninety thousand dollars, So the grind continues. Bitcoin
of course moving away from the over soul zone. But
you know, as we mentioned in yesterday's podcast, we're seeing

(01:07):
the SMP five hundred and the other stock market indexes
start to recover. So what we want to watch for
is this week, will the SMP five hundred break to
new all time highs or will it get stopped out?
Because if it breaks to new all time highs, that's
going to be a very bullish sign for the crypto
market because we know it's all correlated to global liquidity.

(01:29):
But there are your leaders and laggards, and right now
crypto is a big laggard. Because silver, as we highlight
eating yesterday's podcast, is hitting new all time highs. So
that's confirmation the macro bull market is not over and
gold is starting to rebound, but we're waiting to see
will it break new all time highs. So similar to
the stock market, we're waiting to see what happens here

(01:49):
because these will be very positive signs. Now, when you
look at the ARTSI for gold, there's still room for
it to run here. It was moving away. It didn't
really go to the over soul zone, but it's moving
away from that region and it has not hit the
overbod zone yet, so again let's watch this closely. The
same thing can be said for the stock market. It
is not in the overbod zone and it has been

(02:12):
moving away from the over soul zone, so there's room
for upside here. So this is going to be a
very important week, I think, to see how the market
starts to react, and could Monday where the Fed ends
quantitative tightening. And remember we we got confirmation of this
earlier in November that they are going to do this.

(02:32):
Jerome Powell did confirm it. They're going to end quantitative tightening,
so that means they're going to start purchasing securities and
loading up their balance sheet once again. And the other
factor is, folks, they will continue to cut rates because
right now the Fed futures on the CME has an
eighty six point four percent chance they're going to cut
rates by a quarter point twenty five basis points in December.

(02:56):
So you have the ending of quantitative tightening, you have
rates dropping, so more liquidity is going to come in,
more people will be able to borrow capital at a
cheaper rate. Obviously, So the next FOMC meeting is in
ten days, so this is a very big December, folks,
So let's see what happens, how the markets react. And
I want to highlight something from one economist. His name

(03:18):
is EJ. Antonio PhD. He said, the Federal Reserve has
managed to push up bank reserves for four weeks now,
but they're running out of tools in the toolbox and
we'll soon have to resume asset purchases euphemistically called QE
or quantitative easing IE money printing. One financial planner replied

(03:39):
to that tweet, saying assets on the balance sheet have
decrease while GDP has steadily increased. Let the buying begin.
Liquidity is coming. So we all know, guys, We've seen
this time and time again. If they are printing money
and injecting liquidity, the asset prices are going to go bonkers,
and as rates decrease, people are going to move. It's

(04:01):
going to be risk on, essentially even more risk on
that we've seen so far, because you're not going to
get the same interests or yield from money market funds
and things like that. So people are going to go
to risk assets. Right. So this is the thesis, the
macro thesis that I'm personally looking at for the continuation
of the bull market. Despite the short term volatility, some

(04:21):
of the bearishness we're seeing on the charts right, I'm
not ignoring that I'm just saying, the macro here is
setting up for a move for higher highs in this
bull market, and look, there will be a blow off top.
I don't know what the catalyst will be, but there
will be. And maybe it's some sort of recession. You know,
I think we're already in some sort of recession right now.
But you know, you look at the unemployment and you

(04:45):
look at the layoffs and so forth, they're starting to
creep up to near recession levels. Not at recession levels yet,
but near. So I think we're at the start of it.
So let's see what the Fed does here, folks. It's
going to be, like I said, a very interesting and
big December, and let's see how the markets react. Now.
I don't expect crypto to just pump to nwall time

(05:05):
highs in Decemmer. We don't have enough time for that, right,
But could we start seeing the upward momentum and we
build a momentum when we enter into next year Q one,
twenty twenty six, and we start seeing fireworks, right, That
is what I'm thinking about. That's my thesis. Obviously I
don't have a crystal ball. Obviously that's not guaranteed. But

(05:25):
as investors, we want to look at all these different factors,
the charts, the macro, and the on chain data of course.
So get ready for Monday with the end of quantitative
tightening and then the next FMC meeting with the ray cuts.
Now look at this news, folks. Blackrock says bitcoin ETFs
are its top source of revenue. This is very surprising.

(05:45):
This is coming from an executive at Blackrock, and I
didn't expect the ETFs to be their top source. This
is very bullish for crypto because you know, Blackrock is
going to continue to double down and build different products
and they're not going to want to see the prices
drop much. They're making this amount of money from it, right,
So Blackrocks bitcoin ETPs have become the firm's top revenue source,

(06:06):
with allocations nearing one hundred billion dollars, a surprise given
the firms fourteen hundred ETFs and thirteen point four trillion
dollars in assets under management. Now remember this is the
world's largest asset manager. So the fact that the bitcoin
ETPs are driving the most revenue is pretty surprising. And
it's why Larry Fink he's bullish and he's been going

(06:28):
on TV talking about it all for the past two years,
right since the launch. So the US spot Bitcoin ETF
ibit launch in January twenty twenty four reached seventy billion
dollars in assets in three hundred and forty one days
and has generated and estimated two hundred and forty five
million dollars in annual fees. Ibit now holds over three

(06:49):
percent of bitcoin's total supply, and Blackrocks own Strategic Income
Opportunities Portfolio has increased its stake in ibit by fourteen percent,
betting on the et continued growth read between the lines there, Right,
they're betting that this continues to grow. What do you
need as far as the ability to market this and

(07:11):
for it to grow the price to go up? Right
read between the lines. They're taking this ETF and putting
it into their other products to help those products to
have the proper returns or greater returns. Right, So they're
going to want to see the price go up. They're
going to continue to double down, and we as we
covered in yesterday's podcast, after weeks of outflows, they are

(07:33):
now inflow, so they're buying the dip. So this is
why I'm looking at all these things. I'm sitting back
and just looking at the lay of the land here,
and I'm seeing the macro set up. I'm looking at
what black rocks doing and thinking, this thing cannot be
over yet. Now is there a probability that it is?
Of course, of course, right, Like I said, I don't

(07:54):
have a crystal ball, But I'm looking at the facts
here and as an investor, just looking at all situations
and all the scenarios and placing my bet. Now from
a macro perspective, Let's say, even if the market did
top right, from macro perspective, as long as central banks
keep printing, I've told you guys, I'm bullish. So even
if I have to wait another year or another two

(08:14):
years whatever for bitcoin and alts to start moving, that's
fine because I know this is the fastest horse in
the race. It has been for many years. And despite
the short term, very short term volatility and pullback and pain,
I'm still macro bullish, folks. So that is my conviction. Now,

(08:36):
you don't have to follow me. I'm just sharing my
thoughts and the thesis here and you can say, Tony
you're wrong. And I always tell you, guys, you know
leave your comments in the comment section, Be professional, be respectful,
and just say, hey, here's why I think you're wrong, Tony.
Let's your reasons, right. I think we can have a
good dialogue there and share our thoughts. I don't claim
to know everything, but I'm pointing to you guys to facts, right,

(08:59):
What the is doing, what's coming up all these different things.
The other thing I've been saying for a long time,
the Crypto Market Structure Bill. That is a huge milestone,
and I don't think market makers are that dumb to
let that milestone pass and not use it to their advantage. Right,
black Rock and all these guys not use it to
their advantage in a sense of buider rumor sell the news.

(09:22):
You pump the markets. Crypto legislations here, You're going to
see this and that and blah blah blah. And then
usually when it passes, that's when the market starts to
roll over. We saw it with the launch of the
big one ETFs. So look, I don't make the rules, guys.
This is just how markets work. So once you understand
these principles, it allows you to see the market differently,

(09:42):
not to be, for example, an outsider, but to have
maybe more of the inside of you. How are the
smart money folks thinking about this? So again, just sharing
my thoughts. I would love to hear what you guys
have to say about this now, folks. This episode is
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(10:03):
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(11:08):
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in the description. Now, folks, look at this news nas
that crypto chief pledges to move as fast as we
can on tokenized stocks. A couple things to peel back

(11:30):
here from the onion. First up, the nasdak a stock
exchange now has a crypto chief. All of these trad
five firms now have a designated crypto team. They sometimes
call it digital assets team, but it's crypto blockchain right.
That in itself is amazing. But second, notice the urgency
to start tokenizing stocks right they're going to use blockchains,

(11:52):
obviously public blockchains, and they're putting gold, stocks, equities, money
market funds, all these things on the blockchain, which is incredible.
So the US Nasdaq Stock Exchange is making SEC approval
of its proposal to offer tokenized versions of stocks listed
on the exchange a top priority, according to the exchange's

(12:12):
crypto chief. Here's a quote, We'll just move as fast
as we can, nasdak's head of Digital Assets Strategy, Matt
Sevaree said during a CNBC interview on Thursday, when asked
whether the SEC could approve the proposal this year, he
continues here, saying, I think we have to really evaluate
where the public comments come back in and then answer

(12:34):
and respond to the SEC's questions as they come through.
Severy said, we hope to kind of work with them
as quickly as possible. So once again there's urgency here.
There's a big race. All these firms and stock exchanges
are looking to tokenize these assets because they know it's
going to unlock a lot of liquidity instance settlement, make
things more efficient. I've said for many years, I mean

(12:57):
going back to like twenty eighteen, twenty nineteen, we are
headed to the token economy twenty four to seven, three
hundred and sixty five day markets, no more opening and
closing bell, no more holidays and weekends and whatever else. Right,
that will become a thing of the pass. And it's
almost hard to believe, right because the modern world as

(13:18):
we know it for the most part has been the
stock market, opening, closing bell and all that stuff. Right,
that's going to become history, folks. It's not going to
be relevant anymore because all these things will be trading
on the blockchain. Okay, moving ahead, Ethereum has a massive
upgrade coming this week. The Fukusaka is coming December third.
Etherreum's next major upgrade shows that the network can grow

(13:42):
to meet global demand without compromising on decentralization or permissionlessness.
Whether you're a user, builder, institution, or operator, here's how
Fusaka will help impact you. So they go into this
full breakdown, I just want to let you guys know
this is come. So this could be a big narrative
for etherorem as maybe we start to see some all

(14:04):
coins moving, So let's see what happens. It comes the
week as the FED is wrapping up QT on Monday,
So again, some big things on the horizon here. And
you know, one of the things we've talked about is
we need to see Ethereum break into price discovery, hit
new all time highs, and generally all coins follow that move.

(14:26):
I don't make the rules. This is just what we've
seen historically. There are a lot of all coins that
are layer twos on Etheroreum. So again it makes sense
that eth is leading. It's the second coin behind Bitcoin,
It's the top all coins, so to speak. So we
want to watch Ethereum and remember the liquidity flow some
Bitcoin down to eth and then to the other all

(14:47):
coins and the rotation small caps, midcaps, large caps, all that. Right,
we've talked a lot about that. I've covered that in
my newsletter and much more so. This should be a
big narrative for etherorem So let's see how it goes
this week. Hopefully you know delays now, folks, this is interesting.
We've often talked about ubi universal basic income and the
potential for stable coins or CBDCs to be used to

(15:12):
send money to people. I think that's in the cards
for the future, that governments will use this technology to
send people their stimulus payments, their tax payments and whatever else.
And because people are going to have, you know, wallets
and possibly wallets from the government. I don't think that's
going to happen here in the United States, but in
different parts of the world. Or they're going to have

(15:33):
wallets from banks, like so if they're banking with JP
Morgan Bank of America, they're going to have wallets. Those
wallets are going to be approved by the bank and
which subsequently will be approved by the FED. Right, so,
because the banks are all tied into the Treasury and FED.
So here's an article saying some New Yorkers are getting
twelve thousand dollars in crypto in a coin based funded
basic income style pilot program. This is interesting when you

(15:58):
think about the politics. And I don't want to get
too to the politics, but like mom, Donnie winning the
mayoral race in New York City now put him aside, right,
and even some of the politics with AI and humanoid
robots on the horizon, you know a lot of jobs
are going to be eliminated and governments are going to
have to give people universal basic income. I'm not saying

(16:21):
I'm a fan of that. I'm not saying I want
that to happen. I'm just talking reality here, and what
better way to be able to do that is with
this technology where it's transparent, you can trust it, right
the wallet set up. The only thing we got to
watch out for if there's programmability about it where it's
tracking you and you can only spend it at certain places.

(16:41):
That is a whole other conversation. But the point is
the technology is here for them to do that, and
it's funny how these things are all lining up here
for what is down the road. So give directly is
funding the pilot program with crypto donated by coinbase. Will
receive eight hundred dollars monthly no strings attached payment and

(17:04):
an eight thousand dollars lump sum. Apparently some of this
was done already where people receive the USDC stable coin.
They got eight hundred dollars a month in USDC in
September and it says the program ends in February. You know,
there's a lot to unpack here, right, because there's the
political aspect, there's the capitalism versus socialism aspect. But again,

(17:29):
I'm just straight out shooting some facts. I'm not saying
I want this, So please don't come after me as
the messenger. Right, I know these things can trigger people,
but I'm just letting you understand what's happening and how
this technology will be applied and governments will use them.
You know, I've said many times the future markets, economy,
and governments will all be running on blockchainrails, right, I've

(17:50):
said that at nauseam. It's coming, folks, and they will
use it to solve some of the problems that we're
going to face with, you know, AI and robotics, and
they economy and jobs. So the program is similar to
the guaranteed basic income experiments flourishing around the US and
the world. In such programs, a government distributes no strings

(18:11):
attached payments over a period of time to a targeted
group of residents. Guaranteed basic income programs often require participants
to meet a specific criteria, such as a household income
that falls in the ear the poverty line. They differ
from a universal basic income, which offers monthly payments the
entire populations, regardless of socio economic status. Again, there's a

(18:36):
whole other conversation to have here, but look at the
technology you're using, right, and coinbase. I think they're just
trying to position themselves to get used that their platform.
The stable coin day back USDC, and I think other
stable coins will be used as well. But we could
see in the future, for example, Trump wants to do
the tariff stimulus check. Right, if the government says, hey,

(19:01):
those of you who want to get your stimulus payment
via stable coins or whatever, download this app or use
this app from this bank. It could be as simple
as that. Now, those who are tech savvy will be
able to do it, but then there may be people
who are not going to be tech savy, who may
be older and much more. They may get it via
checking the mail or direct deposit whatever. Right, but don't

(19:24):
be surprised if these things start popping up and you're like,
whoa wait, that's what we're doing now, right, It's coming folks,
So you're starting to see the breadcrumbs here. Moving ahead, folks,
we got some interesting news out of El salvador So.
Crypto payments firm Truther to launch non custodial USDT visa

(19:44):
card in El salvador So. The launch will happen on
January twenty ninth, allowing users to spend USDT directly from
their self custody wallets via partnership with Visa. The card
doesn't require preloading of funds or custodial services and carries
a two percent fee on currency conversions, with no IOF
tax for Brazilian users. Truth their plans to expand its

(20:08):
services to other countries including Argentina, Mexico, Colombia and Russia,
and will integrate more local stable coins into its self
custody wallet by early twenty twenty five. Wow, guys, you
see the infrastructure being built here for the mass adoption
of crypto, and it may start with stable coins and
help people to understand wallets and seed phrases and security

(20:31):
and make them even more comfortable to come into the
crypto market. Those who are out you are still on
the fence. A final news item, trust Link launches Swiss
regulated crypto to Fiat payment platform to boost cryptocurrency adoption.
Incredible so trust Link, a Swiss regulated crypto to Fiat
payment intermediary, announce the launch of its pioneering crypto to

(20:54):
Fiat payment platform that enables cryptocurrency holders to send Fiat
payments directly from crypto holding thanks to anyone anywhere in
the world. In over seventy local currencies. The platform, underpinned
by Swiss oversight, bank level compliance and secure automation, enables
direct crypto to FIAT seamlessly and executes payments via local

(21:15):
payment rails or through trust links debit cards. Apparently the
debit cards are coming in Q one twenty twenty six. Guys,
you see why I'm so bullish. The building, the setup,
what the governments are doing, what the Wall Street trad
five financial institutions are doing, and much more. Even crypto
native firms building incredible technology on and off rams. The

(21:40):
infrastructure being set up for people to use blockchain tech.
It's incredible. Let me know what you think about this news.
Leave your thoughts and comments below hit the thumbs up button.
A great way to support the podcast is by subscribing
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Link will be in the description. Check out my book
on Amazon it's available in paperback, in digital, and my

(22:01):
course at mycryptocurse dot com. This is a comprehensive course
that teaches you everything you need to know about crypto
and folks. Right now, we have a Black Friday Cyber
Monday deal going on where you can get forty percent
off The fee for the lifetime access is a one
time fee. They use the code THINK at checkout. That
is capital t H I n K. Think that's the

(22:24):
code to get the forty percent off. So uh. This
is a once again comprehensive course. It is packed with
tons of value to help you understand the different aspects
of crypto. So check it out. Go to Mycrypto course
dot com. Use the code think Folks, thank you for
tuning in. I appreciate you all and I'll talk to
you all later

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LIQUIDITY SURGE FOR CRYPTO AS FED ENDS QT? BLACKROCK BITCOIN ETF SECRET REVEALED!

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