Markets Rip Following the Elections
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Welcome back to the breakdown with me and L W. It's a daily podcast on micro bitcoin and the big picture, powerless PS remaking our world. What's going on? This is thursday, remember seven. And today we are continuing to get our post election takes what IT all means for crypto before we get into that.

However, if you are enjoying the breakdown, please go subscribe to IT, give IT a rating, give IT a review, or if you want to dive deeper in to the conversation, come join us on the brokers discord. You can find a link and the show knows you're onna bit that l size breakdown pod. Well, friends, we are continuing our sort of fallout coverage of the election.

I think this was pretty and inevitable this week. I promise I won't last forever. But for now, IT is where people's minds are at, IT is where the discussion is, and IT is certainly where markets are.

For many, trump election win undeniably ushers in a new chapter for the industry. Projects are already begin to position themselves, changes they see on the horizon, investment decisions are being made. And for the first time in several years, there's a belief that the U.

S. Critical industry will not only survive, but driver. So the goal of this episode is to sit through the takes from the day after to figure out where people think the industry is heading next.

And of course, we have to start with the big and obvious dimension of this, which is Price action. If you had to sump up how people feel about things in general, is that the election results remove the cap on the market and there is no telling how far can run bloom network. C E, O Christian said crypt or supporters saw trump Victory is very bullish, ed for cyp, to which you can see via election night Price.

Moving on bittle. Now we're all looking forward to a golden bull run investor, Michael ford tweed. We are getting to the part of the cycle where you stop asking, what if i'm wrong and instead start asking, what if i'm right.

This cycle can run so much farther than most people can imagine. Be patient, breathe, hold, win. Alexa n of galaxy digital inks is quite simple. No one he writes is bullish enough.

The only lingering question is whether this is truly the start of a sustainable bull or if this week was just a one off free pricing. We did see a new all time high yesterday of seventy six thousand, but it's a little too early to know whether market head next. The timeline is in a state of absolute euphoria, but those kinds of moves often retrace.

We could be on the verge of a months long face melting rally like we saw the end 2， or this could be the market just quickly repricing now that the risk of a further crackdown has been removed. T, X, M, C rights, it's almost not worth even saying this on here, but screw IT, the degree of confidence in the outcome for crypto over the next twelve months makes me very uneasy. Seemingly everyone is convinced what's going to happen next.

Is everyone right for the first time? Then again, no one really wanted to hear this right now with a break out in sight as economist alex cooker put IT ride the wave, embrace the pump. Still, one of the big reasons to remain bullish is the ongoing fed easing cycle. By the time you're listening, the one powerful of announced another twenty five basis point cut and likely signal another cut coming in december. He's been very clear over the past six months of the fed is staying right out of politics.

And further, he noted that the fed can make decisions, campaign promises they need to deal solely with the data and policies of the moment feels job in the host of four regular dance tweed power will still cut tomorrow to change course this late in the game opens up too many political can of worms. He needs to stick to what they guided and not let IT seem like they're being reactionary to fiscal and panicked trust. Tera s deregulation and tax policies might be inflationary and due course, but for now the fed is pretty much locked into cutting rates.

Analysts new mora now believe the fed will only cut once next year to these policies, but for now rates are heading lower. Analysts will climate is nothing but tell wans tweet just to Christal zed the situation, in case in disbelief, biton just broke all time highs. The fed is cutting rates into a strong economy.

Sailor just announced forty two billion and bitcoin buys. We now have a strongly program to president and VP bit point to six figures per coin as further signs of how insanely bullish traders are this week, the big queen T. F put up a monster day on wednesday.

They did to combine six billion dollars in volume with four point one billion for the black rock etf alone. Putting that in context, earlier in the morning, bloomberg s erie I D has seen one billion in volume in the first twenty minutes. That's about what IT does in a full day.

Other big, I have sent the same boat crazy volume set for a record breaking volume day. And given Prices up so much, this is likely a feeding frenzy versus crisis volume. Look for inflows this week, when I was said in data was the biggest trading day ever for the products. We haven't seen anything close since the early days of february. In march, I bit did more daily volume than Better half way netflix or VISA.

Some believe this represents trade vie rushing to get in on the trade K Y cyp to vote might be hoi um but every trade by macro o strategies is going to be pitching trump trades even harder since you expected to sweet plus popular vote for him to do whatever he wants crypt to is an obvious trump trade and trade vise basically limited to bitcoin, already all time highs. And eat and quote the coin base premium, a proxy for a domestic U. S.

Demand double during yesterday's open, hitting four hundred dollars gem canada of metro capital route. The notional volume for bitcoin on wednesday was the highest. Sincerely, marchin was the second day in a row with a coin base premium in march.

When the volume was this high, we witnessed week of coin base premium days. Now we are just beginning once the flow data came in. IT was clear.

Just haven't saying the day had been the product saw six hundred and twenty two million worth of net inflows despite the sixty nine million outflow from black crock. Now due to technical reasons, blackrock flow data is on a one day leg. So this actually represents flows from tuesday.

They grassy. The president of the t. Store was expecting a new record once the final numbers were in.

He treated no record actually outflows for my bit yesterday. Let's see flows for the rest of the week. God says the record will still be broken.

Need Polly market on spot between the T, F. Flows, by the way. Otherwise, I just another nate speculating on outcomes.

IT wasn't just the etf that saut crazy activity. On wednesday, coin base stocks saw thirty one percent jump, taking its year to date gains to sixty two percent. Robin hood was up almost twenty percent, while marathon digital and microstrip gy.

He had more than thirteen percent. Several smaller bitcoin minor saw again more than twenty percent beyond cyp to yesterday was the largest post election trading session for stocks in general. The S M P five hundred was up two point five percent, while the NASA rose by three percent.

IT felt like wall street taking off their hedge, getting extremely long on risk, ryan Robinson ratigan said. The bigger takeaway from last night is that we received the certainty that the market craves in terms of the more substantive policies. One of the more outlandish but to bitcoin ders very exciting promises made on the campaign trail was that of a creation of a strategic bitcoin reserve.

Trumps announcement during the nash ful weekend was very little on details. However, shortly afterward, senator, since the alumni on stage to explain a legislative and regulatory proposal that would set up the framework for getting IT done, IT seems that luma is debt serious about pushing this policy over the finish line on wednesday as her first statement after the election, SHE witted in all caps, we are going to build a strategic bitcoin reserve. The lum's proposal was far more expensive than trumps.

He merely promised to hold on to see spitz owned by the government rather than selling and off. Lam is wants the government to purchase one million bit coin and hold IT for twenty years as a method to pay down the debt. This larger plan would require legislation, but with republicans likely to control both houses of it's not invisible pop made the obvious but necessary point that this would peak extremely bullish ed eating.

If the united states establishes a bitcoin strategic reserve, IT will kick off a global formal, unlike anything we've ever seen before. When IT comes to whether this can actually get done, bitcoin magazine CEO David bai thinks the time is of the essence. He tweed amErica is at a major risk of being front run on its bitcoin agenda.

We must establish the strategic big coin reserves quickly as possible. President trump has the house and senate. He has a Mandate. The environment is there for us to get this done in the first one hundred days.

Others, though, are still deeply uneasy about the idea, bitcoin policy institute fellow margo pie wrote, i'm old enough to remember when biceps is were about separation of money in state, not for the consolidation of bitcoin and state. Ultimately, you will still be a heavy lift to convince conservative lawmakers that this is a good idea, but there is a pathway to seeing IT happen. And one extremely enthusiastic ealing senator who wants to make that a reality.

Another big change on the horizon is a shake up at the S. C. C. Trump has pledged to fire gary against law on day one, and whether or not that happens, it's clear that there will be big changes in the way the S, C, C engages with the inca. Chief legal officer paul gray will thinks the agency should get started, right.

I hope the S, C, C understands what has happened tonight on many, many issues. The voters said loud and clear that they want change. Crypto o is no exception.

Stop sewing crypto. Start talking to crypto. Initiate or making. Now there's no reason to wait. The sentiment was shared in the traffic world with Chris ioc vala, the C. E, O of american securities association, stating last night the people voted for this country to take a new direction and chairman gansler should respect that vote by stepping down from his position.

Mediately, there is a very real sense in which the election result was not just a Victory for trump, but also a Mandate due to how overwhelming the vote was, IT against their breaks with convention and chooses not to resign. He could be portrayed defying the weill of the people in breaking with democratic norms. And while that would surprise no one of cancer fought to the bitter end, there's a few signs that democrat giving up on their crypto crackdown.

Just in slaughter, the VP of regulatory affairs. That paradigm passed on a quote from a former White house staffer, no dams are going to fight with crypto to the death anymore. We have too many other things to worry about.

Scritto clearly has more staying power than we thought. Paul gram, the cofounder of why combinator tweed, their biggest mistake was antagonizing the entire crypto community. This was entirely unnecessary.

There wasn't some other constituency they are trying to win points with by doing IT, the tech business communities will be watching to see how gangster conduct themselves over the next few months. Over the aggressive moves could have lasting political cost for the democrats, who have already seen support collapse in the cycle. Then again, the crypto lawyers, on the other hand, are still extremely uneasy, expecting cancer or to go out in a blaze of glory.

Cool lawyer at regos era tweet, I worry the cypher is not out of the woods yet against there strikes me as someone who may file a ton of lawsuits on his way out in a desperate attempt, entrenches flag policies. Remember how clayton suit ripped on his very last day as chair? Jr, in a variant fun, meanwhile, pointed out there are still a lot of time before inauguration day tweet president trumble take office on january tony eth cypher policy will immediately insignificancy ft when new leaders take over the federal agencies between now and then, the outgoing administration may be busy finalizing rules and filing enforcement actions.

Stay frosty. While there will be months or even years until we see clear regulatory changes, the deep by industry is rushing to get ahead of them. Yesterday, marked maker winter mute made the governance proposal that a thin at turn on their feet switch and start to tribute profits to token holders.

U swap and maker down have made similar proposals in the past, but y've always been viewed as having far too matric lictor risk and thin seasonal of the daily great tweet, the serum D Y revenge c is going to be absolutely biblical with a hole S C out of the way. Imagine the next four years being the complete opposite of the last few years when IT comes to what divi projects are allowed to do, v switches, v switches everywhere, while his protocols might be jump in the gun just a little bit. On the regulatory side, turning on the fee switch could also have market risks.

In the immortal ds of rush hannen from silicon valley, if you show revenue, people will ask how much. And IT will never be enough. Distributing profits would allow D.

Y, tokens to be compared to divide and dialed in companies. And yet none of the major defy protocols generate anywhere you're enough to justify their valuations. Crept to twitter, comedian tweeted, oh, good job, guys.

Now our tokens are going to be valued after cash lows. Hope you're happy, idiots. All that said, the market is responding well to the idea of the deep rena sance.

Multiple governance tokens have jumped twenty percent since the tram Victory, and people are excited for the narrative. Returning profits to token holders was also essential part of the promise of defy from its inception. Even if the valuations don't quite stack up for trade vie investors at the moment, it's a necessary step to show that defy can make for a fair financial system.

Frankly, market focus returning to tokens that do something would also be a refreshing change from the elless stream of mean points. The revival of the U. S. Critical industry also has a huge number of second order effects. Chief among them is a fresh way of capital looking to invest in a promising industry now that the regular or risk is lower.

In their note on wednesday, bit for an exanimate st wrote, we expected in the short term a significant amount of capital will be unlocked for crit ventures. It's been obvious that VS and other crept to funds have had a rough time over the past two years beyond regulatory threats, serpens, the fund raising environment, been extremely depressed, then spent her a framework ventures, treated hard to describe how tough IT was to Operate a billion dollar cypher fund during the democratic rain one morning. The banks we used to get shot by the government and no one will take our business help.

This questioning if copter will survive in any form founders getting suit, weekly consent surveilLance sweeps. It's all gone now like tears and rain. By all accounts, the appetite for investment is returning fast. During a conference appearance yesterday, the antip ero of tt ventures said, we have three hundred investors in our funds, thirty to fifty suddenly want to talk this morning about how to get more exposure. Tom, don't leave a partner at master ventures tweed.

Every alligator got flat footed this morning with how under exposed they are the cyp to expect the next six, twelve months to be a massive catchup trade not only in liquids but also in venture. There's also the very real issue of people feeling they need to move their companies and family off short to continue building. That process is already starting to run in reverse galaxy digital alex thorn route.

Can you hear that? That's the sound of thousands of cypher in blockchain founders booking tickets to the united states, looking up office space. Chwang ang of alliance between our coins will go up.

But even more importantly, smart people will want to build encysted u again, and they will want to build in the united states of america. The fresh enthusiasm around venture and startups can drive a fly wheel effect, benefiting everyone in the industry, including hardcore bitcoin ders on the own senior investment strategies. A bit wise witted, crypto o has never had A U.

S. Administration that was openly supportive. Regulatory headwinds have become tailwinds cyp tos potential is about to see escape velocity. Finally, as we've seen in countless times over the past two years, administrative positions really matter for critical policy.

It's arguable that the treasury secretary, the fed chair and the S, C chair are more important than the person in the White house. It's still extremely early to discuss whose trump d installed with any sense of certainty, but some early discussions are filtering out. D, S, C, C, chair is a completely open question. Sources generally agree that hester peris, uninterested in the position due to how much politics is involved as former S C C C in your council, actually ever all put IT. SHE cares more about getting IT right than SHE cares about politics.

The other republican commissioner also seems suitable if you decide to bring in someone knew the names that have been floated so far are Robin hood chief legal officer, er, dane gallagher, or perhaps the return of j clean, all viewed as positive for gypo, especially in contrast to the current, as he see at the head of the treasury department, macro o investor Scott best son is viewed as the front runner on crypt to best son has said, i've been excited about the president's embrace of cypher u and I think IT fits very well with the republican party. Crypto is about freedom, and cyp to economy is here to stay. The democrats are running from IT because they are trying to wash off the stench of sam bank and freedom, his family donation at the democratic 的。 They are willing to take on the whole industry because of the bad behavior on their part of one actor.

I think everything is on the table with bitcoin. And I mean, one of the most exciting things about the coin is for a generation of investors who post G, F, C, have been looking for investment opportunities and sweat on markets. Crypto is bringing in Young people, in people who have not participated in markets.

Having a market culture in the U. S. And people believe in a market that works for them is the centerpiece of capitalism.

During an appearance on squad box yesterday morning, person also pred cold water on the idea of the president taking over the fed. He said, my impression he doesn't want to be in the room. He just wants to be a voice that's heard.

He understands that central bank independence anchor's long term inflation expectations, which anchors long term rates. Moving on to the feed hair on powers term continues until twenty twenty six, and trumPeter said he won't be reappointed in the same interview. Basson said. I think we dominate the next federal reserve chair very early.

Kevin has set, who served as chairman of the council of economic advisors during trump's term, is viewed as a potential pic, but that decision seems much more up in the air has IT served on the board of one river asset management, a hedge fund that was later required by coin base. Generally, we don't have a lot of information at this point about administrative appointments. Sources within the trump campaign said the president was too superstition to talk about transition planning before the election was over.

So presumably no firm choices have been made. Still, IT feels like there's a deep inch of proof of elections to choose from. And so, friends, that is the story, Frankly, even more exciting, I think, than the immediate aftermath and likely to just get more so from here.

But now that that is going to do for today's breakdown, appreciate you. Listening is always and until next time, be safe and take care of each other. peace.