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00:00 Brian
At least we can say Bitcoin has stabilized a bit. For now.
00:03 Inez
For now, it has stabilized a bit. Uh you have Compass Point that just kind of came out with a note saying that you may be nearing a bottom, but they also are saying that you could see a leg lower. I mean, that’s right now, uh what the conundrum is on Wall Street about where Bitcoin is going to go because you have bullish calls uh from Bernstein, for example, still saying that 150 by year end. Um but you do have Wall Street that is saying, look, we did see this leg lower. It we saw a big rebound last Friday, but you could see prices going down as far down as into the 50s and you’ve got some that are saying that you won’t see a bottom until the summertime. So, uh there is some caution out there among some strategists about where prices are growing.
00:54 Brian
Inez, we’re going to get a great read. I mean, we have Robinhood earnings coming up, we have Coinbase earnings coming up this week. These stocks have been hammered. Uh and they really all had a great run up last year in part because of this belief in crypto. I am Inez, I I’m just unsure how these fourth quarter results are going to look. And then more important perhaps than that, how do these companies guide for the first quarter with crypto well off the highs?
01:22 Inez
Yeah, and I think that what Wall Street is seeing is that with Robinhood especially, Robinhood has diversified itself so much beyond crypto that yes, crypto is part of the Robin Hood story for sure, but you are seeing other businesses that are expected to offset the the weakness in crypto. So you’re looking at their trading volumes that are up, the prediction markets, that’s their fastest growing segment. So that’s what Wall Street is focusing on. Robinhood’s going to be reporting this afternoon. And what I’m going to be watching for is that, is that enough to offset the weakness in crypto. And if you take a look at what the ratings are like, I mean there there’s 24 buy ratings on the stock for hold. Uh and so we have seen weakness with the stock recently, but watch out because there’s an expectation that their other businesses are going to hold up the float here.
02:22 Brian
Eric, you think uh what we have seen in in Bitcoin in the past five days, that’s just a dead cat bounce?
02:35 Eric
I think you want to be cautious about jumping into the pool. I mean, I I I’m building a crypto treasury and so I think people who have sort of a skin in the game often, you know, want to cheerlead and say, oh, that was the bottom, you know, everything’s fine now. Uh but of course, you know, remember, it’s just was in mid January that we were thinking like, oh, the worst is over, we’re at 98k on Bitcoin. Uh you know, I guess things bottomed in December. And then whoops, you know, like how many people predicted that we’d be at 60k a couple of weeks later. When you look at the positioning in the futures market for Bitcoin, uh there are still a lot of people adding shorts there and a lot of longs that like didn’t get out and that’s sort of a recipe for, you know, potentially another leg lower. Nobody knows. I mean, is is the honest answer, Brian, but I think you just uh usually these kinds of uh the full capitulation doesn’t happen until you see a lot of like long-time bulls selling their positions and I don’t think we’ve got there yet.
03:32 Brian
Eric, as someone literally in the trenches working on on a a Bitcoin Treasury, why are you doing so? What is motivating you to create this?
03:44 Eric
Well, the the kind of volatility we’ve seen in the last three three, four months, um, you know, I don’t think the the generation one Treasury have an honest answer of how to deal with that other than say, oh, just wait, wait 15 years and then everything’s going to work itself out. Uh I think the market is hungry for a Treasury that does have a more sophisticated uh detection system uh and hedging system to kind of allow you to be bullish on Bitcoin and Ethereum, uh but to do so in a less volatile way that doesn’t see as steep drawdowns as we’ve seen in some of the players uh that are just sort of, you know, sitting back and and and hoping for the best in the long term. So, you know, there’s it’s always a good time to start a company that solves a problem. Google was started in the middle of the .com uh winter. and so hopefully uh, you know, time will prove out that, you know, this was uh just the right time to be starting, you know, uh my Gen 2 Treasury, EMJX Merged Alpha RXH.
04:36 Brian
All right, well good luck on building that out, uh, Eric. Keep us posted here. I appreciate it. Uh Inez, always good to see you as well. We will talk to you both soon.