BANKS AND CRYPTO MEET TO TALK STABLECOIN YIELD! WHO WILL CAPITULATE?

let's quickly take a look at the price of bitcoin right now at seventy seven, seven hundred and twenty five dollars. So if we look at the daily RSI, it is extremely oversold. It is in the red zone. You know, when you are overbought around seventy as far as the RSI and then you go above seventy it turns green, so you're extremely overbought. Well, right now, the opposite is happening. So as we've been talking about, and as I highlighted in my newsletter today, we could see a reversal. How

high this reversal takes us, I don't know. We're going to have to wait and see because there's a lot of fud, there's a lot of despair out there. But look, the market conditions are setting up for a major move because you have extreme fear, you have whales accumulating, you have the markets in the extreme oversold both on the daily and weekly. So all of these things bode well.

In fact, there was some very good economic data today with the ISM manufacturing PMI at a forty month high, so it came in higher and expected and the correlation. You know, you may be saying, what the hell is this, What does this have to do a bitcoin? Well, typically that's an indication of liquidity. It's making its way through

the economy. Things are starting to pick up again. And when that is happening, then you see bitcoin and the crypto acid class go and a major run This is based on data now, right, So if you align the charts with Bitcoin's peaks and when the ISM was climbing higher and higher, that you know was certainly conditions that

were very good for the market. And if you think about it economically the way we would look at a parabolic run up where you have a lot of fomo from retail people are buying all coins and so forth. In a good economic environment, that's where you can have those things happening when money is easy and so forth, Right,

and we're on the path of that. So It's funny the ism is increasing, right as soon as the Fed just paused QT and start a Q in December, and we know they've been buying treasury bills and all that, right, So funny how the correlation works. Again, this is just the data. So if you want to argue data, go ahead, but I'm just giving you guys the facts. So it's interesting. And in fact, over the past two years, the ism

was not in a good place. It was starting to get better in twenty twenty four, but the bitcoin and a crypto market have been operating under an ism that is not being great. So it was really good to see that this is picking up. That doesn't mean Bigoin's going to pump tomorrow, right, It's a process here and we're seeing the right things and this should be very good for the crypto acid class as as risk assets here.

One user named Jesse equal on XSet or explained it saying every single crypto bull RP ever twenty thirteen, twenty seventeen, and twenty twenty one happened when the ism moved up above fifty. Today we hit fifty two point six. This entire cycle since twenty twenty one, we've been below fifty with only tiny blips above the surface. This is by far the largest move up we've had this cycle run it hot, so not guaranteed, right, but at least we're using data, not feelings and emotions. So this is a

very good sign. And you know, other folks like Ral Powell, macro investor, you know, he's been highlighting this global liquidity to ism and all these things and how it's risk gone when everybody has money and they feel confident in the economy and much more. Right, So one could argue we've been in a recession and maybe we're coming out of it now. I don't know. You know, we're gonna have to wait and see. Now, I do want to

highlight something here. There's an Elliot wave chart analysis that was put together by one user, and you know he highlighted that by Elliott wave, a potential scenario, now a potential not guaranteed, is that we bottom out around seventy K and that would be part of an A wave to a B wave top of a one hundred and fifty five K or so, and then a C wave down to thirty seven thousand, seven hundred and fifteen dollars. So that's a possibility. So there's still the possibility of

this happening. But look, there's a bearish case this. People are saying, hey, we're going to go down to fifty ak like Peter Brand and others. Right, So let's see, it's hard to sometimes, you know, understand the motivations behind certain people, because some folks are shortening the market, so they're going to say outlandish things and so forth. I'm just giving you both scenarios. I'm just highlighting that I

personally don't know what's going to happen. We have the wave from confirmation from the market, but I'll at least give you the scenarios that could potentially play out so that you can be as educated and informed as possible. So we shall see. Now, Binance buys the dip with

the first one hundred million dollar bitcoin purchase on the one billion dollar SAFU fund. So I reported this to you guys, you know, over the weekend, and that Binance was going to buy a billion dollars of bitcoin over the next thirty days. So they've kicked it off, and you know, some people saying, yeah, but they're dumping, you know, a whole bunch of stuff on their exchange. But look, it is what it is at this point. I think Binance is simply playing the market cycles and people are

seeing that and they're getting upset. But they're operating with the market makers, right, and not a lot of people understand that. However, there are some things people call out binance war with coins, pumps and dumps and all that wash trading and so forth, and I'm not knowledgeable enough to, you know, kind of go through that. I'm going to try to bring experts on to talk about this. So but anyway, they're gonna be buying bitcoin, and they've already

started that now. Michael Sailors Strategy bought more Bigcoin, so he announced today that they bought eight hundred and fifty five bitcoin at about eighty eight thousand dollars each last week. So he continues to buy. We'll see how this all works out for him. Moving ahead, one of Germany's largest retail broker IG now allows clients to buy bitcoin ETPs. So the on ramps being built across the globe. Beer ETPs different financial products and it starts a bitcoin and

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was the Crypto and Banking meeting at the White House, and apparently David Sachs, the crypto czar as they would call them, was not in attendance, but the meeting was led by the Crypto Council Executive Director Patrick quit Many may recall interviewed Patrick in the fall of last year at the chain Link conference. So Patrick, he took over for beau Hines and he's been doing a great job.

So you had a lot of crypto companies, you had the American Anchors Association, banking policy people and so forth. And let me give you a rundown. So here's what Patrick Witt said regarding the meeting. He said, sincere thanks to the representatives from the crypto and banking industries who participated in today's meeting on stable coin rewards and yield. The discussion was constructive, fact based, and most importantly, solutions oriented. Over the course of the past few months, we have

achieved breakthroughs on several seemingly intractable policy issues. I am confident we will be able to resolve this one too, So it's great that they're having the dialogue. And as continues, we know the banks want to stop stable coin yield. They don't like that you can go earn yield on crypto platforms and exchanges like upholding coinbas and so forth. And obviously I'm not a fan of that. I believe consumers should have choice and if the crypto firms are

offering a better deal, let consumers go there, right. But we know this is about the bonus checks, folks. These banks don't want to lose that money. They want to postucket it. Continue to give you zero point zero one percent, you know, the breadcrumbs while they pocket big bonuses. Here's what third party folks are saying about this meeting. So Sander Lutz, who is a senior writer at the crypt Media said new at the White House meeting today between

crypto and bank representatives. White House gave a deadline of end of February to reach a deal on stable coin yield. Sources familiar said, hard to see how the Market Structure Bill could have a chance of passing this year. If this issue isn't resolved by then, there will be future

meetings which will be smaller. Banks are pretty adamant about closing the loophole though, aka preventing companies like coinbase from offering users rewards on stable coin holdings, and Coinbase hasn't shifted on its insistence that it should be able to So this thing is still ongoing, folks, And in fact, the bankers the American Bankers Association put out a press release about this meeting today. Here's what Alex Thorn said

about this press release. He's the head of firm wide research at Galaxy Digital, saying statement from the American Bankers Association following the White House meeting on stable coin rewards. It reads nice, but it doesn't really sound like they are willing to compromise here. So again they're putting out information there. They're even running ads, right. We saw the Big Wall Street Journal poster so to speak, or front page of with Brian Armstrong's you of coinbasing, he's the

enemy and all these things. So the bankers are starting to go on the offensive here, putting out literature, running ads, you know, running their propaganda guys. So I don't know, honestly, how this resolves. You know, who's going to capitulate? Will it be coin based in the crypto industry? I kind of hope not. But also we want to get some sort of bill through, maybe to some compromise. You know.

One of the things I had brought up to Summer Mersinger, CEO of the Blockchain Association, when I interviewed her a couple of weeks ago, was that could there be some sort of timeline, like we're gonna say, okay, the crypto industry folks can pause for six months and then started back up again again. I'm just throwing stuff out there for compromise wise, right, I'm not saying I like it.

I want that to happen. In addition, could they also say, hey, we're gonna cap how much consumers can put into these accounts, right temporarily not forever. So maybe it's a six month thing or twelve month thing, right saying hey, over the next twelve months, we're gonna cap it an X amount of dollars the users can do again. I'm not supporting this, I'm not saying I want this, but if this bill is not going to make it through, we're gonna have

bigger problems. And my worry is that Elizabeth Warren is ready for the mid term elections and we're seeing some Democrats winning. Guys, those are the facts. And if the Democrats get back power, which I'm not saying them against or four, but if they it does happen, you know who's going to get back the financial seat. Elizabeth Warren. And you know what, she's gonna do, same thing she did under Biden. And I'm not saying all Democrats are inticrypto.

Many are pro crypto. We saw this right, But Elizabeth Warren, if she has that top seat again, you know the rest of the party is not going to be able to do much. They're going to have to kind of stay quiet. We know how politics works, and they're not gonna be able to go against her publicly. But we got to get this bill through so that even if the stable coin yield is missing, which I would hate and not be happy about, still you know we would still get at least the meat and potatoes of what

will help crypto. So I don't know what the compromise is gonna be. Guys, we're gonna have to see. Maybe the bank's capitulate, all right, we shall see, Okay, moving ahead,

this is an unusual piece of news. So bed Bath and Beyond. Yes, bed Bath and Beyond signs an agreement to acquire tokens dot Com, a real world asset finance and tokenized liquidity platform. So I didn't have this in my bingo cards. But there's stock jumped on the deal to tokenize real estate with tokens dot Com. So this is interesting. And guys, we know tokenizations in the future, and they're gonna put all assets in real estate and

much more on the blockchain. Right, So Bedpath and Beyond that it would acquire tokens dot Com and launch a platform to let consumers tap home equity and other assets through tokenization. The initiative marks the latest step in bed Bath and Beyond post bankruptcy pivot into blockchain or financial technology under chief executive Marcus Limonis, following its acquisition by overstock dot Com. So that stock jumped seven percent today.

So very very interesting. You're just seeing some of the most random companies almost getting into crypto because blockchain is the future, right so tokens dot Com will use tools from t zero to handle regulated trading and storage of assets. It will also plug into Figure, the blockchain company of former SOFI CEO Mike Cagney, to offer financial services like mortgages, renovation loans, home equity, lines of credit. Folks, I think this is a smart move what they're doing. Look, housing

is not going away, real estate's not going away. Just all of these things are going to go on the blockchain. So hopefully they can do it right and that could work out really well for them. But it's great to see big brands and companies like these, you know, recognizing the technology in the future and getting ahead of the curve. Okay,

final news item, Parafy Capital makes a thirty five million dollar investment in Solana based Jupiter. So capital continues to be invested in crypto guys, which is a good sign. So Jupiter said it has secured a thirty five million dollar strategic investment from Parafy Capital, marking the first time the Solana based unchained trading and liquidity aggregation protocol has taken outside capital after years of being bootstrapped with profitable growth.

The transaction involved token purchases at market prices with no discount and an extended lock up period, and was settled entirely in Jupiter's jup usd stable coin. The company said. Financial terms be on the thirty five million dollar investment, we're not disclosed. So big win here for Jupiter, guys. I don't hold the token or anything like that, but it's certainly very good for the Salona ecosystem, which continues

to grow. So the investment comes as Jupiter has processed more than one trillion dollars in trading volume over the past year and expanded beyond swap routing into perpetuals lending and stable coins. According to the company, The deal also included warrants allowing Parafi Capital to acquire additional tokens at higher prices, a structure the company said was intended to

reflect long term alignment. So big news here, and again, you know, from a higher perspective or a higher view here, this is really good to see capital still making this way to crypto companies, tokens being bought, equity and all these things. Folks. That's the news. Let me know what you think. Leave your thoughts and comments below. Hit the thumbs up button. Subscribe if you haven't as yet, and please be sure to subscribe to my free email newsletter.

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