Nov 15, 2023

The crypto market has bounced back this year, with bitcoin (BTC) doubling in value amid spot ETF excitement and dovish Federal Reserve expectations.

Video transcript

The crypto markets have come back to life this year. Bitcoin doubled, doubled since the beginning of the year, more than doubled. Uh Some of it has to do with the excitement over a potential spot ETF being approved and there's also uh the issue of the Federal Reserve is being a little bit on the Dovish side. I don't know. Um although they kind of say hire for longer anyway, joining us now to discuss the crypto markets is Morgan Creep Capital Management. CEO at CIO Mark. Yo, welcome back, Mark. Hey guys, how are you doing? Great to be with you. Good, good to, good to be there. Good, having you on again. Um You know, we talked about staple coins and it just now, uh and some of what we're seeing in the, in the crypto markets, we're seeing an influx of capital into the stable coins, particularly us DT, not so much us DCU S DC seems to be quite on the decline. Uh and, and keep people keep burning it. I, I think again, I think that those are Canadians burning it for, for hot, uh you know, as the winter months come. Yeah, you know, nor of the Quebec could be really, really cold but um otherwise no US CC is being burned. US DT is on the rise. What's going on and how is that affecting the crypto markets? Is that, is that part of what's driving the crypto markets now? Uh I don't know that is driving the crypto markets. I mean, I look stablecoins are, are here to stay. Um, you know, we are going to move to a, a digital world, whether the, the incumbents financial services companies like it or not. Um, you know, name a technology that came along that got critical mass that, that went away. Right. You know, of course, and buggy manufacturers didn't really like the automobile, the train companies don't really like airplanes, but I didn't take a horse and buggy or a train yesterday when I flew to New York, I flew on an airplane. So, uh, this isn't as inevitable as, as the internet phone companies didn't like the internet, they tried to pass laws to make it illegal. Imagine that. And, um, Al Gore killed that bill. So he didn't invent the internet, but he certainly helped it and look stablecoins are, are a great way of transferring value quickly, efficiently and without worrying about market price. And I don't know if you've ever thought about this and, you know, I think about it from time to time, you know, banks are closed more hours than they're open. The markets are closed more hours than they're open and digital assets never sleep. I could transfer you US DC right now if I wanted to, if I could get to my phone, but I'm using my phone since I forgot my computer today. But, uh, so I don't know, I, it's a long winded way of saying, I don't think Stablecoins are the real reason. We're seeing some pretty meaningful pumps in, in a number of coins. I think it's momentum. It's the having cycle. It's the ETF which, you know, croc will get approved, you know, which day I can't tell you exactly. But they're going to get approved whether anyone else does. I, I hope so since I own pieces of two of the companies that are ahead of them in line, but I'm un doubtful that they will get approval. I think Blackrock will get it and I think that's going to bring tens, probably hundreds of billions of dollars into Bitcoin and some of that is going to flow down to other coins as well. I noticed in your answer, you didn't mention CB DCs and as I mentioned before, one would suspect that if you're going to make a large transaction, you're going to be more reluctant to use a Stablecoin than you are a CBD C. Oh, well, look, um, the incumbents would love if the world went to CBD C. There was a big announcement this morning that Apollo and, and a bunch of others are doing this thing to help with the asset management business with JP Morgan and avalanche and OK, great. But that's a private chain. JP Morgan would love you to use a private chain CBD CS. The reason I don't mention CBD CS is I think they're pure evil. I think they're one of the most heinous things you can imagine. They imagine that the guy in charge of the BLS, I'm sure you've seen Augustin. Um, he's a kind of scary guy and you know, he says, of course, we should control how you spend your money when you spend your money if you be allowed to spend your money. Um, you know, programmable money that AAA government can control is a very scary thing. Open and free markets are, are less scary to me. So I, I like Stablecoins. I like digital assets. I love Bitcoin. You might like it, but given that it's so scary, isn't it also inevitable? Well, sure. And I do think that there look fiat isn't going away overnight. Um, now it will eventually go away. I mean, you know, we've had one money for 5000 years. Money is an asset that exists in the absence of a liability. That's gold. Gold has been money for most of human history and it's the only thing that you can take a single ounce from Cleopatra's time to a suit of armor to a zoot suit in the twenties to Sao Road today. And you exchange that ounce and you get a fine person suit. It's been a perfect store of value. There have been 775 paper currencies, all kinds of countries all around the world over the millennia and three quarters of them no longer exist. All the others are down 97 to 99.99999% and all of them will eventually go to zero because governments can't help themselves. They just spend their way into oblivion and their currencies have to be devalued because that's the only way out. So digital assets, the distinct thing about them is take Bitcoin, it's digital gold, it's equally scarce stock to flow ratio is fantastic and it's more divisible and more portable. So I believe it will replace gold as the base layer of money. All money sits on top of gold. Central banks own gold, they issue debt issue currency on top of that. That's the way the world works. I think Bitcoin replaces that. It's not going to go down without a fight. And to your point, they're going to try to digitize it and make it centralized but centralized is the opposite of what we all want, which is decentralized and we will live in a decentralized world in the future. It's just going to take a while. Mark, I want to talk about another token, another Cryptocurrency that is outperforming this morning. I mentioned at the top of the show Solana's soul jumped to nearly 20% in the last 24 hours. What do you make of this new interest, this renewed interest in the Solana Blockchain and its native to Jen. I'm taking full credit 100% credit. I made this happen. So in September early September, I um made a comment on, on a show that Solana had had vaporized transactions during the last, the last cycle. Oh my God, the community went, went ballistic. They were so mad like we did. We never rolled back transactions. I said, I never said you rolled back transactions. I said because of outages in the protocol, the transactions went into the ether and and never got settled and unless you re entered that transaction, it never happened. Now, a couple of people actually were positive and said, hey, let us help you understand this, this guy happy pirate from the Netherlands sat me down on a zoom and walked me through all the changes that they've made and so on. Uh September 22nd literally almost to the day of the bottom at just under 20 bucks. I said, you know what, I've changed my mind. Uh These guys have convinced me that there's, there's something going on here and it's gone to 60 since then. So I'm definitely taking full credit. We're on that one. We're gonna quote you on that one mark. Just kidding around. But no, I, what I think is happening is a couple of things. One, they did fix some of the problems. So that, that's a positive two. We had breakpoint and Breakpoint is always a pump fest. So that, that certainly is part of it. Three. we didn't see the FTX cash get sold. You know, the bankruptcy trustee had threatened to sell all their, their salon and they haven't done that yet that, that will put some pressure on at some point. Uh, And then actually there's some building going on. You know, one of the things that I love about right now is I've been to a bunch of events. I went to permission list, you know, the eh event and I went to Bitcoin event and I went to a file coin event and they're down 80 90% in terms of people, but the people who are left are the builders. So the speculators are gone, the gamblers are gone, the crypto browser and gals are gone and what we have left are people who are building real things. That's super exciting. And if you think about history, the great companies are built in bear markets, they're not built in bull markets because capital flows too freely. You think about breakpoint two years ago at 21 right? Million dollar after parties and you know the price at 260 bucks. That was the peak, right? When you're spending a million dollars on an after party, bad things happen after that. So when you have a nice, you know, I went to a party at Bitcoin Miami this past year and it was at a little taco shop after, you know, renting out a big mansion on, on the water two years ago. So when, when you're down to that level, good things happen, frugality. All right, Mark, we do got to wrap it here, but I spoke over Lawrence and he was asking if you got any Solana bags, you know, II I have to admit we sold most of our, you know, we were very early investors and I, I give Kyle all the credit, you know, we invested in multi coin and, and they bought us a bunch of, of salon. And so we probably one of the best investments I've ever had in my career on a multiple basis. I think we made about 1000 times our money. Um but we did sell most of it, but we still have a decent amount and uh probably hold it for a while. All right, Mark, we're gonna leave it there. Always a pleasure having you on the show. Thanks for joining us. Thanks y'all, talk to you soon. That was Morgan Creek Capital Management, CEO and Cio Mark Yusko.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.