0:02 Kathy Wood is selling Tesla for
0:03 Ethereum. We'll break it all down for
0:05 you. Let's just jump right in. I want to
0:07 go over and look at what the week is
0:09 holding out in terms of things that
0:11 could happen. It's a big week for crypto
0:12 holders. What we're going to see is
0:15 unemployment data and non-farm payrolls
0:16 data. This is going to come in, I think,
0:18 soft. Obviously, we've already started
0:21 see indicators on that. We'll also see
0:24 see the CPI and the core CPI uh data
0:26 coming out. This will be a very
0:27 important one and it's going to be one
0:29 that I think people might be surprised
0:31 with as well. We're also going to be
0:32 looking for the Bank of Japan and a
0:35 potential interest rate decision. If
0:38 they actually hike rates, we could
0:40 really start to see a little bit of
0:42 market turmoil. Inflation cooling down,
0:44 high unemployment, this means rate cut
0:46 odds will go up. And that of course goes
0:49 into next month, end of January, and how
0:51 this plays out for Chair Pal. All of
0:54 that brewing right now this week. So,
0:55 make sure and stay tuned for all of that
0:57 good stuff. Other things that are
0:58 hitting right now, Ethereum is the
1:00 future of finance. Here's a big news
1:02 from JP Morgan, who is of course
1:03 launching its tokenized fund. This is a
1:05 money market fund. I think 100 million
1:08 going into this. So, a pretty big deal
1:12 for ETH in general. And it also starts
1:14 this domino effect potentially in Wall
1:15 Street that could be going this
1:18 direction. So, positive overall I think
1:21 for crypto, especially for Ethereum. I
1:23 want to take a look at the Tesla chart
1:25 because this is something that we have
1:28 continued to see Tesla outperforming
1:29 over the last few weeks. As you can kind
1:32 of see that green move really from that
1:35 low which was around 385. That was on
1:38 November the 14th and here we are
1:42 punching 475 as of uh December the 15th,
1:45 a month later. So this was a good time
1:47 for Kathy Wood to actually make a little
1:50 bit of a move. Let me go over to a clip.
1:52 >> And in the latest round, we took some
1:55 profits from Tesla, which is nearer to
1:59 its high, and allocated them into or
2:02 some of those profits into crypto, which
2:05 just went through uh thanks to the flash
2:10 crash on 1010 and thanks to MSCI's press
2:13 release saying that it was reconsidering
2:17 including DATs in its indices. And that
2:19 happened on the same day as the flash
2:22 crash, but nobody noticed it. Those two
2:26 dynamics hit crypto hard. We think we've
2:30 seen the bottom because the news is out.
2:33 JP Morgan posted the report about Msei
2:36 now. Everyone knows that. You'll see us
2:40 trying to expose our clients to stable
2:43 coins. We bought some Coinbase. We
2:46 bought some circle and bit mine
2:50 immersion and a little bit of ether and
2:55 salana one is very small the salana
2:57 ether one is around 2% of the portfolio
3:00 so taking crypto altogether
3:03 we're probably talking about a 12 13%
3:06 position let's see how this recovery
3:10 tests the various technicals and
3:12 >> that's pretty significant I think not
3:14 not only for ETH but just in crypto in
3:17 general to hold you know 12 13% if you
3:20 look at the combined holdings of Tesla
3:22 that's kind of the proof of all the
3:25 sells on the Tesla stock and of course
3:27 this starts to move into a handful this
3:28 is re going to this is going to
3:30 reshuffle so when you look at some of
3:32 the holdings here I'll just kind of scan
3:34 down to the one that I think is most
3:36 important that is Bitmine holding at 275
3:38 right there and even if you look at some
3:40 of the others which would be maybe Meta
3:42 and and even Bitcoin
3:45 Even those together don't equal the
3:47 holdings of what's going on with
3:49 Bitmine. So again, very forward on ETH
3:52 holdings right now. Speaking of Tom Lee,
3:54 I want to go over to his analysis on how
3:57 crypto and AI are lining up together.
3:59 Take a look.
4:01 >> Skepticism now around the AI trade,
4:04 skepticism around Bitcoin. Are they in
4:06 fact related, do you think?
4:08 >> Uh related, but not related. Yeah. You
4:10 know, I I think the AI trade, I mean,
4:13 it's been a juggernaut, and we know that
4:15 the visibility for the next few years is
4:18 really good, but now investors are just
4:19 trying to figure out how much to
4:20 discount. You know, what's the
4:23 appropriate price to put um and that
4:24 could drive some profit taking because
4:27 they've done so well this year. It's
4:29 almost like they both have great
4:31 visibility, but the price levels are
4:32 just what's being uncertain. I feel like
4:34 what's common though with both of these
4:35 stories though, Tom, is investors
4:38 questioning the growth, the trajectory
4:40 of growth going forward for both of
4:41 these stories.
4:44 >> Yeah. Well, in in crypto, the best years
4:45 are definitely ahead because today
4:47 there's only 4 million Bitcoin wallets
4:51 with $10,000 in it. There's 900 million
4:53 IRA and brokerage accounts globally that
4:56 have $10,000. So, there's that's 200
5:00 times larger market. I'm I believe that
5:02 AI stocks, especially stocks like
5:05 Nvidia, are going to actually rerate
5:09 higher because if Walmart and Costco
5:13 trade at 37 to 45 times earnings because
5:15 they're predictable, then Nvidia
5:18 shouldn't be 27 times. I also think the
5:21 banks are really criminally undervalued
5:23 right now, like a JP Morgan, because
5:25 that's becoming a technology company.
5:27 All right. So, after that, you can kind
5:29 of have to look at the condition on
5:32 where Bitcoin could be with a lot of the
5:34 downside potential that plays into this
5:37 Japanese uh moving in terms of a rate
5:39 hike. Now, if we see Japan move to a
5:41 rate hike, which will happen this week,
5:43 if that occurs, then everybody is
5:44 pointing at what we're seeing with
5:46 Bitcoin. If you look at the charts
5:48 further into this, you can kind of see
5:51 here, this goes back into 2024. we saw a
5:55 rate hike -23 -30 -31 uh which was in
5:58 early this year and then what will we
6:00 see right now which was where Bitcoin is
6:03 kind of trading at around the 90K mark
6:04 when this was put out but right now
6:08 Bitcoin is trading right at 859 at time
6:11 of recording and this will be the big
6:13 question guys as to whether or not we
6:15 see a full 30% come off of that. Maybe
6:18 it is going to only be 20%. Let me know
6:19 what you guys think down in the
6:22 comments. All right, let's go over to uh
6:25 really where the economic insecurity is
6:28 it real or is it not real? Take a look.
6:31 >> Average American doesn't talk about
6:34 inflation. That's an economist word. The
6:35 average American talks about
6:37 affordability or costs. Can I afford the
6:39 food, the fuel, the housing, the
6:41 healthcare? But there's something that's
6:44 even more important. Half of Americans
6:47 now live, and I quote, paycheck to
6:49 paycheck. And how they define that is
6:51 different. But these are people who have
6:54 trouble paying their bills on a monthly
6:56 basis. When half of Americans are saying
6:59 that, that tells me that this economic
7:02 insecurity and anxiety is real. And my
7:04 warning to both political parties, if
7:06 you don't figure out a way to make
7:08 health care costs more affordable, the
7:11 public is going to punish you one year
7:11 from today.
7:14 >> What What does 26 look like?
7:16 >> Democrats narrowly take the House. There
7:18 aren't that many seats that are up for
7:20 play. Democrats have a five-point lead
7:22 right now and that's enough to give them
7:25 a roughly a five seat majority in the
7:27 House and the Senate, if they botch
7:30 healthcare, the Senate could be up for
7:31 grabs as well.
7:33 >> Interesting points there. And of course,
7:35 you got to look at Trump, which
7:36 apparently still believes that
7:39 affordability is completely neutralized.
7:40 We're not dealing with anything from an
7:42 inflation standpoint. And I agree with
7:44 Lutz there in terms of affordability
7:46 being the key factor here because that's
7:49 going to be the campaign focus for both
7:51 Republicans and Democrats going into the
7:53 midterms. US labor market will be the
7:55 other one. And of course the labor
7:57 market right now, if you zoom in on this
8:00 one, total non-farm hiring rate fell on
8:01 this percentage. So now we're seeing
8:03 more, this is the lowest more
8:06 unemployment, lowest since 2020. And
8:08 that was during a pandemic. So this is a
8:11 pretty significant state of where jobs
8:14 are getting worse as inflation continues
8:16 to rise. That of people of course is
8:18 called stagflation. This is the worst
8:20 nightmare for the Fed going into it. But
8:23 it can't let jobs get and spiral out of
8:24 control. It's one of the biggest
8:26 mandates that the Fed would have to deal
8:28 with. And of course that could mean
8:31 where we would see uh continuous cuts on
8:34 uh the Fed rate. Other things people are
8:36 looking at, could we see a high on
8:38 Bitcoin next year? Everybody's saying
8:40 right now about 66% of you are saying,
8:43 "Yeah, we could see a 2026 mini bull
8:45 run." Whether or not this will happen
8:47 end of year or whether or not this will
8:50 happen early, who knows? But the key
8:51 here is is that people are looking at
8:54 digital assets to be able to beat this
8:56 inflation move that we're dealing with
9:00 right now. When will Bitcoin hit 150K?
9:02 Poly market says let's go over and focus
9:05 on that December 31 of next year. So
9:08 really people about 32% if you look at
9:10 it holding toward the end of the year
9:12 but if you kind of collapse that and go
9:15 over into everything uh we're talking
9:19 about what is that almost 25% now uh
9:21 saying that it could happen before that.
9:23 So, a lot of factors play into this as
9:25 we just talked about, a lot of macro
9:26 comparisons that we're going to be
9:28 seeing over the next few months. And I
9:30 think the Clarity Act is going to be a
9:32 big factor going forward just in crypto
9:33 in general. Bitcoin of course, I think,
9:36 will also benefit from that. Uh, if we
9:38 do get a very clear clarity act that is
9:40 pro crypto coming out, what price will
9:43 Ethereum hit in December? Right now, the
9:46 number is coming in at 2600. So this is
9:49 again getting potential impact from what
9:51 could be still the impetus of what's
9:54 going on in Japan and more of the macro
9:55 fears that we're dealing with right now
9:57 at the end of the year. Let's go over to
9:59 a couple of more points I want to hit on
10:00 and this of course is Ripple just
10:02 announced their big approval which is a
10:05 conditional approval from the OC. This
10:07 is in reference to the charter for the
10:09 national uh trust bank. Now don't get
10:11 you know crazy this is not a retail
10:13 bank. This is think of it as a bank for
10:15 institutions. But the thing that really
10:17 will go into this I think will when they
10:19 get a what will happen when they get a
10:21 master account a fully approved master
10:24 account that much longer to take to for
10:26 that to actually happen. So but
10:28 Garlinghouse definitely uh moving in the
10:30 right direction over there for Ripple. I
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11:29 them know we sent you. And if you look
11:32 at the amount of companies that were
11:33 listed here, this is just a few of them,
11:36 but this was Ripple, Bitco Fidelity,
11:38 Paxos in there. Circle was also approved
11:40 on this list. I don't know why they
11:42 weren't included in this one, but that
11:44 is all moving to where we're going to
11:47 see a lot of this going into blockchain
11:49 uh integrations. And this will of course
11:51 be good for crypto in general, but more
11:52 importantly, it basically pulls in more
11:55 institutional uh involvement around
11:57 where banking could be in the very near
12:00 future. So huge huge win for sure. One
12:02 last thing, if just remember, if you
12:04 guys didn't hear, Ripple and Salana, I
12:06 should say XRP and Salana. Now you've
12:08 got the capacity to be able to go out
12:10 into DeFi, not only on Salana, but also
12:13 on Optimism base along with others. This
12:15 will start to change things up because a
12:18 lot of XRP holders have not necessarily
12:20 had a way to earn any kind of yield or
12:22 put their XRP to work. So, this may
12:25 change a little bit within some of those
12:26 chains out there. Let me know. I know
12:28 there's a lot of XRP holders that follow
12:31 this show. Would you guys start to look
12:32 for yields on some of these DeFi
12:34 platforms? Would you stay with something
12:36 like a flare network where you can do
12:37 it? It's a little different with what
12:39 Salana is doing because they're doing it
12:41 through a custody model. It is kind of
12:43 interesting to see these strategies play
12:45 out. Let me know how you would do that
12:48 with your own XRP. Last thing, of
12:49 course, if you guys are not part of our
12:51 own Baron Market Edge, you should be.
12:53 That is our own private group. Very easy
12:55 to join. We always leave a link down
12:57 below. Check it out. It's free. And of
13:00 course, catch me out there on X. It's
13:01 Paul Baron. We'll catch you next time
