Bitcoin BOUNCES to $64k on Largest Inflation Decline Since Covid Crash

**Tillman Holloway** (0:00)
Introducing Meta Glasses. You have questions, they've got answers.

**Scott Melker** (0:05)
Hey Meta, what's the capital of Peru?

**Ryan Rasmussen** (0:08)
Lima.

**Tillman Holloway** (0:09)
How do you say, where's the restroom in Spanish?

**Ryan Rasmussen** (0:12)
Dónde está el baño?

**Scott Melker** (0:14)
Hey Meta, is a hot dog a sandwich?

**Tillman Holloway** (0:17)
Technically no.

**Scott Melker** (0:18)
Spiritually, yes.

**Ryan Rasmussen** (0:20)
Hey Meta, what should I do with my life?

**Scott Melker** (0:23)
That's one of life's biggest questions.

**Tillman Holloway** (0:25)
What do you think? Ask anything with the new Meta Glasses.

**Scott Melker** (0:32)
Good morning. Bitcoin is up. Inflation is down and we're here to talk about it. Ryan Rasmussen from Bitwise is going to be with us. Tillman Holloway, CEO of ArchPublic, also going to be with us. Bitcoin challenging 64K, up 2.5% to start the morning. Let's go.
Good morning, everybody. Some numbers out this morning on Wall Street, inflation down, Bitcoin up, popped immediately with that number. So we've got some action to start the day, action all the time on Wall Street, whether it's real or it's fake, it's still action. And so let's talk about it here today. Tillman with Arch Public, Ryan with Bitwise. Let's get started. Let's quickly talk about inflation and Bitcoin's reaction to it.
And frankly, the type of muted action that we've seen in Bitcoin over the past, let's call it three to six months. Why, how, what, you know, what moves Bitcoin to the downside or to the upside? Let's talk about a little bit. Tillman, inflation and Bitcoin, what do you think?

**Tillman Holloway** (2:03)
Well, ultimately, it's the rising tide that floats all ships or sinks all ships. And I think that there's, if you understand the type of economy that we are, a debt-based economy, you understand that inflation is a natural part. We want inflation. You cannot pay off debt with more expensive dollars. You have to make those dollars less expensive, which is our inflation rate.
I think that you also have to look at inflation against the economic opportunity or the growth potential that you have at a specific period in time, and how hungry the investment dollars are needed for that growth. Like, was it good to inflate the dollar into the federal highway system? Yes, that drove economic growth unlike anything we've seen at the time. Same thing with AI and what we see with digital payment systems, and transformation of our financial system and network. That requires trillions of investment dollars.
It's a matter of national security. We all know it. And so we're going to spend the money is the bottom line. And they can't get that money any other place than printing it. And we're going to grow into that inflation. So that's my take on inflation and Bitcoin. And Bitcoin catches some of that rain just like everything else does.

**Scott Melker** (3:28)
Ryan, real quickly, it seems like the narrative around inflation and the way that they want to take a look at it, right? Warsh is the new Fed guy. Him and Besant are working hand in hand. They've actually not been all that coy about it. They've been fairly, you know, loud about the fact that they're working together, that they're taking a new look at the data. And for all intents and purposes, Warsh being installed to cut rates.
What does something like this do, a not so heated inflation number? What does that look like for the next three to six months in terms of rates? It seems like it's building towards a narrative where there's a potential cut versus an actual hike.

**Ryan Rasmussen** (4:17)
Yeah, I mean, what's tough right now is you just have such wonky data because you have such uncertainty around what's happening with oil prices and the knock on effects to the supply chain that has. And so you get a read like this, which is lower than estimates. But last month, inflation came in hot. And I think month to month, there's just a lot of uncertainty around where we're actually headed, which makes it difficult for Warsh and the other members of the Fed to really have an idea of what the new normal is.
Are we at war with Iran? Are we not at war with Iran? Is it straight open? Is it closed? What does that do to prices? What does that do to the supply chain and other precious metals or other inputs out there in the world that make things more expensive, less expensive, etc. And so the problem here is that we just don't know. And I think that there was a mandate clearly from President Trump when he nominated Warsh, that he wanted rates to be cut. And I'm sure a lot of that was ahead of the US midterms so that the Republicans could come in and tout that they've brought down the cost of living. And inflation is low. But clearly that's not happening over the long term. We're still running a bit hot. It's good to have this lower print. But I would guess that where we're at right now in terms of escalation again in the Middle East, we're going to see inflation come in hot next month if things stay this course. It's just too uncertain to know what this means for rates, in my opinion.