Bitcoin CRASHES To $65K As Wall Street Flees Crypto For SpaceX!

**Scott Melker** (0:01)
Bitcoin crashed to $65,000, as Wall Street is fleeing crypto for SpaceX, OpenAI, Anthropic and a huge $80 billion raise at Alphabet. This is our new narrative that just dropped, which is that AI is sucking the liquidity out of the Bitcoin and crypto markets. We're gonna talk about that and everything going on with my friend David Jung. Let's get it.
Good morning, everybody. Happy Wednesday to those who celebrate. Please like and subscribe and do all the things, and welcome to my second Lake House in two days. Apparently, I'm at a different Lake House. I never know what background is going to come up until I see it on the camera, so it's always a good giggle for me. You're not at a lake. Where's your lake?

**David Jung** (0:59)
No, I don't have any fancy studio behind me to-

**Scott Melker** (1:03)
I'm at a lake.

**David Jung** (1:04)
Oh, yeah, yeah. No, you're right. You're absolutely at a lake. I'm sorry. I'm the one that's wrong.

**Scott Melker** (1:09)
Yes, that's right. I'm at an actual lake where I have a perfect mic and desk at my lake. So listen, I asked you before, what do you think is going on with the market? And you very quickly said, you think the biggest thing is Saylor. So we've got to- I love when they hit it. Just in, as if nobody knows the balance sheet or what Bitmine is.

**David Jung** (1:31)
I'm tracking it minute by minute. Exactly.

**Scott Melker** (1:34)
Yeah, Tom Lee is down a casual 8.9 billion. Michael Saylor is down 7.6 billion. But that's not really the story. The story is the 32, I believe, Bitcoin that strategy sold this week. And as you sort of alluded to, the signal it sends, not really the amount, obviously.

**David Jung** (1:51)
Yeah. I mean, I think that this is a challenge for industry because both Bitcoin and ETH are now held by two major players and they're both debts. And the fact that Saylor owns, I think, four to 5% of the Bitcoin supply, right? Like, any time a headline like that comes out, I think it's going to sink spirits, like sentiment kind of goes down and you see it because like, equity markets are doing gangbusters well, and everyone is very bullish as far as sentiment because they should be. You have fiscal stimulus kind of coming in the form of a lot higher paychecks, or rather, tax returns that came in in April. People are spending that, but they're not spending it on crypto.
I feel like we were in a okay phase at the start of the Iran War because people were kind of taking profit on those names. But then like, the war drew on, people started to kind of look through the risk, and now they're kind of saying like, well, crypto is still not very interesting because it's not moving the direction I want. Like when I thought it broke 80 at some point in May, I thought it's like, all right, maybe this is the opportunity. Never happened. Now, like you have a sale or selling, there was like David Hoffman's like, kind of headline that he's selling his, or he sold his ETH rather. It's just like, it doesn't give people confidence.

**Scott Melker** (3:13)
I mean, these are bottomy signals, not toppy signals though, right? I mean, I kind of tweeted this morning, I was like, if you believe that Bitcoin ever goes to a new all-time high again, you're getting it at a 50% discount to the previous all-time high.
Right? I mean, it's very easy, I think, and given maybe there's more better opportunity and it could take longer. I honestly understand that the opportunity cost of being in Bitcoin could be different than other things. And that's where the main narrative has been going. So I would talk about this on my other show, actually, I think yesterday, and I wrote a long newsletter about it, but it seems to right now be the main narrative. Bitcoin hits lowest since February. As crypto competes for liquidity with blockbuster IPOs, I mean, I tweeted this, you know, that we've got the Nasdaq hitting fresh highs while Bitcoin is obviously down bad. You know, all of our correlations to tech, which I love, by the way, are gone, right? But is this not only just because the Nasdaq is performing well and because tech is performing well, is the bigger story that there's a whole massive liquidity vacuum coming in the form of all these IPOs?

**David Jung** (4:17)
I mean, I think that's a part of it, because a lot more liquidity is now chasing after more frontier things that people see more upside in. And you're right. I mean, you have three major IPOs coming up soon, SpaceX, Anthropic, OpenAI. And I think there's a lot of people who are going to want to chase it. I mean, I've done a lot of soul searching over the last few weeks. I left Coinbase and I'm trying to I've been saying to myself, like, what is going to happen to crypto, like for the long term, not just kind of short term. And if we accept the fact that things have matured, which I think they have, like this asset class, first of all, we're calling it an asset class. I think that five years ago, no one did that, especially TradFi. They all looked at this and thought it was a joke.