Bitcoin Is On Sale - And Wall Street Is Picking THESE Altcoins Next | Matt Hougan

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Scott Melker (0:31)

Bitcoin is on sale. The media will tell you that it's crashing. I will tell you that we are entering a new bull market and it's probably time to buy the dip. But meanwhile, Wall Street is picking very specific altcoins next. Of course, we're talking about the ETFs that are coming and a report from Citrini Research. We are going to talk about all of that and more with everybody's favorite desk, Matt Hougan from Bitwise. Let's go. Good morning, everybody. Happy Friday and welcome to the show. I'm going to go ahead and just bring on Matt now. Good morning, sir. How are you?

Matt Hougan (1:21)

I'm doing great. How are you?

Scott Melker (1:23)

I am doing wonderfully well. So, yeah, so we've got the death of Bitcoin again to celebrate, which is always good when I have you on the show. But now here we go. Crypto. Oh, we got to share it, don't we?

Crypto crumbles as anniversary of flash crash near. So yeah, I guess we actually should be having PTSD tomorrow for the year anniversary of the $19.2 billion liquidation event that I think, it's actually kind of crazy to me that we still don't really know what happened that day, by the way. Do you?

Matt Hougan (1:58)

Yeah.

Scott Melker (1:59)

Maybe you know.

Matt Hougan (1:59)

The details. Yeah.

I mean, that was a crazy day. I think three or four or five different things happened. You had the Peg stable coin, you had a macro crash, you had them all come together at once. So still is pretty crazy. But it's also crazy that the media is willing to kill the Bitcoin bull market after three months and say that we're over because we pulled back a few percent.

Scott Melker (2:24)

Yeah, I would like to just present you with a chart because I happen to be looking at it and I looked at this. It is the Bitcoin chart. This is exactly where the bull bear market technically ends for chart people, because you made a higher high and prices literally just sitting exactly right there, which is if you are a technical analyst, all you want to see is levels that were sitting there for months to be broken being broken and tested as support. But here we are at the end.

That to me is like just from a technical perspective, is the most gratuitous buy.

Matt Hougan (2:56)

I'm not even a technician, but even to me that looks exceptionally good.

I completely agree. Yeah, and certainly not dead. I mean, yeah, I woke up this morning. It's at 82 something. Great. Onward.

Scott Melker (3:09)

Yeah. Okay. So let's talk about, I guess we can talk about ETF flows in and out as exhausting as it is. But I think on Wednesday, we had a pretty massive outflow day, like a half a billion day, and it was relatively spread across everything. It wasn't one of those, it's because of BlackRock options days.

But that was after we have had historic inflows just weeks before. So I mean, is it even worth watching these on a day-to-day basis honestly, or is it totally just tracking price or leading?

Matt Hougan (3:41)

Yeah, I mostly think it's following price on a day-to-day basis. It follows nuances in the options. When you see that across the curve move, on a single day, there's usually something funky going on on the other side. It's hard to say exactly what that funky thing is on the other side. If you see sustained large outflows over multiple days, you and I have talked about this, but the actual reporting onto an individual day is a little bit variant. You really should look at these on five-day flows to get a feel for what's going on.

To be sure, we've had a few days of outflows across the whole ecosystem, across Bitcoin, particularly across ETH, across some other assets. So there has been a cool down of investor flows, but I would describe it as that, a little cool down after some really strong inflows. And I think we'll be back to the inflow trade before long.