Bitcoin Just Flashed a Signal That Could Trigger a 25% Rally | Mike Belshe

**Scott Melker** (0:01)
Bitcoin just flashed a signal that could trigger a 25% rally. That of course is the golden cross between the 50 and 200 MA, things that we frankly don't take very seriously around here. You know that we're going to get into a much deeper conversation about the fundamentals of the market, where it stands and what news is driving it. And we have a very special guest today. To do that with us, we got Mike Belshe here from BitGo. Stick around, this one's going to be great. Let's go.
Right before we went on, we had some smooth jazz randomly come on, and I think it might have been this amazing tranquil background. But we couldn't figure out why we were having smooth jazz playing. Good morning, everybody. I hope you're all doing wonderful today. I'm going to bring on Mike right now. How are you, man?

**Mike Belshe** (0:57)
Good morning, Scott.

**Scott Melker** (0:58)
How are you? I'm doing great. So you said I was wearing an OKX shirt. You got to get me a BitGo shirt. We could do the BitGo corporate offices back here on the LED screen.

**Mike Belshe** (1:07)
Fantastic. I will get it.

**Scott Melker** (1:09)
That would be cool. So listen, let's start, I guess, with the market generally. I think you've probably been here for more cycles than most. People were wondering what the catalyst would be to get us out of the doldrums of summer and the bottom of this quote unquote bear market that we are in. And here we are up in the upper 70s again.
A big move a couple of weeks ago. I mean, having seen this before, what do you make of it?

**Mike Belshe** (1:33)
Well, in your intro, you said the something crossed with the something moving average, whatever. And then you said we don't really pay much attention to it. Look, I think people that have been in Bitcoin for a long time got into this for, I think, a pretty long term view.
And the fundamentals of Bitcoin, I think, have never been stronger, regardless of where the price may be today. What we're looking at with the US debt, with the bond market, globally what's happening. Look, it's kind of inevitable that Bitcoin is going to go up in price. Not so much because Bitcoin has to do anything, but because the dollar continued to slide downward, doesn't really matter which politicians are in charge. None of them have the strength or power to change the direction.
So two things happen at once, right? Number one, the dollar goes down, which causes the price to go up by itself. And then number two, more people learn about Bitcoin, start deploying Bitcoin and start utilizing it. So those things are both happening, just like they have been for a long time and the beat goes on.

**Scott Melker** (2:43)
It was pretty clear that the catalyst, at least in the short term, was the Treasury, you know, Treasury deciding that they're going to do double the buybacks. Even though it was small, I think the amount was a rounding error, right? I don't think that's what sent it. I think it's the signal that the Treasury is going to intervene in the bond market. That's what Bitcoin is built for, right? So I always find it funny that when you're sitting at 64 and you tell everybody that Bitcoin is an asset that's part of the debasement trade or it's a hedge, they laugh at you. But then all of a sudden it goes up 25% in the same narrative that existed two hours before all of a sudden is in vogue.

**Mike Belshe** (3:20)
Bill Friedman's got this right. Like there's one cause of inflation. It's government spending. And you know, you can't, there's no tinkering with the market that's going to undo the effects of overspending.
So there's only one way out of this. And we either do it early when it's less painful or we do it late when it's incredibly painful. And, you know, all signs point to it's going to happen very late. In the meantime, you know, people need to have assets.
We do have a real problem. I think this is in many countries. It's here in the United States, although I'm in Canada right now, I guess. But this K-shaped economy, what is it about, right? We've got people that can't afford assets. Maybe they can't get a house. If you're not in assets and you're holding your value in cash, you may not have that much of it, you're doubly in trouble. A, you don't have very much, and then B, you're in the one asset which only goes down. You need to get to that asset side of things. We need to help people. This is, of course, what Bitcoin is about, allowing you to get your money onto something that's going to an asset that appreciates rather than one that deflates.