Final Chance for Crypto Clarity Act (4 Days)

**TJ** (0:00)
And we're live. All right, welcome in Disco Fam. Another week, another week of chaos in the markets. We've got The War or The Strait of Humeus open, closed, open, closed. That is, well, it was closed again. Trump sang open as of this morning, choosing chaos on the timeline. We've got prices pulling back on a lot of that news. We've got Crypto Clarity Act, huge week, Senate back in session, minus one key participant in the Senate that happened over the weekend with a lot of conspiracy theories already floating around about that. Robinhood chain making big moves, big for DeFi over the weekend. But as you can see, quick pullback on Bitcoin, Ethereum holding a little bit stronger than Bitcoin. If you guys are in the school community, the ETH BTC chart, something we've been watching heavily both for DeFi and for trading, Ethereum finally starting to show some strength. Solana also holding up OK, which we're going to get to a little bit later in the show. You can probably see some Solana projects could potentially be a beneficiary of some of this Robinhood stuff. Morpho, another big winner. Again, we're going to talk about that later today. So these projects here showing strength while most of the rest of the market seeing pullbacks across the board due to some of that chaos. Here it is. We're reinstating the Iran blockade. So named because it's the only thing stopping the Iran ships. This is Trump's truth social timeline this morning. But I think all of us here are mostly just feeling like this. Michael Scott. I'm sorry. I didn't change my tab, but here we go. Snip, snap, snip, snap, snip, snap, open, close, open, close, open, close. This is how we are feeling here in the markets today.
As always, I am joined by the one and only Druth.
How are you doing today? How are you feeling?

**Druth** (1:44)
I'm doing good. Yeah, it's been a weekend. Okay, my tractor broke again. So I spent the week climbing under the tractor and tearing things apart. It is what it is. But the market, it's honestly got a lot of different metrics going on that I am seeing. Some of the dominance of Ethereum is coming up in a pretty strong way.
Bitcoin has been talked about having a potential rally to the upside for a deeper pullback for the remainder of the year. A lot of conjecture on what the remaining year looks like for Bitcoin. It gained almost 10% in July, but traders still see Bitcoin copying that 2022 bear market. This is a pretty good write up here. Bitcoin's last bear market in 22 saw the price in July nearly 17% higher after significant 38% losses. And that was that walk downtown to Chinatown with that final capitulation moment at FTX that hit last bear market. What happened in August, however, showed that the calls for bullish continuation at the time were premature. Come in FTX and the collapse there within Bitcoin fell 14% followed by another 3% drop in September. This time market participants predictably cautious over the short term price strength. Now, you had some good talks in the school community, TJ, about risk on risk off, right? And yes, it's you know, on our data hub, it's pretty clear we're in a risk off. I do like our data hub. I get the market report and it's clearly showing risk off. We are deeply in the risk off moment for the time being. But can you can you kind of back up and talk about this environment? Because a lot of people were saying that it's a risk on environment right now.
And you had some good insight.

**TJ** (3:27)
Well, yeah, I was reading. So what we were doing in the community is everybody goes through, they do their initial assessment and they have an assignment where they kind of break a token down their thesis and then they evaluate the market. And I was seeing a lot of posts in there. People they were supposed to define risk on risk off. And then they were kind of coming up with their own definition, like their version of what they perceived risk on to be a risk off.
And really risk off is is pretty broadly defined of when the market is uncertain. You know, money usually flows back towards more stable things, cash, bonds, gold, you know, that sort of stuff, which has clearly been the case. And in my opinion, since around the time, maybe a little before Trump started doing the tariffs, you know, when all that tariff uncertainty happens, which is very common when the markets hate uncertainty. So when things are very uncertain, whether it's tariffs, whether it's geopolitical conflict, like we're going through big money, you know, the broader market moves back towards safety. When things are in growth mode, that's when you see money moving into all coins, you know, AI crypto in general, growth stocks, that sort of stuff. So all, you know, all that to say, we've been in clearly risk off for quite some period of time now, arguably, we, but you know, some people are saying we're getting closer to going back into risk on, and you might want to start to position early. And that's where you make the most money. That's part of what we're talking about here. But you do have to analyze your risk as you're doing that and understand. If you're taking that, if you're trying to beat the trend and be, start moving into risk on positions before the market does, if you're right, it pays handsomely. But if you're wrong, you can get punished severely. So the more money you have, the more you want to wait for confirmation. You know, if you're trying with this very small amount of money, you know, you can kind of take that shot. That's what some of us are starting to dip our toes back in with certain altcoins here. But yeah, and this is a, you know, this is good money, you know, by, by greed, self. No, he's got a back.