Stocks Soar, Bitcoin Surges 6%; The 'Lever' Has Been Pulled, What's Next? | Clem Chambers

David Lin (0:00)

It's Monday, September 21st, and risk assets are soaring today with the ATT&CK stocks leading the charge. The NASDAQ is up 1.5%. The S&P 500 is up 1%. Bitcoin is making headlines as it's up 6% on the day, now up to $86,000.

The long end of the yield curve is falling, and interestingly, gold is falling on top of that as well. So we'll talk about all those assets and oil, of course, falling below $100 a barrel. On the news that potentially we might get another round of negotiations with Iran. Let's talk about all this and much more with Clem Chambers, founder of a new FN. He's gonna give us his outlook and why markets are behaving the way they are today. This video is sponsored by Mayfair Gold ticker MINE, but more on that later. Welcome back to the show, Clem, good to see you.

Clem Chambers (0:47)

Good to be back.

David Lin (0:49)

Clem, today's market action, I was telling you offline, I was surprised at how Gold and Bitcoin reacted to yield simultaneously. Usually when the long end of the yield curve goes down, Bitcoin goes the opposite direction, and so does Gold, but Gold is falling as well, so we'll talk about why that's happening. But today seems to be a risk-gone day. I like to start with Bitcoin, the biggest move and what's trending on social media as of this morning. So as of just last week, the rally in Bitcoin seemed to have stalled, and now all of a sudden it's gone up a straight line again, $86,000. Are you a buyer at this level?

Clem Chambers (1:25)

I'm definitely not a buyer of Bitcoin.

You know, I think that Bitcoin is now pretty heavily linked to Iran, which is not necessarily great. I mean, the Clarity Act is kind of in abeyance, so that's not good for Bitcoin. But when, okay, this is very controversial, okay? So you should like this.

When Iran was originally bombed, 25% of the mining of Bitcoin disappeared, okay, during the bombing, and then it came back. And the reason for that is Iran uses Bitcoin to get around sanctions, because it's got the energy and it can mine Bitcoin and it can do the Bitcoin thing with it, and therefore that's, you know, a very good way for Iran to get around sanctions. I mean, after all that, you know, sticking it to the man is what Bitcoin was meant to be all about. And when you think about countries that are dead keen on crypto, like North Korea, they have the same reason. It's one of the use cases of crypto, is the fact that you can, you know, get it around the world without much permission. And then everybody says, oh, you know, you can trace it now, and all that good malarkey, but you know, actually, I'm sure there are many ways to get around these things that doesn't involve necessarily being able to be tracked on the blockchain. So anyway, they bombed Iran and 25% of the money went away and then came back.

That gives you a good indication of just how much Bitcoin is mined in Iran. And people do their own due diligence on that. So if Iran is a major miner of Bitcoin, when Bitcoin goes down, are they a seller? And if they're a seller, is that, does that mean it's good for Iran? What's going on or bad for Iran? Well, I would say if it's not going too badly for Iran, they've still got to sell their Bitcoin to get the stuff they need to keep up the fight. But if all of a sudden it's going badly and people are starting to sweat the future, then they're going to load up on Bitcoin because they're heading over the border if the inverted commas of the balloon goes up, right? So bad for Iran, Bitcoin up. Good for Iran, Bitcoin down. So that's how I've been reading it ever since the beginning of this conflict. And it matches quite well. So Bitcoin up.

Is it not going so well in Iran right now? Well, there's every reason for it not to when you think about it. So I would take that as a negative for Iran, which is probably a positive for the world. And you've seen all come down at the same time. Maybe there's a correlation there, not causation, as they say, but nonetheless. So we'll see. But if you look at the Bitcoin chart, it's very bullish. It is very, very bullish. And I wrote a piece a few weeks ago that said, well, if it gets to here, I would think that that's quite bullish, and it's here now. And it's probably going to go up a bit more. Now, whether it'll turn around to 90,000 and head on back down again is another matter. And I'm a long-term bear for quite some time yet. Until this four-year cycle has played out, until it's at that point in the cycle when a bottom is in for Bitcoin, I won't be bullish. I mean, I've kind of lost a taste for it all because of the just constant, constant robberies that go on. And I keep saying this on your show over and over again. It's very difficult to have any noticeable amount of Bitcoin without being at threat of being robbed in one way or the other. So I don't have that problem in equities. And another way of looking at it is, let's just say Bitcoin went from 85 to 100 Okay, so that's what? About 20%.