Bits + Bips: Why Bitcoin Is a Leveraged Bet on Global Liquidity - Ep. 710

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In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger, and Joe McCann are joined by Sam Callahan of The NewsBlock to explore how macroeconomic factors and liquidity conditions are driving Bitcoin’s price. They dive into the Federal Reserve's recent rate cuts, the impact of Solana's token unlocks, and why many investors are concerned about a potential liquidity crunch. Plus, the panel discusses whether Bitcoin’s price is increasingly dependent on global M2 money supply, and how BlackRock’s Bitcoin ETF options could impact the market.
Is Bitcoin simply a leveraged macro bet? And could Solana’s unlocks cause a price squeeze?

Show highlights:

Alex and Joe’s takeaways from Token 2049 and Solana Breakpoint

Why there’s so little attention on Bitcoin at these conferences

The SOL vs. ETH trade debate

Why Sam thinks that the Fed cut rates to help the Treasury

Whether they think inflation will persist

How China's rate cuts aim to boost its economy amidst export challenges

How Bitcoin's correlation with global liquidity can break down during speculative bull runs, despite its typical sensitivity to liquidity conditions

The pros and cons of the approval of Bitcoin ETF options

Why fears about BlackRock and Coinbase's bitcoin holdings are unfounded, according to James

Sponsors:

Gemini

Stellar

Hosts:

James Seyffart, Research Analyst at Bloomberg Intelligence

Alex Kruger, Founder of Asgard

Joe McCann, Founder, CEO, and CIO of Asymmetric

Guest:

Sam Callahan, Current Free Agent Analyst & Scribe of the NewsBlock

Sam’s research post with Lyn Alden

Links
Coverage of Unchained on Token 2049 and Solana Breakpoint:

Should the Solana Foundation Be Dissolved? Yes... and No...

$1.3 Billion Market Cap BONK Caught Asymmetric Financial's Eye at $28 Million, Founder Tells Solana Breakpoint Event

Bring Back ICOs, Says Multicoin Capital’s Tushar Jain, Winning Agreement From Debate Adversary Qiao Wang of AllianceDAO

PYTH Stakers Get Carrots and Sticks as Douro Labs Rejigs Staking Mechanism

DeFi Protocol Sky, Formerly MakerDAO, to Launch on Solana Blockchain

Firedancer Efforts Bring Solana a Step Closer to Leap in Processing Power, Says Jump Trading’s Science Chief

Stoner-Originated Proof-of-Liquidity Network Berachain Scores a Hit at Token2049

SOL vs. ETH

Unchained: SOL on Course to Flip ETH, Says Multicoin Capital’s Kyle Samani

Alex’s tweet: “Ironically $SOLETH is barely up in 2024”

Rate cuts and macro:
Fed Cuts Rates for First Time Since 2020
China:
Reuters: China's central bank unveils most aggressive stimulus since pandemic |

ETF options:

CoinDesk: BlackRock Bitcoin ETF Options to Set Stage for GameStop-Like 'Gamma Squeeze' Rally

Decrypt: SEC Hits Pause on Ethereum ETF Options Following Bitcoin Nod -

Kamala Harris:

Unchained:

Kamala Harris Makes Her First Comments on Crypto

Harris Commits to Prioritizing Emerging Industries Like Blockchain in Speech

Timestamps:

00:00 Intro

02:55 Takeaways from Token 2049 and Solana Breakpoint

07:14 Little Bitcoin interest me at conferences

12:23 The SOL vs. ETH trade debate

17:32 Sam’s view on the Fed’s rate cuts

28:55 Will inflation persist?

41:14 China’s rate cuts and economic boost

49:44 Bitcoin’s correlation with global liquidity

1:02:43 Pros and cons of Bitcoin ETF options

1:13:23 BlackRock and Coinbase Bitcoin holdings fears

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