AVOID SPECULATIVE FROTH

“Generally the bond market has the reputation of being the intelligent market. And so it's where the macro traders tend to focus. And that has been signaling squeeze coming up. I mean, yields for the 10-year are up at 4.23%, 4.3%. That's high when you consider that the Fed actually started the cutting cycle quite a while ago now. And it's also high considering yesterday we had the hearings on Capitol Hill.”

“Bitcoin is back above $78,000, as investors go risk on across the board, leading many to wonder if this is yet another bull trap, or if we're actually going to see a major breakout and a move into the 80s. Bitcoin jumps over $78,000, hits 11-week high amid Trump's Seek Fire extension. I mean, I don't even know how to talk about the war anymore because I get accused of having TDS and I feel like I'm losing my mind.”

“The derivatives market for Bitcoin is weak. It is just sending a lot of really miserable signals. You've got bases down. I haven't seen lows like this in ages. You've got skews suggesting a very heavy weighting towards puts. You've got the funding rate was negative yesterday. Today, I think it's tempted to be positive. In other words, the derivatives markets are saying that, hey, we're not frothy.”

“It starts to feel like there's spot accumulation. It's tentative. This is not the frothy risk asset narrative that we're accustomed to seeing in Bitcoin, and it could have to do with the hedge against crazy from those that actually take time to understand Bitcoin. For those that do so tend to buy the hedge against crazy narrative, I count myself in that particular bucket, which is why it tends to outperform when things are crazy.”

“The Bitcoin dominance index is this morning reached its highest point since I think November of last year. So what we're seeing is in part new money coming into the market, and Bitcoin is the obvious on ramp, it's tentative still. But I think we're also seeing some rotation out of other crypto assets into the safety of Bitcoin.”