Uptober Begins?🚀Tom Lee Calls For $50k ETH Potential 🔥 — Transcript

Full transcript

1. 0:00October is here and does that mean that
2. 0:02the market is on its way to another
3. 0:04boom? Well, today we're going to break
4. 0:06it down for you guys. I want to thank
5. 0:07our sponsor today and that is Tandem
6. 0:09where you guys can get into full
7. 0:11self-custody. Very easy to do your
8. 0:13secure crypto hardware wallet. And one
9. 0:16of the things about Tandem that I think
10. 0:18a lot of people misunderstand with self-
11. 0:20custody is the ease of use and also the
12. 0:23ease of being able to get this set up
13. 0:25for you. It's like a credit card. Works
14. 0:26with your phone. Always present. Make
15. 0:29sure to get a three-card set so you've
16. 0:30got a backup, but you guys, of course,
17. 0:32can use our link down below. It's going
18. 0:34to give you a 10% discount. And they
19. 0:36also have several offers from time to
20. 0:38time. So, always check what's going on
21. 0:40over there on the website. This is the
22. 0:43self custody to use. So, make sure and
23. 0:45check it out. Tell them we sent you. And
24. 0:47let's just jump right into it. I want to
25. 0:48start off with this. ISM manufacturing
26. 0:51came in at 54.5 in September. This was
27. 0:54below the 55 expectation. We also had a
28. 0:58reading here that 50 means the US
29. 1:01factory activity is still growing. So
30. 1:03this is good in general for the market.
31. 1:05Uh you also have to look at where we are
32. 1:08going to of course see PCE and one of
33. 1:10the other things to take a look at here
34. 1:12is of course um prices because these
35. 1:15paid jump to 77.9.
36. 1:17Uh one of the things that I would look
37. 1:18at here is how the Fed is going to
38. 1:20respond to this. Now, do they ease up
39. 1:23based on this new data or do they
40. 1:25consider a potential pressure point that
41. 1:28would possibly try to still deal with
42. 1:30try to still deal with inflation? I
43. 1:32think that's a factor that everybody has
44. 1:33to look at. You look at the markets 550
45. 1:36bill now wiped off from the US stock
46. 1:38market. This is the last 45 minutes as
47. 1:40we're recording. The 10-year exploding,
48. 1:43the 20-year exploding, essentially
49. 1:46everything on high in terms of bonds.
50. 1:49And this is a factor that everybody is
51. 1:51concerned about in terms of money
52. 1:53because this pulls from traditional
53. 1:55markets and moves into these bonds. And
54. 1:58this is the issue I think a lot of
55. 1:59investment advisors are dealing with
56. 2:01right now as people are saying why
57. 2:03wouldn't I just go into a bond? Why do I
58. 2:05need to, you know, be in a risky stock
59. 2:07market out there? Tom Lee says though
60. 2:09the AI bubble may still have years to
61. 2:11run. and he has been very much a
62. 2:14permable over the last several years but
63. 2:17especially over the last several months
64. 2:19and his point right here if Chad GPT
65. 2:21marked the start of the cycle that was
66. 2:232023 Lee sees roughly 2033 as a window
67. 2:27where much of the good news may finally
68. 2:29be baked in I don't know guys do you
69. 2:31think we are in another decade of an
70. 2:35upcycle here when it comes to these
71. 2:37stocks let me know in the comments
72. 2:38especially when it's related to AI and
73. 2:41the techn technology trade that circles
74. 2:43the AI because you got everything from
75. 2:45Micron, chipmaker, semiconductor, all
76. 2:48that play into this. I want to go to a
77. 2:49clip real quick because this will get
78. 2:51into Tom Lee's market outlook. The title
79. 2:53is staying bullish even with a hawkish
80. 2:56Fed. The AI
81. 2:58trade is creating inflationary pressures
82. 3:01on memory and energy consumption.
83. 3:05Um
84. 3:06those are bottlenecks. The reality is
85. 3:09the Fed raising rates isn't going to
86. 3:11slow down AI spending. So the markets
87. 3:15selling off today because of good PMIs.
88. 3:19It's probably just a reminder that
89. 3:21that's where the psychology is at the
90. 3:23moment. Cisco is a good example. From 94
91. 3:25to 97, Cisco went from 80 cents to $9
92. 3:29and then we had the Asia financial
93. 3:30crisis and it fell by 40%. People would
94. 3:33have said that was the end, but then
95. 3:35Cisco a year later went to 18, but then
96. 3:38long-term capital happened and it fell
97. 3:4040%, people would have said, "Oh, well,
98. 3:43there it is. The top again, Cisco ended
99. 3:45up going to 80 and that was a 10x 100x
100. 3:47from the low." I think that's probably
101. 3:49good analog and I think we're here
102. 3:51today.
103. 3:52>> All right. So notice that and he's
104. 3:55referencing Cisco in the era of kind of
105. 3:58the dot bomb and and this was one of the
106. 4:00companies that essentially kind of built
107. 4:02the internet and good example around you
108. 4:05think about it in the same way with AI
109. 4:07what are going to be the companies that
110. 4:08build AI whether that's the hyperscalers
111. 4:11or many of the component manufacturers
112. 4:13and designers and software all that's
113. 4:16going to be playing into this if you
114. 4:17look at this point though timing is very
115. 4:20critical here since 1928 the S&P 500 00
116. 4:23has rose 20 2.1% on average during the
117. 4:26first half of October when it was a US
118. 4:28midterm election year. So this would be
119. 4:30its strongest performing half month of
120. 4:33Q4 if that were to take place. So all of
121. 4:36this is looking at history and saying
122. 4:38well if timing works then it's going to
123. 4:40play out this way. If you look at it on
124. 4:43the crypto side of things you could look
125. 4:45at October and say yeah history is on
126. 4:47its side. Look at October right there.
127. 4:49Mostly green through the entire history
128. 4:53all the way back down to 2013
129. 4:56except for last October. Obviously the
130. 4:58Santen, but if you look at the chart
131. 5:00here, uh all of these reds get followed
132. 5:02and sandwiched by green. So we maybe we
133. 5:05are in an October position right now as
134. 5:07we start to look at some pretty big
135. 5:09moves. Three of the biggest
136. 5:10cryptocurrencies though right now are
137. 5:12still crushing every other asset class
138. 5:14since June. So, if you were in June
139. 5:17buyer class out there and you were
140. 5:19buying ETH or you were buying soul or
141. 5:22Bitcoin, well, you can kind of see the
142. 5:23numbers right there. 67% up on Ethereum,
143. 5:2739% up on Bitcoin, and Soul sitting at
144. 5:3161.9%. So, nice moves to you guys that
145. 5:35got in in the summer. City also raised
146. 5:38its 12-mon Bitcoin price uh target to
147. 5:40113K. I am very interested in this
148. 5:43because they've been back and forth on
149. 5:45where Bitcoin would go. ETH though is
150. 5:49interesting because they've pushed it up
151. 5:50to around 3K. Not as much in terms of a
152. 5:54growth. All of this citing the
153. 5:56continuation of ETF inflows. So, I'm
154. 5:59kind of curious. Do you think ETH or
155. 6:01Bitcoin hits its all-time high first?
156. 6:03Let me know in the comments down below.
157. 6:05Let's play a clip real quick because
158. 6:06this will get into Tom Lee thinking they
159. 6:09might be wrong because he thinks ETH is
160. 6:11going somewhere else.
161. 6:12>> Ethereum has been consolidating for 5
162. 6:15years now. Uh there have been two other
163. 6:18times Ethereum's consolidated this way
164. 6:21and they were resolved with upside
165. 6:22breakouts. The first one was a 62x
166. 6:25upside breakout. The second one was a
167. 6:2717x.
168. 6:29So, we're faced with the third one, uh,
169. 6:32which if Ethereum can break 5,000, you
170. 6:35know, we think it could go, uh, a 10x
171. 6:38from here.
172. 6:40And I I don't know. Sometimes I I don't
173. 6:44know if I should hug Tom Lee or slap Tom
174. 6:46Lee. Sometimes I just don't know. 10xing
175. 6:49off of a $5,000
176. 6:51Ethereum. If we are in a market that is
177. 6:54that hot where where Bitcoin and ETH
178. 6:57especially ETH trading at 5K something
179. 7:00amazing has occurred and if that is the
180. 7:03case the likelihood of an upcycle
181. 7:06significant upcycle even parabolic to a
182. 7:08certain extent could be possible. Uh now
183. 7:11he says that there are some things that
184. 7:13are driving it and he thinks DATs might
185. 7:16actually a big a bigger part of this.
186. 7:17Now granted, you guys all know he is the
187. 7:19king of dats when it comes to it with
188. 7:21BMR. Watch this clip.
189. 7:23>> The next 12 to 18 months, all of the
190. 7:26DATs, not just Bitmine, are going to
191. 7:28really ramp up their purchases of
192. 7:30crypto. So, I think the cryptos that
193. 7:32have debts are going to be the best
194. 7:35performing because these debts
195. 7:37essentially buy the crypto and take out
196. 7:39supply. The Ethereum debts own a total
197. 7:42of 7% of the supply right now. That's
198. 7:44more than Bitcoin debts or the Salana
199. 7:46debts and I could probably see that
200. 7:48getting to 15% in this bull cycle.
201. 7:51>> All right. So, when you listen to that
202. 7:53clip, you have to wonder, is there
203. 7:55something in Lee's mind that says, "Hey,
204. 7:57we might actually start to accelerate
205. 7:59this even more in terms of our
206. 8:01acquisition targets because they've been
207. 8:02shooting for the 5%." Uh, and if you
208. 8:05look at the overall, Bitmine now trades
209. 8:07at nearly 6x the daily volume of all
210. 8:09nine US spot e ETFs combined. I'll show
211. 8:13you the chart right there. Nearly 6x
212. 8:16right there. BMR. This is a point that
213. 8:18I'm getting at is if we see this kind of
214. 8:21move on Ethereum, where would BMR be?
215. 8:25Because this they're going to
216. 8:26participate. You would think they would
217. 8:27be, especially in the point that he just
218. 8:30made in that clip, and that is that
219. 8:31there's going to be a lot more
220. 8:32acquisition by all these different
221. 8:34projects that are DAT holders. And that
222. 8:37may start to set things up in a big way.
223. 8:39Okay. From all of that, I want you guys
224. 8:41to also think from BMR's standpoint that
225. 8:44two other major tokens that they're
226. 8:46exposed to uh is Hyperlquid and Salana.
227. 8:50And you can kind of see it right here.
228. 8:51They're closing out the D5 protocols top
229. 8:5310 revenue generators. This goes back to
230. 8:55the thesis that I think BMR has been
231. 8:57looking at. And if you go even further
232. 8:59into this, here's Bitmine Immersion.
233. 9:01This is BMP. So essentially, this is
234. 9:04kind of the counterplay to Stretch
235. 9:06earning at 9%. So think about if this
236. 9:08starts to hold, how would that combat
237. 9:12possibly into people maybe playing the
238. 9:14stretch market out there? So STRC, you
239. 9:17guys know what that is in terms of what
240. 9:18uh Michael Sailor is doing. So this gets
241. 9:21into a lot of positives for Ethereum. It
242. 9:23gets into a lot of positives for BMR if
243. 9:26you think about this. One other point I
244. 9:28want to get at is the tax position that
245. 9:30is starting to face the crypto market.
246. 9:32This is a major US tax update has just
247. 9:34been introduced. This of course coming
248. 9:36up. Uh it's a 56-page bill. There's a
249. 9:39lot of things that are in it. One of the
250. 9:41biggest issues is tax exemption for
251. 9:43small purchases. The wash sale rule
252. 9:45would go away. This would prevent
253. 9:48artificial tax loss harvesting that many
254. 9:50of you have taken advantage of because
255. 9:52there's been no rule around that. Now,
256. 9:54one thing to be aware of is this is not
257. 9:57a law yet. It's still the proposal. So,
258. 10:00uh it is coming and I think the question
259. 10:02is whether this gets through. So be on
260. 10:03the lookout because this could change
261. 10:05things up on the tax side soon. We're
262. 10:06going to get David Kmer on soon to talk
263. 10:09about that. Hester Pierce of course
264. 10:11tweeted out right here. I'm not a fan of
265. 10:12credit investor gating, but at least
266. 10:14we're proposing to nudge that gape it
267. 10:17open a bit. If this happens, it changes
268. 10:20the dynamic I think for the next
269. 10:22generation of investors. is something
270. 10:24that Gen Z has and should have the
271. 10:27availability to be able to do which is
272. 10:29get away from that accredited investor,
273. 10:31you know, l noose that's been around
274. 10:33everyone out there. There is a crypto
275. 10:36advocacy group out there, Stan with
276. 10:37Crypto, who's rolling out its first
277. 10:39round of Senate endorsements after
278. 10:41Clarity failed. So, let's see how this
279. 10:44plays out in the market in terms of
280. 10:47midterms. Who's going to get voted in?
281. 10:49I'm going to go check the scorecard on
282. 10:51who actually was a pro crypto and ended
283. 10:54up saying their seat uh going forward.
284. 10:57Uh Bloomberg also launched a stable coin
285. 10:59dashboard on its terminal tracking
286. 11:01supply, mints, burns, all of this as
287. 11:04well as velocity for every stable coin
288. 11:06above 100 million in circulating
289. 11:08circulating supply. That means
290. 11:10mainstream guys. This means mainstream
291. 11:12because for every trader major trader
292. 11:14out there using Bloomberg terminal is
293. 11:16pretty much a daily habit and a function
294. 11:18within their own operations. So
295. 11:20institutional capital all played into
296. 11:22that for sure. So I want to tie in
297. 11:24Salana to this because I think this is
298. 11:26very pro- ETH but it's also pro BMR in
299. 11:29the sense of they could be going this
300. 11:30direction. Salana being another asset
301. 11:32that Tom Lee is very um focused on. And
302. 11:37you look at it right here. Salana
303. 11:38recorded over 14 billion transactions in
304. 11:41Q3. This is the highest quarterly
305. 11:43transactions count ever. So imagine
306. 11:47where that is in just 12 months. These
307. 11:50are the kind of things that are moving
308. 11:51the market right now. Now granted, sure
309. 11:53it's up and down. We still see a lot of
310. 11:55macro trends, but I think we are in for
311. 11:58a very interesting October. Let me know
312. 12:00what you guys think down in the
313. 12:01comments.
314. 12:08If you like this video, hit like and
315. 12:10subscribe. Drop a comment down below and
316. 12:12also join our free private member group.
317. 12:15The link is in the description.