Bitcoin’s Resilience: Navigating the $100,000 Threshold

Let's get to the big story breakdown.

After a while, two days that sent Bitcoin briefly below the 100,000 level for the first time since May, crypto majors are bouncing back.

More than $2 billion in long positions were wiped out in Tuesday's slide, one of the biggest shakeouts this year.

Still, Bitcoin remains under pressure, but we are looking at it currently holding above the 103,000 level.

Joining me to weigh in today is Andy Beer, head of product and research at Coin Desk Industries.

Andy, great to have you here.

Thank you so much for Joining me, it's the fast money is still tender.

We've been talking about the market healing tender for the last couple of weeks and that tenderness has given way to vulnerability.

It feel, it felt inevitable that we were going to test that $100,000 level for Bitcoin, right?

We just had to get that out of our system.

It's pretty common thing in most markets and you know some more liquidations kind of got us through there, but it looked like it held.

People are asking why.

Why are things so.

There are many reasons.

Who knows the right.

Anything you read, it's going to be lower liquidity.

It's going to be a hangover feeling from October 10th.

It's going to be longtime Bitcoin bitcoin holders selling over 100,000.

It's just going to be not aggressive enough Fed or not enough data from the market, from the government being shut or the tariffs.

There's all kinds of reasons and we just have to admit that the market is soft right now.

We can attach as many reasons as we want.

So on the earlier segment.

Uh, you know, zooming out, people look at 4 year cycles, the Bitcoin bull run is just beginning.

I think people are hunting for narratives, uh, to explain what's happening and to explain what's coming next, but we're just in a soft patch right now.

So Andy, I know you keep a close eye on both technicals as well as fundamentals when it comes to not just the crypto majors but the space overall in digital assets.

So based on what you're seeing, what would you say is actually driving the latest moves?

I think the liquidity argument is important.

The money is just not there.

I think it's very convenient sometimes, maybe a little over convenient to look at ETF flows, but they're very informative right now.

A lot of money.

Coming out of ETFs, some of those are in arbitrage positions, so we shouldn't think of them as investment money evacuating from the asset class, but you know, 1.5 billion of outflows over the last couple of weeks is pretty significant.

People might be profit taking.

People might be putting money on the sidelines.

There might just be less easy money out there to allocate to risk assets.

I think we have to be patient.

The zoom out is very important and I think.

When we look back at the slow money, we've been talking about fast money and slow money in the last couple of weeks.

The slow money is just as aggressive as ever as getting into the space.

Yeah, and we did see volatility this week, not just in the crypto markets but overall equity markets and other asset classes as well.

So what do you think we should be paying attention to in this space amid this volatility?

I think it's a great time to not get caught.

Too much in the noise and look at the other headlines.

In the earlier segment we saw that Kathy Wood can't talk about this a lot because it's our parent company bullish, but making further investments into into the exchange space.

I attended the ripple swell event earlier this week and just saw a bunch of remarkable new events take place there with M&A with buying G Treasury, with launching a debt called EverNorth with.

Changing the name of the recently acquired Hidden Road prime brokerage or prime services outfits at Ripple Prime, Ripple itself getting revalued at $40 billion with a $500 million raise from Fortress and Citadel.

That's just in a couple of days in talking to a few executives there.

I also had a chance to speak with Patrick Witt, who works in Washington for the administration.

And thinking about the, you know, the possibility of more legislative progress during the end of the year.

So it's a great time to remind ourselves that this is a long game, a technology game, payments, stablecoins, tokenization, changing the way we do things, and I think that will help people regain their confidence about the asset class.

Yeah, so you mentioned the nation's capital, and we are continuing to monitor the US government shutdown.

But at the same time, when it comes to politics, we're paying attention to what's happening on the ground here in New York with local elections.

So based on what we saw earlier this week on election day, what does all of this mean when it comes to digital assets?

Well, hopefully, and maybe this is a little editorializing, but hopefully not another a third municipal layer of regulation, right?

I think the regulatory progress that's been made by the CFTC and the SEC.

Uh, the really kind of strong and and I guess class leading regulation by New York State with the DFS and bit licenses which are not an easy, not a cakewalk, not easy to get one of those.

You can ask our parent company now that we have one that I think, you know, creates the right financial framework to start to think.

About how with legislation with clarity Act, maybe how digital assets are going to work in the United States, consumer protection is always important, but yet another layer of financialization or financial regulation and a municipal level I think might be a little confusing.

So we're entering a new era of local municipal administration.

Uh, many people are excited about it and many people aren't.

So it's a pretty polarizing election.

Very well attended by voters.

We'll just have to see how the right blend of consumer protection and national and state regulation of financial markets can kind of blend together to maintain New York's status as a crypto capital.

Well, Andy, great having you here.

We'll see how all of this unfolds heading into your end and the beginning of next year.

So as always, thank you so much for joining me and thank you for all of your insights.

Thanks.

Thank you.