New York morning trade.
Bitcoin is holding right below the 69,000 level.
Michael Sailor's strategy just disclosed a Bitcoin sale for only the second time in its history as part of a pivot away from a strict never sell mantra to fund a new yield paying security.
Now crypto regulation is also hitting a critical deadline today.
Comments for the Genius stablecoin rules officially closed dictating exactly who can issue digital dollars and what reserves they must hold.
Then tomorrow the Senate floor reopens to tackle the stall clarity act as traditional banks continue their fight against the bearing stable coins.
Well joining me on this Tuesday morning to weigh in is Bryan Courchesne, founder of DAiM, a digital asset wealth management firm.
Good morning Brian.
Great to have you here.
Thank you so much for joining me.
So we continue to keep a close eye on the crypto markets, in particular the price action of Bitcoin, and this is a seasonally weak stretch, especially in midterm election year.
So what do your cycle charts prove regarding these drops that we're seeing right now?
It's been interesting is in past periods there's just been something that comes up and whether it's like back in the day when there was Blockfi and Genesis, it just seems like every period around this time something comes out of nowhere and it kind of pulls the price down and it holds it back, but what we've seen is that.
These cycles just tend to keep repeating themselves, and these are the opportunities where you wanna look to really start positioning yourself.
These things will move away.
Um, Michael Saylor and the strategy balance sheet management, these tools that they're using, they're trying to figure this out.
Um, I think this dust settles.
It might take another month or so, but I think what we'll see is like we've seen in the past, we will be moving higher.
Yes, and Brian, I'm glad that you brought up strategy because there have been a lot of headlines about how Michael Sailor just broke his famous never sell rule and sold $2.5 million in Bitcoin here to help pay for corporate dividends.
But we also have to keep in mind that when we're talking about liquidity in the capital markets, it is finite.
So should everyday investors be worrying now that Bitcoin's biggest backer is treating Bitcoin and strategy like a cash out engine?
No, it, it, it seems normal, right?
I, I think a lot of people on Wall Street and professional investors when Michael Saor was out there saying he would never sell, they didn't quite believe him, to be honest with you.
Um, now that he's showing that he can manage this, he can raise capital, he can tap into different things, I think it maybe it was just more of a test case to see how the market would react and what it would do, and he's planning that out now and.
We could be actually watching him set himself up for a pretty large purchase on the back of this pullback that's happened.
And while I have you here, I do want to get your take on tokenization.
We all know that real world tokenization has grown immensely in 3 years, but you warned that tokenization doesn't necessarily equal token value.
So tell us what's happening and also give us your take on its price action.
Yeah, tokenization.
So this space is ballooning.
25 billion already has been tokenized.
What is tokenization of real-world assets?
Well, stocks now, they get a blockchain wrapper.
They can trade now in DeFi.
They can trade 24/7, 365.
This is what a lot of investors wanted.
They didn't want that 9:30 to 4:15 stock market window.
They wanted liquidity all day and on the weekends, and that is coming.
So on the one end, that's good, there's market access in real time.
On the bad end is that you have things that can happen negatively while you're not paying attention to the market on nights and weekends.
And when it comes to Ethereum and what's going on on that aspect, we just covered this in our most recent letter to clients.
It's aged a bit.
Ethereum seems like a 2021 story.
It's out there.
It's being used, but it's being used more on an L2 basis, on things like Coinbase's base to tokenize these assets which have very low fees.
They do transact really quickly, but the underlying benefit to pure.
Ether, the token is not being realized, but it's also because it's working the right way.
We just don't see that Ethereum will have that big duration of outperformance compared to Bitcoin or the Allcoins really in the future.
It's now really just an infrastructure inside the Bitcoin in the crypto ecosystem.
And Brian, finally, before I let you go with all the noise in the sector right now in crypto, how do everyday investors safely start diversifying to build long-term wealth?
Yeah, this noise is exactly what you want.
You have the stock market hitting all-time highs, right?
You've got to think to yourself, do I feel comfortable adding more to stocks here, right?
And the answer should be no, and it's really understandable.
But then some people are looking at crypto and they're saying, wow, there's such a pullback.
But if you really step back and you look at the charts and the history of Bitcoin and what it's done.
This is the spot that you want to start adding to here, and that gives you a truly diversified portfolio, right?
And so look at something somewhere in the 5 to 10% range, um, even down to 3%.
Everybody can have some Bitcoin.
This is a really unique asset, and so this is the time when you're adding to your portfolios, do a double take, look at Bitcoin, this is the discount that you're looking for.
Well, Brian, we will have to leave it there for today, but thank you so much for joining us and thank you so much for sharing your insights as well as your perspective.
Thanks for having me.
