Mm.
Bitcoiners hoping this week's price action isn't in October preview.
Bitcoin seeing its lowest price since the beginning of the month yesterday, a combo of stock losses and fears over a stronger dollar impacting it.
While digital gold is struggling, physical gold is setting new record highs.
Gold hit a record high above $3800 this week on future rate cut hopes, while the Bitcoin suffered yesterday amid stronger economic data and a drop in.
That fun features gold move higher.
Well, joining me to weigh in today is Alexandra Bloom, founder and CEO of Two Prime.
Great to have you back on.
Thank you so much for joining me.
Thank you.
Well, we're here on this Friday and we're about to end the 3rd quarter of 2025.
So here today we're looking at Bitcoin up by about 17%, while gold is up by over 40% year to date.
So would you say that Bitcoin is becoming the 21st century gold?
100%.
I mean, Bitcoin is essentially gold but easily more easily transportable, harder to seize more easily divisible, and so.
It's gold on steroids in some ways for the digital world.
I think it has lagged over the last couple of months.
I mean, if you look over the last 12 months, I think it's up about 54 or it was at 54K.
It's almost doubled since then and you have to bear in mind like Bitcoin is above $100,000.
I remember when Bitcoin was $9 and so it's, I think, never been a less risky investment than it is today.
Bitcoin also tends to lag behind gold a couple of months.
So if you see a breakout in gold, it tends to be as the market settles down, you see that some of that capital or other people looking for hard assets move into Bitcoin, and so, uh, I think Q4 is setting up to be a strong quarter.
Yeah, and absolutely, because when we zoom back even further beyond just a year to date chart, whether we're looking at a 1 year, 5 year, or all-time chart for gold or Bitcoin, we can see those gains, right?
So here we are about to enter the 5. quarter of 2025 and when it comes to the macroeconomic picture as well as monetary policy and even the regulatory environment, we know there are so many factors that affect digital assets, especially stateside.
So tell me what you're watching when it comes to catalysts.
Yes, so I think in some ways Bitcoin is without a narrative.
There's not some major catalyst.
There's not an ETF being announced.
MicroStrategy isn't buying 10 zillion Bitcoin a week.
In the macro sense, you know, we have more loosening monetary policy.
We have inflation coming under control.
The PCE number today was on target, and so you can expect perhaps more rate cuts going into the next coming months.
I think if you look at in Q Q 4 in December, strategy is another chance to be added to the S&P 500, which would provide an immediate boost of tens of billions of dollars for them to buy more Bitcoin.
You see also these digital asset treasuries that Had a very hot summer and raised a lot of money.
Some of those are still in the de-stacking process where they can't even buy the Bitcoin they wanted yet.
And so I don't see any single major catalyst, but I think the setup for Q4 with all these incremental factors is looking pretty strong, and I think this is a great conversation because I know that you have a case when it comes to Bitcoin versus say other cryptos.
So what would you say to someone who's considering portfolio allocation now?
I would say buy Bitcoin.
I think if you look back over any 4 year period, Bitcoin is never lower 4 years later.
If you look at, like I was saying, like the path from Bitcoin at $9 to today, so much more unlikely and risky.
There were so many political headwinds all fighting against Bitcoin.
It has truly entered the mainstream.
You have BlackRock. selling this to people in their ETF.
You have the regulatory environment improving by the day.
You have the SEC loosening rules so that people can participate without fear of persecution and create US businesses that are involved in the industry, derivatives products that are becoming more accessible in the US.
It has never been a better time for Bitcoin.
I think other digital assets, they're not all garbage, but most of them are.
Even Ethereum, the 2nd largest cryptocurrency by market cap. is in a state with a lot of other competitors.
Some of them are faster blockchains.
Some of them are less expensive.
They have more new developer activity building products on top of it.
And so some of those companies are blockchains, you know, supposedly decentralized products which aren't really will do quite well, will probably outperform Bitcoin, but in terms of a risk adjusted return of this thing is stable, it's going to keep climbing in price.
I don't think you can do better than Bitcoin.
And finally, there are a lot of products coming to market here when we're talking about digital assets and at the same time there might be people in the viewing audience watching right now and they're hearing about dads or digital asset treasuries and whether it's Bitcoin, EP or some other asset out there.
So what would you say would separate the winners from the losers?
The people.
A digital asset treasury is like Bitcoin with a bunch of people doing stuff on top of it.
Some of them are highly competent, sophisticated.
Operators in the space and others are grifters just trying to catch a trend.
The ability to generate yield.
If you look at all these data and their fundraising programs, they all say, we're going to do yield, we're going to do lending, and it's just a bullet point.
And so how you do that, I mean that's what my business says.
We work with institutional investors and generate yield, and we're the largest lender in the United States.
It is not an easy thing to do and it's very easy to screw up.
And so some of these will rise above the ones that are bigger have, I think, greater balance sheet to achieve stuff.
I'll see.
M&A activity maybe create new operating businesses with cash flow within them.
And so you know it's kind of like a closed-end fund.
Most closed-end funds trade at a discount to their book value.
Some do very, very well, and I think it comes down to the people and some of the structuring of warrants and equity lines of credit, all this stuff in the fine print on these fundraises is very important to look at.
So education is definitely a key for dads.
Absolutely.
Well, Alexander, thank you so much for joining me again.
Great having you back on the show.
Thank you.
Thank you.
