I ask a lot of people, and maybe you can tell me about your strategy and insight around bitcoin, how it trades when and why you buy it. Like i’ve heard the argument it just inexorably goes higher, but there are these moments when it does move it moves down it. Does you know, why does it do that? Why is it doing what it’s doing now and what’s your strategy around? It sure and one quick correction, my block tower uh, not i tower but block tower. I’M. Sorry, no worries so so with with with elon. So, for example, the moving bitcoin overnight with elon adding bitcoin to is to his profile on twitter. You know it could have been. It could have been fundamental buying on the back of people assuming he’s, going to be announcing a personal purchase or of his company’s balance sheet purchases realities. It may have also been algorithms that are scraping social media and and market bidding anytime. Something like bitcoin shows up on a on someone as uh well represented as elon musk’s profile. So you know you can’t really take these moves and and and kind of uh take them for granted. You have to understand that a lot of these kind of hyper volatile moves on the on particularly catalysts like elon musk, adding bitcoin to his profile, are likely short, lived, uh or at least unsustainable, and so you need to see a rebasing before you can actually get Comfortable getting longer now, the other point to make is that cios and and leaders corporate leaders like elon, are still very much engaged in the space, and so this all seems like one big distraction from what’s actually happening in the market, which is very much uh.
If you think about bitcoin, for example, it’s it’s evolving as its own financial asset and corporate leaders everywhere, cios everywhere, are engaging with the asset itself. Things like dogecoin, i mean listen, they’re they’re, i suppose they’re fine trading vehicles there’s very little fundamental value, long term. In these things, i think the financial market warfare we’ve, seen in the last week, is more distraction than anything else. So when it goes down um, why is that typically, do you think and what’s your strategy around either buying more or not during those periods of time, yeah and and so the drawdowns in many instances, they’re unsurprising, so what you want to see is a sustainable spot Bit in the market, because that typically dictates allocations versus trades in in significant run ups and if you’re pulling market data from particular exchanges, you can see leveraged bids in the market and you can see where they’re coming from so in traditional finance. When i was at goldman you’re kind of looking for flows and if you knew a particular broker, dealer was trading an asset, you knew it was more retail filled. Institutional same thing happens here: you can see where leverage leveraged, retail exchanges are bidding up a price and you may have crypto or bitcoin, for example, gaap, like we saw in january 30, 000 to 42 000, but if most of that is, derivatives led and derivatives kind Of lead us, through these uh these levels that that you would have otherwise kind of sold.
Looking at a at a technical level on a chart uh, you know that that move may be less sustainable than one where you just saw t watford. Take us through that level and kind of strengthen higher, so you can reposition your portfolio in those moments to perhaps take some capital off the table or replace bitcoin spot market or one delta, with with options where you can actually take some cash off the table. But still maintain that exposure in case that move continues: hey mike. How do you view regulation on bitcoin in the crypto market in general, we’re already starting to see some commentary come out from the occ fincen and i’m, just wondering how you think that’s going to impact the pricing of these cryptocurrencies in the future, as well as the The involvement in the financial system within the crypto space, how are we viewing that so long term, all substantially positive um? I think what we’ve seen thus far has been reasonably well thought out in instances it hasn’t been well thought out. The crypto community has really kind of banded together and and and has had constructive dialogue with regulators um the interesting parts of the market. So obviously we’ve seen a lot of regulation. Regulatory clarity around things like bitcoin we’re, getting the ethereum uh cme futures, launch february, 8th that’s, a big step for the ethereum community uh. And then, when you talk about things like decentralized finance, which i think you know if occupy wall street was the was the grounding moment for bitcoin – and i remember walking out the goldman building the building at goldman and saying this is a very interesting movement.
And then, a year later, you saw bitcoin emerge, so this wall street bets moment is the grounding moment, for i think what will become of movement and decentralized financial infrastructure, and so the battle shouldn’t be robin hood. The battle shouldn’t be game, stop battle, should be innovation and evolving the financial infrastructure to become more decentralized, but also alongside that, i think financial literacy becomes a lot more important, so there’s a lot of things happening there’s a lot of balls in the air um. You know we’re in this. You know block towers in this 24 hours a day seven days a week, and you know even for us, sometimes it’s a bit much to uh to take in yeah. That could be the tagline for the week for sure. Thank you mike buchella block tower, as in blockchain black tower shepard smith.