ROLLUP: Kim Kardashian vs Gary Gensler | Credit Suisse Crisis | Celsius Foul Play | ENS NFTs

Gary Gensler versus Kim Kardashian. I can't believe this. This is not on my bingo card. What timeline are we living in, David?

Bakeless Nation, happy first week of October. David, what time is it?

Ryan, it's the Bankless Friday weekly roll up where we cover the entire weekly news in crypto, which is always an ambitious endeavor, yet we persevere nonetheless into the frontier with coffee. With coffee.

Yeah. Grab your coffee, hot tea, join us as we venture into crypto, tell you what happened in the week that was in crypto. This is the fastest way to get all of the crypto updates. Every week, David and I do this, comes out on Friday mornings, and we try to consolidate everything you need to know in about 90 ish minutes. Sometimes we get to 90 ish minutes, David. But what are we going to be covering this week? What's coming in at number one?

Coming in number one, Credit Suisse, the three arrows capital of Tradfy, Lehman Brothers 2.0, or a bunch of fingermongering. We will discuss. Ryan, what's coming up after that?

We also have Gary Gensler versus Kim Kardashian. I can't believe this. This is not on my bingo card. What timeline are we living in, David? And uh which one's actually doing the clout chasing? Because it's not quite clear. We'll talk about that. What else we got?

And then a smattering of a bunch of other pretty cool stuff. Coinbase documentary. A documentary about Brian Armstrong and the rise of Coinbase, which I'm really excited for. That is coming out today at the time of listening. Uh, followed by the three Eros Capital Starry Night NFT fund liquidation. So, you know, get ready. Get your get your wallets ready if you're an NFT collector, because there's some good NFTs coming out. And then, sadly, Solana is down once again. Well, it got it's back up now, but it went down once again.

Tiny outage.

Tiny little

Sweet little outage.

outage. Yeah.

Yeah, no big deal at all. And of course, guys, if you enjoy this weekly roll up, you can like it, subscribe, rate, and review wherever you're listening, wherever you are watching on YouTube, make sure you hit that subscribe button so you get notifications as these things come out. Um, all right, let's get to markets. What is Bitcoin doing in the markets this week? We up, we down,

We up a decent amount, three and a half percent. Bitcoin started the week at below twenty thousand dollars at nineteen thousand four hundred-ish, and we are above twenty thousand dollars, at least at the time of recording, at twenty thousand one hundred dollars. So eyeballs right above water line. Right above waterline.

play that happy music. I'll take a 3.5% in these trying times. How about ETH price? Is that up too, please?

Yep, up a little bit, up a little smidge, a little bit over one percent. Uh very marginally over one percent started the week at 1350. We are at 1365. So we went up $15.

Okay, $15.

Remember when $15 was actually nothing and now it's actually something?

Well, there was a time when the price of ETH was just $15. So uh aren't we?

I don't I don't remember that time. So I wasn't here for that.

These are ancient times.

Uh ETH Bitcoin, the ratio. What are we looking at on the week?

Uh Bitcoin ratio down, I think like a percent, a little bit over a percent. We are down to 0.678, 0678. So flattish.

Back in that crap season for the ETH Bitcoin ratio. Um, how are we like historically? We're still up from the July 22 lows, I guess. I'm looking at this from uh a year long basis. But look at the five

Zoom all the way out. The ETH ratio has been fantastic.

like the ETH ratio last bear market. I mean, look at this, David. ETH ratio 2019 into 2020.

Remember when it went down to 0.018? That was when I was like,

okay, I I don't I don't have to go back to school, right?

Honestly. This is still irrational, right?

No, no, no. This time was basically like, oh, I'm going to start a newsletter because the ratio shouldn't be this low. And we were like, this is when we started the bankless podcast in 2020. We were like, this is stupid. We started

The absolute bottom of the

ratio. Yeah. It's because I felt at the time that DeFi and ETH were going completely underappreciated relative to Bitcoin, which is fantastic in and of itself. So uh yeah, look at the trajectory. Since the bankless podcast was launched, David, it's been up only.

There's got to be some causation. It's not correlation. All right. Uh, global crypto market cap, we below a trill.

uh just barely above 1.0003 trillion dollars is the total crypto market cap. There's some zeros in there.

Happy music. Uh well, let's talk about the Fed. Everything hinges upon the Fed these days. And we've been talking so much. I think all of crypto is talking about a pivot. So when is the Fed

Pivot.

going to start

Merge, now win pivot.

when pivot? When is the Fed going to start ratcheting down, right? It's when is it when our easy monetary policy uh when is that coming back? I mean, does that feel like

uh like we're bad Austrians to say that? Like, please, Fed, give us an easy monetary policy.

Can you please print some more money? I just

I mean it's

some of that money printer.

that that that's that's not exactly like why we're saying it's just like in inevitability, right? At some point we're trying to like forecast what the market's going to do, and because macro markets right now have such an influence over the prices of everything, we're trying to anticipate when Jerome Powell is going to pivot. Because, David, it seems inevitable that he has to pivot at some point. I know he's trying to slay, break the back of inflation. Has that already happened yet? Is that just a lagging indicator? Uh, don't know, but we do know there's a lot of pressure on the Fed to start this pivot now. We'll go over a few of those pressure points right now. Number one, the stock market has had its worst year in more than a decade and it keeps getting worse. This is a headline from uh time.com, I believe. And um, this is actually the worst start.

to any year in the stock m stock market since twenty uh since two thousand two.

Post 9-11 year, post dot com crash year, the worst start to any year since 2002. And we are down in the SP around like negative 25%. NASDAQ negative 32%. So US stocks are heading for their the this feels almost like a 2009 financial crisis in the stock market. That is one pressure point. Now, you might say, and I might agree with you actually, um, that Powell doesn't care about the stock market.

I think to some extent that's true. I wonder how much that's true. So that that is pressure point one, David. Pressure point two is there's some rattlings beginning uh around the world from other countries that aren't in a position to raise rates in quite the way that the Fed is. Um, the first is the UN, so international body, and they are calling on the Fed and other central banks to halt interest rate increases. They're saying, I'm gonna quote this the Federal Reserve and other central banks risk pushing the global economy into recession, followed by prolonged stagnations, uh stagnation if they keep raising interest rates. It's interesting. I didn't know the Fed advised or the uh UN advised on economic policy in this way, but you know, some of these voices are surfacing as well. And further, we are starting to see other central banks begin their soft pivot. Now, the Fed hasn't, Powell hasn't, but Japan just spent uh $20 billion on intervention to support the yen. So the Fed, the US dollar wrecking ball is destroying other fiat currencies, including the yen, is losing ground relative to the dollar. And so Japan is actually printing money to intervene to support the yen. We also talked a little bit about the UK pension crisis last week, David. Well, um, Bank of England is working to bail that out as well. They are buying long dated UK government bonds. Um, that started, that process started last week. So some of these other central banks are beginning to pivot.

And I'm thinking this is putting more pressure on Powell for a pivot at some point soon. Now, we're not getting, we're we're still getting very hawkish messages, I think, from Powell and uh and the Fed so far that, you know, they intend to continue raising rates, uh, you know, want to break the back of inflation. But you you almost wonder if that lasts, like past maybe November midterms, like past maybe some of this increasing economic pressure from other central bankers, uh, past maybe. Did you get a chance to see this graph, David?

What are we looking at here?

Yeah, we're looking at the supply of oil reserves. Uh and so people might have noticed, except in California, I've heard California uh gas prices are still super high, but gas prices overall are just down. Like I've seen like three and a half dollar gas in New York, maybe four dollars. Other people are talking like gasoline prices are down. Well, so is our supply of gasoline reserves. Uh so it used to be at its peak in like lit uh 2010, 750 million barrels. It was at 650 million barrels up until 2020, and it has just dropped off a cliff, going down to 350 million barrels, so it's halved, and it hasn't been like that since like 1982. So we have the lowest supply of oil reserves since 1982, and the tweet here, the political tweet, is saying that Biden is on track to uh practically empty our strategic oil reserves to make sure Democrats get elected in November, as in wanting to push down the price of bear of oil to have political clout say, hey, look what we did. Like gas prices aren't bad. Uh, but that's because we're just like draining our supplies, we're draining our reserves. You don't, you don't that's not oil out of the ground. That is like oils we've saved up. That's our savings of oil. It has been halved in the last like two years. Uh and so I think the story here with everything that you just said, and also this.

It's like the the we can see the sidewalk running out. Like there's not less and less like roadway here. It does we don't really know how much roadway is left. Uh but I'm also reminded of that that one famous internet gif where like there's a car hurtling towards like a wall, and then as soon as it it was about to crash, the camera cuts to a different angle, and the car's about to crash again. And then as as soon as it gets close to the wall, the camera cuts again, and then the car is further away. So it's one of these things like

Forever?

Where yeah, and it just repeats forever. And then one time it actually does crash. But you don't actually know. Like, so we're seeing all the we're seeing the roadway run out, but we also don't know how much roadway is is left, right? So like we could be talking about this, I don't know, maybe for the rest of the year. It's like, oh, there's a pivot soon, there's a pivot soon. Some one day it will actually happen, uh, how much roadway we have left, TBD.

Yeah. Three months, six months, a year. Uh no one knows. I don't even think Powell and the you know the Fed actually know what the breaking point might be uh and when they will start that pivot. But uh

Although if you if you do trend like trend out this trajectory of oil reserves, it goes to zero in like guessing like napkin napkin trajectory here, like soon, quick.

December,

Yeah.

something like this. By Christmas, we have no oil. Yeah. This doesn't seem like it's a good thing. Um

Well, this is this is why this world is so weird right now, is like the more bearish things get, like, the more bullish it becomes because then we have to pivot and print more money. So it's it's just weird weird state of things.

I guess it it's more bullish for commodities. It's more bullish for things that can't be inflated for non-fiat currencies, right? Um we're definitely living in this uh in this fiat world, a hollow world per our podcast episode that we just recorded with Ben Hunt that's coming at you guys in a in a couple of months. He has this uh phrase he's a couple of weeks. Excuse me, yeah, a couple of weeks. He like has this phrase he likes to use, call calling the world uh very hollow right now. And I think that's what we're seeing. Um, but some words to look for. If you are looking for signs of a pivot, the language of a pivot maybe comes at us from Matthew Pines. This is a tweet. It won't be QE, that is quantitative using. They won't use those terms anymore. It will be restoring financial stability.

Right.