JPMorgan and Schwab Are In. Time To Sell Crypto?

Well, looks like JP Morgan and Schwab and all the traditional institutions are actually here. So, the question is, is everything just getting overheated? Is it time to sell? Well, I don't think it's really time to sell, but I can tell you this. I think things will go lower. So, today before we jump into Schwab and JP Morgan, which coincidentally used to hate all things having to do with digital assets and crypto, and it's an interesting prospect is how they've actually embraced everything. uh we have to take a look at the macro because without a strong economy, doesn't matter how great a product is, we're going to see some declines. And today is no different. Now, for this week, we knew there was going to be a lot of data that was going to come in that was not going to be very favorable. Just yesterday, we had CPI come in and it was supposed to be at just a marginal 2. 7% actually exceeded expectations and the uh inflation rate was up to 2. 8%. But that's not really what uh the Federal Reserve takes a look at. Usually it is uh core consumption expenditures and that'll be come out later. But today what was released was the producer price index which is what different factories and manufacturers and companies have to pay for their supplies and services and things like that to actually put out a product. And as of uh last cycle uh last month or previous was 0. 7% and the thought process was oh it'll go down. I don't know why they thought that but now it's at 1. 4%. Core PPI went from 0. 2 to 0. 6. Only thought it was going to go 0. 3. And PPI year-over-year which is the biggest jump went from 4. 3 to 6%. That is a massive jump for inflation. So you would think all right well we got a mass amount of inflation. Let's see some rate cuts or some rate hikes, excuse me. No, they're not going to hike rates even though inflation is through the roof. And this is directly from the CME Group. This is what we're looking at for the 17th of June. Current target rate is 350 375 and there's a 98. 5% chance that they're going to stay the same. Also, same thing with July, 98. 5%. And we even take a look at poly market which has a is a pretty good job of predicting specific factors. Uh one of those would be elections and one of these actually is Fed decisions. Uh outside of that as far as gambling you're just playing against the insiders. So good luck with that. But uh Fed decision in June it's tracking at 97% no change. And then if we take a look at well what about July and we're looking at uh 91% no change. Why is that? Because if we take a look at you know personal consumption expenditures I mean look where we've gone. We've gone from 2. 6% all the way up to 3. 2% core PCE which is what the Fed is looking at. And really comes down to this oil.

Oil Iran war. That's pretty much it. If you're in big in a TA Trump analysis, just follow him on True Social to tell you what the heck's going on. And right now they are on Air Force One flying over to China to take a look and uh talk to Xi Jinping. And there's a lot of powerhouses that are in there. You've got Jensen Wang from Nvidia. You've got Elon Musk. You've got uh CEO of uh of Apple Tim Apple as Donald calls him. But uh yeah, so we'll see what happens with Iran. But as this goes through and the trade of is actually closed down, the rates of oil will go up, which means transportation and the usage and production of different uh products are going to go up and that will be the inflation. Once things simmer down, if they ever do, who knows? We go in World War II tomorrow. I don't know. Then we'll see a reduction in the inflation. But that's why right now the Fed doesn't look at this and say, "Okay, we've got one hot print, one really hot print. We need to raise rates. " They're going to take it slow and they're going to see what happens. And again, you know, Fed Reserve Chair Jerome Powell stepped down. Walsh is uh looks like he may be approved by the Senate today and we'll go from there. So, with all this news that is going on, you would expect some pretty big uh dips, but no. S& P 500. Let me refresh. This can't be right. Damn, it is right. Yeah, it's up 0. 6%. And uh NASDAQ is up, I believe. And traditional finance essentially all markets are pretty much either stagnant or up. Bitcoin, not so much. And we're looking at uh as of this morning, we were at 81,000 and we dropped all the way down by that news by 78,000. Now, either that is the traders who are using the news of inflation going up as a justification for dropping everything or it's a realization that maybe things are about to get worse. Regardless, you can see where we're at and uh you know, we're still below the 80k mark. So, that's pretty much it. Also, somebody knows something because as far as the ETF goes for Bitcoin, uh we're almost at five straight uh negative flow days. And now we're taking a look at just 12th of May, which was yesterday. We can see that it was 233 million output or outflow uh by IBIT, excuse me, uh total. I take that back actually 11th of May was a positive 27 million. I apologize. 145 million negative 268 million but over the last you know five days it's been pretty negative except for the 5th of May with 467 inflow and you just see that across the board black rockck fidelity bitwise arc and then other ones aren't even buying anything and then Morgan Stanley just barely making it and Gayscale oh my god you tell me that Morgan Stanley is the only positive inflow that's great so that's 12th of May and not looking so Good. And then also because of the fluctuation of price. What does that mean for longs and shorts, people get liquidated and we got around uh 300 million liquidations. You can see it's been pretty stable, but it's not like this is a big liquidation. I will remind you uh this nice little wick back in the 9th of October and everything went down to problems with Binance. That was the big liquidation event. And over here, when in doubt, zoom out. You can see that yeah, we've had some liquidations, but not really surprising. So, as far as like selling right now, will we get out? Me personally, I don't think it's that great of a time. I do think things are going to go lower, but it all depends on your goals. My goals are not your goals. I see things going lower and me picking up uh more Bitcoin every Monday as the risk levels start to drop. And uh we will go from there. But I will say though what is interesting out of all the things we were talking about today is that you know Bitcoin over a year down 23%. Because even after this nice little rally we've been having I mean we were at 50% uh roughly in February down from the all-time high in October. But it's interesting to me that something like Tron is almost at its all-time high. And it's one of the few that is in the top 10 that is almost at its all-time high. And I the reason why we talk about this is because it's the thesis as far as payments. Tron is one of the rails we talk about because it is the number one chain for Tether. It's always the same thing. It's either Bass, Binance, Ethereum, Salatron are the best. Be ST. And I just found it interesting that we're at 35 cents. The last second all-time high was 35 in August 26. And we had one wick that hit 43. Doesn't even show it because it was just a one day type of thing on December 4th, 2024. So again, it's interesting how like something like Tron can do so well, but you know, there's just so much type of headwinds going on. Anyhow, let me think about that in the comments

section. Let's talk about JP Morgan. So this just rolled out today over a crypto slate. They always got good stuff, always good things. JP Morgan taps Ethereum and Solana for separate reasons for its institutional cash stack. Now just so you know, JP Morgan actually holds shares of Black Rockck ETF IBIT uh for Bitcoin. So I know even Jamie Diamond is saying like, oh, you know, Bitcoin's awful, but blockchain's good. But in the the background they're buying it indirectly as a spot Bitcoin ETF. So now they're rolling out into hey also fellow high schooler. Uh look what we got here. Onchain liquidity token money market fund JP Morgan is rolling this out. The ticker is JLTXX. The fund invests exclusively in US Treasury securities and overnight repo collateralization by treasuries and cash targeting a dollar. JP Morgan manages it to meet the eligible reserve asset requirement. I thought it was interesting. It was actually very smart. J I'm gonna read this again. JP Morgan manages it, which is their money market fund to meet the eligible reserve asset requirements that stable coin issuers may need under the Genius Act framework. So if you're dealing anything with like stable coins, Circle, Tether, they have to have a 1:1 ratio to back it. That's not like with the banks that we have now. Banks are like, "Hey, you want to deposit? Cool. I'm going to loan out 95% of that cash. And if you come back and you're asking for a sizable amount, I'm not going to have it. You just have to wait. Sorry, loser. " That's pretty much banks. But there is special considerations for this new technology. So, I thought it was interesting that JP Morgan's like, "Okay, we should probably get ahead of this. Let's get a bunch of dollars. Let everybody just invest into this fund and then we can have it one to one. Maybe they roll out their own one. " So, what are the rails going to be? Ethereum. Ethereum is currently the only blockchain available to investors, though the filing anticipates expansion to other chains. What could the other chain be? It's going to be Salana. JP Morgan has assigned different blockchains to different jobs in the institutional cash system with Ethereum taking fund share and ownership workflows and Solana targeted for reserve movement and treasury operations. I don't make the rules. I'm just kind of showing you guys which ones are being adopted and which ones are the winners. I mean like I would have loved for Cardano to be in there because I've got a big fat bag of that. That's just not how it is. That's just where we are at. So Solana and Ethereum is being adopted. Tron is being adopted. Binance kind of seems like it's falling off. It looks like they're using base and arc and also some permission type of layers which talked about many a time. So that's what's going on in the uh market itself. And just so everybody is aware, I just want to make sure there's

a difference between a money market fund and a money market account. So the money market fund that we just talked about from JP Morgan that is an investment vehicle but a money market account because people will talk about money markets and they'll throw that word around and want to make sure everybody's uh on the same wavelength. Money market accounts sit between a savings account and a checking account. A money market account is a balance that you can do certain things with and it's for like if you want to, you know, put some money into it and there's usually like a minimum like 10,000, uh, 50,000, just depends, but they actually pay you a pretty good yield as opposed to like a savings account or a checking account, which don't pay you squat. So, you put like 10,000 in, they're going to invest in treasury bills, commercials, municipal bonds, CDs, and they're going to lock that stuff up, right? not for so much time, but could be like three and a half percent, maybe 4% if you're lucky, which if you're just having money just kind of sitting around, just sitting there, not a bad idea, right? That's a money market account. Money market fund is an investment like what we just saw with JP Morgan with it with its own ticker. And one of the downfalls though, if you're thinking, "Oh, I should just open up a money market account. " You can, but you can't use it like a checking account usually. And it's not all every time like this, there's a six transaction rule limit. So, you stick your money in there and if you start to do it like use it as like a checking account, it's not going to work because they're going to actually find you and just say, "Hey, we're going to transfer this over to like your actual checking account because you're using this money market account. " Like at a checking, we can't do that. The pros is you get three and a half, 4% for yield. Great. Depending on there, it's better than checking as far as the yield. Easy access. It's FDIC insured in the United States here. 250,000. It's a safe haven, but he got that six-month uh or six, excuse me, transaction per month. So, that is a money market account. And just so you know, these money markets, the reason why they're doing this is because to do all those things we just talked about, you're going to have broker fees, clearing house, the custodial thing, and there's all these different types of uh payments and middlemen. And that's why JP Morgan's kind of trying to get out of that and trying to use Ethereum and Solana to make things faster, easier, cheaper, and just to get more people into it so they can reap the rewards. So, hope that made sense. Just wanted to kind of throw that in there for everybody so they're they know exactly

what it is. And then also, we just have JP Morgan Schwab with its 12 trillion uh just opened up its uh trading. And this is from Pete. And this video he posted was old, but I'll give Pete a pass on this one. And Charles Schwab is saying, "Hey, we're opening up well, he's saying we're opening up Bitcoin trading from Charles Schwab," which is great. 12 trillion asset manager. That's great. You know, we see a lot of different money coming in. And then Bitcoin Magazine, 11. 7 trillion broker giant Charles Schwab launches spot bitcoin trading platform. Great. That's what it is. Now I take a look at Charles Schwab. They're like, "Yeah, it's Bitcoin and Ethereum. " So I get what, you know, Pete's trying to do and I get what Bitcoin Magazine is trying to do, but if you're going to report stuff, report on both of them, would you? So we know exactly what's going on. It's Bitcoin and Ethereum. What was Ethereum great for? Same we just talked about JP Morgan. Anyhow, and to finish up

this is all great that we've got all these different rails and we got these customers coming in and we've got these financial analysts or financial adviserss at Schwab at JP Morgan saying, "Hey, you know, maybe you should allocate 5%, 7%. " But as a reminder, we've already got a lot of people. One in four US adults holds crypto. This is a report from the National Crypto Association. That's up from one in five last year. That's 67 million people, every region, income level, and age group in America. And I got to do a deep dive about that because I have a sneaking suspicion that the crypto that people are holding is trash. Like Fartcoin and fill in memecoin and fill in Meta and fill in altcoin that don't do squat. I just want to see exactly what it is. So, I'm hoping that we can shift away from that into things like altcoins that actually do stuff and more into Bitcoin and we can have a dichotomy between like this actually works and has utility and this is just something you speculate on and gamble on. If you want to gamble, go to casino or kshi or poly market. Those are the gambling locations. And then lastly, I just want to throw this in there to see what

everybody thinks about this. It just came up and I was fascinated by this. This is from Figure. They're here in the States, I believe, and they make autonomous robots and AI LLMs. And it looks like they rolled out this Android bot that is doing real, I guess, work sorting and things like that. I don't know if it's on a loop or not, but I'm like, "Wow, imagine this. " And just so you know, like if you go to Figure Robot, they had this one and where they taught a God, keep going. They taught their Android to make beds and things like that. And I'm just thinking to myself, I'm like, is this the future? And this is I mean, if you think it's bad that AI is taking your job now, imagine if you're a housekeeper, you're like, shoot, I can't even be a housekeeper. Everybody's taking my jobs. Anyhow, I just thought it was just something to throw in there. Found it fascinating about how fast things are moving and how we need to keep up to date with this. But that's it for today. So, look, if you like today's video, give it a thumbs up. consider subscribing. We talk about is timesensitive. Now, let's get into a little Q& A and answer all your questions and we'll go from there. All right.

Yeah, I did make the best rules. You know, I made the best rules because I made the biggest mistakes. That's why. Thank you, meme. I appreciate it. But, uh these rules that we have, which are right over down there, uh rules are it's all gone. Don't invest more than you can afford to lose. Next one's a scam. Everything's a scam. I'm a scam. I could be a scammer. I could be AI. I could be nonsense talking to you and I just made all this stuff up. So, whatever I talk about, you need to make sure you do your due diligence and uh do a little research. Don't uh leave things in exchanges. Exchanges should be treated as a gas station bathroom. You go in, do your business, and get the hell out as fast as possible. And try not to use leverage. I know it's tough, you bunch of gambler degenerates. And then lastly, take profits because no one ever went broke taking profits. And that's pretty much it. Lord, Lord is right. Stake, take profits, and never net sell. That's uh Michael Sailor's new slogan. Okay, you can sell your Bitcoin, just don't be at a net loss. Thank you, Nostradamus, for telling me the future. Yeah. Well, thank you. I appreciate that, Mary. That's very nice of you to Now, she's just talking about this lazy dog right here. That's how we should all be, right? Cutie, I'm just going to let you do the show today. You're doing a much better job and people are much more enthralled with what you're doing, what your likes and dislikes are. Maybe she can give you like some stock picks later. I don't know. Yeah. Let's see. Oh, that's a good one. Lone Wolf's got a good one. Remember in 2017 when JP Morgan said they were going to, and I believe this was Jamie Diamond, he said, "I will fire any Chase employee caught buying or trading Bitcoin. " In the background though, they're like, "Hey, you know what? How are we going to get this so we can do something in crypto because that's the future. " That's a good one. Robbie, I chose Capital, but you are a traditional outlet like Fidelity. But are you in a traditional outlet? No, I'm not. Um, I mean, I use banks. I have my bank in uh Puerto Rico and I have my USAA bank. I've been with them since I remember I opened up the account like three days before I went to basic training and that was like 20 30 something years ago or something like that. Yeah, good times. But, uh, yeah, I trust Capital. Still have them. still contributed to my Roth IRA and since I don't trust anybody, I have them doing custodial work for me. Works out great. Yeah, that's right. Gas station bathrooms, they're not that bad. They'll do in a pinch. Golden Gaming says they took her Gibs, which is uh from South Park. And uh that's what's going to happen. And I think if we don't like um I was talking with this to uh to Jimmy yesterday. I was on a show out of Hong Kong and we were talking about AI and how people use AI and the layoffs and I said, you know, I mean, I use AI every day. I have a researcher named Manaro does a great job and he sends me these articles, but you know, there's only so much he can do. So, I use Claude Co-work and I have it all already set up to where it can take a look at the Google doc that he produced and say, "Okay, I need you to organize this in for today's show. " And that show that you did the outline for, I need you to give me a title and also I need you to create me a thumbnail. So, the work that would take me three, four hours now takes me 30 minutes. And what it allows me to do is I can use the information because there always should be a human element. I think I don't think we're ever going to get away from the human side of things. I don't think I mean at some point there's going to be some AI singer and some AI fluencer, but I don't think that people 247 365 are going to want to listen to AI generated music and an AI generated uh leading man movie and an AI generated sports and then you know bots beating the crap out of each other, stuff like that. Like I don't think that's it's going to be like that totally. we'll always have a human element. So with E, there's a human element. He kind of organizes things a little bit and then the AI does like the fine-tuning. It works in a great synergy. So that's what it is. Wow. This is also true. Robots don't call out sick, demands a raise, or threaten to beat up their boss. That's true. I was talking to Jerry after Sunday's show. Jerry, if you don't know, did three decades in construction. I think he was a foreman. And uh he was telling me, he's like, "Look," he goes, "These" and that that's why I was so entranced with the video that I was showing you uh for the androids. Because he told me, he goes, "Rob," he goes, "you don't get it. " He goes, "The people that are going into the trades right now, whether that be electrician, plumber, journeyman, plumber, general contractor," he says, "Those guys are great. " He goes, "But once you get a general contractor and he can add to his business, uh, these androids," he goes, "they'll do it. " Because, and it's just exactly what J4 said, "Robots don't call out sick. They don't demand a raise. They don't threaten to be up their boss. However, there's always going to have to be, I believe, a human element to it, which is someone's going to have to inspect. make sure that the work itself is pretty good. Someone's going to have to make sure that structurally everything is sound and stable and also for improvements and things. So, I see what Jerry was saying. He's probably right, but I see that this is going to happen. We'll see. I still think AI is going to help us a lot more than it'll hurt us. Unless Skynet goes live. If Skynet goes live, I can't help anybody. All right. Ah, Cran says, "We don't have a Roth in Aussiesand in Australia. If you SMSF, you got you get your whole 401k. Super fun to play with. Not a bad system. " Well, that sounds pretty good, actually. I don't know, Rob. The Lego videos are pretty lit. You know who's doing great job in those AI generated videos is Spencer Pratt as he's running for the mayor of Los Angeles. Just search for Spencer Pratt and uh take a look at what he's Let's just let's take a look. This is actually pretty funny. I try not to get political, but these are pretty funny. Oh, it is. Is this it? Yeah, I'm not going to play it because it might offend some people and I don't want to do that. So, especially talking about fentanyl and stuff, but it is interesting about how well they're using it. And I remember in 2008 when uh Barack Obama was running and uh he used I mean social media had been around but uh not like it is today and he started to use um social media ads across uh Facebook and Instagram. I think Tik Tok was around by that point but he used it to perfection and of course it helped him to catapult him to the president presidency of the United States. I take a look at what Spencer Pratt is doing. I can see the same thing like he's using these AI videos to really uh throw shade at the current mayor and they're really well done. They're hilarious and um though he probably will be the next mayor. Who knows? His bids are hilarious because they're so true. I don't I'm not from California so I don't know how bad it is. Uh California can robots apply makeup. I'm pretty sure they can learn it. I have eye surgery. Oh, CR, good. Prayers to you, man. I have ace eye surgery today. Hope it's not bad. Hope it's not a robot. Not sure how I'd feel about that. I got LASIC. It was kind of It's a roboty type of thing. And uh seem to be okay. I can still see kind of, but it did punch me right in the nose first. So, oh well. I think that's it. All right, buddy. That's it for today. So, tomorrow I don't know. I don't think we're going to have Live as well. Ben's, you know, just uh he's looking pretty tired in his videos. Fifth kid uh just was born. So, uh maybe we'll skip next week. Maybe in the week or so after that, we'll have NFA Live. But that is it uh for today. Like today's video, thumbs up, subscribe, all that great stuff. And I will see you on the next one. Have a great rest of your day.