00:00 Speaker A

on crypto. You know, we’ve been covering it on the way down, and I don’t want to stop talking about it as it goes up. So Bitcoin prices have seemed to stabilize a little bit. What do you think about this move we’ve seen in crypto over the past few weeks? And are you concerned about more of a sell-off and that pressuring the broader market a little bit?

00:23 Larry

Yeah, so crypto is a real tough uh asset class for me. Again, as a fundamental analyst, there’s no cash flow, there’s no dividends, there’s no income. So it’s really hard for me to tell you what the actual value of crypto really is. I I can’t tell you if Bitcoin’s worth, you know, 200,000 or or 2,000. And as you just said, the volatility has just been incredible. I mean, people forget that not too long ago, October 6th, it was up 34% on the year, was over $125,000. Today, we’re around 87,000, we’re down seven or 8%, you know, year to date.

01:04 Larry

So there’s a lot of volatility there. when you have an asset like this, it becomes a an asset class of sentiment, what people think about it, and what drove it higher earlier in this year was pretty much record inflows into that asset class or that particular investment vehicle. And more recently, you’ve all of a sudden started to see heavy outflows from that space. And that’s really what’s driving it. And again, I really can’t tell you if if it’s if it’s up from here or down from here to be honest.

01:28 Speaker A

Larry, if a client comes to you and says, Larry, look, I got a little more money in my pocket, I want to put it to work. They say, Larry, I want to old uh gold or crypto. Where do you steer them and why?

01:40 Larry

So I would probably do gold, but gold as well has become a an asset class of sentiment. You know, obviously there are some fundamentals in gold because, you know, you can use for gold for different commercial reasons. But of late, that’s been another one that’s been driven by sentiment. and I think if you look on the horizon, things like the potential for some of the geopolitical concerns coming off the table like Ukraine, Russia, that could put some downward pressure on on the price of uh gold here in the near term.

02:02 Speaker A

And as real real quick here. Yeah, go ahead, hop in. Hop in.

02:05 Jen

I I just want to say the one word that pops into my head when it comes to Bitcoin is speculative. And yes, we have a scarcity issue, right? There’s only so many units that are going to be created, but it’s only worth whatever the next person is willing to pay for it, right? This is not like a stock that is generating revenue and earnings. So, I think it’s important to keep that in mind. Whereas gold is a store of value. Is Bitcoin really? I don’t know. I still think it’s a speculative investment.

02:26 Speaker A

Jen Jen, I’m going to bring to life an emoji I’ve used before. It was like those praying hands. There we go. I think you’re on the mark there. Uh Naz, last word to you here. What I don’t like about this move in Bitcoin, it hasn’t been that convincing off the lows. I mean, seems like uh people are nibbling at it, but it hasn’t been that burst back over 90,000.

02:40 Naz

Right. and the question is has uh Bitcoin bottomed here? Has uh is this going to turn into a V-shaped recovery? And most analysts are cautious about that right now. It does not seem like this bounce is is that that meaningful. There are some resistance that uh levels that uh analysts are taking a look at when it comes to the next uh following weeks. But I will say that Sean Farrell of Funstrat said, look, the media has turned very bearish when it comes to Bitcoin, so, um, perhaps that’s a counter signal uh according to him.