00:00 Speaker A

Bitcoin back above 74,000. You’re reporting though suggesting maybe this is more uh short covering than real demand?

00:07 Nez

Yeah, and this has been from some of the strategists on the street that have been talking about this. You’ve got Ed Engel over at Compass Point that is saying that the movement that you’ve seen with Bitcoin has been short coverings in derivative markets. Uh spot volumes are light, so he’s pointing to, this is um happens usually in a bare market. You’ll see these rallies within the bare market. You had, you’ve had Bitcoin anywhere between 64,000 and 74,000 range over the last few weeks. So that’s consistent with a bare market rally. You even also have uh Sean Pharaoh from Frontstrat who’s a big bull when it comes to crypto. He’s saying that he still thinks this his base case is that it is a bare market rally, but he’s not fading it yet. He still think there’s some juice in it is uh left because of a strategy that’s been a big buyer. They just did some uh they raised over a billion dollars to buy more Bitcoin. So he still feels like he’s not fading the rally yet.

01:06 Speaker A

That range you just mentioned over the past two months, 64 to 74. So what what are what breaks us out of that range? What are some possible catalysts in this?

01:14 Nez

Well, that’s the thing is is that what are the catalysts that are going to bring you higher? And there are some strategists that aren’t pointing to it just yet. Although there what they’re basically saying is, you’re going to see a retracement down, probably see Bitcoin going below, it could go below 60,000. I spoke to one author of the Bitcoin super cycle that’s said to me, until you see capitulation, you’re not going to see the whales coming back in. You’ve got to see that capitulation and you haven’t had that yet in this cycle.

01:45 Speaker A

Finally though Nez, um, you do also mention your piece Bernstein. And they still see 150 by the end of the year. Why? What what are the tailwinds that team sees?

01:54 Nez

They’re seeing the strategy is a tailwin and also uh institutional adoption and ETF holding. So they’re looking at this from a different lens and they’ve been saying it looks like Bitcoin to them has bottomed and it looks like from here on they will see uh you’re going to see it rally to 150 by the end of the year. I will mention Bernstein is one of the most bullish when it comes to uh crypto.

02:22 Speaker A

All right, Nez, thank you. Appreciate it.