[00:00] Absolute chaos in Bitcoin world. Look, we'll go through this monstrosity mess. And also we've got a new product from iShares, which is um an income product on Bitcoin. I'll talk about those. But look,
[00:13] what are you doing going into income products when Bitcoin is at its 200-week moving average? The absolute best returns you could The absolute best returns you could possibly ever get. The best risk-reward
[00:26] is now. Highest returns, lowest risk. Right? You've got it at its trend. next few years, you're looking at 2 to 300%.
[00:41] If it doesn't do that, and it just kind of goes along at its growth rate, of goes along at its growth rate, 5 to 7 years, it's 3 to 3 400%. Right? products. You do not give the returns that Bitcoin
[00:57] don't give it to Bozo Saylor. You don't give it to Bozo Larry Fink. Why are you giving them your returns? For what? Like 13% a year? Who cares? What is that? What is What is this search for yield? Bozos on
[01:14] Wall Street are very good at selling you what? All the risk and some of the return. No way. So look, Bitcoin's at its 200-week. Just buy it, why we don't kind of climb out of this bear market anytime soon.
[01:31] going to step in here and really go in? Why would people climb over themselves to buy it now? You've still got OpenAI, you've still got Anthropic coming. telling people, "Look, you need some cash, right? Get some cash cuz we need
[01:44] to go into these IPOs." So I don't see anything that will climb That doesn't matter, right? This is a fantastic risk-reward opportunity for BTC growing at let's say 40% a year, you're buying that now. I think that's
[01:58] brilliant. I think that's a very, very good
[02:49] Bitcoin, crypto, trade assets, anything else, you If you click the link below, sign up for an account, make a deposit, they'll give talk about the mess that is strategy and what's happened over the last day or so.
[03:01] You can see STRC has sold off big time here. And there's an issue here, not with strategy, but with the whole conversation around this. I don't want to spend too long on this, because these products, right? These
[03:14] equity preferred stocks are really very niche, small things, and they shouldn't take up anyone's time. And the issue we have in crypto over and over and over protocols is that something that is actually quite small and insignificant
[03:29] gets blown up into this massive thing, and everyone piles into it thinking that that. But ultimately, these things are small, niche, won't grow too big, won't take over the world, and should only take up
[03:43] 1% of your portfolio. You should just put it in there, forget it, and that's But then we get blown up into these big things, right? So, Saylor, look, he's a Wall Street bozo at the end of the day, right? He just wants as much money as
[03:56] successful, right? He wants to make money. though? He What he's doing is selling an equity preferred. That's it.
[04:09] Preferred stocks are volatile, right? Preferred stocks are niche products. You around these things, right? Now, he would want you to, for that got to do with us? Right? It's a preferred stock. It's a
[04:23] niche product. It's not a core uh in constituent in a portfolio. So, it should take up 1 to 2% of your time. Do you want in or out? Okay, done. That's don't Right? If you want to day trade other things, then that's That's
[04:38] But, this guy is going around saying that STR C is just like a bank account, believe the lawyers let him say that. That is mischaracterizing what the should actually just be quiet for a while. He's gone on too many podcasts
[04:54] bigging it up way bigger than it should be, and you should not fall for that. You should just understand this is a preferred stock. It's It's a niche of it, anyway, right? And if you do, then, just like every other equity or
[05:09] to be volatile. And it's not like a bank account. It's not like a money market In any case, look what's happened, right? SATA just has higher yield, and it pays daily dividends. And so,
[05:22] what you're seeing is people coming out of STR C here into SATA. So, they're just rotating. And that creates a liquidation cascade, and time. That's what preferred stocks do.
[05:35] money market funds. They're volatile. Look. They are volatile. The price moves with real yield differentials and everything else. He's just created a preferred equity. It's really not that interesting. And I
[05:49] don't understand why you would buy something yielding 13% to 11% whatever it is when Bitcoin's at its 200 week ahead of it is multiple hundreds of
[06:01] ahead of it is multiple hundreds of percent within any short time frame. This is actually for medium-term money as well. Preferred stocks, right? They trade at discounts for long periods. This is medium-term money.
[06:15] medium-term money, the outlook is very positive. the 200 week right, bouncing quite aggressively. I next few months with all the IPOs. But the risk reward is just buying Bitcoin
[06:31] here and not these stupid equities which people talk about way too much. Selling needs to just be quiet. He just needs to go away. Stop talking about we've stripped the volatility the the amazing uh sharp ratio of this thing. What are
[06:43] you talking about, man? You're just taking people's money and buying and really not that interesting. So look, I think they'll be fine as a company or whatever. This is not It's actually just not interesting. It really isn't. Why do
[06:56] you want 13% when you should be buying I mean, the Nasdaq's gone up like 30% in the last year. You know what I mean? Like these things are a small percent of your income bucket if you even have one. And that's it. And the volatility is
[07:12] these, you should expect volatility. They're not money market funds. They're going to be volatile like this. 5 to 7-year money if you want some yield. Okay. Go in and then forget it. Don't worry about the price going down. That's
[07:25] actually what is usually going to happen to a preferred equity. Right, he's Just know what this is. It's a preferred equity. It's going to be volatile. 5 to year. Maybe a little bit more now cuz you're
[07:38] buying it at a discount. It's going to go back to par at some point probably. But why not just buy Bitcoin at its 200 week? That's the better trade, right? come to market as well. So, what they do, right? This is a strategy that
[07:52] do, right? This is a strategy that uh JP Morgan have popularized with JEPI and JEPQ, which is a certain strategy. Now, JEPI, I think, is on the S&P, and then JEPQ is on the Nasdaq. So, this is what's called a covered call strategy.
[08:04] So, what they do, they take your money, they go and buy the index, and then they just sell calls against it monthly. And the calls, when you're selling you sell an option, someone's buying that option, they they give you the
[08:18] premium. So, the outcome here is that you get the give them your money, you you get the give them your money, you have some exposure to the underlying asset. So, for JEPI, it's the S&P. For JEPQ, it's the Nasdaq. For BITA, if you
[08:31] want to call it that, uh BITI, whatever it is, um have some exposure to that. But, they're selling calls against it. So, what's going to happen is you're going to receive that that options premium income
[08:44] And that gets paid to you monthly. The other thing you get is if the options get exercised, meaning when you sell calls, you're giving someone else the right to buy the Bitcoin at some certain price. Now, if they exercise the option,
[08:59] price than the option strike price, right? you some money for the option to buy a Bitcoin at 100,000. If Bitcoin's at 120, they will exercise the option, buy yours at 100, then they can immediately sell
[09:15] You miss out on that upside because you're selling the option to someone else. So, you get premium income from the options, but if the price goes up a lot, you also just sell the Bitcoin, and then you get the cash, and
[09:29] they'll return that cash to you as well. So, what you're doing here is selling selling some of the upside of Bitcoin in order to get options premiums and potentially just sell the Bitcoin.
[09:41] for some of Bitcoin's upside plus this income. That's fine if you want to get into something like that. So, for example, the JEPQ from JP Morgan, I think that's yielding about
[09:57] 10% a year. Um now, in the last year, the Nasdaq's gone up 33% I believe. So, that's what you're giving up, right? You're giving up potential upside there and you're getting some
[10:11] you know, income. Now, the income can go down as well if the Nasdaq index falls, then your exposure to that is also going to come down a little bit as well. So, look, again, this is a niche product for a small
[10:24] portion of your income portfolio and that's about it. Give it a couple of minutes thought if you just want to diversify your income. The thing is though is that how are distributions taxed? Well,
[10:37] that's going to depend on where you live in the world and how much of the income that they earn is from the options premiums versus just selling the Bitcoin. For the most part, what they do, they try and do, JP Morgan does this
[10:49] is returning capital counted as return of capital versus just regular income because that has a lower tax treatment. Look, if you're a young person
[11:02] and you're working, like income like this is not good. It's not good from from a tax standpoint cuz what you're doing, instead of just waiting for Bitcoin to go up and getting all of the upside, right? And you don't
[11:15] tax, right? If you're not selling it, you're not not making a capital gain. What you're doing here is selling it. So, you're selling something, getting the income. What you're doing with that income? If you're reinvesting it, then
[11:27] just buy the Bitcoin. Because what you're doing with these distributions is you're opening yourself up to a tax liability sell in the first place. So, they're selling potentially
[11:40] the income can be tax-free, but there is a potential that it might not be. So, you're paying taxes on something that you didn't need to sell, and then you're reinvesting in the same thing anyway. If you're a young person and you have a
[11:53] 5 to 7-year time horizon, buying Bitcoin at the 200-week is the move. These Look, again, if you've got an income port part of your portfolio and you want it's literally going to take a few minutes of your time. That's it. Forget
[12:07] But, if you're a young person with income, it's literally just buy the assets, right? So, I've made 33% on my Nasdaq holdings this year. If I need to, I can sell 5% or 3% for a bit of cash. I think that's the better
[12:21] way. Just extend your time horizon. You don't need to go into these bozo products at the end of the day. The Nasdaq is up 33% over the last 12 months, and it usually annualizes at 18%.
[12:33] a blockbuster year for the stock market, Bitcoin. So, what's the better risk adjusted here? You've got an asset growing at 18% a year that's up 33%. So, it's outperforming. Great news. Tech is
[12:47] invested in the Nasdaq. It's going to do great. put in now, how do you split that between Nasdaq and Bitcoin? Bitcoin, market, seems like the better risk adjusted here cuz you're buying an asset
[13:02] growth rate. In any case, it seems like the cycle is slowly moving on. Look, retail investors are starting to pick up. Large investors their buying and holdings. And the Bitcoin cycle just carries on as
[13:17] normal. The 4-year cycle isn't over. We literally peaked at the exact same time as the previous two cycles. We're down here, and you can see these other cycles started to pick up at day 950 where only at day 800. So maybe we start to pick up
[13:31] makes sense. It's just how the cycles work, right? But look, things aren't that bad. Oil is coming way down. It inflation I think what the Fed want to do is probably stay hawkish whilst that starts
[13:45] to feed through so that they can really get inflation down cuz it's it's kind of get that down a little bit. And then they pretend to be hawkish. And then as the inflation starts to tick over as oil you know, starts to feed through,
[13:59] hopefully prices stay steady and get a bit soft. Then they can maybe change their wording I don't think they need to be. There is an economic boom happening. Interest
[14:12] and that's fine. Bitcoin doesn't need those. Bitcoin is just going through its normal cycle. But look, bull bear market cycle indicator, we're in a bear market. It can carry on for longer. It can get a bit worse. So what? This is the time you
[14:25] you don't buy 13% your products when Bitcoin's at its 200 week. You buy the actual Bitcoin. You buy the thing that can grow. Right, the Nasdaq's up 33% this year. You want to buy Bitcoin and then just wait a couple of years. When
[14:37] it has its move, it's going to be up 300% in that year, not 30%. Right? Don't forget why we're in Bitcoin. When the thing moves, it goes up 3 to 500% not 30%. Now I can take a couple of years where it's down a bit. I don't care,
[14:49] higher. When you get a big move, it's not 30, it's 300. That's what I'm in for. So close to 89% of all circulating Bitcoin hasn't moved. This typically right? People like, well, I'm not selling. I'm just going to not trade or
[15:02] do anything. So that's an indicator of some you know, sell-off event, bear market event. And then when the sell when the trading starts to climb up again, that's actually where you get bull markets. Again, just an indicator
[15:15] just dollar cost average and buy the Bitcoin itself and not any Wall Street products. Look, bear market here. You just stay consistent. You don't even have to buy that much, right? Cuz if the thing is going to go 300% in the next
[15:28] move to the upside, you don't need to buy that much. You can get your good returns there. So, look, the true market mean under zero, just just slowly dollar cost average in.
[15:40] You can see Fed rate expectations climbed, hawkish now. This is a feed through for the from the war, right? High energy prices, high infla- uh and then the
[15:52] the rate expectations and inflation expectations start to climb up. But, of course, what we're seeing now is that oil is coming way down. So, this months, may actually start to come down as well.
[16:05] You may see the the bottom of the bear market for BTC. Two-year inflation break-evens are collapsing. shouldn't move yet. Just calm down. Everyone calm down. Give
[16:17] it another 3 to 6 months. 3 to 6 months is after the midterms, which is when I think it's just all coming at the exact same rate as, you know, other times. Bitcoin at the 200-week, that's it. So,
[16:31] else, you can trade them all on Bybit now. Click the link below. They'll give you up to $30,000 as a deposit bonus when you're a new user. I'm James from to watching, and I'll see you in the next one.