Bits + Bips: Trump Has Spread Uncertainty Across All Markets. What’s Next? - Ep. 798
The markets are a bloodbath.
If you’re feeling lost in the markets right now, you’re not alone. Stocks are getting crushed, bonds are sliding, and crypto isn’t escaping the carnage. The question is: why is everything selling off—and where does it go from here?
One thing is clear: the next market move is extremely hard to predict. Between Trump’s economic policies, inflation worries, and DOGE’s cuts, there’s a storm of conflicting signals.
So, is this pain temporary? Or are we looking at a long trend downward?
Sponsors:
Bitwise
Hosts:
James Seyffart, Research Analyst at Bloomberg Intelligence
Alex Kruger, Founder of Asgard
Ram Ahluwalia, CFA, CEO and Founder of Lumida
Guest:
Travis Kling, CIO of Ikigai Asset Management
Links
Recession?
Bloomberg: Trump Says US Economy Faces ‘Transition,’ Avoids Recession Call
Inflation
Bloomberg: Inflation-Linked Bonds Rebound on Trump Tariffs: Credit Weekly
DXY
FX Empire: US Dollar Forecast: DXY Sinks as Weak Jobs Data Fuels Rate Cut Bets, EUR/USD Surges
Powell’s comments:
CNN: Fed Chair Powell says he’s not worried about the economy amid Trump’s tariff chaos
FT: Federal Reserve chief Jay Powell plays down growth worries after jobs report disappoints
Bonds:
Bloomberg: The Bond Market’s Trump Trade Is Looking Like a Recession Trade
CNBC: 10-year Treasury yield rises after weaker-than-expected jobs growth
Bond yields in Europe and elsewhere are rising
Tariffs:
Bloomberg: Lutnick Says Trump Sticking to US Aluminum-Steel Tariff Timeline
Japan and the carry trade:
Japan's 20-Year Government Bond Yield rises to its highest level since 2008.
Jeff Park tweeted “Bitcoin is Japan’s game now whether you like it or not” - thoughts?
FT: Japan seeks tariff reprieve after Donald Trump questions long-standing defence pact
China’s deflation:
Bloomberg: China’s Inflation Declines Below Zero for First Time in Year
Ukraine War talks:
FT: Ukraine seeks to persuade US to resume aid in high-stakes talks
Timestamps:
👋 0:00 Intro
📉 3:05 What’s behind this brutal market selloff
🤔 7:26 Why making a market prediction right now is nearly impossible
🇺🇸 13:41 How Trump’s economic moves drive uncertainty
⚠️ 19:37 Is the Trump administration intentionally triggering a recession?
💰 20:30 The real impact of “austerity” on the economy
📉 22:59 What must happen before the market bottoms out
🔥 26:52 Where inflation might head next
📊 36:21 What the VIX is saying about the market
📉 39:00 How markets will react to today’s CPI numbers
🚀 43:40 When might Trump push for tax cuts?
🏦 49:19 Will ETF buyers create a bitcoin floor?
💴 55:12 What a declining Japanese yen reveals about demand for risky assets
₿ 1:00:35 Why BTC is the furthest that it has ever been from altcoins
🛍️ 1:11:00 What new groups might step in and buy bitcoin?📉
🤦♂️ 1:20:25 Whether the Trump administration “fucked up” the economy
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Why Travis Kling Thinks Not Looking at AI Agents Would Be 'a Big Mistake' - Ep. 763
It’s been a tough week for the markets, with bitcoin gyrating from $102,400 to $92,000.
Travis Kling, CIO of Ikigai Asset Management, shares his thoughts on the selloff, whether this market dip is a cause for alarm, and how macro factors like the Fed’s rate policy and ETF dynamics are shaping the landscape.
Plus, he dives into the explosive growth of AI agents and why crypto investors should start paying attention to this new frontier. Could AI agents revolutionize crypto, or are we witnessing another bubble?
Show highlights:
01:49 Why Travis believes this market selloff was “abnormal”
04:31 Whether he thinks the DOJ will sell Silk Road’s $6 billion worth of BTC from Silk Road
07:36 Why Travis is supportive of a US bitcoin strategic reserve
17:15 Why inflation and policy shifts might keep Fed rates steady
22:30 What explains the significant outflows from bitcoin spot ETFs on Wednesday
24:37 Whether Travis thinks the AI agent rise is a bubble
Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com
Thank you to our sponsors!
Stellar Build Better
Polkadot
Guest
Travis Kling, Chief Investment Officer of Ikigai Asset Management
Previous appearances on Unchained:
With Rate Cuts and Upcoming Elections, What’s the Best Play in Crypto?
With the Merge, Will Ethereum Take Over Bitcoin’s Title as Digital Gold
Links
Previous coverage of Unchained on AI agents:
2025 Will Be a Year of Crypto Competition. Can Ethereum Make a Comeback?
With AI Agents Now Trading Crypto, What Does Their Future Look Like?
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With Rate Cuts and Upcoming Elections, What’s the Best Play in Crypto? - Ep. 709
The Fed just made its first rate cut in years, slashing 50 basis points off interest rates—but what does this mean for the crypto markets? With Bitcoin lagging behind traditional finance, and the looming U.S. elections, uncertainty is growing.
In this episode, Quinn Thompson of Lekker Capital and Travis Kling of Ikigai Asset Management break down the major factors influencing the markets: from Bitcoin’s sluggish summer and the unwinding of the Japan yen carry trade, to why the 2024 elections could be a pivotal moment for crypto. Are these the catalysts we’ve been waiting for, or should we brace for more turbulence ahead?
Also, they cover which assets could benefit the most under a Trump administration, and why they believe SOL could have a negative catalyst in the near future.
Show highlights:
Why the Fed cut rates by 50 basis points and what the chances of a recession are in the U.S.
Why Bitcoin has underperformed the broader TradFi markets this summer
The risks of the unwinding of the Japan carry trade for crypto
How the election results might matter differently for different sectors of the industry
Whether rate cuts affect stablecoin yields in DeFi
How the approval of Bitcoin ETF options will affect the price of BTC
Whether Bitcoin miners will be affected by AI’s need for computing power
Ether’s lagging performance this year and what might be a huge catalyst for ETH
How SOL will manage through the huge unlock in early 2025
What Quinn and Travis think about investing in memecoins
How the rise of Base will impact Coinbase
Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com
Thank you to our sponsors!
Polkadot
Mantle
Gemini
Guests:
Quinn Thompson, CIO of Lekker Capital
Travis Kling, Founder and CIO of Ikigai Asset Management
Previous appearance on Unchained: With the Merge, Will Ethereum Take Over Bitcoin’s Title as Digital Gold
Links
Rate cuts
Unchained:
Fed Cuts Rates for First Time Since 2020; Bitcoin Remains Mostly Flat
Fed Rate Cut Should Spur Crypto Investors to Load up on Memecoins, Asymmetric Founder Tells Token2049
Bitcoin Is Now in a ‘Classic Setup’ to Surge Higher Soon, Analysts Say
Bitcoin and the Crypto Markets Slump as Fed Faces Tough Rate Cut Decision
What Do Cooling Inflation and Rate Cuts Mean for Crypto and Bitcoin Prices?
ETH performance and L2s:
Unchained:
SOL on Course to Flip ETH, Says Multicoin Capital’s Kyle Samani
Ether Has Been a Much Worse Investment Than Both Gold and Silver So Far This Year
Are L2s 'Parasitic'? Analysis Shows Ethereum Only Gets a Tiny Percentage of Fees
Alex Kruger’s tweet: “Ironically $SOLETH is barely up in 2024”
Bitcoin ETF options:
CoinDesk: BlackRock Bitcoin ETF Options to Set Stage for GameStop-Like 'Gamma Squeeze' Rally, Bitwise Predicts
Mining and AI:
TIME: Why So Many Bitcoin Mining Companies Are Pivoting to AI
Timestamps:
00:00 Intro
02:09 Fed rate cut and recession chances
12:34 Bitcoin’s underperformance this summer
14:56 Risks of Japan carry trade unwinding
21:3 Election impacts on crypto sectors
38:00 Rate cuts and DeFi stablecoin yields
43:00 Bitcoin ETF options
49:31 AI’s impact on Bitcoin miners
54:38 Ether’s lagging performance and future catalysts
1:03:19 SOL’s 2025 unlock concerns
1:10:39 Investing in memecoins
1:18:15 Base’s rise and Coinbase impact
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Hedge funder that lost $65m on FTX says bankruptcy is going better than expected
Travis Kling is the Founder & Chief Investment Officer of Ikigai Asset Management — a crypto asset management startup that had a 'large majority' of its assets stuck on FTX when the exchange declared for bankruptcy last year.
In this episode, on the eve of former FTX boss Sam Bankman Fried's criminal trial, Kling recounts his story since last November when FTX imploded and explains why he remains optimistic about the potential for recovery.
OUTLINE:
00:56 - Introduction
03:01 - Ikigai’s $65 Million FTX Disaster
05:10 - FTX Estate’s Balance Sheet
08:01 - FTX 2.0
12:01 - Problems with Binance
15:41 - Rebuilding Trust with Exchanges
18:03 - SBF Trial
19:14 - Closing Thoughts
With the Merge, Will Ethereum Take Over Bitcoin’s Title as Digital Gold? - Ep. 389
Travis Kling, Chief Investment Officer at Ikigai Asset Management, talks about how ETH changes after the Merge, what factors are going to affect its price action, and whether it can decouple from traditional assets.
Show highlights: how the supply and demand dynamics of ETH will change after the Merge
why he believes the Merge is the most significant catalyst in crypto history
what the risks are in terms of price action
whether there is an estimate of how much ETH will be locked up and how this lockup resembles Mt. Gox’s BTC
the impact that being a deflationary asset will have on the price of ETH and whether it will actually become deflationary after the Merge
how activity levels have been decreasing in the Ethereum network
whether ether is underpriced or overpriced, and how to evaluate it
how institutional money is sitting on the sidelines at the moment after all the de-leveraging events that happened this year
how the Merge affects BTC’s narrative and value-proposition
how institutions have never been more interested in ether
what the futures market is saying about the price action of ether
whether ETHPoW has any value and how to trade it
how macroeconomics has been impacting the crypto markets and whether ETH can decouple from the macro setups
Thank you to our sponsors!
1inch: https://1inch.io/
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Messari: https://mainnet.events/
Travis Twitter: https://twitter.com/Travis_Kling
ETH Post-Merge ETH Dynamics: Ultra sound money dashboards: https://ultrasound.money/
Dune dashboards on the Merge: https://twitter.com/DuneAnalytics/status/1562021273575751680?s=20&t=HELDvcJ6gI3Z5RmVsGHdiA
Cumberland on the Ethereum dynamics after the Merge: https://res.cloudinary.com/drw/image/upload/v1661351279/comm-cumberland/uploads/The_Ethereum_Merge_-_Derivative_Market_Opportunities_Changes_to_SupplyDemand_Dynamics_1_zwearq.pdf
Miles Suter on the implications of the Merge: https://twitter.com/milessuter/status/1560070819518234624?s=20&t=qjolzcydMY_nTU__vZNciQ
Robert Leshner on the Ethereum Merge: https://twitter.com/rleshner/status/1559727104903757826?s=20&t=cKkI7b_Hj7dDe0DKmgP13g
The triple point asset: https://newsletter.banklesshq.com/p/ether-a-new-model-for-money
Previous coverage of Unchained: Is ETH on Its Way to Becoming Ultra-Sound Money? Yes, Says Justin Drake: https://unchainedpodcast.com/is-eth-on-its-way-to-becoming-ultra-sound-money-yes-says-justin-drake/
Why Kevin Zhou Believes Ethereum Will Have 3 Forks After the Merge: https://unchainedpodcast.com/why-kevin-zhou-believes-ethereum-will-have-3-forks-after-the-merge-ep-381/
Why Ethereum’s Merge Was Delayed and Why It Won’t Reduce Gas Fees Much: https://unchainedpodcast.com/why-ethereums-merge-was-delayed-and-why-it-wont-reduce-gas-fees-much/
ETH Trade Whether Ethereum’s Merge is priced in: https://www.coindesk.com/layer2/2022/08/22/is-ethereums-merge-priced-in/
Arthur Hayes on the ETH trade: https://blog.bitmex.com/eth-flexive/
ETH flips Bitcoin open interest: https://www.coindesk.com/markets/2022/08/01/ether-flips-bitcoin-in-options-market-for-the-first-time/
“Max bidding” by Arthur Hayes: https://cryptohayes.medium.com/max-bidding-7a1c56c1cd07
Gauntlet’s view on the Merge: https://medium.com/gauntlet-networks/gauntlets-view-on-the-merge-7c79e39e4b59
Macroeconomics Arthur Hayes on USD liquidity conditions and how it affects assets:https://cryptohayes.medium.com/teach-me-daddy-33e7a66dfe76
Adam Cochran on the Fed’s QT: https://twitter.com/adamscochran/status/1562077260819173378?s=20&t=Jh2DRYu-nr2mRg_4kJEFqA
Pantera Capital’s newsletter: https://panteracapital.com/blockchain-letter/ethereum-tightening-more-than-fed/
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Merge vs. Macro with Travis Kling
Travis Kling is the founder of Ikigai Asset Management, and on today's State of the Nation, we're tackling the biggest trade of the year.
While the global market fundamentals crumble, the Ethereum ecosystem looks primed to make history with a successful transition to Proof-of-Stake.
What does this mean for crypto? How is a seasoned investor going to take advantage of a chaotic 2022?
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------ Resources:
Travis Kling https://twitter.com/Travis_Kling
Ikigai Asset Management https://www.ikigai.fund/
----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures
Bull Case for ETH 2.0 Merge | Travis Kling
On today's episode of Empire, Jason Yanowitz and Santiago Roel Santos are joined by Travis Kling, founder of Ikigai Asset Management. Travis is a prolific investor who sits at the intersection of macro and crypto.
We discuss the implications of the ETH 2.0 merge, why ETH is prime for institutional capital, what a macro bear market means for crypto, Ikigai's investment strategy, and more. This is a must-listen if you're interested in the ETH 2.0 Merge and ETH's investment prospects (warning, Travis is a mega bull).
--
Travis on Twitter:
https://twitter.com/Travis_Kling
Ikigai Newsletter:
https://www.kanaandkatana.com/
--
ParaSwap:
If you want to make a swap at the best price across the DeFi market, check out paraswap.io. ParaSwap’s state-of-the-art algorithm beats the market price across all major DEXs and brings you the most optimized swaps with the best prices, and lowest slippage.
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Empire is brought to you by Blockworks, a financial media brand delivering breaking news and premium insights about digital assets to millions of investors. For more content like this, subscribe to Blockworks' free daily newsletter: https://blockworks.co/newsletter/
Follow me and Santiago on Twitter, @JasonYanowitz and @santiagoroel; let us know what you thought of the show!
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Timestamps
(00:00) Introduction
(00:58) Bitcoin's 2022 Outlook
(07:30) ETH 2.0 Merge Catalyst
(12:33) Why Is This Time Different?
(15:20) Paraswap Ad
(16:37) When Will Institutions Start Deploying Capital?
(19:36) The Bear Case
(21:31) The Merge's Perfect Timing
(23:35) Will Institutions HODL?
(28:48) Crypto's Progress and Runway
(33:00) Moving Beyond Just BTC
(39:52) The Most Important Rule In Crypto Investing
(41:00) Layer 1 Wars
(48:40) BTC As Pristine Collateral
(54:30) Bitcoin Defi
(56:00) Ikaigi's Investment Style
(57:20) Investments and Mistakes