New York morning trade.
We are looking at Bitcoin soaring and nearing the $72,000 level while the crypto major spike was fueled by over a billion dollars in short liquidations as well as shifting macro forces.
Meanwhile, coin last year showing that over $3 billion worth of short positions have been liquidated over the crypto market in the past several days.
Now the real fireworks came yesterday afternoon.
And Trump revealed efforts to bring hyper liquid into the US market in a fully legal and compliant way.
We did see shares of hyperliquid strategy soaring 30% and while it's made a digital token hype has risen 23% in the past 1 year record highs.
But at the same time that the timing of the surges raising some eyebrows on Wall Street and while traders watched the charts, industry leaders. are converging on the times at the Salt, Wyoming conference for this year.
Policymakers, regulators, and executives are shaking off legislative uncertainty to build the core financial plumbing of the future.
And back in the nation's capital, the SEC proposed a new regulation crypto assets framework to help fill the void left by the stalled clarity and also at the White House Trump meeting with crypto leaders yesterday saying the US is looking into.
Accumulating sizable amounts of Bitcoin as well as crypto, saying the focus is ensuring America leads on digital assets.
Well joining us on this Thursday morning to weigh in on the latest is and the managing director of the asset management for GSR and the great to have you join us, especially given the price action we've seen in the past 24 hours when it comes to crypto.
So what do you make of this breakout we're seeing a Bitcoin.
I think the most important thing, you know, for viewers who don't understand what caused the velocity yesterday, these kind of liquidations which reflect people being liquidated out of perpetual contracts, really kind of, you know, let the coiled spring of tight volatility kind of release.
Remember, about 3/5 of all crypto trading is done in derivatives and This can be long or short.
Given how compressed prices have been, there was a lot of short interest in perpetuals around the world, and when prices started to hike up, a lot of those got liquidated.
This is not as, as, you know, dramatic or drastic as it might sound in regulated futures contracts.
It's fairly standard, but it does cause that acceleration.
I saw numbers up to about 3 billion of liquidations, 90% of which on the short side, which really helped amplify those price moves.
And Andy, in New York morning trade, we are looking at E higher as well, and ET as well as Solana caught the mood and also gained even harder yesterday.
And at GSR you have a core 3 model here which has been deliberately overweight when it comes to ET and soul.
So tell us your thesis behind all of this and what can we expect from these two assets.
I think there's a great fundamental argument why Ethan Soul kind of outperformed yesterday, but there's also a good quantitative argument, as you pointed out, our core three model has been, which at its base state would be equal weight, Bitcoin eth Sol has been overweight, Ethereum and Solana for the last several weeks.
Mainly on quantitative signals, but when you think about what happened yesterday, Bitcoin's pulse might have been improved a little bit by Fed actions around the yield curve and this idea of trying to tamp down long-term rates.
Remember Bitcoin being this macro asset which is really going to reflect more macroeconomic conditions.
But Ethereum and Solana really kind of pumped hard yesterday.
Uh, you know, it's been a while since we've seen a 20% move in.
This really is more reflective of, uh, you know, blockchain adoption, uh, better regulatory clarity, and more support.
So it all happened at once, but I think it happened for distinct reasons, as you and I have said, you know, for week after week, it's, it's great to see an Ethereum-led rally because it will bring together all the other blockchain.
Assets with it.
So we were delighted by the shape of this strong pulse.
It sort of definitely broke us out of the slumber that we had been in for for much of the summer, and it might, um, you know, be that catalyst we were looking for to see some trends start to form here.
Yes, and Andy, we'll make sure to keep a close eye on those technical levels for the crypto majors, but this morning you're joining us from the Tetons from the Salt, Wyoming conference which has wrapped up, and you're surrounded by industry leaders as well.
As regulators and a week from now, of course all eyes will be on Jackson Hole, Wyoming, but given the fact that you've noted this incredible pace of financial wiring and plumbing when it comes to infrastructure being built, tell us what you're seeing being deployed firsthand.
Everybody this year is talking about tokenized equities and tokenized fixed income products.
It's really the topic, and it, it has been the topic for some time now, but the reality is starting to set in as we see higher levels of tokenized equities to actually trade out there on exchange.
Around the world.
So getting that plumbing in place, uh, paving that last mile so that people can actually access and use these kind of products has been a frequent topic around here.
Uh, it's, it's kind of interesting being in this beautiful setting one week before you see, uh, you know, the, the, the Fed come in and and do its thing.
We, we definitely thought we were at the epicenter of uh of the digital asset industry until we saw all the leadership gathered around the president yesterday afternoon.
So it's, it is a time of high energy.
I have to say that many of us were relieved to see the price action reflect the excitement that's happening inside the industry and the amount of really credible building that's going on.
So it's good to see investors turn their, you know, their trading engines back to crypto.
We hope that this is the start of a catalyst to break us out of the summer doldrums.
Yes, and Andy, finally, before I let you go, you mentioned that gathering at the White House yesterday.
Trump did reveal the CFTC is actively working to bring the chain Perps platform Hyperliquid into the US in a fully compliant way.
So what did you make of that and what's the reality here?
Well, I, I, you know, anecdotally we were all on a on a bus ride down to an event last night, and we were, if you looked from behind the bus, everybody's phone was looking at the clip of the president making that statement.
They all wanted to hear it firsthand, to hear exactly with what tone of voice.
It was, it was kind of a surprise for the president to call out one platform like this, especially hyperliquid, tremendously successful decentralized exchange, which is really, you know, caught the attention of a lot of crypto traders.
And I think it's, uh, you know, it portends to making that kind of decentralized product available to US investors in an accelerated way, which is, which is quite phenomenal.
I would say borderline disruptive.
So in a positive way, of course.
So of course there are, there are hype ETFs and there are other, there are other avenues through which US investors can can get access to the hype token.
Uh, they'll clearly be watching that now.
So, um, it's, it really is kind of speaking a little bit to the next chapter of what crypto trading might look like.
So, I think we were all kind of dazzled, uh, and, and, and, you know, a little bit surprised by that, um, by that comment.
But glad to see progress is being made.
Glad to see that leadership meeting, and glad to see that there might be another, um, you know, surge of activity towards getting clarity passed in September.
The prediction market odds haven't shifted dramatically.
They shifted a little bit last night.
We'll have to see what happens, but, but certainly it was the shot in the arm that the industry needed to have a positive and energetic outlook going into the autumn season.
Well, uh, Andy, a lot to keep our eyes on as we head into the fall months.
So I appreciate you taking time out of your busy schedule this morning to weigh in.
Thank you so much for joining us.
Thanks, Remy.
See you.
