00:00 Scott Melker
Bitcoin’s massive rebound after the midterms was completely erased in the face of an enormous tech and market route throughout the world. What’s going on? We’ll unpack that and all the things else taking place in crypto markets proper now in the Each day Wolf. Let’s go.
00:23 Scott Melker
What’s up all people? Welcome to the Each day Wolf on Yahoo Finance. I’m your host Scott Melker, often known as the Wolf of All streets and yesterday
00:36 Scott Melker
was certainly one of the worst days in current reminiscence for markets throughout the world. In fact, markets bounced this morning on good job numbers which we are able to get into and as soon as all of that leverage was liquidated. Asian markets nonetheless have been struggling right now, uh hitting circuit breakers left and proper as is custom. So,
00:54 Scott Melker
this reminds us as soon as once more. I mentioned this on my YouTube present this morning as effectively. We do reveals each single day. We speak about what the value is. We speak about the place markets are seemingly going. However there is a theme we are saying that there is two varieties of individuals in markets, those that are humble and those that will likely be humbled. And that is a kind of days the place you’ll be humbled. You already know, you do a narrative sooner or later about how shorts have been liquidated and the market is bouncing and then the subsequent day you come again and all these longs are liquidated and the bounce is completely over. So let’s unpack a little bit of what occurred.
01:21 Scott Melker
Bitcoin erases post-election positive aspects as Wall Avenue dump triggers over 1 billion in crypto liquidations. The dump triggered a wave of compelled liquidations throughout crypto derivatives markets as whole liquidations over the previous 24 hours reached 1.09 billion affecting 211,000 merchants. Initially, you should utilize a cease loss and not get liquidated.
01:50 Scott Melker
I I nonetheless do not perceive liquidation will not be a cease loss. You lose extra for those who’re liquidated than even setting a cease loss barely above your liquidation value. By the approach, these numbers as of 5:00 a.m. right now have been as much as 1.26 billion {dollars}. In fact, 1.12 billion of that whole was in longs. US spot Bitcoin ETFs recorded 430.2 million in internet outflows Thursday. No shock. Uh we all know that they go up and down. Constancy was about 200 million of that, Black Rock’s Ibit was about 100
02:26 Scott Melker
million of that. So Monday via Thursday we had internet redemptions of 869.8 million. However let’s speak about what really occurred yesterday and why. So I am going to provide you with some numbers, however for those who’re questioning apparently, in keeping with the media and the narrative of why we noticed this large tech dump yesterday, it began with this. single tweet
02:49 Scott Melker
by a virtually irrelevant Congress individual. All Congress persons are typically irrelevant. There’s too lots of them.
02:56 Scott Melker
Prime of the Democratic agenda on day one
03:00 Scott Melker
must be a pause on superior AI growth, regulation of this uncontrolled trade and a ban on synthetic tremendous intelligence. As you’ll be able to see, 18.5 million views on that tweet, a bunch of different Democratic Congress individuals jumped in and mentioned, yeah, terrific, you are proper, let’s ban it.
03:19 Scott Melker
Proper? Initially,
03:23 Scott Melker
no person’s banning AI. It is absurd. It is like saying banning the iPhone or banning the web or banning, you understand, voiceover IP. You possibly can’t ban a expertise that is already out in the wild that a number of nations are engaged on and if we did ban AI in the United States, which means simply our fashions for United States residents or banning information facilities and the construct out, China and different nations will simply dominate AI, which will likely be the dominant expertise into the future and will likely be the finish of the United States dominance
03:57 Scott Melker
as we all know it. So it is not taking place. Initially. Additionally notable that politicians make wild guarantees all the time, particularly proper after they have been elected and they’re feeling significantly empowered and these guarantees by no means come true.
04:09 Scott Melker
Bear in mind, for any main laws banning AI, it must get previous the President of the United States desk. Uh final I checked that is Donald Trump. Proper? So sure, the Democrats may perhaps get some tailwinds and move some AI laws via the home and then perhaps it could run into the Senate and we might see if they may get the 60 votes, however it ain’t getting previous the president’s desk. So that is actually a non difficulty. They’ll gradual issues down, they will make issues troublesome, however an outright ban not
04:43 Scott Melker
going to occur. However after this tweet, proper, markets have been solely barely down in the morning, however after this tweet began to achieve traction,
04:54 Scott Melker
what we noticed yesterday was certainly one of the worst sell-offs in a very long time. The Nasdaq was down 5.5%, which is its worst day since the tariff scare in 2025 in April, closed roughly 12% under its October file. So over 10% down now since the highs. S&P dropped 4.4% a day, additionally its worst session since April 2025. The Dow was down 1833 factors or 3.4%.
05:27 Scott Melker
All 11 S&P 500 sectors completed decrease. This was all led in fact by semiconductors. The Philadelphia semiconductor index plunged 12%. It is second largest decline fairly actually ever. Nvidia down 9%. Micron and and Marvel every down roughly 7%. I believe Sandisk was down far more.
05:51 Scott Melker
Proper? So buyers offered AI associated shares amid issues about slower information middle development and returns on infrastructure spending. So the market was already spooked about AI. You get a fast tweet and you get individuals saying, oh no, the Democrats are in energy and you get this large sell-off. In fact, we have been at historic highs of leverage. Story as previous as time, proper? Uh leverage ETF shopping for in October was the largest we might ever seen in the inventory market.
06:11 Scott Melker
And so all that leverage was liquidated. and then in fact, this morning you get job numbers that are quote-unquote favorable. October payrolls rose 165,000 versus an estimate of 59. unemployment fell to 4.1% from 4.2%. Common hourly earnings rose 0.4% in October and 3.1% year-over-year exceeding forecast.
06:37 Scott Melker
So, in fact, which means the CME Fed Watch put December quarter level hike odds close to 77% after the launch launch up from roughly 67 to 70%. So as a result of now we have sturdy job numbers, that implies that the Fed can hike, which perhaps is unhealthy for markets. I do not know.
06:50 Scott Melker
However I do not even verify markets on an hourly foundation anymore, however they’d bounced fairly massive this morning. Now for me, the story about Bitcoin, which is what you are clearly right here for, is that it is nonetheless buying and selling at costs the place it had already bottomed final week. It is nonetheless buying and selling above for now or proper on the 50 MA on the weekly, which is apparent clearly seen as a bull bear line for the market. Nevertheless it’s vital to me that Bitcoin only a couple days in the past earlier than the election was at 75, 76, you understand, give or give or take a thousand right here and there. It had that large
07:29 Scott Melker
transfer on the brief squeeze and now it is again to these costs whereas the remainder of markets are literally on fireplace and performing far worse. So you would actually take a look at Bitcoin for those who take a look at the two final two weeks and say it is just about buying and selling sideways in the mid 70s or so.
07:44 Scott Melker
whereas all the things else is beginning to strategy naked market territory. So I nonetheless would make the argument, in fact, I am a Bitcoin man, however I would nonetheless make the argument that it appears like Bitcoin is outperforming. So, let’s speak about one other Bitcoin and authorities associated story that is being reported proper now.
08:08 Scott Melker
Trump Media strikes 342 million in Bitcoin to crypto.com blockchain information present. So, in fact, you go on X and you see Trump Media offered all their Bitcoin. Did not occur. Might have occurred, I can say, however we can’t affirm that it occurred. So we do know that the wallets tied to the Trump Media moved 4,259 Bitcoin to crypto.com.
08:42 Scott Melker
These transfers got here from wallets labeled as collateral for 2028 convertible no notes and moved in two batches. So Trump Media beforehand described comparable crypto.com transfers as buying and selling or custody administration fairly than gross sales. So shifting to an change doesn’t essentially imply that they offered. So I need to make clear that as a result of I am seeing stories throughout media that they’ve offered all of their
09:15 Scott Melker
Bitcoin. So, maintain your mind collectively, maintain your wits about you, do not imagine all the things you learn. There are loads of causes that an organization would transfer their Bitcoin
09:27 Scott Melker
and placing it into completely different custody could possibly be certainly one of them. We are going to ultimately discover out whether or not they offered or not. We do know that American Bitcoin, which is the Trump affiliated miner really added Bitcoin. So, can be one hand doing one factor whereas the different is doing one other. The following story now we have proper right here. White House begins evaluation of economically important SEC crypto broker supplier draft. The White House regulatory workplace log the SEC draft on November third, however its textual content will not be public, so what it could change for brokerage holding crypto will not be
10:04 Scott Melker
but recognized.
10:07 Scott Melker
However the story right here as soon as once more is that the SEC, CFTC, the regulators, even with a little bit lack of legislative readability, proceed to push ahead, write rules and ship them off to the White House to get them into motion. So that is about what crypto broker sellers would be capable of do. The bundle addresses monetary duty, file maintaining and recording for reporting for crypto property. So broker, internet capital, buyer safety necessities, how these broker sellers would be capable of custody property on behalf
10:44 Scott Melker
of their clients particularly in crypto. So we do not have a authorized deadline right here, however it’s fascinating that the OIRA evaluation file marks this proposal as economically important, which means that it’s really vital and one thing that must be severely thought-about and reviewed. So we do not know what the adjustments will likely be uh but, however we all know that the SEC has been favorable and these are more likely to be rules that the crypto trade would love
11:21 Scott Melker
and that the broker sellers seemingly would be capable of adjust to. So whereas Washington is reviewing the monetary plumbing right here, Samsung’s placing a secure coin buy button in shopper’s fingers. Fairly massive story right here.
11:34 Scott Melker
Samsung pockets launches USDC accounts on Solana for US Galaxy customers. Samsung’s wallets secure coin account lets eligible US Galaxy customers purchase, maintain, ship and obtain USDC on Solana by way of the app. So this was really introduced by Stripe
12:00 Scott Melker
on November fifth as a result of it is their crypto on-ramp powers, uh, powers purchases in Samsung pockets secure coin account. So it is powered by Stripe going via Samsung pockets. However that is enormous as a result of Samsung says that 82 million US Galaxy gadgets
12:22 Scott Melker
are suitable with this secure coin characteristic. That doesn’t imply 82 million persons are going to make use of this, however it means 82 million individuals can. It is proper there in the pockets that they have already got their telephone, proper subsequent to their bank cards and all the things that they are already utilizing to make funds. It says Coinbase serves as sub-custodian via Coinbase Prime, and Samsung’s introduced performance contains transfers to suitable wallets and eligible financial institution accounts
12:56 Scott Melker
in additional than 60 nations. This can be a indication of what we’re more likely to see in the future, which is that secure cash are going to be built-in into each single fee platform on planet Earth as a result of they’re sooner, they’re cheaper and they’re extra environment friendly, proper? Does this imply that like Solana’s going to go up? Clearly, it doesn’t essentially imply that.
13:30 Scott Melker
Nevertheless it does imply that secure cash are going to take over and as issues develop into tokenized and as USDC and USDT and others are added to secure coin and wallets on telephones like this,
13:42 Scott Melker
that is a preview of what is going on to occur with tokenized shares and tokenized property and what you are going to have the ability to do when all of this stuff are on the identical blockchain rails. Actually, actually uh vital uh replace there and I am right here for it. Subsequent story is a fast replace from Zcash. Zcash’s landmark NU7 Noven improve. it is not pronounced that approach.
14:06 Scott Melker
I am so bizarre. Improve goes stay, dashing up personal funds. Noven, NU7 cuts the goal time between blocks to 25 seconds, reduces the work wallets should do to search out personal funds and units apart charges for future miners. This activated at block 3,543,405,
14:34 Scott Melker
which was about 9:34 a.m. Japanese right now. The block subsidies fell proportionally preserving the every day difficulty issuance fee, the 21 million Zcash cap provide stays unchanged. So this improve direct 60% of transaction charges into reserve for later reissuance.
14:57 Scott Melker
Model 4 transactions are not legitimate making funds remaining in the legacy Sprout pool unspendable. Get your legacy funds out of the Sprout pool.
15:10 Scott Melker
Issues I did not assume I might be saying on mainstream tv on Friday, November sixth. However hear, we’re seeing blockchains upgraded. Zcash getting uh sooner and simpler is certainly excellent news for anyone in search of privateness.
15:28 Scott Melker
So, as soon as once more, I’m right here for it. And on the final story of the day, now we have one more replace about the Binance hack, which we will be speaking about for some time. Right here you go. Hackers paid $15 to empty 2.5 billion from Binance in a single hit.
15:47 Scott Melker
In order you understand, hackers stole $6.3 billion from Binance and used a characteristic to take 40% of the stolen cryptocurrency in a single transaction lowering their probabilities of being caught that was $15. That is what they’re reporting. $15 community charges to put in an Ethereum pockets delegation. Block Assist estimates that single permission roughly enabled roughly 2.5 billion to be drained in a single subsequent transaction. The mechanism used Ethereum EIP-7702 pockets options, some actual nerd stuff right here.
16:26 Scott Melker
EIP 772 lets a pockets authorize execution of one other contract’s code. So CoinDesk’s transaction evaluation discovered legitimate authorization signed by the affected Binance pockets. So, I imply, the TLDR right here
16:42 Scott Melker
is {that a} $15 principally improve or permission was sufficient to hack 2.5 billion {dollars}, which implies perhaps simply perhaps uh crypto safety will not be prepared for prime time. To present you a preview, I am speaking to Nathan from Anchorage on my Sunday podcast which can come out on YouTube and you understand, they’re certainly one of the largest custodians on the planet, a crypto financial institution. We talked loads about this and he actually does imagine that custody ought to be separated like it’s in different markets.
17:15 Scott Melker
We’ll see what the market does right now, in fact uh over the weekend and into Monday. Let’s hope Bitcoin holds these ranges and begins to push again up. We’ll see what occurs. That is all I received for you right now. I am going to see you on Monday. Peace.
