Ethereum's Challenges and Market Dynamics

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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