Bits + Bips: Why Bitcoin Was Strong Amid the DeepSeek Selloff But a Drop May Be Coming - Ep. 774

19 snips

Jan 29, 2025

Jim Bianco, President and Macro Strategist at Bianco Research, delves into the intersections of macroeconomics and crypto. He explains how AI disruptions, particularly with DeepSeek, are reshaping market dynamics. Bianco discusses Bitcoin's resilience amid the recent selloff and speculates on its future price movements. He also highlights the existential threats posed by stablecoins to traditional banks and argues that memecoins could evolve from mere speculation into valuable assets. Tune in for a blend of finance, tech, and the changing crypto landscape!

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INSIGHT

DeepSeek Disruption

DeepSeek's lower cost AI model disrupts the market by challenging established players like NVIDIA.
This disruption could lead to decreased margins and increased competition, impacting the profitability of current AI providers.

INSIGHT

Macro Response to DeepSeek

The U.S. may respond to DeepSeek by incentivizing domestic AI investment and potentially providing stimulus.
The concentration of the AI market in a few companies is dangerous for market health.

ADVICE

Data Center Investment Opportunity

Investors should consider the data center theme attractive after the DeepSeek-induced market correction.
Wait for the volatility to settle and look for opportunities within the next 10 trading days.

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From AI shaking up Big Tech to bitcoin’s role in the macro landscape, Jim Bianco delivers insights on the DeepSeek-triggered market selloff, memecoins, and the challenges facing traditional systems. In this episode, the macro strategist shares why DeepSeek’s AI model is reshaping competition, how crypto reserves might evolve, and what happens to MicroStrategy if bitcoin’s price takes a hit. Plus, hear his take on why stablecoins are a threat to banks, and why memecoins could be more than speculation.

Show highlights:

What of crypto attracted Jim so much

0:49 What of crypto attracted Jim so much
6:15 Why the DeepSeek new model was so disruptive
12:47 Whether the biggest loser is OpenAI, not all the Mag 7
16:14 Whether we’ll see a major macro response from U.S. companies and government
26:06 What will happen next with the price of bitcoin
28:54 What would happen to MSTR if bitcoin goes 30% lower
34:11 How Trump was able to move so fast since the inauguration
39:30 Why the Fed should not do QE, according to Jim
49:02 How memecoins could be designed to be much more than speculative assets
53:03 Why James hopes the SEC doesn’t approve all the memecoin ETF applications
58:06 Whether banks will start onboarding crypto companies
1:05:52 Why stablecoins poise an existential threat to the current banking system
1:11:19 Whether it’s a bad idea for the U.S. to acquire other cryptos that are not bitcoin

Hosts:

James Seyffart, Research Analyst at Bloomberg Intelligence
Ram Ahluwalia, CFA, CEO and Founder of Lumida
Noelle Acheson, Author of the “Crypto Is Macro Now” Newsletter

Guest:

Jim Bianco, President and Macro Strategist at Bianco Research