Bitcoin broke above $81,000

before retracing. Is this move over? Is

it the beginning of a new bull market or

are we looking for a retracement and

lower lows? Personally, I'm looking to

start buying dips aggressively, which

I've been doing the whole time, but I

will tell you why. And we'll dive into

all the news that's informing that

opinion. Let's go.

What is up everybody? Welcome to the

Daily Wolf on Yahoo Finance. I am your

host, Scott Milker, also known as the

Wolf of Wall Street. We spent many

months not talking about the price of

Bitcoin because it was perpetually 60 or

61 or $62,000.

Now, of course, we need to lead with the

general price action on every show, and

my messaging will probably be rather

consistent until we see what plays out

next. So, in case you missed it, here's

what happened overnight. Bitcoin

reclaims

uh 81,000, but bulls face key

resistance. So, no point in bringing up

the charts. I'll just tell you what I am

personally thinking here. So, we've

endlessly talked about the reason that

Bitcoin went up. Breaking above 80,000

is really important. Now, from a

technical perspective, as I've said

before, you want to get above about

82,800. let's call it 83,000 to make a

higher high and break all bearish market

structure. But I do want to say that a

lot of the signals that we saw that were

very key signs of a bottom are now

showing up as key signs of a local top.

I do not think this move is over. I'm

just getting excited to hopefully get to

buy some dips as price drops here.

Bitcoin has a tendency to not give you

the dips that you want, but that's what

I'm looking for. Those kind of signals

are overbought RSI. Now, we had almost

historically high RSI on the daily

chart. We're seeing bearish divergent

with overbought RSI on lower time

frames, meaning that we're seeing buying

strength sort of abating even as price

continued up. And we're at key levels of

resistance, right? The 50 moving average

on the weekly chart. We basically went

right up to it and got rejected. That's

the kind of area that you would be

looking for price to retrace below to

gather up strength to go back above. So

listen, I as you know use automation to

buy and sell Bitcoin, Salana, and

Ethereum using Arch Public. Uh it sold

some Bitcoin here above 80,000 and I'm

assuming that if we get a nice dip, it's

going to start buying down in the low

70,000s, right? We had that breakout

above the 200 MA on the weekly. That was

around 69,000.

If we get a retracement there, that

looks like an extremely compelling dip

to buy. But personally, I'll start

buying again here in the uh mid70s.

But I'm buying all the time. So that's

the real story here. But listen, I mean,

we had a 25% rally uh in under a week, a

bigger rally on some altcoins. It would

make a lot of sense for us to get a

healthy reset here. And frankly, if

you're watching price and you're a

technical analyst, what you want to see

when you're buying an asset and it goes

up massively is for it to go back and

test key levels to reset, to gain

strength. If it goes straight up, it

ends up coming more aggressively

straight down into the future. So,

listen, uh we can uh we can stay

overbought here for quite a while.

Bitcoin can do what Bitcoin's going to

do, but don't be surprised if you see

some retracement here, right? That's

really the uh prevailing narrative I

want to get. Now, we have some very good

news in the non- Bitcoin world right

now. Gayscale launches Zcash ETF

following the critical privacy flaw that

rocked the cryptocurrency. So Zcash has

been one of the hottest narratives uh in

crypto. It's one of the few coins that

really outperformed the bare market. It

went up making new highs uh throughout

the cycle now testing even the all-time

highs from previous cycles. And it was

on the narrative that privacy was going

to become increasingly more important

just not just for individuals but for

institutions as well. My guest Avi

Felman on my morning show actually made

a great point when he was asked why

Zcash went up and he said you want to

use a token like Monero if you want

privacy. You want to buy Zcash if you

want to invest in privacy. And I thought

that was an exceptionally good point

here. Now I wrote about this in my

newsletter today here. Wall Street is

about to sell you privacy. So there's

some irony here, right? This is great

for Zcash. It's gone up. It has some

huge proponents behind it. But Zcash is

about privacy and selling it on Wall

Street is probably the least private

thing that you could ever do, right? I

mean, this is the least private possible

way that you could own Zcash and

exposure to the privacy narrative. But

think about what happened with privacy

coins over the past few years, right? I

mean, these things, Monero, Zcash,

others, they were delisted from

exchanges all around the world.

governments were attacking them because

they didn't believe that you should have

privacy and that these were only for

criminals or for moneyaundering. And now

crypto has come so far that a privacy

coin is being listed in an ETF rapper on

the stock exchange. I mean, it really is

a pinch yourself moment that we've

possibly come this far. So, for for the

technicals of what happened, Gayscale

already had a Zcash trust and that's

converting into a New York Stock

Exchange ARCA ETF. It'll be under ticker

Z CS,

which is just Zcash. If you take out the

A, which is, as you know, uh, if you

want to be successful as a DJ, you come

up with a name and then you remove the

vows. That's what big DJs do. Um, and so

this conversion introduces creations and

redemptions, which should eliminate the

trust, historic premium, and discount

problem. Now, the management fee is an

astounding 2.5%.

This will be a very very expensive way

to gain some exposure here. But listen,

this is this is great news for the

crypto market. For all those who have

been holding Zcash, congratulations. Uh

I am not one of you. I missed the boat

on this one if that's how you want to

say it. Was was not something that uh I

found particularly compelling. But

clearly price has spoken. Wall Street

has spoken. And the era of being able to

invest in an ETF rapper in privacy is

officially here. Now, speaking of

different rappers to invest in things,

we got our next story here. Coinbase

puts US stocks on base. This is

tokenized stocks to their own Ethereum

L2, which is called base. And this is

actually really interesting. Now, we've

kicked around all the different ways

that we're seeing tokenization come into

play, the different ways that people are

deciding to wrap these or to give

exposure to tokenized versions of

equities. This is one of the purest

plays that you can actually get if you

look at the mechanics of it, right? So

they're launching tokenized Apple,

Nvidia, Meta, Alphabet shares on base.

But this is the interesting part. Each

token is backed one for one by a real

share held in regulated bankruptcy

remote custody. Holders have a direct

senior claim on the underlying stock,

not merely synthetic price exposure.

This is not just a rapper that gives you

exposure to the price. You get the

voting rights and all of the underlying

protections of owning an actual share,

which I just find extremely extremely

interesting. They uh use a platform

called Alpaka, which is a regular

regulated broker and custodian to give

you that direct claim. Now, if you're

wondering how this actually works,

because it's even above my head, the

initial offering includes fractional

shares of Apple and Nvidia that users

can hold in self-custody wallets, trade

on Aerod Drrome, or use as collateral on

decentralized lending protocol A. The

tokens can also be added to liquidity

pools, automated portfolios, indexes,

and derivatives. I find this absolutely

fascinating to be honest because this is

really

not only giving you exposure to a

tokenized stock but giving you access to

the full suite and power of DeFi

utilizing that like you would have used

a crypto token in the past. I think that

this is likely the compelling future of

what tokenization can offer. So listen,

this is small, right? I mean, it's

Coinbase giving to you on base. To be

clear, Americans are not allowed to use

it because we hate fun and we have too

much regulation. So, you know, like

America created Apple, Nvidia created

Coinbase itself and everyone uh but

Americans gets this new product. But

this is what the future is going to look

like when we see the all all, you know,

all-in-one everything apps we've talked

about and everything becomes tokenized

and utilized. you'll be able to take

your stocks onchain and be do be able to

do everything and more than you can do

with those very stocks when they are

offchain. I find this really actually uh

incredible not the news itself but the

pace at which this is happening and the

things that you will be able to do with

these tokenized assets. So I'm going to

take a much deeper look at this

personally not just a news story because

I think that this is a hint as to what

the future is really going to look like.

Next story here, Hyperliquid Policy

Center urges SEC, CFTC to harmonize

rules for for perpetual contracts. So

listen, Hyperliquid absolutely exploded

over the past few years offering

decentralized per, right? the product

that we saw created by Arthur Hayes over

at BitMX and then which exploded

throughout crypto over the past decade,

the perpetual swap obviously made now

even more popular on decentralized rails

with Hyperlid when people realized that

you could trade things other than crypto

using perpetual swaps. So, Hyperliquid

absolutely blew up when gold and silver

started flying and then on the oil trade

and then of course being able to use

these exact same perpetual contracts on

preipo SpaceX. And now it's to the point

where less than a week ago you had the

president giving a press conference and

saying that Mike Celig from the CFDC is

working very hard to bring hyperlquid on

shore. Right. the the pace at which this

is moving forward is rapid and of course

the hyperlquid policy center wants to

make sure that that is done in a legal

and regulatory uh prefer uh you know uh

positive environment. So I listen I

didn't even know that Hyperlid had a

policy arm that's lobby lobbying here

but they do and they say regulators

should classify each product by its

economic structure not simply by whether

it references a stock or cryptocurrency.

So looking for the SEC and CFTC to come

together and give sensible regulation on

perpetual contracts as a whole rather

than diving into exactly what the

perpetual contract is on. So they say

equity per that function like futures

could potentially be regulated jointly

as security futures. Just to put some

numbers on this, hyperlquid process

roughly 3 trillion in notional volume in

2025 and already 1.5 trillion through

August 23rd. So, if you haven't been

following along, the CME and other

incumbent exchanges are resisting the

arrival of cryptostyle perpetual

markets. They don't think that these

should be offered by the CFTC or

regulated. The CME in particular has

been very, very loud about these,

especially since they came to Kouchi.

So, we're going to keep tracking this,

but we're in this regulatory legislative

gray area that I keep talking about

where these products and platforms are

innovating at a tremendous rate and

there's no way that the government can

keep up. Uh, would be nice to see these

regulated in a sensible manner. Now,

we're going to tell a couple stories of

stupidity, which is what we like to do

here. Cosmos Labs confirms Cosmos EVM

incident as three chains disclosed.

Sorry, I fell asleep when I was reading

about more exploits in crypto. So, I

told you how not to invest talking about

mantra train yesterday. That was the

first one. Well, now there's three of

them. And they've pointed out the fact

that it was not their platforms that are

being exploited or hacked that are

having problems, but was actually the

Cosmos Hub, EVM, which means Ethereum

virtual machine, which are words I hope

none of you ever have to learn in the

future because crypto does not work when

we get bogged down in the technicals and

nuance of how it works. And we know that

all these things are going to be

exploited. Cosmos was one of the

darlings of previous cycles. I actually

thought that it uh was incredible to

make uh chains interoperable, but now

they're saying to the chains that are

used within the Cosmos ETM EVM to stop

stop mining blocks.

Slow your roll, guys. Stop your

blockchains for a while until we can

figure this out. Listen, this isn't a

how not to invest today, per se, but uh

it is showing you once again that you

need to be very careful about where you

put your crypto because some of these

chains are basically zombies at this

point. I mean, the multi-chain future

that uh Cosmos believed was going to

happen, it's arrived, but unfortunately

several chains are pressing pause

together in that multi-chain future. And

now we do actually have an how not to

invest hit it.

>> How not to invest. How not to invest.

>> Remember when we told you about the

dangers of leverage and specifically

what South Koreans were doing with SK

Highix and Samsung selling off their

insurance and their savings so that they

could buy exposure to their favorite AI

trade through leverage ETFs. Well, now

and I'm not not I'm not mocking mocking

Binance for offering the product. I

think everybody should be able to do

whatever they want. But you should you

should not be doing this. What they're

offering 20x perpetuals tied to Trump

Media, Maderna, and three leverage

semiconductor ETFs. So to be clear, two

of those are the 2x long and 2x short

skinex ETFs that I told you about before

that the South Koreans were going crazy

for. They were all the rage before their

stock market crashed multiple times,

right? Uh you can now buy a 2x long or

short ETF on SKH Highix using

20x leverage.

20 time 2. 40x leverage. It was already

a bad idea when the South Koreans were

uh trading these volatile assets with 2x

leverage. Now you can effectively do it

with 40x leverage. If you do this, your

parents will disown you, your kids won't

love you, and you will be broke and

homeless on the street by yourself.

Okay, maybe it won't be that bad, but

consider this a cautionary tale. Don't

use 40x leverage. That is all I have for

you today. I will see you tomorrow on

the next Daily Wolf. Peace.