Bitcoin's rally is confronting a hostile

global bond market, but Bitcoin has

remained surprisingly strong in the face

of all that. We're going to tell you why

and break down all the other stories

moving crypto markets today on the Daily

Wolf. Let's go.

What is up everybody? Welcome to the

Daily Wolf on Yahoo Finance. I am your

host, Scott Melker, also known as the

Wolf of All Streets, and we've got about

15 minutes to dive into Bitcoin price

action and all the stories that are

moving markets. And I've got to say that

Bitcoin has been surprisingly resilient

in the face of quite a bit of macro

headwinds. We're going to break those

down right now. Here you go. Here's the

headline. Bitcoin holds near 78,000 as

rising oil treasury yields cap further

gains. Now, obviously, we know that when

Bent announced that he would intervene

in the bond market, Bitcoin went flying.

We had a short squeeze and then

continued up over $80,000. And it was

the idea that the United States

government had finally seen enough pain

in the bond market that they were going

to react. But of course, since then,

even as Bent has increased his rhetoric,

we've seen those yields skyrocket back

up as if he never said anything. The

bond vigilantes are not buying what Bant

is saying, which has been problematic,

but not for Bitcoin. Now, let's just

look at how bad it is across the board.

Japan's benchmark bond yield rises to 3%

for first time in 30 years. 10-year

yield hits highest since January 2025 as

higher oil prices stoke inflation

worries. Same story here. Seen these

headlines everywhere. Bond yield surge

as oil prices fuel inflation worries. Of

course, we've seen an uptick in military

action in the Straits of Hormuz, which I

hear are going to be the Straits of

America soon.

Why not? We've got a lake. We've got a

Gulf. We need some straits, right? Uh

and all of these things are going to put

more pressure on the Fed. Right now,

obviously, we're seeing that people are

pricing in Fed rate hikes. I still don't

believe that those will happen, but we

basically had, you know, Bessant create

this situation where Bitcoin could go

up. Then Worsh on Friday came in and

poured cold water all over the idea. And

now the actual markets are sort of

confirming what Worsh said, right? So

we've got Bitcoin consolidating here

after gaining 24%. This was its

strongest month since November of 2024,

but then you have all this bad news

which is supposed to send Bitcoin down,

but it's remained extremely strong. So

once again to add some more fuel to

this, US Treasury yields reached their

highest levels, but German 10-year

yields highest since 2011. Brit British

10year yields highest level since 2008.

And now some markets even pricing a Fed

rate hike at 70%. So we all know that

Worsh's mandate is to come in and cut

rates. We all know that what Besset

needs to see him do is to cut rates

because we have $40 trillion in national

debt now and the bot market is seemingly

breaking. A lot going on here. And the

real story once again is that Bitcoin

has ceased to care. Now, I told you when

Bitcoin seemed like it was bottoming for

all those months that one of my favorite

signals was the fact that bad news was

no longer sending the market lower. We

got, you know, news from strategy and

all these uh, you know, exchanges

shutting down and of course macro bad

news and Bitcoin remains steady before

heading up and it's still doing that

even as it's established a higher floor

up around $78,000. I think that uh,

Bitcoin is looking extremely healthy

right now, even if it gets some

retracement before what I believe is

likely to be another move to the upside.

So Washington's obviously fighting over

the price of money here uh with the Fed

and the Treasury on opposite sides, but

the operators of the world's largest

exchanges are rebuilding those markets

themselves. And one of those is the

London Stock Exchange right here. London

Stock Exchange to work with Payward to

bring biggest UK stocks onchain. So

Payward is the parent company of Kraken.

We're going to continue to tell you

about them later in the show as well,

but Payward making absolutely monster

moves right now. On the second story,

I'll break them both down. NY owner ICE

taps T0 for tokenized securities push

take stake and firm. The deal adds

transfer agent and settlement

infrastructure to ISIS plans for New

York Stock Exchange affiliated market

for tokenized stocks. TZ says, okay,

let's go back to our friends over in

London who lost the revolutionary war

test. Sorry that happened to you guys.

The London Stock Exchange partnered with

Payword, Kraken's parent company, to put

the hundred largest LSE listed stocks on

blockchain rails. They're going to do

this through X stocks, which is the

existing uh product that Kraken has, and

those tokens are backed one for one by

shares held in custody. Now, we know

there's a lot of ways that people are

doing tokenized stocks. This is arguably

the right way. So, obviously, they're

going to you're going to be able to

trade around the clock across exchanges,

self-custody wallets, and onchain

applications. you'll be able to take

yield and do all the things that you can

do with every other asset on chain. And

that's what's important here. This is

really an innovation across the board

when these assets start to be tokenized

and used within DeFi. But importantly

for the London Stock Exchange, this

could provide access to these US UK

liquid uh UK listed equities in more

than 110 countries. Now, you've got to

imagine that most places on planet Earth

do not have access to the companies on

the London Stock Exchange, and now they

will. So, this is part of their

long-term plans to tokenize everything,

which we've also seen in the United

States with the DTCC talking about

tokenization. And of course the second

story which was the New York Stock

Exchange ICE investing here in T0 uh

which is also bringing them 103

blockchain patents which might be the

most valuable part of this deal. As I

said T0 will provide transfer agent

broker dealer and settlement

infrastructure for ICE's plan tokenized

security markets. And importantly ICE

has generally been exploring whether

tokenized stocks can be used as

collateral inside its clearing house.

So, ICE uh Intercontinental Exchange,

the company was behind the New York

Stock Exchange, has invested in quite a

few things, uh, over the past year in

the crypto space, including, of course,

OKX, did a massive deal with OKX, took a

board seat, and seemingly very very

interested in being involved in the

future of crypto in the United States.

And the future of crypto, I think, as we

know, at least blockchain rails, is

tokenization of everything. So obviously

we have traditional exchanges now with

ICE and London stock exchange carefully

constructing regular uh regulated

blockchain markets. On the other side

crypto exchanges have already skipped

ahead to the 24hour

uh stock casino. Right. And this story

right now here is Binance adds options

on a thousand US stocks and ETFs as

monthly Trady perpetual volume hits $433

billion. So, I've long told you about

the story that we basically have two

converging forces that will meet in the

middle to compete for who will be the

everything app, right? I just told you

about the New York Stock Exchange and

the London Stock Exchange. Then, of

course, we have the Morgan Stanley's and

Schwabs and all the major institutions

all coming into tokenization through the

back door and coming into crypto through

the back door and having limited access

to this market. On the flip side, you

have all the cryptonative companies like

Kraken, who I just told you about with

their X stocks, and now Binance here

trying to add everything that Trad

already has. You can argue that

Hyperlquid is somewhere in the middle

because it's blockchain rails and

perpetual uh swaps on effectively all of

these assets, right? So, Binance adding

options, right? This isn't tokenized,

options on a thousand US stocks and ETFs

is massive news. So eligible users can

purchase calls and puts and receive the

underlying shares when contracts are

exercised. This is all through Binance's

Abu Dhabi regulated broker dealer routed

through US registered Alpaka securities

for execution, clearing, settlement, and

custody. Now, I'm going to tell you

something that's going to shock you.

This is not available to Americans.

Might have heard me say this before, but

if there's one thing that I know about

us in America when it comes to fun is we

hate it. when it comes to financial

markets, we can't do anything. And by

the way, uh if you think you can do

things in America, just go to New York

because they can't do anything fun for

sports, gambling, and crypto, right? Uh

but they can go to Times Square, which I

guess is nice for them, right? So

listen, uh, Binance already provides

eligible international customers access

to more than 7,000 US listed stocks and

ETFs, but now obviously adding options

is a huge, huge move. And their volumes

are absolutely insane. As it said there,

Binance's Trady perpetual volume reached

433.4

billion just doing August. That's

approximately 15 times what they did in

January. to give you some context on how

fast these are growing. Equity linked

perpetuals generated 342.9 billion

representing 79% of the total. And if

you think this is just a Binance story,

part of the same story in my mind is

this

Robin Hood chain hits record 989 million

in daily DEX volume as TVL grows. So if

you haven't been paying attention like

me, I wish I was over there flipping

meme coins in the trenches, but

obviously that is not my core

competency. But Robin Hood chain

predictably I think is absolutely

exploding. They have such a big name, so

many customers, so much interest in in

the crypto space. They've launched Robin

Hood chain which is a layer 2 on

Ethereum that's part of the Arbitum

stack using their technology. Arbitum

has gone up recently as a result. This

is now the largest L2 arguably by volume

on Ethereum and has even surpassed

Ethereum itself even though it's a layer

2 in fees uh gathered over the past 24

hours. A lot of that is because of

memecoins but not just meme coins.

Tokenized stocks once again same

narrative have absolutely exploded here

on Robin Hood chain. Obviously different

from what you can trade on Robin Hood.

This is Robin Hood onchain on their own

layer 2 blockchain on Ethereum.

This stuff is just going absolutely

bonkers, right? I don't know. I think

the memecoin craze will probably, you

know, go up and down and go from Robin

Hood chain back to Salana to other green

pastures and back. I don't really know

how to manage or look at that market,

but I know that this is a one-way street

towards the tokenization of everything.

And Robin Hood definitely intends to

compete big time in that market. So, you

know, Wall Street asks for stocks that

trade 24 hours in crypto added perpetual

leverage and a dog token for lunch, you

know, but once every asset can trade

around the clock, the obvious next step

is allowing people to trade every event

in the world. And that of course means

that they're going to do it in

prediction markets. And we've got some

big news here from Poly Market.

Trump Jr.'s firm leads 1 billion poly

market raise at 21 billion value report.

So 1789 capital that's the year he was

born is putting in about 300 million

adding to a roughly 200 billion stake as

the prediction markets valuation rises

from 15 billion to 21 billion. Now,

interestingly, Poly Market is not

available still officially in the United

States, which is

surprising considering that they have

backing from the Trump family. But Trump

Jr. is an adviser to Poly Market here

and not just an investor, but also an

adviser to their direct and largest

competitor, Koshi, who is available in

the United States. That's like literally

me uh being on the board of McDonald's

and Burger King.

I I don't understand it, but I'm here

for it because uh you know, but we know

that prediction markets are going to

continue to grow massively, but their

valuation growing 40% in just a matter

of months is absolutely huge news for

Poly Market. Now, you know, Poly

Market's valuation shows how valuable

these open markets can become. Hyperlid,

which we're going to talk about next,

shows why moving these markets inside

the regulated American system is so

difficult. And here is a two-part story.

Hyperlid seeks US foothold through

Kraton parent Hayward. Remember I told

you I'd talk about them again in crypto

perpetuals deal Bloomberg. Now I'm going

to talk about that story first, then

we'll get to the second half of this uh

in a moment. So under this proposed

structure, Payward subsidiary Bitnomial

would provide registered US users access

to selected perpetual contracts linked

to hyperlquids market. So the reason

that this is so interesting is because

the day that Bitcoin skyrocketed from

the mid60s all the way to basically

80,000. We had the bet news, then the

short squeeze, and then Donald Trump

gave a speech at the White House where

he literally said hyperlquid. He said,

"I know that Mike Celig at CFTC is

working very hard to onshore hyperlquid

and bring their contracts onshore."

Well, now we're seeing evidence that

that is possible and it's all through

once again Payward, which is the parent

company of Kraken. Bitnomial, who they

would do this from, already operates a

CFDC license, exchange, clearing house,

and brokerage stack. So, there might be

a way to backdoor it through this. Well,

just for the size of Hyperlquid, they've

processed more than 5 trillion in

cumulative perpetual volume and they

currently have approximately 13.3

billion in open interest and process

roughly 205 billion during the past 30

days. Now, the problem with bringing

unregulated decentralized markets on

shore is this. North Korean hackers are

moving tens of millions on hyperlquid as

Trump pushes to onshore the crypto

platform. So, this is one of the things

that comes with crypto is that you can't

always stop the people that are using

it, especially when you don't have AML

and KYC. Well, North Korea's Lazarus

Group, the largest hackers on this

planet of Earth, have sold more than 30

million of Bitcoin through Hyperlid

during the past 3 weeks. So, obviously,

this is the push and pull of

decentralization versus centralization

and control and regulation versus

something that's deregulated and

everyone around the world can use.

They're going to have to figure that

out. Meanwhile, I'm just very very

encouraged to see Bitcoin holding strong

in the face of all these macro tail

headwinds. I'm sure we'll be talking

about that more tomorrow on the next

Daily Wolf because that's all I got for

you today. See you tomorrow. Peace.