A Persistent Demand for Bitcoin Amid Selloffs

Bloomberg

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00:00For you, you're about the builders and the companies that are trying to use the underlying

00:03technology, Jalak. But just paint the macro picture right now. What does bring institutional

00:08retail money back into the ETFs or to the crypto as they stand?

00:13Sure. I mean, your previous guests have mentioned the Bank of Japan news, which

00:17was significant for Bitcoin as well as the broader crypto markets. And we've seen crypto

00:25since the ETFs have been issued and we've seen more institutional involvement move more in line

00:32with other risk assets. Before, we saw a decoupling of the price behavior. But now we're looking at

00:40the macro outlook and it's challenging for risk assets right now. We also have the added challenge

00:47of the Bitcoin treasuries that have been built up. And if we start to see selling as strategy mentioned

00:53they may do, that's going to create more downward pressure. However, we still believe that there's

01:01great global demand for Bitcoin specifically. And we're going to continue to see ETFs and new products

01:09develop on Bitcoin. That's just going to happen in the next year or so.

01:15I mean, you're all about the ecosystem, blockchain.com, BitGo. Also thinking, of course,

01:21how you've been in MoonPay. But when you see worries around stable coins or when there's a broader macro

01:28downward pressure, does that impact those that are trying to build or do they shake it off?

01:34Well, it certainly impacts in the short term, but a lot of these entrepreneurs have been building for

01:38years towards a rewiring of the financial system that is faster, cheaper, offers broader access to

01:46different types of financial assets. And we have seen over the years that that trend is not going

01:53away. There's going to be short term blips, as we're seeing now. But stable coins are going to be

01:59an important part of the new financial order. And we're seeing companies like Stripe and others

02:06start to adopt access to stable coins. That is the state of play that you've just

02:12summarized. Everyone is bullish on the long term about the role of these technologies in the global

02:18financial system. And in the near term, we're in risk off mode because of worries about interest rates

02:24and the direction for interest rates. And that in the moment is moving markets. How long does that carry

02:28on for? Well, there's a great amount of uncertainty, I think, through the end of the year. And we're, you know,

02:37I'd say I'm looking towards the early next year to have that certainty back. We have several companies

02:44in our portfolio lined up to go public on Nasdaq. We're probably going to see, you know, some of the short term

02:51delay on that until market conditions improve. But I do believe that they will improve early next year.

02:57I just can't help myself. What is your 2026 year end Bitcoin prediction?

03:04Well, I don't believe we're going to see massive price movements. I've been invested in the sector,

03:10as you know, since 2013, specifically in Bitcoin. And we see massive upswings, downswings. What we're

03:18seeing now, I think there'll be some tight trading. I can see it go up to 200. I'm not one of those

03:25that's going to predict that it's going to go to a million. The reason I asked that, I was trying

03:29to marry those two points, the long term bullishness on the underlying technology and the short term

03:34price volatility. I did find it interesting reading the Bloomberg terminal that the data set that is

03:38giving most concern is lack of inflows into the ETFs, which you've discussed. What would change the

03:45psychology of people to push inflows in a positive direction? I think it goes back to certainty. We

03:53want to see where the interest rates are headed on a global basis. The October sell off in the crypto

04:00sector was due to the tariff uncertainty around China. We also saw people taking profits when Bitcoin

04:08went up to 126,000. So in the span of three months or less than three months, we've seen over a 30%

04:16drop. That being said, I don't see a downward spiral because there are going to be people who want to get

04:24access to the asset. I mean, we just came off of Thanksgiving in the US and dinner table conversation

04:29was all around crypto. Of course, AI also, but crypto was a big part of it. So there's still a lot of

04:36retail interest. And, you know, I think they get concerned when you just see these big price drops,

04:41but we'll start to see that reverse.

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