Bitcoin and crypto markets are stalling despite recent gains. The speakers trace the slowdown to drying liquidity in stablecoins and ETFs, internal capital rotation instead of fresh money, and uncertainty over whether Bitcoin will be classified as a commodity or security under a proposed Clarity Act.
So why is Bitcoin even rejecting off this level? Why haven't we rallied into a full-on bull market? We came back down here to $100K BTC, bounced off this level here. Why is this even happening in the first place? Primary reason is because liquidity has been slowing down. The momentum of liquidity in the market has been slowing down. As you can see from here, Wintermute right here specifically showing that stablecoins, ETFs, and DApps haven't had as much inflow as it had in the beginning of 2025, end of 2024, where we really saw a major altcoin rally. As you can see right here, ETFs and DATs— DATs are basically tokenized debt structures and things like that— have grown from $180 billion to $560 billion since early 2024, but momentum has slowed. Basically what's happening right now is that capital is rotating internally, not entering fresh. So essentially all the money, it's already in the system, is just trading back and forth— bulls, bears, altcoins, whatever the case is. But we need fresh new liquidity. The question is, where is that coming from?
The reason that will be important and why we'll get price appreciation on Bitcoin is the minute that happens, it will signal the move to the next act, the Market Infrastructure Act. And why that matters to everybody in this room is We will finally determine, is Bitcoin a commodity or a security? And when that is determined and regulated, Katie bar the doors, a trillion dollars will come and index that asset. Let's all hope that happens while we're alive here.
Not only will it happen while we're alive, it's probably going to happen at the end of this month. This is Brian Armstrong, the creator of Coinbase, the founder of Coinbase. Now, the reason why This is specific is because Coinbase is the only publicly traded company in America right now besides USDC, which they're really close, by the way. So they were the first, now there's USDC. They're both like pretty much business partners at this point. And we have him saying that hopefully it's out by the end of Thanksgiving. Look, We're 90% there. Both sides are working hard to figure out the final 10%. So is it going to happen at the end of, you know, before Thanksgiving, end of this month? No one knows for sure, but we're seeing an extreme amount of credibility saying that it probably will happen. That's the new liquidity. I hope you guys are paying attention. So what he's saying is that every coin in the market will be regulated. So you have to, you have to comprehend, like, every coin founder right now is pretty much operating in a gray area, not knowing if they're going to get sued by the SEC. Every coin up into this point, up into the point of regulation that we're going to have with the Clarity Act, they do not know if they're going to get sued. So imagine all these big corporations that want to tokenize that have not done it because there is no clarity. When the clarity comes, not only gonna have a whole bunch of launches, but companies are actually able to build.
