Uptober Begins?🚀Tom Lee Calls For $50k ETH Potential 🔥

0:00October is here and does that mean that the market is on its way to another boom? Well, we're going to break it down for you guys. I want to thank our sponsor today and that is Tangym where you guys can get into full self-custy. Very easy to do, your secure crypto hardware wallet and one of the things about Tangym that I think a lot of people misunderstand with self-custy is the ease of use and also the ease of being able to get this setup for you. It's like a credit card works with your phone, always present, make sure to get a three card set so you've got a backup but you guys of course can use our link down below. It's going to give you a 10% discount and they also have several offers from time to time so always check what's going on over there on the website. This is the self-custy to use so make sure and check it out, tell them we sent you. So let's just jump right into it. I want to start off with this ISM manufacturing came in at 54.5 in September. This was below the 55 expectation. We also had a reading here that 50 means a US factory

1:01activity is still growing. So this is good in general for the market. You also have to look at where we are going to of course see PCE and one of the other things to take a look at here is of course prices because these paid jump to 77.9. One of the things that I would look at here is how the fed is going to respond to this. Now do they ease up based on this new data or do they consider a potential pressure point that would possibly try to still deal with, try to still deal with inflation. I think that's a factor that everybody has to look at. You look at the markets, 550 bill now wiped off from the US stock market. This is the last 45 minutes as we're recording. The 10 year exploding, the 20 year exploding, essentially everything on high in terms of bonds. And this is a factor that everybody is concerned about in terms of money because this pulls from traditional markets and moves into these bonds. And this is the issue I think a lot of investment advisors are dealing with right now as people are saying why wouldn't I just go into a bond? Why do I

2:05need to be in a risky stock market out there? Tom Lee says though the AI bubble may still have years to run. And he's been very much a permable over the last several years but especially over the last several months. And his point right here, if Chad GPD marked the start of the cycle, that was 2023, Lee sees roughly 2033 as a window where much of the good news may finally be baked in. I don't know guys. Do you think we are in another decade of an upcycle here when it comes to these stocks? Let me know in the comments, especially when it's related to AI and the technology trade that circles the AI because you got everything from micron chip makers, semiconductor, all that play into this. I want to go to a clip real quick because this will get into Tom Lee's market outlook. The title is Sting bullish even with a hawkish Fed. The AI trade is creating inflationary pressures on memory and energy consumption. Those are bottlenecks. The reality is the Fed raising rates

3:10isn't going to slow down AI spending. So the markets selling off today because of good PMIs, it's probably just a reminder that that's the where the psychology is at the moment. This goes a good example from $9.40 to $97.00. This go from $0.80 to $9.00. And then we had the Asia financial crisis and it fell by 40%. People would have said that was the end but then Cisco a year later went to $18.00. But then long-term capital happened and fell 40%. People would have said, oh well, there it is the top again. Cisco ended up going to $80.00. And that was a 10X, a hundred X from the look. I think that's probably good analog and I think we're here today. All right. So notice that and he's referencing Cisco in the era of kind of the dot-bomb and this was one of the companies that essentially kind of built the internet and good example around you think about it in the same way with AI. What are going to be the companies that build AI? Whether that's the hyper scalers or many of the component manufacturers and designers

4:14and software. All that's going to be playing into this. If you look at this point though, timing is very critical here. Since 1928, the S&P 500 has rose 2.1% on average during the first half of October when it was a US midterm election year. So this would be its strongest performing half month of Q4 if that were to take place. So all of this is looking at history and saying, well, if timing works, then it's going to play out this way. If you look at it on the crypto side of things, you could look at October and say, yeah, history is on its side. Look at October right there, mostly green through the entire history all the way back down to 2013 except for last October, obviously the S&P 10. But if you look at the chart here, all of these reds get followed and sandwiched by green. So maybe we are in an October position right now as we start to look at some pretty big moves. Three of the biggest cryptocurrencies though right now are still crushing every other asset class since June. So if you were in June, buyer class out there and you were buying E,

5:20or you were buying sold or Bitcoin, well, you can kind of see the numbers right there. 67% up on Ethereum, 39% up on Bitcoin and sold, sitting at 61.9%. So nice moves to you guys that got in in the summer. City also raised its 12-month Bitcoin price target to 113K. I am very interested in this because they have been back and forth on where Bitcoin would go. ETH though is interesting because they've pushed it up to around 3K not as much in terms of a growth. All of this citing the continuation of ETF inflows. So I'm kind of curious, do you think ETH or Bitcoin hits its all-time high first? Let me know in the comments down below. Let's play a clip real quick because this will get into Tom Lee thinking they might be wrong because he thinks ETH is going somewhere else. Ethereum has been consolidating for five years now. There have been two other times Ethereum has consolidated this way and they were resolved with upside breakouts. The first one was

6:24a 62X upside breakout. The second one was a 17X. So we're faced with the third one which if Ethereum can break 5,000 we think it could go 10X from here. I don't know. Sometimes I don't know if I should hug Tom Lee or slap Tom Lee sometimes. I just don't know. 10Xing off of a 5,000 dollar Ethereum. If we are in a market that is that hot where we're Bitcoin and ETH, especially ETH, trading at 5K, something amazing has occurred. If that is the case, the likelihood of an upcycle, a significant upcycle, even parabolic to a certain extent, could be possible. He says that there are some things that are driving it and he thinks debts might actually be a bigger part of this. Now granted, you guys all know he is the king of debts when it comes to it with BM&R. Watch this clip. The next 12 to 18 months, all of the debts, not just bitmine,

7:27are going to really ramp up their purchases of crypto. So I think the cryptos that have debts are going to be the best performing because these debts essentially buy the crypto and take out supply that Ethereum debts own a total of 7% of the supply right now. That's more than Bitcoin debts or the Solana debts. And I could probably see that getting to 15% in this bull cycle. All right, so when you listen to that clip, you have to wonder, is there something in Lee's mind that says, hey, we might actually start to accelerate this even more in terms of our acquisition targets because they've been shooting for the 5%. And if you look at the overall, bitmine now trades at nearly 6X, the daily volume of all nine US spot ETFs combined. I'll show you the chart right there, nearly 6X right there, BM&R. This is a point that I'm getting at, is if we see this kind of move on Ethereum, where would BM&R be? Because they're going to participate, you would think they would be, especially in the point that you just made in that clip.

8:30And that is that there's going to be a lot more acquisition by all these different projects that are debt holders. And that may start to set things up in a big way. Okay, from all of that, I want you guys to also think from BM&R standpoint that two other major tokens that they're exposed to is hyperliquid and salana. And you can kind of see it right here. They're closing out the DeFi protocols, top 10 revenue generators. This goes back to the thesis that I think BM&R has been looking at. And if you go even further into this, here's bitmine immersion, this is BM&P. So essentially, this is kind of the counter play to stretch earning at 9%. So think about if this starts to hold, how would that combat possibly into people maybe playing the stretch market out there? So STRC, you guys know what that is in terms of what Michael Saylor is doing. So this gets into a lot of positives for Ethereum. It gets into a lot of positives for BM&R. If you think about this, one of the point I want to get at is the tax position that is starting to face the crypto

9:31market. This is a major US tax update that has just been to introduce this, of course, coming up. It's a 56-page bill. There's a lot of things that are in it. One of the biggest issues is taxes exemption for small purchases. The wash sale rule would go away. This would prevent artificial tax loss harvesting that many of you have taken advantage of because there's been no rule around that. Now, one thing to be aware of is this is not a law yet. It's still the proposal. So it is coming. And I think the question is whether this gets through. So beyond the look out, because this could change things up on the tax side soon. We're going to get David Kramer on soon to talk about that. Hester Pierce, of course, tweeted out right here. I'm not a fan of credit investor gating, but at least we are proposing to nudge that gap at open a bit. If this happens, it changes the dynamic, I think, for the next generation of investors. It's something that Gen Z has and should have the availability to be able to do, which is get away from that accredited investor, you know, new news that's been around everyone out there. There is a crypto

10:36advocacy group out there, Stan with crypto, who's rolling out its first round of Senate endorsements after clarity failed. So let's see how this plays out in the market in terms of midterms. Who's going to get voted in? I'm going to go check the scorecard on who actually was a pro crypto and ended up saying their seat going forward. Bloomberg also launched a stablecoin dashboard on its terminal tracking supply, mint's burns, all of this, as well as velocity for every stable coin above 100 million in circulating supply. That means mainstream guys. This means mainstream, because for every trader, major trader out there using Bloomberg terminal is pretty much a daily habit and a function within their own operations. So institutional capital all played into that for sure. So I want to tie in Solana to this because I think this is very pro-E, but it's also pro-EMNR in the sense of they could be going in this direction. Solana being another asset that Tom Lee is very focused on. And you look at it right here. Solana recorded over 14 billion transactions

11:41in Q3. This is the highest quarterly transactions count ever. So imagine where that is in just 12 months. These are the kind of things that are moving the market right now. Now, granted, sure, it's up and down. We still see a lot of macro trends, but I think we are in for a very interesting October. Let me know what you guys think down in the comments. If you liked this video, hit like and subscribe, drop a comment down below, and also join our free private member group, the link is in the description.