Episode 90: Funding Stress vs. Liquidity Wave - What Happens Next In Crypto?

Bitcoin dropped after Bank of Japan hints at a December rate hike – markets flash back to August’s carry-trade scare and crypto dumps harder than stocks.

Imran Lakha (Options Insight) & David Brickell (FRNT) push back: the real “carry unwind” fear (Japanese investors repatriating $4T in foreign assets) is overblown – domestic institutions move slowly and Japan’s stagflation mess actually makes the yen weaker long-term.

Real problem remains US funding stress: TGA drawdown slowed by heavy T-bill issuance, QT ends this week but front-end pressures still building. Fed rate cut next week helps a little, but real relief only comes when the Fed proactively supplies front-end liquidity (“not-QE QE”). Until then, expect choppy price action into year-end.

The following topics is covered:

00:00 – Introduction
01:08 – Santa Rally? Market Reactions & BOJ Headlines
02:26 – Japanese Yields & Algorithmic Sell-offs
05:09 – Tether FUD & MicroStrategy Liquidation Rumors
07:30 – Saylor, NAV Premium & Liquidation Levels
11:25 – Japanese Stagflation & Yen Risks
14:26 – Capital Flows Toward the US & Bitcoin
15:46 – Global Liquidity & China Stimulus
19:38 – Why Fed Liquidity Operations Are Needed
24:34 – Bitcoin to 250K? Macro Setup
26:52 – Bitcoin & Ethereum Volatility Trends
30:23 – Heding Your Downside
31:43 – Santa Rally in Equities vs Crypto Liquidity Issues
33:27 – Long-Term Bullish, Short-Term Cautious
33:55 – Closing Remarks & Outro Music