Bitcoin Is CRASHING AGAIN! Buy The Dip Or Is It Truly Over?

0:00Hello, everyone. Bitcoin is crashing. Everyone is freaking out. I'm about to tell you whether it's rooted in reality or not. And then I'm going to tell you about a new investment opportunity that I find very interesting, and it's got a massive market attached to it. We're live today from the desk of Anthony Pompliano.

0:24All right, ladies and gentlemen, let's just call it what it is Bitcoin is falling and falling and falling and people are freaking out. But remember one thing real quick. We hit$126 ,000 all time high. People were euphoric. Everyone was super excited. And then Bitcoin fell all the way to$60 ,000 back in February of this year. So that big drop that freaked everyone out. Literally the fear and greed index went down to a five. I've never seen the fear and greed index hit single digits, but that's where we were just back in February. Now, the reason why that's important is because we're back to about$62 ,000 here now in the month of June.

0:58So between February and June, what happened? Everyone got a little light of hope. They saw that Bitcoin went from 60 ,000 all the way back up to 82. Everyone said, maybe that was the bottom. Maybe that bear market is over. We're headed back to all time highs, but not so fast. My friends, Bitcoin came back down and is retesting the lows of this market. Now, the reason why this is interesting is if you look at the RSI, it has been this low. This is the third time. You can see back in March of 2020, we hit this level. Then in February of this year, we hit this level and now we're hitting it again.

1:29That usually tends to suggest that Bitcoin is super oversold. But just knowing that Bitcoin is oversold, knowing that the price is going down, it don't feel good for me, for you, or for anybody else. But understanding why it's happening is usually much more important. If we go and we look at Binance research, they say that the mechanism as to why this is occurring is very simple. They say that outsized equity returns in the public markets is pulling capital into the public market. So capital is chasing returns. It's chasing momentum in the public market. And so you see this rotation occurring.

2:01Well, when you get that capital concentrating in the public market, it becomes a capital black hole. Capital black hole means that the liquidity has got to come from somewhere. Now liquidity right now is coming from Bitcoin. So people are selling Bitcoin and they're rotating their capital over into the public market and they are going and chasing the return. Now that means that Bitcoin's price drops and stocks take off. And you can see here that the NASDAQ is going up and Bitcoin is going down, but it's not just Binance research that believes this. Michael Saylor, the biggest Bitcoin bull of them all.

2:30He came out this morning and he said that capital markets are funding the AI build out at historic scale, about$400 billion over six months. The Bitcoin ETFs have seen about$4 billion of outflows since May 14th. And he says that that is pressuring Bitcoin. This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity. Now, the reason why I think that that is interesting is because you have to remember that Bitcoin has become out of favor. Why is that important? Well, most investors, you know, they've got this idea that they are going to take their capital and they're going to chase momentum.

3:04So they see AI stocks and public markets going up and they start to chase it. And guess what? When they buy those stocks and they go up a little bit in the short term, people get very excited. They think that they're geniuses. There's lots of geniuses in a bull market. But the problem with that is that usually you start to pour more and more capital into the top of the market. So what do great investors do? Great investors take the opposite approach. They look at the things that are very popular and they say, I'm not interested in the bubbly, frothy, very euphoric type things. Instead, what I'm interested in, let me go find the assets that are out of favor, that are gonna come back into favor.

3:35The things that nobody wants right now that are cheaper than they were previously. So if you take a look at Bitcoin, that's exactly where it is. It was$126 ,000. Nothing has changed about Bitcoin. It still is producing block after block of transactions. It is still a store of value. It is still being adopted by Wall Street and sovereign wealth funds and many, many other types of capital pools. It is still becoming the backbone for digital credit and many other aspects of these financial instruments. Yet the price went from$126 ,000 down to$62 ,000. So if you liked it at$126 ,000, you should love it at$62 ,000.

4:07That's the whole point is you go and you find assets that are out of favor. and then you have strong conviction that they're going to come back. Now, the other thing that people are talking about in the Bitcoin industry that I think is very noteworthy is that Bitcoin is knocking on the 200 week average. And the reason why that's interesting is because historically, when Bitcoin gets down to around these levels, it has been a screaming buy. It has had great forward returns. Does it mean the history is going to repeat? No, but likely it will rhyme. So my guess here is as Bitcoin has come down here, it is going to become more and more attractive.

4:37You're going to start to see people step in. They'll buy the asset. And we probably will not see all of the fear, all of the chaos, all of the uncertainty that we've seen in the past. When you read the headlines, relax, take a deep breath, calm down. Everything is fine. People are going to be freaking out. But you, if you can control your emotions, if you can simply make smart, long-term decisions, you have an advantage. And so if Bitcoin falls, great. It means that it is cheaper for you to continue to dollar cost average into it. and everything will be fine in your portfolio, in your life, and around the world.

5:14And people who tend to allocate their capital to Bitcoin at times like this, they understand, don't allocate your money looking in the rearview mirror as to what has already happened. Instead, you got to look forward. And my guess is that there is optimism and hope going forward for Bitcoin because everyone hates it. And when everyone hates Bitcoin, that usually means that Bitcoin is preparing itself to do what Bitcoin does best. The asymmetry will be back. One of the key concepts when you are investing is you want to look for things that have a massive addressable market. The bigger the market, the bigger the opportunity.

5:46That means you can put a lot of capital to work, but also if you can find these industries when they're really small, but they're going to be really big, that's where asymmetry lives. And recently I've become very interested in humanoids and robotics in general. And so I sat down with Andrew Kang. I think he's probably one of the best robotics investors in the world. And he explained to me what the total adjustable market is. The numbers he's thrown out here, they are mind boggling. Take a listen to what Andrew said. When you think about the total adjustable market, like what do you think it looks like for humanoids?

6:13To understand that you have to look at what is the total market for human labor. It's something like 50 % of GDP. It's, you know, some people put it at$40 trillion, $60 trillion. The way that I would think about it is a humanoid can do everything that a human can do in the future, right? But it doesn't need to rest. It doesn't need to take breaks. doesn't need to go on vacation. It's not going to quit on you. So you don't need to hire and retrain somebody else. And so one robot could theoretically perform the function of maybe three humans, right? Assuming it's able to work multiple shifts. And so if we take that perspective of, well, robots are going to replace most of physical labor, then you can also maybe do a bottoms up analysis where you say, hey, look, one robot,$50 ,000.

6:58How does that compare to a human? A human, I have to pay every single year. A robot, that's a one-time fee. Maybe I have to pay a little bit for electricity. Maybe I have to pay a little bit for maintenance. But when I look at it from a per-hour basis, and I expect this robot to last multiple years, that math gets you down to around$2 per hour. I think you can come to an understanding that, look, there's going to be a lot of robots. We sell billions of cell phones every single year. We sell hundreds of millions of PCs and cars. right and so probably sell a similar amount of of robots and so but like what if we just sell 100 000 robots for 50 000 each that's around five billion dollars of revenue now okay what if i sell a million robots that's 50 billion dollars you know you're getting to almost the scale of some of the biggest companies in the world a million robots is really nothing right because amazon has millions of workers and walmart has millions of workers and what if i sell tens of millions okay that is now 500 billion.

7:54And so you can see there's a really clear path in terms of like how we can potentially achieve trillions of dollars of revenue. And that would imply tens of trillions of dollars of market cap. And that doesn't even consider stuff like Jevin's paradox, where you're lowering the cost of labor of the product. You're actually increasing the market size, right? Because now things that were too expensive to do before are now economical. They trillion. I mean, just these numbers are crazy. To put that in context, Bitcoin's like a trillion and a half,$2 trillion asset class. And so robotics would be massive.

8:30Humanoid robots would be massive. And so if you can go and you can allocate to the right companies when this industry is really small, but it becomes really big, obviously there's a lot of returns there. Now, the key part is who's going to allocate that capital. And I think that's where as a private investor trying to understand what are the companies, what do they do, which are the winners going to be? How do I actually get access? All of those components are really important. But Andrew says that there's another capital allocator that's going to be really important in the market. That allocator is the U.S.

8:57government. The United States and China, they're locked in a competition. They're trying to figure out who, from a domestic standpoint, is going to actually win the race for humanoid robots or robotics in general. The idea here is if you can control robots and you can actually use them to become more productive, all of a sudden your GDP, your economy, your society should drastically accelerate itself. So that's where the global geopolitical competition gets off. And that's why Andrew says the U.S. government should be investing directly into robotics companies. Take a listen to his logic here.

9:29What do you think the U.S. government can do to encourage more success in the humanoid robot space? I think they should just be directly investing in some of these robotics companies. I mean, the reason why we started RoboStrategy was because we felt like, One, there is a need to invest billions of dollars of capital into the most important robotics companies of the future. And two, there was an opportunity to do so as well. The thing is, we've never had companies or venture capital firms with the experience to do this. And so it's a completely new underwriting game for them. They have to step out of their comfort zone.

10:03They have to get comfortable with all the execution risk, with all the dilution risk of potential future CapEx build-outs. and it's something that if the US government doesn't step in, it could take an elongated amount of time for the industry to develop as fast as it should. So there you have it, folks. Not only is this a big market, not only do I think that it is very undercovered right now, but it is going to become one of the hottest markets in the future, this idea of physical AI. But on top of that, Andrew also believes that we need private and public capital going into these companies. So at the end of the day, there's one thing that we've learned over the last year or so, White House asset management.

10:43When they buy a stock, when they invest in a company, when they announce things for certain sectors, usually there are returns that follow. And so whether we like it or not, whether we think it's right or not, if the US government starts to allocate capital to a certain sector or to a company, your eyes got to be peeled, your head's got to be on a swivel, and you've got to pay attention. And so ultimately, I think that humanoid robots, this is probably the largest addressable market in all of investing right now. It is very, very, very small. Most people do not think it's possible. Most people do not even understand where the technology is today.

11:15I recently became a shareholder of bot or robo strategy because I believe that Andrew and his team, they're all over this trend and I want exposure to the industry. And so whether you like it or don't, whether you want to invest in their stuff or you don't, my biggest suggestion to all of you is to pay attention to physical AI and robotics because I believe that it's going to be a massive investment opportunity going forward. That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube. Our goal is 1 million subs. If you hit the subscribe button, you help us get there faster.

11:45And I'll see all of you live from the desk of Anthony Pompliano tomorrow.