00:00
Speaker A
Bitcoin has surged today following President Trump’s signing of a bill that overturns IRS regulations from the Biden administration, which required decentralized finance platforms to adhere to the same tax obligations as traditional brokers. The cryptocurrency market has experienced significant fluctuations since President Trump secured the presidential election, initially hitting an all-time high above $100,000 before declining alongside the broader market as investors adopt a risk-off stance given trade policy uncertainties. Our next guest accurately predicted the ongoing crypto bear market. Joining us is Kamal Mcadem, the general managing partner at Finality Capital, a venture capital firm focused on early-stage investments primarily in the blockchain, Web 3, IT, and Web 3 sectors. Previously, he co-founded OmniX, a trading technology platform that was acquired by Gemini. We also have our executive editor Brian Sozi here to provide further insights. Kamal, just to be transparent with our audience, you are a Bitcoin investor as well. You predicted this bear market; could you share what you foresaw and how this is affecting your investment strategy in crypto?
01:51
Kamal Mcadem
I have been involved in cryptocurrency trading since 2013. I started with an investment of $500 and reached $50 million by 2022. Recently, I observed a quant macro signal that highlights key market inflection points; it switched from positive to negative around January. Based on chart analysis, the peak was expected to occur within that timeframe.
02:43
Kamal Mcadem
The actual peak occurred between January 13th and January 20th, specifically on January 19th.
03:01
Speaker A
Kamal, why hasn’t Bitcoin been recognized as a safe haven during these risk-off days for stocks? In the past, we’ve seen people flock to Bitcoin in such situations.
03:56
Kamal Mcadem
The primary factor influencing crypto prices is macroeconomic conditions, which have been tightening for various reasons. This overarching trend has a greater impact on crypto prices than any other factor.
04:40
Speaker A
If macro conditions are the main drivers, I’m curious about how you approach investing in this digital currency amid such uncertainty.
05:25
Kamal Mcadem
That’s exactly why our strategy involves reducing risk when macro conditions are tightening and reinvesting when the situation allows us to capture upside potential without facing significant downside volatility.
06:01
Speaker A
Let’s approach this from the retail investor’s perspective. If someone has $10,000 to invest in this environment, should they consider buying Bitcoin if they have a long-term outlook?
06:41
Kamal Mcadem
Absolutely. This is a great buying opportunity. Although prices may drop slightly by the end of the year, there are often discrepancies where Bitcoin might be lower, but alternative cryptocurrencies could have already hit their lows early in the year. You won’t regret purchasing anything at this point five years from now.
