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Gridlock rally is underway. Today, let's break it down because there's a lot of things you'll want to pay attention to here and it really starts with a couple of key things. Before we do that, I want to thank our sponsor, and that's iTrustCapital, where you guys can get into your own crypto IRA, cryptocurrency, stocks, gold, and silver, all available over on iTrustCapital.
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And IRAs are one of the diversification things that you should be doing to set yourself up for success. Let's just jump over this right here, and that is PredictIt, which party is going to win the Senate. Right now, you have the Democrat Party holding it about 66%. A couple of things to point out here because remember, when you look at crypto in general, it has been mostly the Republicans that have been kind of pro-crypto.
However, I've got something at the end that may be giving you some indicators that there are some Democrats playing into this game as well. Other things you got to look at are key timing here. This is around midterms. First chart you're looking at here is seasonality trends uh were weaker for equities in September.
And if you can kind of notice here, this of course breaks down all the way since 1950, past 20 years, past 10 years, and past five, which is the gray. Look at that gray. That bar right there is seasonality equities in September. Now, let's compare that to what goes on in midterm years, and this is the orange being a presidential election year, the midterm year, kind of that black color, and then no election year, the yellow.
You'll notice right there in September, midterm year, which we're in right now, down in September, fairly significant. Look at October, midterm year, this absolutely skyrockets in terms of the seasonal patterns where these markets could go. So, this could be a good indicator for crypto in general. Let's jump over here to 2018 cuz remember 2018, this is a good example right here.
This was a situation where post midterm, we saw election dump. Now, remember, this was when we did not have gridlock. That's a key factor here. If you look at this chart, it goes a little bit further, now you're going into where the Republicans kind of had a chance of being able to sustain. This was 2022, somewhat sideways in the market.
One key difference, guys, you all remember what happened in 2022. In fact, what happened in November of 2022, this is what happened. Six days that pretty much rocked the crypto industry and that was the FTX situation. In early November, this of course was a major event that of course re-corrected the course of crypto, I think, and it had a lot of play into how crypto was even being looked at, obviously by the lawmakers.
We went through a very rough time. Essentially, I think this is what launched stand with crypto to try to out outline who the lawmakers were that were behind it and the lawmakers that were not for it. All of that played into that cycle. None of that exists right now. The fact that we are most likely going to have a gridlock coming into the administration could change things up pretty significantly as long as we don't see a major crypto collapse like what we have seen.
If you go back to October of last year, November of '22, those were the kind of things that make a difference. Now, I want to go over here cuz I want to showcase something here. This is in reference to what's next for digital asset regulation. And one of the key things I want to showcase right here is what the SEC has been doing.
Remember August 18th, they proposed the crypto asset regulation. This of course remained open for pull full public comment. And I want you guys to remember back in August, what happened when we started to see those rules being formulated? Market pumped. What happens when this locks in because the public comment period will be over on October 20th.
So, I'm another reason that October could be a major month for crypto and blockchain in general. Now, Tom Lee goes into a couple of things and one is a buying spree. They are jumping into another 15,000 in Ethereum or 15,000 ETH worth 41 million in Ethereum and he continues to purchase and he's not slowing down and I think there's a couple of things that he's looking at.
Obviously, revenue will get to in a second of what Bitmain is doing, but I want to play a clip real quick because this will go a little bit further into Tom Lee's thesis of whether or not we get a downturn. Take a look. You also I think already at any time for a drawdown. That that could still come and you've been talking about that for a while.
But that would be a midterm sort of a freak out or what what what would cause that? Is it 28 that's a zombie movie 28 another 28 days? Is it Is it only about 28 days away? I mean, I I think there is an expiration date or a correction partly because I think the midterms is a clearing event. You know, that's probably going to be a very big risk on signal for markets regardless of outcome.
We've had a lot of different groups in a drawdown. But as far as a bigger drawdown of markets, I'm still kind of holding a view that from mid-October to midterms is where a speed speed bump could happen. Mhm. I'm kind of reluctant to sort of be that declarative just because sentiment's been negative and I think when people are bearish it's hard for markets to be over their skis because we know people are actually speaking with their sentiment and staying cautious.
So, a couple of things there, uh sentiment being cautious. This of course is primarily uh the the traditional finance markets and what we're seeing around stocks. But, this could also layer into how this plays for crypto. If we do see a rotation, which I think already has started to happen, the thing that could be getting going is exactly what Tom Lee is talking about and that is that this gridlock actually could be a catalyst.
Take a look. I think one markets like gridlock, so having Congress controlled by the Democrats would be viewed as gridlock. The AI stocks in crypto stalled because of midterms with the idea that Democrats don't support data centers and they don't support clarity act. But, our country take is that after midterms the Democrats are going to start supporting data centers and clarity act because one, data centers are generally providing a lot of economic benefits to the community and clarity act had many Democratic supporters.
So, I I think the AI stocks are going to benefit post midterms because, you know, the change in Congress is not is actually going to sort of green light some projects. All right. So, what Tom was getting at, a couple of things. I'm still slightly skeptical as to whether or not the Dems are going to be out in front of this.
One thing though, if you look at clarity, I don't think this is going to be something the first of all that we need anyway. We've already seen the market move in a direction. The key here will be the seats going into the SEC and the CFTC. This may be a surprise for the market if we actually get a non-hardline Democrat in the SEC or the SEC that can help along with what we're seeing already that is moving crypto in a very I think expeditious way.
So, that may be a big surprise to the market if in fact that it does happen. When you look at the Fed decision right now, this will be another major issue that faces us in October and of course that is the FOMC meeting on October 28th. Right now it's still holding at 83% in terms of a no change, but you notice here it's been kind of flat.
The question will be does the Fed get any more data? Do we get any other major event? Cuz remember, I'm always concerned about October because of an October surprise. You could see something like that playing out and that could affect how the Fed is going forward. So, just be aware of that. Tom Lee also said that ETH is pretty much dwarfing other macro assets.
Bitmain continues to add like we had mentioned earlier. Couple of points I want to highlight right here. This was just the amount of money that Bitmain are is putting into it in terms of the amount of yield on a 7-day annualized basis that they are getting. So, pretty significant when you see these companies like this that are yield generation and it gets into other projects that are out there doing yield generation as well.
One of them of course that we've talked about a lot here on the show has been Uniswap. And remember when we had Standard Chartered on talking about Uniswap and its target. Take a look at this clip. Uh in August you wrote quote I love this line. I fear that my 2030 target of $100 on Uniswap is too low.
It has extremely direct value capture. But then when we got into the summer um and particularly with the Robinhood chain, the amount of buyback and burn has increased dramatically. So, if Uniswap today was still below $3 rather than above $9, then you'd be burning between 12 and 15% annualized every month.
Yeah, so the only way to square this circle is for the token price to go up because clearly be unsustainable. Token price must go up. All right, so we had Jeffrey on on the show. Um, and he he was kind of in that same camp. And of course, that was back when Uniswap was trading right about right there at around 250 to 60 uh, per token.
Right now, it's hovering around 890, almost $9 uh, on Uniswap. That would still be a 10x. One other note, um, what he said there in that clip is that $100 is too low. So, even at that kind of acceleration, imagine how that translates to Ethereum and just imagine what this could look like if Uniswap truly gets its legs under it and we see the kind of growth we're going to see in DeFi, which I think is going to be the untold story here in crypto going uh, on the at least on this bull market because you've got a completely different type of investor now that understands this.
They know how to deal with that in terms of an opportunity and I think this is only a good thing for Uniswap. Uh, speaking of other tokens out there that have the opportunity to run like this is of course one pump. Now, pump.fund, if you look at this chart right here, you'll notice a couple of things.
One of course is the fact that we're getting near an all-time high, but I want to compare this to market cap. Let me jump over to market cap real quick. We're already there. So, if we're at a market cap high, nearing a token price high, what does the opportunity look like going to next level? And I think this is just the beginning.
So, imagine where this could be. Maybe you feel like you missed pump. It's possible. You look right here on revenue and TVL. Revenue is continuing to skyrocket. This only indicates one thing to me and that is that we most likely are locked in on a bull run. Now, sure, it's early days of what we're seeing, but this is a good indicator where we start to see DeFi moving in such an aggressive manner.
Here was Ansem talking about this. People are not pricing in pump, especially becoming an L1 as an underlying infrastructure for other launchpads. Think about that. Here's of course Matt Hogan that kind of delivers the message home, and this was in reference to Chris Dixon from A16Z. He said, "The next big thing will start out looking like a toy." How many times have we seen that?
"Serious people seriously underestimate social trading and memes." I get on this so much that social trading and memes are not being looked at yet by the TradFi markets. We even had guests on last week where people just didn't quite get it. And eventually they'll start to understand. And the reason is because you've got a demographic shift occurring, you've got a whole social shift occurring, and you've got a power shift I think of where money is moving from.
So, be on the lookout. This means one thing, guys. This means Solana is primed for a very interesting time post-midterms. This of course is Breakpoint, the biggest event that happens every year at the four Solana post-midterms. What will be announced at that event? Just step back imagine what we get to on the other side of midterms where we get validity I think and clarity to a certain extent of how to maybe move forward.
And especially if we start to see any indication that the SEC and the CFTC are in the right spot in terms of mindset, uh Solana could be a big winner here. All right, guys. Speaking of how this affects the industry, let's just jump over to Stand With Crypto cuz this is the Stand With Crypto battleground in terms of the Senate.
And what you're seeing here right now is just the overall scorecards. We've shown these quite a bit. You'll notice there's A's, D's. There's Chris Coons out of Delaware, which is an F. So, anybody in Delaware, think about that. And then I want to zoom out. And you can click this right here where it says Stand With Crypto Endorsed.
One, Ashley Hinson. This is coming out of Iowa. You've got Chris Pappas coming out of New Hampshire. This is the one you have to watch though, and that is Ohio. So, this is John Husted. This is kind of a slam dunk. But, Sherrod Brown, this is an absolute a no-go. Ohio is a critical because this could become a new leader of the Financial Services Committee, which means that we will get more support for Senator Warren.
This one is the one you have to win, and that's why I think we're seeing Stan obviously seeing Stan With Crypto really go in on this one as well. In general, you can go in and look on all their ratings just by unchecking that. See all the Senate. You can also do this with the House as well. Goes into all states.
You can see every one of them. By the way, Minnesota, F, and we don't know about that second one right there, Michelle Tafoya. So, anyway, guys, this is something that you have to consider. You can either vote a one-issue voter, and you're going to vote for anybody that's an A. You could also vote for gridlock.
Which means that we're probably not going to get some of these as long as we don't get F's or people that are unknown in at least their stance on crypto. So, make sure and pay attention to wherever you are. Go to the Stand With Crypto site and try to understand exactly what your lawmakers are doing.
Remember the clip I just showed you guys of Tom Lee talking about the Dems possibly trying to go in favor of. Well, this tweet kind of verifies that. Andrew Cuomo, a Democrat, uh going in and kind of bridging this partnership between OKX and the New York Stock Exchange ICE. And one of the things that has happened now, the notice will allow 60 companies listed on the US stock exchange to trade 24/7.
This is a major deal. It's a landmark step. And of course, this has all been because of the innovation exemption rule that the SEC put out there. You're going to see a lot more of this. The question will be is do we see a lot more Democrats trying to position like what Cuomo is doing in New York to get prepared for a pro crypto run on maybe who knows where.
So, think about that, guys. If we do actually have Democrats that are going to be pro crypto, what is that going to look like if you actually have pro Democrats and pro Republicans on many of this law making that is actually happening right now. This could be very good for the bull run that is pending.
So, stay tuned for all of that. If you like 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.
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