GM. This is Milk Road, the crypto newsletter that makes lava lamps look chilly.
Hereβs a taste of this weekβs menu:
- π₯ Bitcoin's boring price action is actually the bullish signal.
- π₯΅ Miners found a way to print something more valuable than BTC.
- πΆοΈ The market is pricing in defeat on the CLARITY Act (and that's a good thing).
HOT TAKES OF THE WEEK π₯
Bitcoin's boring price action is actually the bullish signal π΄
Matt Hougan (Chief Investment Officer at Bitwise) says Bitcoin's $64K pancake is the most bullish thing happening in crypto right now.
His logic: bear markets die in apathy, and you know they're dead when the market stops reacting to bad news.
Bitcoin shrugged off the Situational-Awareness selloff, Saylor is unloading his bags, and the CLARITY Act got punted again - and BTC still won't budge.
Matt thinks all that suppressed volatility gets released to the upside.
ποΈ Listen to the full episode here.
Bitcoin miners found a way to print something more valuable than Bitcoin β‘
Matthew Sigel (Head of Digital Assets Research at VanEck) says there's a straightforward arbitrage sitting inside every mining rig right now.
Miners turn electricity into Bitcoin, and AI hyperscalers turn that same electricity into AI tokens worth roughly 10x more per unit of power.
That's why Anthropic just signed a $9B deal with Riot, a company that used to be a pure Bitcoin miner, and why GPUs are now debt-financeable in a way ASICs never were.
On the flip sideβ¦
Yes, this pulls hash rate off the Bitcoin network and turns miners into bigger BTC sellers, but Matthew calls it self-correcting once the economics shake out.
ποΈ Listen to the full episode here.
SpaceX might be the most undervalued trillion dollar company on earth π
Kyle Reidhead (Co-Owner & Head Of Research at Milk Road) thinks the market still hasn't figured out what SpaceX actually is.
His valuation model stacks compute, Starlink, apps (Grok and Cursor), and space revenue and lands on a $3.4T fundamental value by end of 2027 - before even adding an "Elon premium."
Tack that on and you're at $4.75-5.95T, which would make it one of the largest companies on the planet.
Kyle's still buying on red days even after the recent squeeze off $107, because the compute business alone went from basically zero two quarters ago to the majority of revenue.
ποΈ Listen to the full episode here.
The market is pricing in defeat on the CLARITY Act (and that's a good thing) π
John Gillen (Host, Milk Road Show) says everyone left the CLARITY Act for dead too early.
The bill's been "declared dead nine or ten times" in Washington and it's still alive, with a Senate vote now teed up for September 15th.
Because almost the entire market is pricing this thing to fail, John thinks an actual pass would be a violent, reflexive bullish surprise - enough to send Bitcoin into the high 70s and flip it back into a technical bull market overnight.
His own playbook while he waits: buy every red candle, sit on a chunky cash position, and don't force a trade in either direction.
ποΈ Listen to the full episode here.
Ethereum is bringing in millions of users and barely making any money from it π€
Matthew Dawson (Co-Founder, Ethereum Institutional) laid out an awkward truth on the Milk Road Show:
Robinhood's new Ethereum layer-2 chain has pulled in something like 30M potential users, but only a few thousand dollars of that activity is flowing back to ETH in fees.
Joe Lubin's defense, which the team agrees with, is that it's intentional - grow the ecosystem now, worry about extracting value later.
Matthew added that Ethereum's real competitor isn't Solana or Canton, but the legacy banking rails that took decades and billions to build.
Whether that patience actually pays off for ETH holders is still the open question.
ποΈ Listen to the full episode here.
BITE-SIZED COOKIES FOR THE ROAD πͺ
Scott Melker's portfolio strategy: 80% Bitcoin, 10% ETH, 10% Solana, algorithmically buying dips to beat dollar cost averaging.
Novogratz: We've moved into the matrix - there's a world none of us see where AI fights AI around the clock.
Melvin: Thereβs a $2.4T pile of cloud contracts thatβs spawning a second wave of winners, hereβs some of the assets you should be watchingβ¦
MILKY MEMES π€£
