Bitcoin&#x27;s brutal six-week ETF bleed is finally easing. Santiago Capital&#x27;s blockbuster 84-page report from Brent Johnson warning that the dollar can&#x27;t die of weakness — only of STRENGTH, when a sustained DXY spike forces enough sovereign and corporate defaults to compel an alternative system — and today&#x27;s setup is the cleanest macro inflection point we&#x27;ve seen all cycle. We break down whether the ETF pain peak signals the cycle bottom, what a 2-year yield breakout means for Bitcoin, and why Brent Johnson&#x27;s &quot;dollar dies of strength&quot; thesis is the most important macro framework you&#x27;re not hearing about.<br><br>Learn more about your ad choices. Visit megaphone.fm/adchoices

Why Bitcoin Needs The Dollar To Die – Brent Johnson

The Wolf Of All Streets

# Full Transcript

**Podcast:** The Wolf Of All Streets

## Participants

- **Scott Melker** (The Wolf Of All Streets)
- **Mike** (Bloomberg/Not Specified)
- **Dave** (Not Specified)
- **Brent Johnson** (Santiago Capital)

## Transcript

Markets and geopolitics continue to be all over the place. So today we're going to focus heavily on the dollar. We have a very special guest, Brent Johnson from Santiago Capital, famous for the dollar milkshake theory. You know, I drink your milkshake. You guys have seen that movie, right? We're going to talk about what's likely to come for the dollar in context of everything in markets. We've got him, Mike, and Dave joining today. Let's go.

Good morning, everybody. Happy Monday. We've got Mike and Brent here. Dave will be joining soon from the sunny shores of Las Vegas where he's playing in the World Series of Poker. But Brent, thank you for joining. Very excited to have you again. I think it's been a really long time since we did our last podcast. Yeah, yeah. Thanks for having me. This should be a fun hour. Yeah, absolutely. All right, Mike, let's start where we always start. What's everybody talking about at Bloomberg today on the morning meeting?

It was the first time they asked me to go first. So I'll save my comments to last, which was kind of shock. I'll about crude oil. Obviously, you know my bias in crude oil. I think it's going to 50 by the end of the year. But I'll save that for later. Anna Wong first mentioned that she expects course PCE to move up to 3.35 percent, could run up to 4 percent. Year of year is likely to be 3.4 to 3.3 percent. What's driving it is mainly is airfares, health care costs and portfolio management.

That's part of the stock market going up, creating actual inflation PCE. She pointed out Warsh is very hawkish, which one thing she noticed, he focused on price stability, not talking about full employment. And she said they may abandon that second leg employment right now because it focuses on price stability. Half of the committee wants hikes and only half wants stable. So the focus is towards hikes.

Doesn't make sense, her view, to cut to hike rates at all, certainly in October, because her normal projection for CPI core would get to near 2 percent in April of 2027 and below 2 percent at some point next year. And she said if the Fed does hike, she's going to revise upward her unemployment rate outlooks. Ira Jersey, our interest rate strategist, said the market was surprised by Swarst Hawkes' comments.

He thinks he said SOFR's kind of oddly priced for more hikes and then cuts next year, which he thinks he's kind of leaning towards the Fed being slower, which is on his same view. How the market will shift its communication policy was his key question. He thinks it probably means more volatility, less communication. 2's, 10's flattening, expects that to continue. And he thinks SOFR's actually just a little bit out of whack at the moment. Chris Kane, our equity strategist, point...

Why Bitcoin Needs The Dollar To Die – Brent Johnson

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Why Bitcoin Needs The Dollar To Die – Brent Johnson

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.