 Welcome to Digital Asset News to get top stories in crypto and bring it on to bite-sized pieces. Today, just like the thumbnail suggests, we're going to talk about three potential reasons for this sell-off. And the first thing I want to do is just talk about and give you a little bit of perspective about what's going on and pretty much where we are in what I think is the cycle. Then we're going to talk about the three different reasons for sell-off or dips, what we want to call it. Then we're going to get to a little good news and take a look at what is going on in the market overall to give us just a little bit of hope. So first of all, let's take a look at what's going on in the market today. And it's one of those days. So we dipped below $2 trillion. We lost about $200 billion. $200 billion. What are you going to do? Call it a Tuesday. If you're from the traditional markets, don't worry. This will happen again. But we'll also go up again because we are extremely volatile and that's why we play in this space. So right now $1.94 trillion and everything across the board is just down. So I don't really need to take a look at the coins per se. But if we had to, we're going to say that Bitcoin is just under $44,000. We've got Ethereum hovering around $3,000, might even go in the twos. Cardano down to down 9% at $2 and everything is pretty much in the red. And that's pretty much what it is. So this is nothing new and this is normal. So when we take a look at these things, it would be kind of concerning if we weren't so hardened to what is going on in the crypto market. If you are new, just stick around because crypto market is like the weather. If you don't like it, just hang around for a couple of days. It'll change. It'll change dramatically. And that's why I take a look at a bit of perspective. And when I think about this, I just think about all the different ups and downs we've all gone through in this market. And one of those things I always like to talk about is Peter Lynch. And he says this, he goes, look, far more money has been lost by investors preparing for corrections or trying to anticipate corrections that has been lost in corrections themselves. So yes, beforehand we could have taken a little bit out, taken some profits, which we all should do. I'm not telling you what to do. This is investment opinion, not investment advice, but I have taken profits along the way for days like today when things go down and you can do whatever you want with that dry powder. You can buy into the dip. You can buy more assets or you can just hold on to whatever you want to do. It's up to you. My goals are not your goals. And that is just the truth. So we take a look at that like, well, okay, so maybe I shouldn't sell everything and run for the hills and scream that the sky is falling. Also, I want to give a little bit of a more of a perspective. This is from my man, Dave, crazy for cryptos. Digital Dave. And he said this, I love this picture. The end is near. And every time there is a big dip, you're going to hear the media shouting from the rooftops. The end is near. The end is near. The end is near. The news here. Bitcoin's dead. Bitcoin's dead. Bitcoin's dead. And of course, what happens? It turns around like, ah, we told you the whole time, it's going to go up to the moon and it's going to be crazy before you know it. It dips again like, ah, end is near. So it's the same thing repeating itself over and over again. And also on top of that, we take a look at my friend, what is going on here in the market sell off. So this is actually the very first part I wanted to get into. And friends of the show, Squawkbox, they are talking about what could potentially happen. And this is what I like to call the first dip reason. So let's take a listen to what they are talking about right here. Lots of pressure on the markets this morning and Mike Santoli joins us now with more. Hey, Mike. Hey, Joe. Yeah, obviously the decline we've seen in September becoming maybe slightly less orderly this morning with a lot of things going on overseas, a lot of things kind of built up behind the dam, debt ceiling concerns, whatever you want to talk about. Here's the S&P 500 ETF, the spy, which does show the early morning pre-market action, kind of takes us back to really below the August lows. That's what we're first gauging right now is where the August lows going to hold. Looks like we're right around there at the open. If you remember on Friday, the S&P 500 closed below its 50 day average. It had done that a handful of times this year. We're not bouncing right off at this particular week, the September week after options expiration, very consistently weak over the past 20 years or so. So this is all in the backdrop. It takes us, like I said, back a little over a month and to levels first reach back in July. So obviously we're having a little bit of a spill back here. Take a look at the S&P versus the equal weighted Russell 3000. So this is basically the average stock in the overall market. And this is on a year-to-date basis. It shows you that the rally into the highs into early this month was very much mega cap driven. So here's the S&P 500 in white. That was continuing to increase into early October, early September, and whereas the equal weighted actually you've been lower even before today's open. So this has been a story, right? It's been mega cap growth stocks that have been unable now to support the market, but they did kind of contribute a lot on the way up. Look at the global picture even before today. The rest of the world was struggling and it wasn't just China. Take a look at the S&P 500 against EFRA. That's developed markets overseas. And then this is emerging markets without China. So emerging markets ex-China, it shows you the S&P 500 built up this huge lead starting in the summer. So again, narrowing doesn't mean we have to reconverge. I would point out that we talked about the 50 day average last September, which was the last 10% decline in the S&P 500 also preceded by a period when mega cap growth stocks were working to the conclusion of everything else. That's that bottomed eventually around the 100 day average for the S&P. That's around 4,300 right now. So clearly a little more give back. We are on alert for the fact that this market is maybe changing its tone a little bit as opposed to these quick bounce backs. But even at today's levels at the pre-market levels, we're still not at a 5% pullback yet guys. So yeah, and that's the big thing. And then of course the reason why I'm talking about this is because even though we think that the crypto market traditional market is segregated, it's not. There are so many players in the traditional market and they're coming over into our space. And guess what happens? There is only one market open 24-7, 365 to hedge your bet and to do sell-offs and close your positions. And that is cryptocurrency. So right now, even though we like the institutional investors coming here, when they're buying everything up, we got to take the good with the bad as they sell everything off because of what is going on, futures expiration and things like that. So that is one of the first reasons. And also, there's another reason which is everybody's talking about. You're going to hear this a lot today. It's called Le Grande or Ever, excuse me, Evergrande or Evergrande. How will they say it? And this is a company in China and they are all about real estate, commercial real estate. And this is from friends of the show, Bobby Giggs. And he put this out as a tweet. I thought it was pretty good. And if we take a look at what's going on in China, like, well, who cares about China? But you have to understand, back in 2008, when there was a huge housing crisis and we had a big bubble, the housing bubble and everything collapsed here in America, I'm like, ah, we'll be okay for the rest of the world and everything collapsed around the world as well. And this is exactly what's happening as well as in China, potentially. So Evergrande's financial woes, 305 billion a debt, 7.4 billion bonds due in 2022, 75% haircut for bondholders, 1.5 million unfinished properties, which doesn't sound like it's that bad, but they're giving new homes offered with 25% off and 85% share price drop. And then also, they told all the debtors, like, look, on Thursday, there's interest due, we're not going to pay it because we don't have it. And that's pretty much what's going on. So when we talk about this, people are going to say, well, Evergrande is one of the big things that is going to happen. And we actually had this discussion on DCA. It was me, George and James from Best Answers and Cryptos or Us. James thinks it's a huge issue. George thought it wasn't because he was like, who cares? China is just going to print a bunch more money. And then, of course, they're pushing the digital you on. So who cares because they're just going to print their way out of it. I'm like, well, you can do that. But we try to do that here in America. And because we're the reserve currency, we can do those things for right now, right now. But later on, who knows? But I think it could be the canary in the coal mine. But again, we go back to the same thing. Fire money has been lost by preparing for a correction. So that is that piece. And then when we take a look at Evergrande's woes, there's also one more little thing coming on in the background. That's dipries number three, which is regulation. And we talked about this ad nauseam. Gary Gensler is not going to give up. And he's pretty much going to try to regulate as much as he possibly can in the crypto market. We talked about this. And this is from Charles Gasparino. He's a Fox News contributor. And he says, breaking people who know, I was like that, breaking people know Gary Gensler say chances of him ceding power or trying to cooperate to engage the crypto industry in a new regulatory regime are Zippo. He will seek to leverage the SEC government power on this unless Congress on the court steps in. And then Tony from ThingCrippity says, you got to have Congress step in. And Tony's exactly right. You need to do that. So I mean, in the hearing, which I will link that video at the very end where there was a hearing with the Senate Committee on Housing. And Gensler said, look, he goes with the laws that you guys have put forth over the last couple of decades and the Howie test. And there's another one I forgot it was. And he says based on that, he goes, everything's a security. Basically, he said everything's a security except for Bitcoin Ethereum. He didn't say it specifically, but he talks about decentralization because Bitcoin's essentialized and Ethereum is mostly decentralized. We can't really do much there. But everything else, it's going to be a security. So on this one, I think people on the regulatory issues are like, wow, this is pretty bad. However, so taking a look at all that, that sounds pretty awful, right? So there's three good reasons why we had a nice little sell off. People are just scared. Well, here's some good news. And this actually comes to us coin desk, Coinbase said Monday, it's launching its prime brokerage product out of beta. The move could cement the exchange is leading force and institutional crypto adoption. And again, we don't like institutional institutions come in here to sell, we're okay with them buying. And you have to take the good with the bad and it's just how it goes. And then to me, I was like, well, who cares about this? And we take a look over here. This is a nice graph from Visual Capitalist. And on the very far right hand side, you can see here, it says it's 89 billion far right hand side underneath there, it says 57 billion. And you can see institutional trading volumes in Q4 2020 were five times greater than in Q1 2018, which was only 11 billion. That's that little highlighted box right there. So and that was really not much going on as far as for institutions. And now we've got this nice institutional brokerage product out of beta. So that could lead us into more adoption. So that is a good news. I will take it. And also, this is from our friends of the show, George cryptos are us like we just talked about. And he says, look, and it's a great advice. Because we're given a gift of low prices before the most bullish months of this cycle. Again, I believe quarter four is going to be pretty good in 2021, maybe even Q1 2022. I don't know. But I'm not great at timing. I'm going to tell you what is potentially going to happen. And he says tremendous opportunity should not be wasted. And I have to agree with them. And actually, it's not just me that agrees with them. It's me and the president of El Salvador. And I always say his name wrong. Now you have Bukele, he says this. We just bought the dip 150 new coins El Salvador now holds 700 coins. They can never beat you if you buy the dips. This is presidential advice. So I said to myself, that's a pretty good advice, I'm going to take that advice, I'm going to run with it. And I'm going to buy a little bit on this dip. Now, I've learned in the past not go all in on the first dip because maybe it's a dip within a dip within a dip. So you never know what's potentially could happen. So I just kind of spaced things out. These are things I bought today. And mostly because they were like on super sale, like almost like 20% down. I'm like, what the heck. So about I'll go avalanche Luna and polka dots and so so on. So that's what I thought was pretty good news on top of some other great stuff. And this is from my Jared. He sent this into me. So thanks Jared. Interactive brokers adds crypto trading. First of all, what the heck is interactive brokers interactive brokers is an American multinational brokerage firm operates largest electronic trading platform in the US by number of daily average revenue trade. So pretty big little business pretty big little business. It's funny. And this is what the chairman, Thomas Peter, Peter Fees says, let me first ask you about the demand. What drove you to this decision? Do you have investors, you know, saying we have to be able to trade this asset? Yeah, absolutely. So on the one hand, we have many customers who, who manage well balanced portfolios, and they asking greater and greater urgency that could we please add the ability to for them to gain some crypto exposure. Simultaneously, also many of our registered investment advisors keep telling us that their customers are urging them to put some crypto in their portfolios. And then in addition, we also have, you know, frequent traders who would have been asking us to, to enable them to, to be able to trade the price relationships among the various different tokens and crypto futures and other crypto related assets. So it appears to me that that it has become common wisdom now that everybody should have some little percentage of their assets in crypto. I like that statement right there where he said, hey, you know what, I think it's common wisdom that everybody should have exposure just a little bit to cryptocurrency and digital assets, even their RIA. So that is some more good news. Also, there's the Bitcoin logarithmic growth curves. And if we can just take a look at the bands, here's where things have been kind of in this range so far. And what we see right now here's the price itself. Let's say it's September, where are we 1317, somewhere around there. And these are the bands. So the low part for the end of this year is this is the lowest 25,000 I think it's gonna do that 60,000 61,000 the end of the year, or potentially the high part 145,000. So even if we go to 60,000 somewhere around here 90, 100, I think that would be just okay, but I don't see quarter four being a big dud. And that is really it. So look, I know there's a lot of things going on. I just want to give the side to the story to every type of story that's out there so you can make the best informed decision for yourself. Now, if you liked that video, give it a thumbs up, give it a like. If you also like these types of videos to help you kind of get into the market or take a look at the market, consider subscribing. But that is it for today. So thanks so much for watching. I appreciate it. And we'll see you on the next one.