 Welcome to Digital Asset News. Take a look at stories in crypto and bring about a bite-sized piece of today. Just the thumbnail suggests Ethereum is due for an upgrade and really what it does is it delays the difficulty bomb. So we're going to take a look at that. We're going to take a look at the data and do a follow-up from Saturday's video and we talked about the different factors that we're leading to this little pullback as far as the crypto market. We're going to talk about the Puerto Rico blockchain week and finally we'll talk about the IMF urging the Fed to do a couple of things which might be a little bit bearish news. So we'll take a look at all those things but first let's take a look at exactly what is going on in the market. So today is just one of those days. It's Monday and everybody's on the fence. There's a little bit of a bearish tone as you can see here. We're using trade the chain for a sentiment analysis. Links in the description. You want to check that out. But total market cap has took quite a beating 2.23 trillion. We got a Bitcoin price below 50k Bitcoin daily sentiment is 20 out of 100. Just not looking to we'll say positive right now. Is this positive for like the long term or negative for like the next 10 years. No we're talking about a bearish sentiment for a short term timeframe. And that's what I think we all need to make sure that we are fully aware of. So right now Bitcoin is down. Everything's down. What's up. Ted is up. Nobody cares. And let's see what else poker does as anything up. Gee. You know there was a pretty good movement as far as Terra Luna. I mean they had a 33% increase for the seven day but even now that darling has to take a little bit of a beating. So that is what we see as far the markets not a great day. And there's reasons for that. We talked about it on Saturday. The Fed was looking to taper back the S&P 500 different traditional markets were getting cut. We took a look at Evergrande and what was going on as far as like the loan repayment. You also look at the jobs report which is half of what are almost a third of what we thought it would be. So those are economic factors that play into the fact to make people jittery. Traditional markets get gets a little bit nervous. They sort of sell up their position traditional markets. Unfortunately, they are also in our crypto markets and they sell off as well. Now if we take a look at what is going on in the markets today, it's not too bad. I mean as far as like traditional sense I mean they're up S&P 500 is up 0.55 percent which is again it's huge for them right. 24% NASDAQ 0.07, 0.8 plus 277 points, Russell's up, US dollar index is up and the Bitcoin index is down. And again, I think it's just that these big players either their little manipulation or they're selling off to cover their positions. And then also if we take a look at what's going on with Bitcoin, we had quite a precipitous candle drop all the way down. Wow, 42,000. And then of course it just been moving sideways the RSI we can take a look at this it's looking pretty it's in that range of of oversold and it kind of jumped back forth. Then we take a look at the MACD things have kind of you know moved around but if you want to see some really good TA go follow Ben Cohen over on into the cryptoverse. He's going to talk to you about the 200 day moving average and how we slumped against that and where things could potentially go. I think that's for this way we're going to move sideways until we see some things come to fruition. Also, if we take a look at what's going on as far as like on chain analysis. Miners this is from Crypto Kwan. The miners aren't selling you can still still see they're not selling like they were back in January 2021 or way back here in the in December 2020. The all exchange reserve is dropping off as as far as like people who actually put everything back on this in the purple. When you see a spike that means that they're putting Bitcoin back on the exchange they can sell like crazy and they take it right back off. Whoever they sell to and then Ethereum just doesn't really care. There's like no we're going to keep it off because we need it for staking and for gas fees and for DeFi and lock up. So we're going to take it off the exchange as well. So Ethereum actually has been pretty solid in my opinion as far as everything else and the taker by volume you can just see right here that if it spikes that means people are propping it up. So they're kind of propping it right here especially when it jumped down to here around 40 49,000. There was a big buy but this is the thing that concerns me the most of all things that we see it's leverage plays and when me and Keying Su were talking about this this he's the CEO of CryptoQuant. We did a video together. It's a link at the very end. He says anything about 0.2 as far as leverage ratio is way way way too high and we can just see it just accumulated in October November before you know it we're a 0.17 0.19 and before you know it we're all the way up here to 0.21 on 25th of November then we had a dump and then it went up again because people like I can do that and they can it's all it's all what you want to do my goals are not your goals if you want to leverage play that's hey hey have at it but now I'm happy because now it's dropped down to a respectable 0.16 as far as the estimated leverage ratio and that's really what it comes down to if we can see these types of things I know people get ticked off about leveraged plays and whatnot but really what it does just resets the market and if you see a bunch of shorts people are gonna go they're like there's so many shorts I should probably do put a long position you see a bunch of longer people are super bullish they short the like living tar of it and like you know what we're gonna make some quick money and that's what they do and that's just how the market goes so it's really up to you to decide how you want to play these things as far as the market goes and that's just how I how I see it so I asked the question over in Twitterverse which was well now that we have another dip how you playing this and I got some pretty good answers people are just some are funny some are concerned but mostly just comes down to the big thing which was I'm just looking for the long term I'm just looking for the long term and there's a lot of different ways to play it depending on where you want to be and just follow me on on Twitter links in the description you can see everybody's answers pretty good information here but the big thing again is just when in doubt of course zoom out but if you if you're a trader you know you probably want to take some some profits along the way so you have these types of days where you don't freak out and that's why this is my portfolio I'm heavy holder but there's a part of me that likes to trade a little bit when these these we see these grace one events or even black swan events if I can have money on the sidelines to purchase not just crypto but to purchase stocks to purchase land to purchase real estate to put into my businesses if I can have dry powder because money does make that actually happen if I can do those types of things then I'm going to buy the dips I'm going to sell a little bit and I'm going to keep those profits for things that go on so and of course I do a little gambling with NFTs and virtual land but that's what we have as far as what's going on for the market and the date itself let's move on to just real quick if you're in the Puerto Rico area maybe you're here already there's the Puerto Rico blockchain week I will be there it's going from Monday through Friday I got to get takeoff because you get this thing done there's a couple things I wanted to see ones at 1030 I want to miss this one manufacturing Association the future of blockchain this one looks good 1125 crypto's impact on the everyday lives of Puerto Ricans and I want to find out there's a keynote speaker Hester Pierce from the Federal Reserve she's going to be there 230 to 330 talk so I'm going to be down there if you see me just say hi pretty approachable person and Puerto Rico blockchain week going on all week watch out all right so we got that let's go into the big story which it's a big story I mean it's an upgrade but really it doesn't it's not fantastic news or anything like that but it is something that's going on with a theory and so want to cover it a 3M update goes live here's what's going on there is this update called the Arrow Glacier Network update the upgrade is designed to change the parameters of the difficulty bomb on the network and push it back several months this so to push it all back it doesn't affect for a proof of stake it only affects the proof of work minors which are what they're doing right now right now the three I'm trying is going from proof of work to proof of stake that will happen sometime in late 2022 potentially 2023 and I applaud the Ethereum network for trying to do this it's kind of like changing the the engine while you're driving on the highway it's I don't know how they do it but very difficult even the talak said I had no idea it's gonna be this difficult because of the amount of people that have to work with to make this actually possible and this is is difficult but hey it's got to be done because those gas fees are ridiculous so just real quick the difficulty bomb is designed to significantly increase the difficulty level the network which will make minors stop opening new blocks and because of this upgrade which is voted on they're gonna delay that difficulty bombs or anything and keep going just the way it's been with our nice high gas fees but hey right now for us move advantage their aim is is doing that and we'll see how it all works I don't see this as a big big deal right now just kind of pushes things back and kicks the can down the road let me know what you think about that in the comment section let's move on to our last piece the IMF and the IMF International Monetary Fund and the Federal Reserve they're kind of like my my MVP's especially when the Federal Reserve starts to print a bunch of money and talks about how inflation is transitory when it really isn't that makes us that is great news for us because people come in however when it's hard to talk about tapering things and increasing percentage or interest rates that's not the greatest thing as far as what's going to spook the traditional market players because then they're going to get spooked and they're going to sell off and they're going to sell off in crypto and just a tumbling event so that's only the short term not moderate to long term that's what we have so here's what's going on this was today Fed chairman Jerome Powell said the central bank could step up its tapering efforts and that this would likely be discussed at a meeting this month data released in November showed that the US consumer price index CPI rose 6.2% in October from a year ago hitting its highest level in 30 years but the Fed has said market players shouldn't interpret tapering as a sign of an imminent tax hike I don't know how they're going to be able to do that and this actually piggybacks off an article from November 3rd we have known this is going to happen Fed will start tapering bond purchases later this month the Federal Reserve on Wednesday said it will start tapering bond purchases later this month so that was in November and November around December things are right on track the process will involve a 15 billion monthly reduction from the current 120 billion a month the Fed is currently buying so here's the thing as the Fed does these types of things then the markets like oh you're not going to bail us out the traditional markets like we're not going to bail us out that sucks well now I got to sell some things and you see like we covered the CEO and insiders are selling off like crazy so you've got an inflammatory or inflation which is going to which is going to keep going up I believe then you have the Fed buying stop buying these bonds which is not going to prop up the market and then you're going to have these different factors that could actually swoop in because people get spooked in this situation and especially if they start to raise the interest rates from super low to just even a point above it'll crash the whole system not the whole system but it'll make things a bit difficult we will say so I don't think they're going to raise it vastly but this is an issue and this is why I'm always talking to everybody about doing two things if you want to protect yourself because you know diversification I can't tell you what to do but I'm telling you what I do what I do is I want to minimize my taxes and the ways that I do that of course is there is this thing called I trust capital and there's a link in the description and what I do is every year I put and I've been doing this for two years now I put post tax dollars and I purchased crypto in this Roth IRA and then in you know when I want to retire and 60 what hopefully I can make it this far 65 then I take everything out and it's tax free Peter tilted the same thing made billions right and also on top of that I don't know what's going to happen in the market these days so like in the traditional sense people are going to sell off and then crypto people are going to sell off but there is one part that doesn't do that and that is with like masterworks which is the thing that sets below me I'm going into the big screen masterworks it's an uncorrelated asset because what you're doing is you're buying fractionalized multi-million pieces of art and the people who buy multi-million pieces of art aren't people like you and me those are the super rich so these traditional markets don't really affect them that much cryptocurrency markets are really affecting that much like I want that Van Gogh I want that basket and they will pay whatever it is and this has been it's been uncorrelated all the way since the beginning of time and they've even got data that shows that even the 2008 financial crisis didn't really affect them that much because people want these types of paintings so there is a link in the description looks just like this I did a deep dive series video for each one for I trust and for masterworks so you can watch those to figure out exactly what it is and just a reminder you don't have to use those links those are affiliate links if you cannot stand using fillings just go right to I trust and sign up or find out what's going on go right to masterworks but if you go to I trust without the link first of all you don't get a hundred dollars worth of with a Bitcoin when you sign up also there's no no monthly fees and then over on masterworks just so you know there's a waitlist right now but since your viewers of digital asset news you skip the waitlist so totally up to you what you want to do that's it for today so if you I know it's a bit short but a lot of things going on I got to get going for that Puerto Rico blockchain thing and that's it so if you like today's video give it a thumbs up also consider subscribing to talk about our time sensitive and that's all so thanks so much for watching I appreciate it and I'll see you on the next one