 Hello, friends, and welcome to another episode of the Market Report. I am your host, Benton, and we are joined yet again by our resident experts, Jordan Finneseth. Marcel Peckman is back this week, and we have Sam Borgia here as well. Jordan uses background and psychology and human behavior to spot those emerging trends in the crypto markets. Sam Borgia is a business editor at Coin Telegraph, where he brings a decade of experience in economic analysis and financial market writing. Marcel Peckman applies his 17 years of experience trading derivatives, options, and futures to the crypto derivatives markets. Guys, another interesting week in crypto, and yet here we are again. Everyone's still standing. I see we got some smiles on the faces this week. What's going on? Jordan kick us off this week, man. How are we feeling? I feel the same as I did last week. I mean, nothing's really changed. Crypto winners are going to go on forever. So it's like just stick in for the long call, find the tokens you want to accumulate, dollar cost average. It's just my opinion and just kind of realize that this is the long term game we're playing here. Have you been getting outside, Jordan? That's a real question. Oh, every day, man, every day. Good deal. Sam, what's going on this week? How are we feeling about things? Well, Jordan mentioned crypto winter, right? And I'm from Canada. It's winter nine months out of the year. So I'm used to winter, you know, you're going to have to do a lot more to get me down at this point. But as Jordan mentioned, there's really no changes in market sentiment. No changes in expectations. We're still status quo. It's a pretty mediocre market out there. And yeah, again, remind yourself why you're in it in the first place. If you're not prepared to hold for a longer term to realize your investment thesis is probably not the market for you. Let's put it that way. Exactly right. You've got to have those diamond hands and conviction behind what we're doing here. Marcel, glad to have you back this week. What's your take? Where are we at this week? Anything changed from what you see? I think the biggest change is that everybody is trying to look for a scapegoat. And right now it seems that the BTC Maxis are the ones. So they are the one responsible for voyagers in Celsius and Terraluna. So OK, if you need a scapegoat, beat the BTC Maxis. But it's not our fault. You've got to learn to hold your own keys, to hold your own coins. Even if you hold outcoins, don't give it away for a bigger five percent or 10 percent yield per year. Hold your coins. That's the most important message. All right, you heard it here first from our panel of experts. We've got a super exciting show this week. We're going to be diving into some big headlines. Talking about the euro dollar parity this week, which is going to be interesting. I know the CPI reports coming out tomorrow, the 13th from the Fed. So that should be interesting. A lot of people are speculating around this. Is it going to be higher than what we saw last month or lower? We're going to talk about that and dive into this. But first things first, we have our market roundup, the weekly roundup video here to dive into what's happening around the Twitter sphere. And I want to shout out to all of our loyal viewers that are watching and tuning in from around the globe. Tell us where you are tuning in from. We'd love to have you here every Tuesday and we appreciate you being here. Great show lined up for you. So let's go ahead and jump into our weekly roundup for this week. So another slight this week all the way up to about 22 for Bitcoin. But now we're hovering back around 20 K. Is this the price floor? You saw the headlines. People are buying Cardano. There may be some trouble with Ethereum. Some price breakdowns may be imminent. We're going to talk about that today and dive into it. But if you haven't liked and subscribed, go ahead and do so now. YouTube coin telegraph. We're here Tuesdays 12 PM Eastern for the market report. Don't forget, we're going to be giving away a $100 worth subscription to markets. Pro, drop your Twitter handle in the chat at the end of the show. We're going to select our winner for the markets pros description. This is just free money for you all. Make sure you drop your Twitter handle in there and you can make a trade that could potentially pay for itself and be a huge win for you. So make sure you stay tuned all the way to the end of the show today, where we will select that markets pro winner. Adrian, do we have memes today? We're going to jump into memes. First things first here. All right, beautiful. Let's see what we got here. BTC price, the tower of pizza. Let's see crypto expert. That's about right. All these all these experts, we all we all got speculations. And I see myself there. I'm calling the forty seven thousand bottom for Bitcoin. That that's me. Let's get me. Dad, why is my sister's name NFTs? Because she was our second biggest mistake. No problem, that's a good meme right there. Love it. What's the next? Yeah, that's about right. China continue. We saw the headlines there weekly roundup, banning USDT. Bitcoin can never be banned. Let's be real. Start buying in a piece to take both of them. Yeah, these are good memes. These are really quality quality memes this week. Shout out to Adrian Danilo for for picking these out this week. Yeah, it's all this one. This is a good one. That's great. Good memes, good memes. All right, classic memes for you guys this week. Shout out to Adrian Danilo for picking those out. Quality quality memes. I'm going to check the chat real quick. See who's tuning in. Rich new designs back. We got Jackson here. Dinesh, thanks for tuning in. Luciana, friend of the show. Marcus, Adrian and Qutis, thanks for tuning in today. Love having you here. Pop your questions in the chat as we kind of skimmed through some of these articles that we're going to touch on in our next segment. If you have questions, our panelists and experts will answer them and we'll be hawking this chat throughout the show. So make sure you drop your comments, your thoughts, your questions in there and we will take a look at them here, PR at the lead throughout the show. But next, I want to get into some of the biggest headlines on Cointelegraph.com this week. First and foremost, we have Bitcoin risk new lows as 20K looms amid dollar euro parity. So Danilo, if you wouldn't mind just pulling up this article real quick, I want to quickly highlight Arthur Hayes came out with some comments and herald the start of the fiat currency doom loop with the USD euro parity. We're going to dive into what is this parity actually mean this week? We saw Bitcoin kind of rebound a little bit and then it started to lose some steam over the last 48 hours and now we're hovering around what now many folks and experts in the field are calling the support level of 20,300. If we break this, what does this mean? I want to also highlight another quote here. So FireCharge saw some bid liquidity in close range but it may not be enough. The price falls below this trend line. Prepare for new lows. This seems like a very stark outlook but first I want to go ahead and start this article out with. What is the significance of this USD reaching parity with the Euro, Sam, our macro expert here? Why don't you kind of break this down and tell us why is this significant? Does this actually mean and how will it impact the crypto markets? Well, I think it's significant because it shows you just how weak the Euro has become. If you take a look at the US dollar index DXY, it compares the US dollar against the basket of currencies but mostly the Euro. The Euro has the highest weighting of more than half of the DXY. So we're seeing that the US dollar has been rising substantially over the past six or seven months and the DXY just hit multi decade highs above 108 I believe. So what this shows is that Europe is screwed in a lot of sense. This war in Ukraine and the Russia spillover effect and gas prices, oil prices, a lot of economies in Europe are really vulnerable to what's happening, especially Germany, which is the economic engine of the Euro. I believe they recently posted a trade deficit if I recall correctly, which is not unlike Germany. So overall it just shows that everyone is piling into the US dollar. So it's probably the best of the worst fiat currency to hold these days as investors continue to look at it as actually being a risk-off asset. So that's the perception. I think that the Euro right now isn't doing too well because of that. And it's gonna be interesting to see how much further it falls and whether the dollar is gonna start losing some steam moving forward. We'll have to wait and see. And also in this article, it got brought up that something about the yield curve control. So central banks would now have no option but to adopt yield curve control, sparking the disintegration of the currency, which could ultimately leave Bitcoin on top as the new global standard. What does yield curve control mean and can you kind of break that down for us? So when central banks do yield curve control, basically when they target a long-term interest rate and then they go ahead and they buy and they sell as many bombs as necessary to hit that target. So it's not necessarily the safest strategy. I don't know what the ramifications of that are gonna be. Regarding whether it's gonna be a boon to Bitcoin, I'm not quite sure yet. We've been talking about how Bitcoin is supposed to succeed during these perilous times. We haven't seen that yet. In fact, the best hedge seems to be holding cash, believe it or not, as crazy as that sounds. If you decided that you wanted to, if you were concerned about inflation at the beginning of the year, if you held dollars, you would lose what 9% of your purchasing power, but if you bought Bitcoin, you'd be down a lot more than that, which is the ironic thing about all that. So in the short term, it really hasn't served as an inflation hedge. People are still piling into cash as a haven asset. I don't think it's sustainable in the long term, but for now, that seems to be the paradigm. In terms of Bitcoin adoption, I guess it's happening behind the scenes. The long-term hollers are still here, but I don't see Bitcoin filling any of that need, or filling any of that niche anytime soon as being any kind of haven asset. So I'd be skeptical about those narratives. I know I've learned my lesson, not to really pile myself into that kind of narrative. So you'll have to wait to see what's gonna happen over the next six to 12 months. Marcel, you've been biting your lip here. Go ahead and jump in. I wanna hear your thoughts and takes here. No, I just wanna highlight that gold as well hasn't been really serving as a store of value in the past months or weeks, has touched to $2,000, but quickly dropped to $1.7,000. So even gold, which used to be the safe haven in the past, is not working right now. So I kinda agree with Sam as crazy as it seems right now, holding US dollars cash seems like the best option in the past six months. I don't know why or how, but it is the truth. Is that what the world has come to? Is that now we have to hold cash in order to hedge anything? So I'm also curious to learn what your take is. Why do you think gold has not held its value? What in the market may have kind of dissuaded people from kind of piling into that as the hedge? I think it's the flight quality. When investors are afraid, they don't think about returns. They think about what is the safest asset? Because when you buy gold, you don't really get the physical bars. So you don't know if the gold exists or if the bank that is holding the gold is gonna continue existing or not. So when investors fear that the imminent collapse or a global crisis is coming their way, they want US treasuries because they know the US government will not default on them. They want US dollar bills or in a bank account or cash at home because they know that the money that value will not disappear because they've been trusting the government for the past hundred years and it has been working so far. So maybe for the next six months it's gonna be still the best option, but surely not for the next two or four years because we know that US government will continue to print money out of the crisis. There's only solution. So it will develop everybody who has been holding cash. But for now, for the short time, it has been working. And Jordan, Arthur Hayes mentioned this doom loop. What does this doom loop mean? And I guess I'm curious to hear your take about the macro environment, the US dollar to euro parity as well. What does that mean for crypto? Well, I think what they're alluding to is just like the unprecedented nature of what the whole global economic system is going through right now. And I don't think there's anybody alive really that's really gotten to experience like the breadth of different headwinds that the market's facing. But the US dollars basically turned every other fiat currency into an algorithmic stablecoin that we're all like, we know those don't work. It's not gonna work long. I saw that meme. I'm like, that's perfect. Cause it has turned all these fiat currencies into algorithmic stablecoins. It kind of makes us crypto people feel better. It was like, oh, they can't even get this right. Like we can't get it right. They can't get it right. Nobody gets it right. It's just a system that's kind of running. But we're coming to the end of the previous economic like system. We're going into a new system and nobody knows how to respond to this. Everybody's like gold, Bitcoin, the dollar. I don't know. Cause nothing's really working cause everything is starting to fail. Which just means like, yeah, like we have your seat folks. Cause it's going to be a bumpy ride for the whole global economy for the next decade. I mean, Everett said in chat here right now, cash is not trash. I know it's, it's crazy to kind of to be saying that out loud because forever we've been saying cash is trash. So interesting times ahead for sure. Now I want to kind of lastly touch on the CPI which is going to come out tomorrow. Purely speculating here. There's been rumors that it could potentially come out higher. Sam, what have you heard and what have you kind of been able to dig into about what could potentially come out of the CPI report tomorrow? Well, haven't they more or less preemptively told us what's going to happen by giving us that warning? Basically they're trying to deflect all blame which is, you know, typical what we've been seeing for the past, I don't know, six months. Inflation is the fault of everyone except the actual culprit which is, you know, expansionary monetary policy, expansionary fiscal policy. So it seems like, listen, I was predicting a while back that June would see peak CPI and I think now the consensus forecast is around 8.8% from what I've seen. So it looks like the CPI print for June is going to be higher than it was for May which is kind of shocking but it would actually feed into my thesis that we peak sometime in June and then the CPI might moderate in the second half of the year. Still extremely high but maybe not as high as it was earlier in the year and it's shocking that gold has underperformed so badly in this environment. I mean, gold has become the ultimate shit coin, hasn't it? Usually, you know, one of the primary factors that drives gold higher is the level of real interest rates. So rates are rising but inflation is rising much faster. You'd expect the gold to perform well in this environment but it hasn't. So as Jordan alluded to earlier, things are breaking right now and it's very difficult to look at conventional portfolio management and then apply that to what's happening now. The 60-40 portfolio was dead as far as we're concerned. So it's all a matter of how much damage the Fed can do before it decides to pivot and shift course. I expect that probably will happen sometime next year. Very good. And our other headline that we have this week is gonna be talking about Bitcoin's potential bottom. Is there still room for Bitcoin to fall out? So the capitulation ongoing but markets not at the bottom yet, according to Glassnode. One of the big quotes was Bitcoin wealth is being distributed from weak hands to strong hands due to ongoing capitulation from retail investors and miners signaling that the bottom may be close. So guys, I wanna hear your thoughts here. What do we feel like? Is there a bottom approaching? Are we near the bottom? How do you all like to assess this? As we all know, it's very extremely hard to time the bottom but what are you kind of seeing in the environment and what kind of indicators do you like to use to tell you what is, could potentially be a bottom? Jordan, why don't you kick us off here? I don't try and pick bonds, man. I do, like I said, I talk about it like a broken record, dollar cost averaging just because like under $20,000 it's a good Bitcoin. If it ever eventually goes up to $100,000 or over that you can really matter or care too much if you got it at 15,000, 20,000. I mean, some people might but there's just so much going on in the world right now. I don't think anybody knows what's gonna happen and the best you can do is just kind of try and pick your game plan, stick with the assets you think are gonna, that you like long-term and kind of go with them. Do you wanna hold the dollar for a long time? Cause that whole system is a sinking ship. So yeah, I just kind of dollar cost average. I don't try and expect to pick bottoms. We see the on-chain data showing that it's like people with less than one Bitcoin and people with over what like 10,000 Bitcoin or a large number of, yeah, 10,000 Bitcoin. So to me that means that retail is finally getting interested in like somewhere in the background there's some big ass institutions like accumulating cause they know what's coming down in the future. So on the slide, they're kind of, somebody, big players are accumulating all these tokens that the weak hands are dumping. So I just try and like stay in and dollar cost average. We saw an absolutely just massive green candle on Bitcoin on July 8th. And I was cautiously optimistic, but I knew kind of in this environment we would see that short-term correction. So even though we saw some green volume there for a couple of days in a row, it looks like the selling pressure is still in. Marcel, when we're kind of talking about this capitulation still, we're walking through miners also selling off their Bitcoin, which is something we haven't really touched on. Is that something you monitor at all is how quickly miners are kind of like getting out of that asset? Or is that anything that you use as an indicator to signal a bottom? Well, Benton, miners produce 900 Bitcoins per day. So I don't think that number compared to what's traded on exchange every day makes a difference. Even if they sell, okay, we're gonna sell the whole monthly production. So I don't know, 4,000 Bitcoins, like they did in the past, we're gonna sell it in two days. Yeah, sure, it may be can drop from $24,000 to $21,000, a 10% drop, but it's not what makes a six-month winter, crypto winter, like as we've seen right now, or it's not what causes the Bitcoin price to drop from $45,000 to $20,000. So what's happening is that there's a lot of uncertainty. Investors hate that. They don't know if exchanges are solvent. They don't know if the contagion affects from three-hours capital is behind us. They don't know if there will be a global economic crisis in the traditional markets. So whenever there's uncertainty, there's the flight-to-quality movement. So they move out of risk assets. And right now, Bitcoin is considered as a risk asset. And even gold is starting to be interpreted as a not-so-safe asset because you cannot really hold it. You don't know if the bank that holds the gold is gonna survive the crisis. So investors, at least investors are starting to question, is the dollar safe? Is the gold safe? Should we be buying Bitcoin right now? So the first movement you do on a potential crisis is, okay, I'm gonna cash out. I'm going to US dollar. And then when your mind is a little bit more clear, you start to thinking, okay, so what assets do I think that are worth holding out during a crisis? Is this Amazon? Is it Google? Is it Volkswagen bonds like they pay me every month, a little bit, or is it Bitcoin? I think that over the next 12 months, some investors, not all of them, will see that, well, holding treasure gives me a negative yield because of inflation. So I get, okay, I get 4% yields, but inflation is eight or nine or six or whatever, but they're losing money. So they start to progressively start buying Bitcoin little after little and these compounds. So I think it's gonna take at least 12 months for this coupling so we can find a bottom. I mean, but Glassnode indicated that miners to hold about 66,900 Bitcoin and they're saying that the next quarter is likely to remain at risk of further distribution unless coin prices recover meaningfully. Does that 66,000 Bitcoin mean anything or is that kind of like a drop in the bucket? If that happens in a week or a couple of weeks, yes, it surely can definitely, it surely can make Bitcoin price go sub $15,000, but I don't think there's a set price that the miners have to, okay, so now we're forcing some miners have the cost of mining below two cents per dollar so they can withstand the winder and the miners that are paying, I don't know, five cents, six cents, their cost of energy costs. So yes, they're being forced out of the game, but I don't think that it's gonna happen for the 66,000 to be sold at a single week or two weeks so that's not a concern right now. This article also indicated that we could potentially be towards the tail end of what is this Bayer market, Sam, what is your take? Are we anywhere near out of the woods or near a bottom and potential markets right now? Well, that's a good question. I think as Jordan mentioned, timing bottom is notoriously difficult. I mean, there are some indicators out there. The pie cycle bottom and the pie cycle top have shown to be somewhat more reliable. For me, what I look at is I look at market timing in the four year cycle. It was always my expectation that Bitcoin would probably bottom sometime in Q3 or Q4 of 2022. Now, of course, I was expecting a much higher peak. Last year, we didn't get that. So for me, looking at the four year cycle, we're probably coming up to a bottom, in my opinion, either in Q3 or in Q4. And actually, given the fact that Bitcoin is highly correlated with stocks and it has been since the corona crash, I think we're probably gearing up for a very volatile and very ugly fall. September, October are usually really negative month for stocks. There's a seasonality factor in place as traders come back from summer vacations. September, October, shit hits the fan those months, oftentimes. So I think if you see that in the equity market, if you see another sharp decline September, October as the Fed hikes again in the summer, you could see Bitcoin follow suit and I'm expecting there to be a bottom sometime there. So that would be my expectation before we can start to see a recovery. So there's a perfect cocktail of factors that are leading us to potentially a bottom sometime toward the end of the year, especially as the risk assets, the traditional risk assets are going to be vulnerable to a pullback given the macroeconomic backdrop, given the Fed and given all that's happening in monetary policy. That's my expectation moving forward. Excellent insights from all of our experts here on the panel today and we appreciate you sharing your thoughts, Jordan, you got something to say here. Yeah, I just had a crypto winner insight after surviving the last one, like don't chase a token that pumps. If we're in the middle of crypto winner, even if it's a legitimate pump, it's going to come back down because there's nothing going to be sustaining it. If the token you like and it pumps, put on the patient cap, wait till it comes back down to the price it was before the pump and maybe buy it there. But, and if you want to play the trading game, get a token, if it pumps, sell it. And if you want to buy it back, I recently did that with RLC, like it went from a buck to a buck 26. I'm like, it's a crypto winner sold it. It already fell back to a dollar. So like do not, if you, like I understand the hodl nature, but if you're trying to increase your stack, don't get so attached to hodling when a pump comes, especially because of human psychology is once a coin starts pumping, that's when we want to jump in. Don't fall for it. It's crypto winner folks. It's going to come back down. All right, you got to get a clear indication that the whole market is moving higher before you want to start buying and holding any coins. So just, that's my opinion, not investment advice, but. Yes. I did, if you just kind of look around the entire market, theirs has not been a significant amount of volume, you know, on really any of these coins, including Bitcoin, with the exception of a few days out of the last couple of months, it's mostly been all sell pressure. So definitely great advice, which is not financial advice from Jordan there. And once again, these are all the expressed opinions of each individual panelists. They are not the broad sweeping statements of Cointelegraph. We appreciate everyone that's tuning in right now, because we got crypto tips coming in next, but I saw some folks drop their Twitter handles in the chat earlier. Don't forget we're giving away $100 worth of your subscription to Markets Pro here at the end of the show. If you have questions for our panelists, we're gonna have another segment a little bit later talking about the bankruptcy contagion, Celsius, 3AC, Terra, what's going on with that? We're gonna dive into that. We're gonna get a special report from our very own Giovanni. We're gonna dive into that a little bit later. So make sure you stay tuned and have your questions ready about the contagion and everything you wanna know, our guys are gonna answer it for you. So next things next, let's get into our quick crypto tips for this week. All right, folks, you heard Jordan talk about his strategy, you gotta stick to the cryptos that serve a purpose. There are literally thousands of cryptocurrencies you can trade, if not most of these won't ever amount to anything. Although you may get lucky and make money trading any crypto, if you're looking to build long-term wealth, you'll have to invest in cryptos that have staying power. Read the white papers on any cryptos you plan to invest in to see how they are tied to the blockchain, what their utility is and how they are better, cheaper, faster than any of their competitors. This is the best way to filter out long-term winners from losers. Another great place to go is their GitHub to read through their documents. If you're a coder and you can read code, make sure you check what these folks are building. I always recommend to check the social accounts as well. So those are kind of three big areas you wanna dive into when you're looking at assessing a project for the long-term. Is this project gonna be around five to 10 years and that's where you gotta ask yourself and that is our quick crypto tip for this week. And lastly here, let's make sure you like and subscribe our Cointelegraph YouTube channel because we are here. You wanna see all of our pretty faces? We're here 12 p.m. on Tuesdays. So like and subscribe Cointelegraph YouTube. I know Marcel has some exciting stuff for us to dive into. He's gonna be talking about funding rates here with USDT and Tether. What does this mean for the crypto markets? Marcel's gonna tell us. So let's go ahead and hand this over to Marcel. He's gonna dive into this right now. Thank you, Benton. So let's talk about Tether, the stablecoin, USDT for a moment. Regardless what you think about the stablecoin, it is extremely important for crypto markets. Firstly, it holds a 66 billion market capitalization. So even if you consider it a regular coin, it ranks number three with 50% of the value of Ethereum, for example. But more importantly, it serves as a big currency, a base pair of exchange, including bank, KX, and Huobi. Essentially, it can be banked out of the baller. And one of the biggest losses to the crypto markets but not exchange themselves. I would partially agree with that, but continue after the Tether, Luna, and La La La. Now know that exchange will suffer losses due to their dependence on the makers, the ones responsible for the performance of the follows, such as three-hour capital. So liquidity is the name of the game and someone has to bridge those different exchanges, centralized and decentralized and ensure the system works and that's the market makers. So that's why the exchange give them credits, give them unsecured loans as we've seen. So how do we measure the Tether stablecoin health? So firstly, we compare the price of the Bitcoin at Binance, OQX, and Huobi, which is based in Tether, versus the price at Coinbase, Kraken, FTX, US, which is based in US dollars, so not the stablecoin. So Danilo, can you share my screen please? So whenever the price of Bitcoin in Tether is above the price at Coinbase and Kraken, it means investors are not paying a dollar on the stablecoin. A premium of up to 0.5%, half percent is acceptable and right now as you can see the chart, Tether is not a concern. So meaning the price at, the Bitcoin price at Binance and OQX is in line with Coinbase, Kraken, FTX, US, the regular USD markets. So the main indicator of Tether health is stable right now, so not a worry. Thank you, Danilo. But there's more data we can extract from Tether, especially in markets outside of the United States. For instance, the Tether price in Chinese One, the CNY currency, should be pretty close to the official foreign exchange rate. So the indicator of the Tether in Chinese One should trade at 100% at all times. Danilo, can you share my screen please? So OQX tracks the Tether price in peer to peer markets versus the official currency. It should be trading near 100% at all times and right now it's trading at 99%. Meaning investors are dumping the stablecoin Tether and heading out with cash. So Tether is healthy in Asian markets but the indicator is telling us that there's a slight selling pressure right now at Tether. Thank you, Danilo. So from the previous chart, we know that Tether is holding up against Coinbase and Kraken markets. So not a worry over there. But in Asian markets, there's low demand. So Tether is trading at 1% discount. But overall, the Tether indicators are healthy. So not a concern right now. So I know we talked about this on pre-show, but what would mean for an arbitrager who maybe sees these differences from Asian exchanges to American exchanges? What would be a good arbitrage opportunity if that percentage slipped from maybe, call it 0.5% to 3%? Is that where you may look at potentially doing an arbitrage or what's kind of the lever that you might look at for something like that? Good question, Danilo. So if you're talking to Tether, US dollar, it's basically the same currency. Even a 0.2% arbitrage works. You can buy the price at Coinbase and sell at Pinus and vice versa. Those market makers have flexibility to send and they have even credit at the exchanges. So they don't need to buy at the same time. So even a 0.2% arbitrage works if it's Tether versus the dollar. But when we're talking about a different foreign effects such as CNY or Mexican pesos or Brazilian Reis, you would require the cost of transaction to cortex and expenses. So a 1% price difference in foreign exchange markets in crypto is not relevant. Very good. Jordan or Sam, any questions for Marcel today? And while you're watching today, if you have questions from Marcel, make sure you pop them into the chat now and we will ask them for you. So Jordan, any questions? We'll start out with you. Do you, is there a reason you think that they're kind of bringing the TetherFud background right now? I kind of think that, like I see the Exodus or the switch over to USDC a lot more. Maybe they're trying to push people into a more, I don't know, regulated or legitimate stablecoin or setting up a feature for a CBDC entry. What do you think is going on and why are the TetherFud right now? If it looks kind of good in the background. It could be USDC, so the circle behind the FUD like trying to show, yes, we are regulated so the exchange should move to a regulated stablecoin so we are more friendly with the government and stuff. But the TetherFud has been going on for five years because Tether hasn't been able to give a fully audited numbers of their balance. They show some attestation from lawyers. Yeah, the lawyer is attestating that he spoke to our bank manager and the bank manager said we have $66 billion of assets but an attestation is really different from an audit especially from a large firm. And Tether has been promising these auditors and not delivering for the past five or six years. So until we have that, the FUD will continue to circulate. It doesn't matter if USDC exists or not, Tether has a problem of itself because it never have given us a full audit. Sim. Yeah. Well, that was the exact question I wanted to ask because we're seeing the TetherFud come back. Actually now the stablecoin race is really narrowed. You have circles USDC is at a $55 billion market cap versus 65, 66 billion for Tether. It's interesting though, because Tether did settle with US regulators and they paid a fine and part of that process was they would do the quarterly attestation. So I think that is reviewed by Moore Cayman but I just find it odd that they were never really required to produce a full audit or else they would have already. So that's always been an interesting kind of tidbit because they do release their quarterly attestation reports and I've covered it. We've covered it at Cointelegraph before. So the FUD recently has shifted to the composition of their holdings, the commercial paper, et cetera. So you really haven't been in crypto unless you've consumed the TetherFud and that's been ongoing for five, six years now. Bloomberg wrote a huge expose day on that I think in December of 2017, the sky was falling at that point but so far behind the scenes as Marcel mentioned things seem to be okay. For now. It's worth, a quick question for you. Whether or not it's backed, the system is working as I showed the charts. So we cannot agree with that. If the market is paying a dollar for the Tether, it's worth a dollar. What can we say? So we saw, it looked like Great Britain is coming out with a CBDC for the pound. Is there ever a situation, Marcel, where you see USDC being converted into some sort of CBDC? It, would that be possible for the government to do that? Or does the government have to have their own currency that they start like standalone? Yeah, the government needs full control for the CBDC, which means they can revert transactions. They can block addresses. They can do whatever they want. So they cannot do that using a public blockchain such as Ethereum. So a CBDC cannot be converted to USDC or whatever the inverse. They're completely different things. One thing is a cryptocurrency. The other is a CBDC, which is 100% centralized. So I don't think that's gonna happen. Yeah. That's a good point. Yeah. Yeah. When Slavecoin comes into play, CBDC, basically you can think of it as Jordan, Benton, Sam and Marcel, we all have accounts of the Fed basically. And the Fed can turn on or turn off our access to the CBDC because we now have an account basically with the Fed. So when Slavecoin happens, it'll be a very, very different phenomenon than stablecoins. I think stablecoins are actually really good innovation and their use cases have expanded a lot over the past few years. They were initially conceived as a way to give crypto traders access to liquidity because no one would bank crypto companies. But now they're used for remittances, for payments, et cetera. So yeah, as Marcel mentioned, two completely separate things. Very good. And I see them looking at the chat right now. We have Luscious. What are your guys thoughts on Polkadot slash Cosmos and IBC in general, affecting the leveling of asset prices across markets? Do these particular projects have an impact at large? Let's see who wants to take this question first. I don't see them really affecting the current state. They'll track the value when the market gets kind of bullish again and more people come in. But even out of the other day, just kind of thinking, like, what is the value proposition for a lot of these things? I love Cosmos especially, but what's why do I want to hold the token aside from staking, what's giving its value? All the newbies don't necessarily ask these questions, but the older crypto folk definitely kind of focus on these things. And that's why everybody kind of eventually starts consolidating down to the top cryptocurrencies. But I think that they'll have their time in the sun in the next bull run. But even like with Polkadot especially, I don't know why you need to hold the Polkadot token when all these other trains operate with their own token and kind of use the fees for that. There's a lot of stuff to figure out in how this goes. So I don't know, I think that they will track value, but are they gonna throw off the balance of the market? I don't think so. Yeah, I mean, you're talking about Polkadot with a $6.4 billion market cap at Cosmos at $2.3 billion market cap. I don't think these are the shakers and movers right now with where we're kind of at. Sam, have you had some thoughts to add to that? Yeah, I mean, Polkadot and Cosmos are the least of our worries right now. Let's put it that way. They're the ones being affected. They're not the ones doing the effecting. So we're in a downtrend across the market that's gonna affect these projects as well. You could say that they're gonna have staying power. I think Polkadot will survive, for example, during the next cycle. Other chains may not. Exactly. I'm very bullish on the Cosmos ecosystem. Thanks to Jordan's enlightenment with interoperability and what they are doing with IBC. I think it is definitely a long call project, but for right now, I don't think it's impacting the entire space that's yet to be determined. All right, folks, let's keep this show moving right along here because we have a very exciting segment that we're gonna be talking about this Contagion, What's Been Happening, this special interview that we have. We're gonna play you a clip in just a few seconds from a special interview from Giovanni where he spoke with Corey Clipston, CEO of Swan Bitcoin to gather his insights about what's been happening with Contagion, the latest news with Celsius, three arrows capital, founders have not been seen in three weeks, what's going on. Please go ahead and check out the full video on our YouTube, but we're gonna go ahead and play you a short clip and dive into some of the nuggets from this video. So Danilo, let's go ahead and run it back here. I think there's also a really important lesson to hear, a lesson to learn for just crypto fans, not Bitcoiners, but the altcoins, the crypto people, is that a lot of the people that you think are super smart were just in the right place at the right time. They actually aren't that special and they built a lot of these huge companies, essentially because of this massive arbitrage of crypto being just outside of the reach of regulation at present, kind of like online gambling was in the aughts. And so basically you just have these two factors of short time to liquidity, which means you can like pump something up and dump it on retail. And then this whole idea of like, we can make our own weather, which is kind of like what crypto VCs talk to each other about all the time. It means that unlike with actual securities, these securities that are just outside the reach of regulation today, they can market them willy-nilly, they can make trumped up promises about what they're gonna be. They're seeing a lot of fortunes made from essentially like unethical would be, will soon be criminal activity, but they'll get away with it at present. All right, folks. We've seen a lot of contagion floating around in the space right now. Why are crypto platforms going bankrupt? Marcel, what's your take on what you're seeing kind of right now with all the recent fallout? Oban, it's what I said earlier. Unsecured loans, when you give money away for a market maker or someone you believe it's essential for your business, like for instance, if you are a voyager or Celsius and you think that 3AC is the best money manager in the world, so you simply send out a billion dollars in Bitcoin, Ethereum or stablecoin to them and say, okay, manage the money for us and give us like 8% per year and we give away 6% for the clients and we go off with 2% profit. It's very easy to trust someone and do this mistake and exchanges have been doing this for the past 10 years since they were launched and we've even saw an exchange lending money with no collateral, with no margin to Roger Ver, for example which is a big cash founder, a prominent figure. This should not happen. This should not exist. So crypto platforms are going bankrupt because they're giving loans, unsecured loans or not without collateral. So that's why they're failing. And Jordan, what are some of the biggest lessons to learn from this entire kind of last six months? Let's call it. Don't put people on a pedestal. I used to be a therapist dealing with people's internal like we're all faulty humans, all right? I don't care if you're a president or whatnot. We're all gonna make bad decisions and like part of wanting to succeed will like we're willing to offset some of our risk to other people like, oh, this person's smarter than me. They know what they're doing. Let me put their money there. But no, they're people too. We're all kind of greedy at times. We get caught up in the foam of the situation. Crypto still is a new asset class that is making millionaires but also bankrupting people. So yeah, people put way too much trust in some of these platforms. As Marcel mentioned, not even collateralizing some of these loans or something because it trusts us so much. And we think that we're gonna have this blow-off top in crypto. So poor decisions giving people way too much like credit or prestige or thinking that they're not gonna mess up in any kind of way is what really gets us here. Nobody can really do anything all that much better than you in a lot of cases. So trying to just manage your risk a little bit better and realize that people are faulty. Every person I've ever met is faulty. Don't put anybody on a pedestal because I promise you they got their own shit in the closet today. I don't want people to know about. Bro, humans, man. Sam, how are regulators going to view everything that has happened and how do you think this fallout with Celsius 3AC? How do you think that's gonna impact future regulations? Oh, this is a regulator's dream come true. I mean, they're chomping at the bit right now. They're gonna love this. They're gonna love coming in and taking sweeping regulations across the industry. I think we're gonna start to see that. I think that a lot of these different platforms really were, I think the accusations that they were operating basically pawns these schemes and at bull market, something like Celsius, for example, is really good. They'll take your money, they put it into high risk, defy protocols, and they generate yields for you. But what happens during a bear market? This is what happens. So I think they're gonna start trumpeting up investor protection. And I guess they've been using that to block a spot Bitcoin ETF, which is a bit ridiculous. But I see more regulations coming into play. I'm not exactly sure how that's gonna play out. But you're gonna continue to see a major shakeup in the industry. For me, the biggest, the most surprising element of the past six months is that you saw major crypto blue chips or what were considered major crypto blue chips go under. I mean, Three Arrow's capital was a huge name. And with that example, Jordan mentioned, don't put people on a pedestal. You had those guys that actually believed their own hype and they did some ridiculous things during the bear market. Celsius, another major player, multi-billion dollar valuation, multi-billion dollar raises. You take a look at the terror ecosystem and what it did. And the biggest lesson, of course, is that you're in an exponential asset class, Bitcoin and crypto are exponential asset classes. Do you really want to risk it by putting your coins in a different platform for 5% yield? When you're gonna be making thousands of percent over the next decade, it doesn't really make any sense. So self-custody is really important. And in terms of the U.S. regulatory shake-up, it could really go either way. The only secure, I don't want to even use the word secure, but the safest bet is probably Bitcoin. And I say it's safe. I'm not saying it's completely safe. Nothing is completely safe. But I expect regulations to sweep in over the next foreseeable future. Well, we're on this topic of Three Arrow's capital, Denil, if you wouldn't mind sharing my screen. Jack, I found this really interesting tweet from Jack Neville, Three Arrow's capital after they got the loan from FTX bought this NFT. So this was like part of, I think, the loan that they got. And it was just like, how is this possible? After they got bailed out. And so like you kind of see what Sam was alluding to is like they were buying their own hype. And even after they got the loan from FTX, they were still doing some stuff that was just like highly questionable. So it's interesting times in the space. And one of the biggest things I think that we can take away from this time is safety and security and understanding how to mitigate your own risk in these types of environments. DeFi, extremely risky. Know the threats that are out there. There could be exploits, there could be rug pulls, there could be smart contract bugs. Even if you're staking on the exchange or a platform, a CPI platform, you may not get your funds back. And so what is the best way and best methods to safeguard your crypto in these types of environments? Jordan, why don't you help us out here and give us some safety tips on how to best safeguard your crypto? Well, if you're just trying to safeguard your crypto, hardware wallets are definitely the safest way to go. Necessarily, if you want to haul, like Sam said, you want your 1000% over the years. Just kind of put it in a wallet, set it and forget it. I always keep on mentioning, go outside and enjoy the sun or do something. If you got a little cash and you want a dollar cost average, pull it off of that exchange and put it into your hardware wallet and leave it there until you want to sell it in like a few years. If you want to sell it, that's not an investment advice, but yeah. You're not your keys, not your cryptos that you still, I remember when Trainsmare was out there every week trying to pump that and all of a sudden that just disappeared. I think it's so platforms like Celsius and all this could arise, but I think we're all learning the value of like holding onto your funds. Self custody, Sam Marcel, any other safety tips that you'd like to emphasize here? Don't chase yields in this market. You have to look at the mechanics of what's actually being done. Don't aimlessly chase yields. I understand wanting to put money to work. I understand the appeal of passive income, but a lot of these different lending and borrowing platforms were basically Ponzi schemes and they were taking your money, putting them in higher risk investments and yeah, in a bull market, that's all great. But when the novelty wears off, you're left holding the bag or you're left unable to withdraw. So be critical of anybody offering you ridiculous yields. Is that great? Anything, Sam Marcel? I just want to remember that even investors that defy that think that, oh no, it's transparent. I can see where the money is flowing. So I'm not going to lose the money. Yeah, anchor protocol has gone down with Luna and Terra. So I don't think defy is a safe environment. Yes, you can diversify, you can use a little bit of that, but not more than 20% of your money should be held at defy. High risk for the high rewards in the defy environment as we saw, it's like walking that tightrope. One thing too, it's like hardware wallets versus self custody, maybe like a software wallet, like an Exodus or a MetaMask. Do you guys have any preferences in how you like to store that crypto or what may be the safest way? As we all know hardware wallets are the tried and true best way to store crypto, but any suggestions for our audience looking to do some self custody for their crypto? Jordan, any favorites out there that you like? Exodus was my first goal and I like it because it has such a good range of tokens that it supports and usually they kind of vet the projects as they add there. So like good developers know good projects. So any project that's on there, not all the projects on Exodus, but a lot of them are really good choices and you can actually connect your Tracer wallet to Exodus. So that's my go-to choice. Same with Marcel. Hardware wallet and put it in your Doomsday bunker and that should leave you safer, right? There you go, Marcel. I think a hot wallet at iPhone or Android works, but you need the steel plate. You need to write down the 12 or 24 words in a steel plate. So even if your device is lost, you'll have a backup. So more important that having a hot or cold wallet is having the steel plate for that. Exactly. The hardware wallets, the paper wallets or the steel wallets like Marcel said, always the safest. Even you are, even self custody with Exodus or MetaMask, there's still risk. You'd be phished. You get sent an email, click on the wrong link. So again, those are kind of some of the risks with storing your crypto, but so important. With great power comes great responsibility or did I flip that around and say that wrong? It's all right, either way, you guys got the point. All right, let's get this show on the road here. We have the markets, we're having two coins that we have for you to watch, that you should have been watching because the newsquake alerts shot off this week and the vortex where we saw 100 again this week, folks. So let's go ahead and dive into some of the coins you should have been watching. All right, ONT ontology. This week, the newsquake alert which automates alerts instantly to users when market movements happen. This one shot off, ONT saw a bump in a price due to a partnership with seller on July 5th when ONT was trading at 23 cents. A newsquake told markets for subscribers about ontology's implementation of bridging support via seller network C-bridge. The price soon began to steadily rise and then jumped to 27 cents. That's an increase of 17.4%. Big gains with those newsquake alerts. Always love to see those. And the other token that we were tracking this week was RGT. This one shot off a 100 on the vortex score, very, very rare score. A score of 80 or above considered confidently bullish, conversely, 30 or below indicates historically bearish conditions. And so what happened? Well, early this week, RGT saw a steady, high vortex score that held a rare 100. Bullish green scores started flashing when the token was trading at 411 soon after the price soared to $8.48, a sharp increase of 106%. That is huge. And if you would have had Markets Pro, you would have seen this. It would have been a no brainer. You saw the 100 flash up. You would have been like holy smokes. I gotta get this. So that's the Power of Markets Pro and that's why we're giving away one month subscription today at the end of the show. So drop your Twitter handle in the chat if you haven't already, because we wanna give this to you. You wanna give you the power of Markets Pro in your pocket on your phone or on your laptop desktop. So don't forget to do that. And let's go ahead and shift back here. If you haven't got your swag, I see Jordan's rocking our shirt. We got Sam with the Cointelegraph shirt on, store.cointelegraph.com. We got all the crypto swag you could ever want. So make sure you stop by. Every other week we're giving away $50 to the Cointelegraph store. So store.cointelegraph.com for all the crypto swag you need. All right, guys, I wanna hear some closing thoughts for today. We know Jordan, we love seeing you going outside, man, but you gotta make sure that we are tuning into the Marker Port on Tuesday. So Jordan, let's start off with you. What is your final thoughts for today's show? Yeah, I guess I can go a little different. Remember, bear markets are for building. This is a really good time to get out there, do some deep research into different developing platforms or protocols coming out on the crypto space, the emerging sectors, I think personally gaming, it's gonna do well. It's maintaining more of its user base compared to some of the other sectors like DeFi. So that's what I'm got my on. As we talked about before in Samhansian, social tokens as well might be big in the next cycle. So this is a really good time instead of like looking at your portfolio and feeling bad about it to start getting to work and looking forward to the next cycle and what you might wanna start investing in or what sectors you think are gonna be good. But more importantly, always get outside. Yeah, so I can get some suns for sure. All right Sam, closing thoughts for you today. Yeah, bear markets are for accumulation. It's just important to know which assets to accumulate. Obviously, there's those like Bitcoin that have a much lower risk profile than some of the lower cap altcoins. But yeah, be in a position to accumulate if you can responsibly and research emerging sectors, emerging trends that can help you be at the forefront of the next major innovation in crypto and in blockchain. Excellent insights and Marcel. Okay, so you all heard the phrase, if you don't know where the yield comes from, you are the yield. We've heard this over the past month. So think about it. How can the US government or any other government pay you yield on the treasures if they don't make money? If bags to question, are you the yield? Exactly right. Great points for everyone. And I will end things today with being optimistic about the gaming space coming into the blockchain world. I think we're starting to see this wave build up. I think potentially next year at some point this will be the big move for a lot of traditional folks to start getting involved with crypto and they won't know it. And that's gonna be the best part about that is because the games are gonna be so more traditional and used to what the gaming space is used to. Crypto's gonna be kind of behind the scenes. So for me, I am keeping an eye just like Jordan on that space and I'm gonna be diving deep and researching more and more in the months ahead here. Thank you all for joining us today. I'm gonna give away, actually we got to do our markets pro giveaway, don't let me forget here. I'm gonna cruise the chat real quick. It looks like the last person here that did it, it was 5 a.m. at F1V3 a.m. You are our winner today for the markets pro subscription. We appreciate you dropping your Twitter handle in the chat. We hope you enjoy markets pro and get some great trades. Check those vortex words and newsquake alerts. Make sure you get them on your phone so you can track those trades. We appreciate everyone for tuning in around the globe. Huge crowd today, loyal audience. We love you all and we hope you're gonna be here next Tuesday, 12 p.m. Eastern. Until next time, folks, we will see you next Tuesday. This has been the Market Report.