 Welcome to Digital Asset News. Take a top story in crypto and bring on bite-sized pieces. Today, just the thumbnail suggests the dip is upon us and I don't really think it's over. So we're going to take a look at three potential reasons why that is, and we're going to take a look at some good news. So before we do all that, I think it's best that we jump into a little bit of the data and just take a little bit of a history about what's going on. And if you've been like me, I've been in this game for quite some time. And I got in exactly right at this point, right around November 4th, somewhere around there. And I have to tell you, these days that are these dips that are upon us, they get kind of tiring. And just like you, when I first got into this, I was so tired of listening to people talking about how, you know what, just no dip, no big deal, just our dip, it got tiring and frustrating because I'm like, when are all these monstrous gains going to come about? And I went through, in the very beginning, it wasn't a bad deal, little dips here and there. Then I would just want a parabolic run. Everything went up and then, you know, December was like a great month. I felt like a genius. And then as time went on, everything just crashed down. Again, people would tell me, just hold on, just wait. And I would like, I don't understand why I have to wait so long, but I'm stubborn as hell. So I'm going to keep dollar cost averaging. And that was the only thing that really saved me, just stubborn. And I kept doing the same thing and the same thing, dollar cost averaging. I'm buying Bitcoin here around $4,400 and $5,200. And I went to like around eight and I was like, this is great. This is what I've been waiting for. Okay, 11. And then it crashed back down again to like $9,000, $8,000. And then it really went down farther to around $8,000. And I'm like, ah, geez Louise, and that would come up. And I'm really super happy. This was in 29th of January, 2020. And then that thing called COVID came in and it crashed right back down to around $5,000. I'm like, geez. But I'm still stubborn. I'm still stubborn. I keep doing it. I got a pretty sizable amount. And I just been in this, I've been in the market for quite some time. And in all honesty, it just kind of comes down to timing of the market or time in the market. And even if I, even as we come to over here, I kind of got it. I'm like, okay, you know, I've been in this for quite some time. I get it. It comes back down. No big deal because I know what's going to happen next. I know what's going to happen next because nothing stays down forever. Nothing goes up forever. And that's exactly what we're at today. And I know sometimes it's super frustrating when these things happen. But there is a reason behind everything. So that's what we have as far as my little quick flashback story. Here's the prices today. And we took a hit. I will not sugarcoat it. I mean, it was the same hit we took about a month ago. We went down to $58,000, $60,000, then dropped again another $10,000 or some. And now we're right back to where we started again, $48,000. That's just the Bitcoin market cap. Remember, we're still almost at $2.4 trillion. And I remember when we broke a trillion, everybody was going crazy. I remember when we broke $2 trillion. And then I remember when we broke $3 trillion. And now we're back here to $2.4 trillion. And people are like, the sky is falling. The sky is falling. There's nothing good going to happen. Again, it's the same thing just reciprocating again and again and again. I think I'm still over $4,000. Binance coin $560. And over the last hour, you can see it's either been stagnant or a little bit has come down a little bit, depending on the timeframe you're watching. Number 24 hours, we're seeing Bitcoin 10%, 12%, 16% for Polkadot, 13% for Avalanche and on down the line, on down the line. So what happened? Well, we're getting to exactly why these all happened. But of course, the why also comes into this. Because of these three things that happened and there's actually more things on the horizon, we also got a people who were way over leveraged and they went super long. And here we are. We're at 2.48, almost 2.5 billion, which has a cascade effect on the whole market. And it just kind of liquidates everything. It's like a big trigger event. So here we are. And look at that number. Look at that. 2.5, almost 2.5 billion. That's a lot of money lost for leveraged positions, but it is what it is. And whether you know what you're doing or don't know what you're doing, it's irrelevant. It just resets the market. I'll get it in a second. So now let's take a look at the on-chain analysis. If you're trying to figure out how to just go through on-chain analysis, me and Ki Young Ju from CEO of CryptoQuantz, we did a video about how to use these five on-chain analysis to really kind of see where the market is going or see what the market is doing. I remember those days, Ki, laughing, no big deals. And now here we are today. So all the ones I'd like to look at, there's five. Actually, there's six. But Bitcoin, all miners outflow. This is all about are the miners selling, and they're not really selling like they used to. They're actually holding on. Bitcoin all exchange reserve. And this is on the hourly. Now, once we drop down to this price point, and we drop down precipitously, around 40-some thousand, 43, 44, you saw people put on, actually, you know what? If you look at this the right way, people who got into it good and wanted to get out. Once the price was 56,005, they really ramped up how much was going. Let me throw this down. They really ramped up what was going on at the exchanges. And they sold like crazy. And then boom, off you go. And then they took it off. So off it goes. Now, Ethereum, not the same thing. It just keeps going down and down and down. Now, this one right here, I think, is one of the most tellings. This is all exchange taker by volume. This is all the sell. This is all the sell pressure, all the buy pressure that we have, because once it goes to a certain point, there's a point that the market primer says, no, we're not going to allow it to go any farther down because the buys are too good. And you can see right here. See this? Let me squeeze in here. See this big spike right here? See this big spike? Once it went down to around 43, 46, I can get it in lower. 47, 46, 46, 43, 45 somewhere on there. There was a huge spike up. And they said, no, we're not going to allow it to go down anymore because that is just too low for us. And that could potentially be the new bottom. Then we take a look also at this estimated leverage ratio. We've been talking about this for the last couple of weeks. The ratio has just kept going up and up and up. The leverage plays, we're just getting kind of ridiculous. The all exchange estimated leverage ratio. Once, and we a key, you can hear them in the video talk about this. Once it gets to 0.2, it's like way super high. And it shouldn't be that high for all the different exchanges and leverage positions. And we hit that 0.21 right around here and it went down. And then what happened? The same thing happened here. We had it at, on the 3rd of December, it was at 0. Almost 0.2, the highest it's almost ever been. And what happened then? Crash. But now look where we're at. The all exchange estimated leverage ratio is at 0.17. Again, it just resets the market because that's just too much play, too much leverage positions to go around. And then market of value and we're going to do that later, but it's not a big deal. So that's what's going on right now. It's just to me, a big reset. Also, we take a look at PyCycleTop. It's been right retroactively, retrospectively the last three times. Two times in 2013, one time in 2017. The last one where it actually predicted it was right on the button, which was the high of, I always get this wrong, but 67, 66,000 somewhere around here. And it said, yeah, that's the top. And I can't go any higher, but... And then it just kind of goes over. So this is when the 300-day moving average crossed over the 111-day. And right now, we're still not at that point to where it will cross over. So I think we're still in a good position, but only time will tell. And speaking of time and who will tell, we're actually doing our DCA show. It was me, Ben, from End of the Cryptoverse and James from Invest Answers. And during this time, it was last night around 4 or 5 o'clock, depending on where you were at. And Ben even called it. He goes, look, he goes, we're dropping below this. I think it was the 200-day moving average. And he goes, we're dropping right now. And that's not good. So he goes potentially... And you know how Ben is. Ben's like, well, potentially he could do this or do that. And he pretty much just said, this is not good for Bitcoin. And it could potentially go down to X amount. And that's exactly what it did. Now, that is essentially all the data. And just real quick, I've been tweeting about buying the dips and then making a little bit of profits. I'm not a big swing trader. I'm not a trader at all. But I do have a little bit... I guess I can't say I'm not a trader at all because I do a little bit of trading. When I see these massive dips, I buy like last Friday's. I buy, and then when it goes up 10-15%, I sell a little bit of the position because I like a little bit of dry powder on the side. Now, you'll see my portfolio. I'm heavy hodler because that just makes sense to me. And then I do a little gambling with a little NFT action there, but that's a very small sliver. So that's what we have right there. And also one more thing is that when you're looking at these sell-offs, I want you to take a look at what bounces back quickly. What has the least amount of pullback and what has the fastest bounce back? And the ones that I saw, personally, in the top 100, was some Metaverse plays. Sandbox did go down 8%, but on this hourly, which was actually two hours ago, it was up six. Decentral Andromeda went down eight, but it went up 9% in the last hour. So remember, take a look at what is really bouncing around and what could potentially be a good play. And that's what we have right there. So that takes care of the data in general. Let's take a look at these reasons of why all this stuff happens. So you have to understand that everything is connected. There are no coincidences, right? So if we take a look at this, the traditional market suffers. That means we suffer. And the reason for that is because a lot of these traditional players are now in the crypto space. We love them when they come in, right? We love them when they come in and bring their money, but we hate them when they take it out. But this is one of the few places besides Forex where you're open 24-7, 365. So all those players in the traditional space that just lost their tail in the traditional space, S&P 500, NASDAQ, Dow, Russell 2000. And for these numbers, I know this is laughable to us. This is huge for them. Now they're like, I got to justify this position and really make sure that I have everything covered. So where do they sell their crypto positions? Because they don't believe it like you and me. And that's the big thing. So why? Why, why, why? Well, there's three reasons, really. There's more reasons, but these are the top three I feel, right? Besides the fact that people get scared. That's okay. First one, job growth disappoints in November with a gain of 210,000. What's going on here? So non-farm payrolls increased by $210,000, $210,000, excuse me, in November, following a gain of 546,000 the previous month as far as jobs. This number was well below Wall Street expectations of 573,000. Despite the big hiring miss, the unemployment rate fell to 4.2%, which is 0.4% point decline that came even with rising labor force participation. So again, when you see these numbers, this is going to affect the traditional market because they get freaked out when people aren't working. People aren't working in the traditional sense. Who knows? Maybe these people are all making NFTs, I have no idea. But they get freaked out, they don't like that. So that's the first reason. Then, if you take a look at the second reason, this is a bigger one. And this is why I think the dip isn't over yet because all these things that are happening, I have to remember, where are these people going to sell? Well, they've already sold in crypto, we could bounce back, but then people could also sell again. Here's a big reason. This one, potential, potential. I'm not going to say this is the reason of everything and I'll be all, but again, it spooks the people in traditional markets. Those traditional markets go, I got to cover something. They sell cryptocurrency positions and so on and so forth. So China, China. Someone's Evergrande founder as cryptocurrency slump. So what's going on here? The founder of China's property developer Evergrande. Evergrande is a huge property developer in China. They have billions of different assets under management. They're building all these different retail and commercial spaces and they're already defaulting on loans. They were summoned by the government after the company issued a statement saying it might not have sufficient funds to meet its financial obligations. And how much? Well, they're drowning in a sea of debt. We're $300 billion. It's not like they're just like, we can't make a couple million, 300 billion. That's a good amount. On Friday evening, Evergrande in a filing with the Hong Kong Stock Exchange warned that in light of its current liquidity situation, there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations. So why does this matter here globally? Because everything's connected. This is not 1942, as World War II. 1940s, 1950s, when everything was pretty much segmented and we didn't have really like a world economy, one thing that's happening in a financial powerhouse, China, can potentially affect the whole global economy. And this is a big thing, especially with $300 billion. However, in a follow-up statement, hours later, the provincial government in Guangdong said it had immediately summoned founder Zhu Jinyan, think I nailed that, and agreed to send a working group to Evergrande Real Estate Group to supervise and promote enterprise risk management. This is the interesting parts. These next two topics are paragraphs. The company is one of several real estate firms that have plunged into crisis over the past year after Beijing embarked on a regulatory drive to curb speculation and leverage cutting off a crucial avenue for accessing cash. This is another example of the government stepping in and going, we are going to regulate and a little bit too hard-handed and it's going to affect what's going on in the economy. Now, you can argue that this could be something that they exactly expressly want or maybe just someone that it's a repercussion of effect that they had, regardless right now in the short term, this is what's happening. And this is why I think the dip couldn't be over because of this sentence. An Evergrande unit has bond coupons worth $2.5 million in total due Monday. Today is Saturday. That's due Monday. So if it comes on Monday, they said, look, we might not be able to pay it and Monday comes up like, man, we can't pay it and then on Wednesday maybe another one comes up they can't pay that and we can't pay that and we can't pay that. Before you know it, it's a cascade effect. Will this make a difference in the overall grand scheme of things in the long term? No. Could China step in and say, you know what, we're going to summon you, come here, we're going to bail you out just like America bailed out all the different banks that happened in 2008 potentially. Or could this happen on Monday? They come back and go, okay, we're actually going to be able to pay for this. Yeah, sure. So that's what's happening and then lastly, the property sector, a key growth engine in China, has cooled in recent months with stricter home buying rules and a liquidity crisis affecting some of the country's largest developers. So again, here we are. That is one, that is the second reason that it potentially could have had this dip and now, for the peace day resistance, reason number three and we have the virus. So, I know people are sick of this and I'm sick of hearing about it myself but it is, affects the markets but what I want to make everybody aware of, this is science news, I don't know how scientific it is, but there's two things I want to read to you. What we know and what we don't know. And this is going to be laughable but it's the truth. What we know, the list of things we do know about Omicron's new variant is short. We know South Africa has a big spike in cases, going from an average of less than 3,000 to more than 2,000. All right. What we don't know, what we don't know is much, much greater. Most information at this point is speculation. So, again, this is the problem with some of these markets that we are involved into. People are susceptible to emotions and they're susceptible to going, you know what? I don't like the feeling of this so I need to get out because this variant can be very big and bad, or it could be absolutely nothing. This Evergrande could be extremely huge or it could be nothing. And then everything we just talked about, these job numbers, it could just turn around or it could be nothing. It spooks people and they kind of look at things in a very short-term time frame and they go, I'm out. And again, it really all depends on who you are and what you're doing and what your goals are. If your goals are to, you know, really get in and out of different positions, then this is all about you. If you kind of see, if you're in the crypto digital asset space and you see things like where things potentially go, this isn't a big deal. But again, my goals aren't your goals and it's really all up to you and what you want to do. So that's the reasons that I could see. Here's the good news. And I can just remember this. Just like that piece we saw in the very beginning, no, there's nothing smooth. And making a good amount of money to financial freedom takes a little bit of time. And only that, it's bumpy. And this is, you're going to see this chart everywhere today because people are going to remind, people are going to remind you, I will say this, it's good to have the internet come in sometimes, sometimes, and just remind people of what they're involved in and as like a lesson to go, hey, knowing to freak out, when in doubt, zoom out. Here's what we have. So remember, on top of this from 2016, 2017, we had some pretty big dips. 29%, one of the bigger ones. And that was, I think in November of 2017. And then we take a look at this. This is from, yeah, October to December, 2019, 2017. And we take a look at this. I mean, look, I remember again, when I got in pretty flat, and I went up and then there was this huge drop, which looks pretty kind of big back then. Well, we went from 7,500 down to 58. And people are like, man, that's a lot of money to be lost because that was, and then of course, we come all the way up here and we run it all the way up to 18,4. And then we had a huge plunge down to 15,000. That's like three grand right there. And people are like, man, I lost a ton of money. Now what happens? It goes up. And then another dip. And then it goes up again. Then a big dip. And then we ride out of 2018. And that was of course, crypto winner. Do I think we're anywhere near crypto winner? I don't believe we are, depending on the different things that we take a look at. But that's what we have for that. So just remember that even in the last month of the biggest bull run that we had before, as far as parabolic, we still had some pretty big dips. And then the big thing to remember is that these that we see right back here, the ones I just showed you are nothing in comparison to what we're at right now. And look at this. This back here looks like a hiccup compared to what it is. But if we really zoom in, this was the end all be all. So just remember, it's not that bad. And then finally, I will just say, remember what you invested into. If you took a hundred dollars of Bitcoin over time, this is which your investment be over in 10 years. And you'd have 9.2 million Bitcoin. Crazy. Actually, it's 11 years. I think it's a little bit older. Amazon, you'd have 333, Apple 2400, Visa 1700. So and then on down the line, Walmart, these are all big, huge companies. They have done very well. But the crypto assets, it's an asymmetrical return. And I will just say this. I know we're not not everybody's a big fan of Warren Buffett and Charlie Munger, especially what they said, but it goes like this. Investing, it's all about time in the market. And it's more important in timing the market. A lot of times, a lot of these big gains are made in just a few days. This is not investment advice. This is just investment opinion. These are just how I see things. And I want to bring these things to your attention so you can make the best decision for your financial future. And that's it for today. So look, if you made it all the way the end, first thanks. I know it's longer, but a lot of things going on. If you liked today's video, give it a thumbs up, give it a like. Also consider subscribing all things we talk about are time sensitive. And that is it for today. So thanks so much for stopping by. I appreciate it. And I'll see you on the next one.