 Welcome to digital asset news to get top stories and crypto currencies your assets and break them down to bite-sized pieces today It's all about the market collapsing. So here's six reasons why Bitcoin just collapsed to just above 17,000 and this is really is the only story. We're gonna go over six different aspects and see which one is the most likely So let's jump in today's market. See what the heck just happened. So today is Thanksgiving Day. So congratulations. We made it Have a great Thanksgiving for all of you Americans out there US residents for everybody else You don't really know what's going on It's just a day for us to give thanks and eat a ton of food. That's what it comes down to also before you get into the article You may have noticed that my audio may sound Good or may sound not so great I'm using a new setup because yesterday's microphone just crashed on me and there was a lot of different issues with it So we'll see how this new setup goes and just give me some feedback Think about the audio and if it does work, then we'll keep this if not, we'll do some more upgrades. So anyhow, here's what happened Bitcoin massive Pullback, I'm not gonna say a dump because people always say it's not a dump Okay, well, we'll set we'll cut a pullback which I think of what it is And this is what I'm always talking about as far as dollar-cost averaging You can go all in at some point and that's cool and you know, but you have to wait a long time This is just a safer option, especially when these types of dips happen to me. This is a godsend I don't know what it is for you. But for me, this is enormous I am super happy today because I can buy Bitcoin at a 10% flash sale How awesome and actually I sent out a tweet and I said, hey for all you people sitting down on your Thanksgiving Table and you're telling all your friends and family loved ones about Bitcoin. Don't forget to mention this Hey, Bitcoin has become so mainstream that it's also doing a Black Friday Flash sale so just like everything else out there best buy and Walmart and everything else Bitcoin's also getting the game and they're having a flash sale right now You can get it for 10% off maybe 20% by Friday. Who knows so just remember to tell them that that's what's going on Also, everything's just down. So I'm not gonna go over it. It doesn't really matter We know it's down massively, but if you're a dollar-cost average like me, this is such a great day And that's it. I before I move into on the next story Remember when I got in into crypto in 2017 and then everything crashed and all these different pundits All these people that are really not around anymore That they said something that would totally infuriate me, which is the same thing I just told you which is oh, there's such a great day cuz it's down so much I was like who the hell you talking to do you see how bad that the market is I didn't understand the power of dollar-cost averaging and now I totally get it. So like if Me in 2017 would look this like this sucks. I can't believe how bad this went This is awful, but I hadn't put in the time. I hadn't put in the work And here I am at this point in the game. And maybe you are maybe you are not but just know that Wherever you're at It doesn't matter really it doesn't matter as as time moves on Everything will go up the cryptocurrency is gonna swallow up everything is gonna be 10 times bigger than the internet revolution And it's gonna be massive. So right now just take it for a grain of salt if you dollar-cost average This is a great day if you haven't and you're just starting into it. Just take your lumps That's all I can say money isn't made overnight There are no get rich quick schemes and these are the things that you have to do These are the things that I've done. I've taken over three years now I've taken my lumps my hard hits and this is what it is. All right Let's jump in today's top story. So six reason why Bitcoin collapse This is gonna get deep on the very after we go through the whole thing the very first one I'll get out. I'm gonna backtrack to this another great piece by alex dob. Yeah, gotta get him on the show He never responds my Twitter my tweets no love. Anyhow, so it states here They kind of lost over 2000 its value over the past 24 hours. Yeah, pretty big massive dip right went to 17 to now It's at 17 one may even break into the 16s. Who knows so there's six reasons There's a Mnuchin bombshell brutal rejection close the all-time high Overheating futures market high social volume whales sending coins to exchange and declining network activity So I'm gonna go over this first one. I'm gonna briefly touch on it But I think this is the biggest one and I'll I'm gonna backtrack in a bit So Coinbase CEO Brian Armstrong expressed his concerns about outgoing Treasury Secretary Steve Mnuchin Rushing draconian crypto wallet regulations. Here's a quote or we'll go into it later Mnuchin who was personally told by President Trump to go after Bitcoin has been very vocal about the risks associated with the cryptocurrency and again when you are in that realm of Of high placement high society a lot of money. This is a threat to you so this is not surprising to me this is not surprising that people in power would want to do away with this and For Trump has even said he's even tweeted out. Hey, I don't like Bitcoin. It's nothing good and da da da So, yeah, he I don't believe he was really the right president for a cryptocurrency Just my opinion you you're allowed to disagree with me all you want the comment section Anyhow, we'll come back to this piece here. There's a brutal rejection to the all-time high flagship the crypto are Bitcoin reached 1994 that's amazing at 150 p.m. And then it contracted to 19 one so what's going on here people are taking profits people are scared They haven't seen it go this high Besides 2017 so they've put all their stop orders in all their you know orders to actually sell out I have those same orders didn't hit the order, but that's okay, and these are the things that are happening So people are selling that's what it comes down to there's an overheating futures market this I did not know Funding rates across the top exchanges that offer perpetual crypto futures, which means it just never expires have been on the rise as Results over leveraged longs got wiped out with a total Bitcoin open interest shedding almost 14% That's huge Then there's this piece about high social volume one day prior to plunge Bitcoin search interest hit a new 2020 high and It's just talks about Bitcoin Google trends, which I'm going to show you why it doesn't make a darn bit of difference So this is Google trends. Okay, and Google trends is it doesn't show you actual search volume Like there was 150,000 people searching for Bitcoin yesterday what it what it shows you is a timeframe between zero and a hundred and Think of it like a pain level zero is no pain ten is the most excruciating pain you've ever had in your life So it's like it's talking about like how high is are the Bitcoin searches so over 12 months Yeah on November 15 21st. It was at a hundred just call it like the most of all over the last 12 months So you're probably thinking why that's a lot. It's not a lot. I'm gonna show you why I've done this before So if you take a look at the whole enchilada over the whole time frame Nobody talked about Bitcoin 2004 and tell about 2011 Here's where everybody talked about it the absolute most in 2017 This is when everybody went on fire. You know how much it is right now They're 15 who cares 15 on Google trends So that's why I know that Google trends is not really a good indicator of what is happening in the crypto market You know what is a good indicator of what's happening in the crypto the Twitter verse Everything that happens first pretty much happens on Twitter It is the fastest way to get information out You can send a tweet in no time and trade the chain, which is what I've signed up before They are one of only four crypto firms that have a direct API to Twitter They even crawl all the different big websites like Binance and Coinbase for all the different information about when things are listing Partnerships and all those things and you get them in a app called slack slack Just notifies you when things are about to hit those exchanges and you can make some pretty good gains now This is good for me as a dollar-cost Because I want to know when things are gonna go way massively up or I want to know when things are gonna go way massively down So I can kind of time my dollar-cost average, but for traders. This is something you should probably look into There's a link in the description. Okay, the next whales are sending coins to exchanges This is the same thing when when a bunch of people especially people with high net worth are sending Their crypto from their wallets to the exchanges There's only one reason for that because they're gonna sell and cash out So this is a crypto quant CEO key Yongju notes that Bitcoin whales are depositing Bitcoin to crypto exchanges a few hours prior to the crash That is also untrained the chain you get alerts as far as like whale whale alerts and here you go right here 14 million USD 965 Bitcoin 300,000 link on 14.5 USD transferred so you'll get a big alerts like this So yeah only makes sense and lastly declining network activity Sentiment points to the declining number of daily active addresses, which is usually a bear sign So not many people are using it as much. Okay, so that's the six reasons But I need to go in a detail to this very first one because this is this is effective But it's not that big of a deal and I'll explain why the Mnuchin bombshell So this was put up by Brian Armstrong and there's a great article on coin desk But I'm not gonna go over it because I want to go right to the source and the source is Brian Armstrong And I've had my differences with Coinbase and I talk about how they're going down and blah blah blah And it's true I don't like it because I want to push them to actually do something better But this cryptocurrency universe that we all live in we are like if you think about it Kind of like a dysfunctional family right no one sometimes we get ticked off at our brother or our cousins or whatever else But if one attacks My brothers or my sisters then I'm gonna be that guy who's gonna step in like you better slow your roll because this is what it's Gonna come down to so when Brian here is talking about the different crazy regulation that are coming down I'm like god dang it. You can't do that to Brian So here's what he said Last week we heard rumors that the US Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self Hosted crypto wallets before the end of the term for those who don't know self-hosted wallets And what he's saying is the self-hosted wallets are things that we have like a nano ledger things on our phone Right, we don't have custodian like the big institutions do Self-hosted crypto wallets are important because they allow anyone to use this new technology to access basic financial services Just like anyone can use a computer the open nature of crypto is what makes a powerful tool for innovation That's what levels the playing field globally. It's what fuels innovation and government's not good for innovation They're good for regulation not for innovation this proposed regulation would we think require financial institutions like Coinbase to verify the recipient or owner of the self-hosted wallet Collecting identifying information on that party before withdrawal could be sent to that wallet So of course when we sign up for Coinbase, they're gonna know exactly who we are But now what they're they're saying is that we want to know where you're sending that money to so okay got it and then He says this sounds like a reasonable idea on the surface It doesn't mean but whatever But it is a bad idea in practice because it's often Impractical to collect identifying information on a recipient in the crypto. Let me explain why so before I go on This is why I created Dan teaches crypto I know we did a video about talking to an open letter to PayPal users and I explained to them why PayPal having control a a singular entity which is Centralized is a bad idea and explained why and people like who cares because people are using to their own thing I'm like, yes, I know you're doing a thing But they have to know exactly why that is and they can make the decision not a hundred percent I got to come to our way of thinking but if I can pull just a couple of more people in the life raft I've done my job. So this is what Brian says many crypto users are sending crypto to smart contracts to use DeFi Apps a smart contract is not necessarily owned by any individual or business who could be identified It's a new type of recipient doesn't have any direct equivalent of financial services many crypto users sending crypto to merchants Paying for goods and services. Does it make sense to require customers to help verify the identity of a business? Before they can buy a product there. So if you think that the IRS knows a little bit of information about your business guess what they're gonna know absolutely everything here and that's what they're trying to do But can you imagine the cumbersome effect of verifying verifying verifying verifying verifying? It'll be a nightmare many crypto users are also sending crypto to people in emerging markets such as in Saharan, South Africa where it's difficult or impossible to collect meaningful know your customer info Some of these individuals are living in poverty and may not have any permanent addresses or form of government ID Like we send money back to our family in Mexico So I mean, how's that gonna work out? They have of course they have smartphones a lot. Everybody's got a smartphone I mean when we live one where in El Paso we just walk over to Juarez and you know Go get what we need and then we come back But everybody's got a smartphone over there, but they don't may not have a bank They might have a bunch of government IDs that they can process so and then think about in in Africa think about in Iran I rack the Middle East and it's gonna be impossible Finally many recipients in the US are abroad who value their financial privacy May somebody not want to upload more more documents to various companies which which could be hacked or stolen So if you want to be a part of this whole program, they're like, I'm not playing the game and I'm out So I'm not gonna use crypto so pay me and I don't know whatever they're gonna use The additional friction would kill many of the emerging use cases for crypto crypto is just money It's digitizing every type of assets and then this would be bad for America because would force US consumers to use foreign unregulated crypto companies to get access to these services so again America fumbles over its own huge big feet and falls flat in its face And then what does that mean? Well, it pushes everybody to other different types of exchanges outside of the US Where you know they can make all the money and they can make all the decisions So great job America you really plan the part and then to finish up in this if this crypto regulation comes out It would be a terrible legacy and have long-standing negative impacts for the US in the early days of the internet There were people who called for it to be regulated like the phone companies. Thank goodness. They didn't and yeah Al Gore was one of those leading people that actually said no we can't do this. We have to lead it for innovation We're not good innovation. We're the government. We're good for regulation So we're not gonna step on anybody's toes let it flourish and it did and it worked out great if they do this Which I hope they won't We're gonna have a lot of problems moving on so again, let's take a step back when in doubt zoom out Let's look at the big picture does this change anything has Bitcoin been hacked has any different crypto been hacked Has exchanges gone down? Well besides Coinbase has the principles changed our smart contracts Just not working are the different aspects are there different problems that need to be solved with cryptocurrency that I've already been Solved by something else. No all these things are still the same when you take a step back This is just stupid regulation by people who don't know what the heck is going on So in the short term if your dollar cost average This is a godsend because you're gonna look at this and the price will probably fall a little bit more And you can pick up some cheap crypto currencies and your assets. However may not work out and maybe it'll go We're gonna reverse don't know but I was telling this for me I'm still long-term it makes a lot of sense that things will be solved things need to be done And that's it for today. So enjoy your Thanksgiving I really appreciate it if you like these types of videos two months gonna pop up on your left and right So check those out and that's it. I gotta go eat some food. I'll see you on the next one