 Hello, friends, and thanks for hanging out with us here on the market report today. I'm your host, Benton, and we are joined again by Risen experts, Marcel Peckman and Yash Ugoa. Yash Ugoa is a financial analyst who has been covering cryptocurrency industry since 2014, and Marcel Peckman applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. Guys, a little bit of a reflally, but things seem to be simmering down a little bit. What's going on this week? How are we feeling Marcel and Yash Ugoa? Welcome to the show. Thanks, Benton. Marcel, I think you're muted there. What I was saying to no one was that the longer we stay above $22,000, the better, because we need confidence. Everybody was fearing that a global crash would take Bitcoin down to $14,000 or $12,000 after Celsius, 3AC, and so many lenders in the space went bankrupt, and even Tehaluna, a top 10 coin, vanished from the industry. Everybody was fearing the worst. Now that this storm has passed by, it's been like three months, four months since it started, people are starting to get more confidence, but it's not going to end. It's not going to happen overnight. So if we stay maybe other weeks, even if it goes down to $21,000 or it's here down to $1.4,000, it doesn't matter. We just need to stick to some ground so to get support, and people will get more confidence and we'll go back to higher prices. And we'll definitely be getting into some of those insights here later on the show, so make sure you stick around. Yashu, welcome back. Glad to have you here. I know you are one of our favorite analysts to have on the show. So what's going on? How are you feeling about the market this week? First, I would like to thank Academy for this award. The last week has been more about Ethereum than Bitcoin to me. I have just spent all this time trying to understand what the fork is happening. And yeah, so Bitcoin has been pretty boring to me, to be honest. It might seem like one of those rare weeks happened to Bitcoin at all. So I'll be speaking more about Ethereum this time. And pretty excited to speak about it. And thank you for those nice words spent it. All the way, bro. Yeah. Well, we have the panel of experts here to answer all of your questions. So make sure today drop your questions in the chat. We're going to be looking at those and making sure that we get to every single one of them. We want to send out a big thank you to everyone that is tuning in from around the globe. Tell us where you are tuning in from today. We're also giving away a one month subscription of Markets Pro, which is $100 value. We're going to show you the two tokens that you should have been watching if you would have had the Markets Pro platform. So make sure you drop your Twitter handle in the chat today, as we're going to be giving away that one month subscription at the end of the show. Make sure you go ahead and slam the like and subscribe button to coin telegraph here on YouTube. You can find the mark report here every Tuesday, 12 PM Eastern. So we got first things to go through today is what is the crypto Twitter space talking about? And we got the weekly roundup video to bring you some of the biggest highlights. So Danilo, let's go ahead and run it back. So another big week for crypto hacks included traditional companies getting involved, CZ traveling around the world doing God's work, introducing everyone to crypto. So always good to see what crypto Twitter is up to this week. But before we get into some of the biggest headlines this week, we got some memes for you guys. So let's go ahead and jump into what we got for memes this week, Adrian and Danilo before we improve. That's how fine. That's how fine. That's my shoes. That's great. That's Vitalik. I think so. Yeah. He told me classic memes. I bet the thinking is about the moon. I wonder if there'll be a new hack when I wake up. That's about right. A lot of news about hacks in the last couple of weeks. Yeah. It's about right with the boats, not a yacht. Nobody's driving their Lambos around. No more assets in Solano. Well, it's right. Why not majority assets? Yeah. Sad to see the phantom hack last week. That was crazy. We're going to get into that a little bit later, but good meme nonetheless. All right. I see Tricrypto is smashing the subscribe button. Love to see it again. Thanks for everyone that is tuning in. Make sure you have your questions ready to go for Marcel and Yashu, our resident experts here for the Mark Report. They're here to give you their insights and give you that information you can't find anywhere else on the internet. I know we have some big, big headlines to get into this week. We're going to be talking Bitcoin, Ethereum, Tornado Cash, US regulating sanctions on Tornado Cash. What does that mean? If you were a user on there and what are the implications for crypto markets? Let's go ahead and jump into our first article, though, today. So Danila, if you want to go ahead and pull up this article here, headlines reading Bitcoin realized price bands form key resistance as bulls lose 24K. We saw a little rally last week all the way up to 24K, but we came back down to earth. First things here that I want to touch on is Marcel or Yashu, what is a realized price band and why is this so important? The realized price as far as no, it concerns not only about the last trade, but the last time the wallets, the addresses moved the coins. So if you're a holder for a long term and you didn't trade at 23K or 24K, you realize price is lower. But we're talking about right now in technical analysis, means the range, the volatility over the past, I don't know, one or two weeks. So a tighter range when the price is not oscillating a lot, which was the what happened over the past days indicates, it tells me that investors are on a wait and see mode. This is especially true when the volumes are going down. So their last market participants willing to impose their trends either up or down. So that's not necessarily bearish as long as there's a support, either if it's 22K or 21K. So if it holds at support level, it's not bad. Awesome. And Yashu, quick question for you while we're looking at this chart from the article here. Is it concerning to you that that bulls kind of got got beaten up by the bears a little bit at 24K? Or is this kind of the normal volatility range that we're in right now? See, consolidation simply means that people are indecisive about the next trend. So we've just created, you know, make believe psychological resistance support levels. So just to make sure that we trade within that small range, it does not reflect any long term opinion. But yeah, when price started consolidating in a very tight pattern, like, you know, the way that the volume's going down, it simply means that people are in a wait and watch approach and most of them are retail traders. They really want some big way to come in and decide the trend for them. And as what what it seems like, even whales are confused about where the market would go next, because we all are watching the macro factors. It's something else that I want to point out from the article here that is that the writer mentioned something about how the Chinese CSI 300 has been behaving in front running the S&P 500. So kind of zooming out from the macro level real quick. Is this something that you all take into account when you're looking at assessing markets? Marcel, I'll let you jump in here first and kind of share your thoughts about what BTC fuel tweeted out in this article here. Yeah, first of all, there's always some luck factor, some random factor that causes Chinese stocks or Chinese bond markets move ahead or Bitcoin or the other way around. So some of these correlations stands for a couple of weeks or a couple of months, but then it vanishes. But what we've seen as a global trend over the past couple of months is that, yes, Chinese, especially the tech sector, have been moving up or down ahead of the broader S&P market. And during the weekends, for instance, where the stock market doesn't trade, Bitcoin has been doing an excellent proxy to understand what the markets will be moving. But that doesn't mean that this correlation will persist for the next couple of weeks or the next couple of months. But yes, that's what the chart is showing us. Chinese stocks have been moving ahead of S&P markets, which has been driving Bitcoin as a sector, as an industry. In Yashu, I want to ask you while we're kind of on this topic at the macro level, we saw the jobs report come out this last week for the U.S. It was surprisingly strong numbers. Did this play into the effect of the recent rally over the last week? And what are your kind of thoughts on the most recent child report? I could agree that Bitcoin was mainly again dealing with the tech stocks in that aspect. Because we have also, the jobs report are also co-signing with the earning results. That have been very depressive compared to the previous quarters. And when we look at this poor numbers, even when the stocks rally, it simply shows that people are simply buying a small dip and waiting to sell at some other point. So I think this again is a Bia market rally. Having said that, your question was about the job increase. So a job increase is also raised negatively on Bitcoin because it simply means that it gives federal reserve more reasons, more leverage to continue their tightening. Because we have heard them from the very beginning that jobs are the most important metric for them before they really take a decision on rate hikes. So this gives them enough confidence to really continue. And while we are at it, while we are at it, I think we have reacted already negatively to these events and Bitcoin could keep reacting to it. So this short term rally actually does not matter, even in tech stocks or even Bitcoin. All right. You heard it from Yashu here first, folks. Well, speaking of rallies, I do want to jump into our next article this week about Ethereum here. So institutions flocking to Ethereum for seven straight weeks as merge nears. One of the big excerpts from this article was actually a quote from Vitalik himself. And I want to kind of read this. So once the merge actually happens, then I expect morale is going to go way up. I basically expect that the merge is going to not be priced in by which I mean, not even just market terms, but even psychological and narrative terms and narrative terms. I think it's not going to be priced in pretty much until after it happens. So what is your take here on Ethereum? I know more cells are going to be diving into the actual fundamentals here. But do you agree with Vitalik? Is this not priced in yet? Are people buying this rumor looking to sell the news when September 19th rolls around? I'll start with you, Marcelle. First of all, all these big events that we know there's a set date, it's going to be mid September, the merge is happening and the inflation is going to be cut and etc. Everybody is watching the same indicator, the same date. So yeah, it's normal to pricing earlier of the event. So it's normal for the stock or the asset to go up and when the news eventually comes out, maybe even the day before, two days before, it starts to fade away, to go down because people already bought on that expectation. So my initial thought is markets are not dumb. There's a lot of smart money, the FTX guys and some other arbitrage traders. So I don't think there's free money out there. People have been buying Ethereum, have been building up positions, but as we get closer to the date, they're going to sell their positions. And Yashu, where do you stand on this? And do you agree with Vitalik that things are not priced in yet? I think what Vitalik is trying to say that the merge will grow the entire ecosystem like two-fold or three-fold because we are trying to make Ethereum more usable for the new projects out there. And this is also about the new players emerging in the market. So Ethereum is simply trying to make it stuff clear that once we do it, we're going to be the number one player. You cannot beat us. And what it simply means, and I'm just talking about the relative organic demand for Ethereum, because to get into the Ethereum system, you have to demand Ethereum. That is like the native currency. So what he's really trying to say, he's just trying to predict this really the best scenario in which everything goes smoothly, the merge is there, and we have further folks, further updates after the merge. So he's just anticipating that they will be in a traction for Ethereum, which in turn would turn into a more demand for Ethereum. And I think even traders right now, I'm not saying all of them, I would agree with Marcel that many people just get into the short term they want to buy the rumor and sell the news. But the real investors who really see Ethereum surpassing its own expectations, I think they are the ones who will stay behind. So Ethereum is in a very strong position in the long run, whether or not we see federal hikes or hell, but we will see a good adoption there if this goes smoothly. I really am rooting for Ethereum to execute on everything that they planned out, because the world would be a better place with lower gas fees and faster transactions approved of stake. So I'm hoping that this event on the 19th is just the start of something good, but we will see how the market reacts in the short term here. You heard the great insights from Marcel and Yashu. So folks, if you're watching at home today, I won't remind you drop your questions in the chat. While we are cruising through some of the biggest headlines from this week, because next what we have is the tornado getting sanctioned by the U.S. What does this mean? Tornado cash. If you've used this, what is this? This is a mixer. And so circle freezes. This is the U.S. D.C. issue where circle freezes blacklisted tornado cash smart contract addresses. One of the things that I also want to pull up real quick while I have this is a what I thought was pretty interesting was the quarterly illicit. I need to unshare here. I will pull that up in just a second here. But while we're waiting, the thing I thought was interesting was the most illicit wall addresses that we're using tornado cash were actually from North Korea. And so when you kind of pull up the charts, it'll show you that. But I'm curious to hear what is the greater impact of U.S. D.C. freezing and blacklisting wallet addresses and then the U.S. sanctioning tornado cash as a whole. I'll start with you, Yashu. The entity they're pretty much falling the poor view of all the local regulators. And that's why it's happened. So if there is any hacker out there and they want to use any American based services, yeah, they are pretty much, you know, in a pickle with the Germans there. So it's like using a bank in a way. I personally, on an honesty level, I'm not a North Korean supporter and I'm pretty sure nobody is. So I'm quite happy with this move. But on the deeper level, I think it's also surprising that defy apps can also get sanctioned once it rely too much on the system. So this also poses a very big challenge for many apps that will follow later. And I'm pretty sure that everybody has done some really shady stuff behind the scenes. So it's simply a message from the government that doesn't matter that you call yourself decentralized. We're going to find you. We're going to ban you. You're going to make sure that you're not able to work in America. That's all, I guess. Barso. Yeah. What's your thoughts here? And will there be any kind of ripple effect in the greater crypto ecosystem? Is this ultimately a good thing or a bad thing that has happened? Benton, I think regulation is always a good thing because if your system, your coin, or your application is decentralized, doesn't depend on a single server or a single website. If it's effectively decentralized, no matter what the government's intentions are, they will not be able to ban it. And even if they ban a single landing page, you can create a web tree version or you can create another like the pirate bay, which has multiple sites pointing to different IPs. So the government will never be able to blacklist or ban blockchain addresses. It simply doesn't work. And for example, I live in Brazil. United States government can do and tell whatever they want. But for now, they don't have any power over me. So when you give those tools of blockchain and decentralized applications on the internet, I think people will finally understand that government doesn't have control over that. So I think it's a good thing that they start to blacklist some address. But in the end, the impact is zero. Very good. And Danila, if you wouldn't mind just pulling up my screen real quick. I wanted to highlight a chart that quarterly illicit cryptocurrency received by mixers by source. And so you can see here on the far right side Q2 of 2022, North Korea based cyber criminals groups, looks like the second largest group was stolen funds. So these mixing dApps or protocols seem to be used for a lot of illicit activities, none the least. And so you can see why the US is trying to maybe clamp down and crack down on some of these at least within their border. But what will be the ultimate effect? Time will tell. Yes. So that is our greatest headlines for this week, including the tornado cash hack. We're going to be getting into some of the Bitcoin and Ethereum specifics this week, some of the good nuggets of news that you want to hear from Marcel. And Yashu is also going to provide some of his analysis. But first, we have some crypto tips for you to get into this week. So let's go ahead and jump into that next. All right, folks, you cannot buy the dips if you have all your money invested already. The point should be obvious, but it bears repeating over and over. It is tempting to go all in, but that limits your options. Consider always having some funds on the side to buy an unforeseen downturn. Even if you want to go all in on crypto, leave yourself a little money on the side just in case. If you have an all in and the price takes a hard downturn, it takes lots of options off the table. It's hard to go all in when a coin goes down 60 to 80% over the course of weeks or months. But sometimes they go down even more than that. And it is wise to always prepare for the worst case. Some folks crypto tape of this week is keep some dry powder on the sidelines. You never know when we're going to go down lower. And when we do go lower, you want to be able to get in at those levels. And that's your crypto tips for this week. All right. And I see the chat is lighting up here. So if you have questions, go ahead and drop them in here. But I know Marcel is going to give us his expert insights. So make sure you stay tuned because he's going to give you the goods about Bitcoin and Ethereum this week. And Yashu is going to be able to give his insights as well. So Marcel, feel free to take it away. Well, Benton, first of all, you should have given me that tip of not going all in six months ago, not today. Now it's too late. But so moving on. Today, we're going to cover an article that I posted yesterday on Cointelegraph about the Federal Reserve reverse repo, which recently touched $2.3 trillion and now time high. So what the hell is the Federal Reserve doing? Typing, which means it's withdrawing stimulus from the markets. So raising interest rates and scaling back their debt assets purchase program. Their goal, reduce inflation. The problem is what caused inflation in the first place? So most analysts will say money printing. So that's the issue. But that's not entirely true. The central bank may issue more treasurers or let financial institutions lend money regardless of their reserves. So injecting more money in the system. Yes. But does that mean that those companies, banks, families, mutual funds will be buying products, services, buying stocks, or even hiring more stuff? It doesn't mean so. So what is the safest option when you have a lot of cash available? Overnight interest rates. You lend money to the Federal Reserve and get paid for that. That's precisely what's happened over the past 12 months. Danilo, I want to share my screen here. So here we have Federal Reserve repo, which is $2.3 trillion. The Federal Reserve will do whatever it takes to combat inflation. That's what they're saying. Financial institutions have a cash abundance issue. And that's the point I want to get. So this is the chart that I want to show you. And you can see that the institutions had $400 billion parked at the Federal Reserve. So lending to the Federal Reserve about a year ago, in 2021. Right now, the number of crude stands at $2.3 trillion. So that's an all-time high. And what's the Federal Reserve paying those guys for the deposits? Two and a half percent per year. So managers are only to allocate capital on lending products or taking counterpart to risk. Meanwhile, the inflation is running at 8%. Thank you, Danilo. So in short, those guys are paying a 60% per year tax. So no matter how absurd this is, it means that those guys are waiting from some crisis or some market crashes. So they don't have what to do with the money right now. It's just sitting over there. But eventually the Federal Reserve would stop this tightening movement. So no longer raising interest rates. And investors would no longer fear a crisis or a market crisis. And this money will flow to longer-term instruments. Yeah, sure. Most of these $2.3 trillion, we go to dead low risk assets. But even if 0.2% of this money flow into Bitcoin, it means $4.6 billion. So $4.6 billion entering Bitcoin. That's bigger than what micro-strategy holds right now. Wow. Real quick question while we're kind of talking about the Federal repurchase agreement stuff. You saw the US pass a bill this last week for nearly $300 billion. Is that going to help inflation, hurt inflation? I guess I'm curious to know a little bit about that as well. Broadly speaking, the more stimulus and packages that they send, no matter if it's for health, if it's for inflation, if it's for Ukraine, if it's for COVID, it doesn't matter what the money is going. The more money that's in the system, the higher the inflation will go. So if they're trying to tank down inflation to hold down inflation, it's... Interesting. All right. And Yashu, I know you have some thoughts to share in some of your analysis while we're here talking about the impacts of the Federal Reserve on Bitcoin. I am very curious to hear what you have to say with some of your analysis this week. So feel free to jump in here. Thank you, mate. I would first like to really thank Marcel for bringing out this amazing analysis, because I had not read the article. There was the first time I'm listening about it. Pretty much actually, I'm very happy to hear that because it pretty much matches with the long-term thing I always talk about, that we really have to look at a long-term game in Bitcoin when it really is about investing. It cannot be an asset. You can simply hold for a day and just sell out. But unfortunately, what I bring right now is a long short of analysis. So I just want to say that despite all these amazing predictions, we are still in a beer market. The reason is because we have already confirmed that the US GDP, it's already down like two quarters in a row, which makes it a technical recession. And on the top of that, we have good news, which is very rare. But like we discussed, the jobs have increased by 528,000 in July. And now it is at the pre-pandemic level. And at the same time, we are looking at wages. The report has come out that the wages of Americans, they have grown by 5.2%. So in a way, we are trying to match inflation by raising the wages. So I think it's still a good news for everyday common jobs in America. But at the same time, we have some alerts. There are some economic indicators that show us very different pictures that is called job openings because they have been declining in the last six months. The weekly jobless claims, for example, they are increasing. So it simply shows that while we have a job increase at the same time, the jobless claims are also going up. So these things, they are quite in contrarian indicators to each other. But we really have to see that we are still in a technical recession. Again, there is one thing I also like to point out because the jobs are increasing, it gives, like I said, fit enough leverage to just continue with their hawkish plan. The way it seems like they will go ahead, they will keep hiking the rates, and they will keep cutting their balance sheet off. And that was the core reason why we entered a beer market thing. So I personally think that for this year, we will look at more losses in the Bitcoin and Ethereum market as well. And I would like to actually illustrate that with a chart as well. So as you can see guys, this chart is showing, we are looking at this latest rebound right now. From around 17, 800 to about 23,000, we have this 38% rebound, but it is a very small rebound. So we cannot actually call it a bottom because we have seen similar beer market rallies in the January and March sessions, like 46%. And I'll take you back to one of the biggest beer markets in Bitcoin history was in 2018, we actually saw a 100% rally here. From this, I mean, we have been noticing these big, big rallies, but despite getting these amazing upside corrections, we are going down, we are going down all the time because there is a very big fundamental factor at play. Back then, it was supposed to be the ICO bubble burst. But right now we are looking at a macro bubble burst, the macro bubble created by the unlimited money injection by the Fed and other central banks from around the world. So as long as that is not done, we are not looking at any kind of stoppage from this thing to fall down. On the top of that, you might see this blue curve, which is 200 exponential moving average on a weekly chart. This thing I've already like repeated many times that this has been an incredible support to call out bottoms, but this time in this beer market, the bottom angle simply broke and it just fell down. And right now it is trying to reclaim it as resistance. And as long as I think we stay below the psychological resistance, our probability to go down is very high. So yes, right now we are looking at this, this is near $26,500. So yes, I can see, you know, Bitcoin going to 26,000, but whether it would continue from there, I don't think so. I'll stop the screen. Thank you. So where will Bitcoin continue to range in your opinion? Let's say for the next six months and will it be any major catalyst that you're seeing that could potentially push it up beyond 28K? I would go with what Marcel said. Yes, there has to be a bottom and my personal, whatever I think is bottom is around $10,000 because in the, we will see rate hikes in September, that is the economic projection is like they will game base the interest rate by 75 PPS. So it will keep happening. But, you know, as I had already mentioned that I am personally waiting for the midterm election to come by and that can be a very big game changer because the polling actually shows that Joe Biden can lose this election, which is why we are looking at this inflation bill stunt. But eventually because of all the, you know, problem that is happening economically and in the world and his ratings are low, a small midterm loss election can give Joe Biden a reason to restart quantitative easing. You know, ask the Fed to just calm down on the rate hike plans because, like I said, we are in a technical recession and it's not going to show right now. It's a very gradual process, maybe in the next 12 months we'll realize it, but we will realize it. But while we're on the topic of recession, you heard folks like Kathy Wood come out, Elon Musk come out and say they're expecting a mild recession. Sometimes it's really hard to know if you're in a recession until you're able to look back and say, hey, that was a recession. What is your take? Is this thing as mild as Kathy Wood is saying or Elon is saying? Or could this become even worse than we could expect? First of all, I'm a very small man, Ms. Kathy Wood and, you know, and Elon Musk. Thank you for, you know, bringing out your side, but yes, you are in losses right now. Look at how hard is performing. You have overlaid with yourself. Am I talking directly to them? They're going to kill me. I know, but you are in losses. You really want this to end. I can't stand. But the fact remains, you know, it's the same because it's a very turbulent time. We have a war in Eastern Europe going on, which can lead to a bigger recession, a big inflation problem in entire Europe. The winter is coming, as they say, right? I mean, one of the Germany's leading public companies, they had to call bankruptcy. And now they are being bailed out. China is going through real estate implosion right now. There are bad news everywhere. And how can you say that? We're going to just be fine. You know, it's like, it's like that meme, you know, the dog is sitting in a room and he's having a cup of coffee, but everything is just burning. Yeah, we'll be fine. But yeah, I think I have overspoken about this, but you know, you know, you get the zeal of it, but I'm trying to say, how can you say that there's not, there's not going to be a recession? Yeah, looking at layoffs. Marshall, what's your take here? Are Elon and Kathy Wood just trying to protect themselves or their, their companies in hope for a mild recession? Or do you think this, this, the bottom is not in and things could potentially get worse? Yeah, I kind of agree with that show here. If your company, if your investment is on the line, you're never going to go on national television and say, hey, guys, things are much worse than expected. Prepare for a lot of big crisis because a single mention, a single speech from a guy like Elon Musk who drive the markets down. So I think they're trying to downplay what's happening here. But the focus right now, in my opinion, should be housing, especially in China sector. Because if housing prices go down, then the population will have more kids to pay their value of the house will go down and the money that they can withdraw on the bank based on their holdings goes lower. So it can start a crisis similar to what we've seen past in 2008. So right now I think the focus should be housing price. We see Shalom saying, wars are inflationary, famines are inflationary, plagues are inflationary. So we appreciate you sharing your thoughts there. And Yashu, I know you have some stuff to cover about Ethereum this week and we've talked about buying the rumor, but I'm curious to see if you might have any charts or any other thoughts that you'd like to share with us about Ethereum while we're on the topic this week. Well, Ethereum charts are quite beautiful. Actually, I'll show you just in about a minute. But okay, let me find it out. Sharing screen, chrome and share, guys. So I'm just, I hope you're going to see this. Okay. So Ethereum has been vastly outperforming, outperforming Bitcoin. And the best thing about it right now, sorry. I'll just reload this shot again. Yeah, give me a sec guys. EthuSD, Binance. Yeah. So we are back here. Like you can see that Ethereum technically has actually crossed over its 200 EMA, the same resistance level that is capping Bitcoins upside attempts. It's entire bullish thesis. Ethereum is already like trading around it. It's already up there. And of course, it's because of the merge, because of all the euphoria surrounding this, you know, major switch to proof of stake. But there's one more thing I really, really like to talk about are Ethereum folks, guys. So first I'm going to stop this chart because it's more like a global thing. So what's, what's really happening right now, because we have a new narrative on the top of the merge narrative that the merge can lead to the creation of multiple Ethereum blockchains. Some, I remember I think Gallows Capital, a crypto fund, they did a poll last week and 33% people, they agreed that there will be a fork, there will be a new chain that will be a POW version of the current Ethereum blockchain while they go ahead with their POWs. So as we have seen that, you know, people want those free tokens. What's really happening is that, you know, people are collecting the Ethereum, accumulating Ethereum, so that by the time they can be a potential fork, they can get this new eth POW token as well. So it's like a free money for them. And why this narrative is picking so much momentum. I mean, look at the last three days, guys, this token does not exist now. I mean, there's no fork, but we are looking at Bitmix, we are looking at Polonyx, these crypto exchanges, they have already started listing futures and spot trading. So basically what does not exist, you can actually trade it for somebody that exists like USDT or maybe Ethereum. And, you know, Vitalik Bitrain in one of the conferences recently even said that many people with exchanges they are trying to encash on this opportunity. So this narrative, you know, this entire narrative, that is actually gonna pump up some, you know, more money into Ethereum. Why? Because people want free tokens, they want those airdrop tokens. But I cannot even explain that once we are past the merge, once we are through it, there can be a very big, you know, downside. I'm expecting 20 to 25%. I mean, of course, in addition to all the macroeconomic factors, but we have to see, you know, sell the news, be a run in the future. But yes, up to the merge, I'm pretty bullish about this Ethereum. That's all guys. All right, very good. Well, we appreciate both of you sharing your insights to Bitcoin and Ethereum and what's going on out there in the world today. One quick question from the chat. I see Catherine Rhodes, thanks for submitting your question. She says, I know you don't give financial advice, but hypothetically, if you had some fresh fiat to invest, where would you put it? Is there any particular market segment or niche or maybe a basket of cryptos that you might be looking at right now? I'll start with Yashu first. Oh, well, I don't actually trade like that personally, but because my timeframe for investment is actually in here. So I don't know if I can give you any near them advice. Sorry for that. But yes, if you are talking about a near, I would say that you can stay connected to Ethereum. You can stay connected to Bitcoin and even Solana, despite all the problems. I mean, Solana, because of all the negativity around it and what can be their efforts to really calm it down by introducing new features, I think Solana is still undervalued. So I would recommend that if you have some daughter to spare, you can actually invest in these currencies for one year. That's my other financial advice again. Yeah, none of which is as one age, but go ahead, Marcel. Exactly. And first of all, the person needs to understand if they're able to take 40% drawdown, if markets continue to tank, if that's not what's up to them, if they think, you know, crypto is too much risk for me, just stay away, go for stocks, go for bonds, there's an infinitive, there's even real estate investments. But if you think, yes, I can handle a 40, 50% drop from here. And if you're new to crypto markets, I'll stick with Bitcoin. Normally, I would say 70% Bitcoin, 30% Ethereum, but considering what's happening on Ethereum right now, and if you're new to crypto currency, I would say stick to Bitcoin. But if you cannot handle a 40, 50% drop from here, stay away. Choose another investment. All right. Thank you all for sharing your thoughts there. And I know Yashu had brought up Solana. And there has been some interesting things happening over in that ecosystem that we're going to tackle today. We saw Nomad Bridge fall prey to exploits, losing millions. But then I just read a headline that White Hat hackers recovered 30 million of the funds, which is great news to hear. Solana-based wallet, Phantom, White Hat hacked as well last week. So what is going on with this ecosystem right now? And I know Yashu, you said that you feel it is undervalued. But what, I guess I'm curious to know first, what makes Solana so susceptible to hacks? Because it was never hacked? Who's saying that? Okay, Marcel, why don't you jump here first and then? Yeah. Okay. So I'm not a security expert guys, but the Nomad Bridge hack is not a Solana network issue. A similar thing happened to Harmony a couple of months ago, as the Horizon Bridge lost $100 million. And you can remember the XC Infinity game, the running bridge lost over $500 million back in March. So those bridges that interconnect different blockchains, they need some kind of trust mechanism. And the users are reckless. So it's not a problem of the Solana itself. But it's a problem of the bridges. Exactly. I would agree with that. And Yashu, what are your thoughts here of why Solana is so susceptible to hacks? Like Ashley was trying to say that it was never hacked. And blaming Solana for these wallet hacks is like blaming the president for a car theft in New York. So you cannot actually go after Solana like that. But similar, I can just say that Solana has gotten unlucky because they have had one bad news after another. And because of that, we are just looking at, unfortunately, it has gotten in the headlines of so many mainstream news websites. Solana hacked. So the interpretation people can get is like, it's Solana that got hacked. Solana network got hacked. And it just resonates with, oh my god, they had an outage. So all these headlines that are coming up, I think they are just doing at this service. But instead, I think it is the services that are being hacked, slope walleting, as it seems. They did not safeguard their users' private key with cryptography. That is a pretty basic thing. Somebody just attacked their server and stole those simple English seed phases. So how can you blame that and so on? I mean, I don't know what Solana could have done about that. It seems like they have fallen victim to just being associated with the ecosystem or someone that was building within their ecosystem. Then it therefore associates it with Solana. So there's also crypto wars, actually, you know, I'm sorry to say, but there are crypto wars going on. You know, one Cardano guy just blame the Solana. Solana says something about Ethereum. So there's a lot of negativity that keeps going on. When one things get hacked, they just attack the network, you know, it's bad, it's, you know, you should not invest in it. So there's a lot of like, you know, campaigns going on and on about every project, actually. I could imagine. So I guess, Yash, you mentioned that the downtime, we all know Solana network has had, it's what's called in growing pains over the last couple of years. We'll kick this back to you first. Why has the Solana network had so much downtime in the past? I'm curious to learn more about this. Well, it's the same problem. I mean, are you prepared to handle transactions? That is it. That is one thing that really defines that whether a blockchain would be able to, you know, be able to have these outages or not. So I think it is an incredible defeat because Solana has more than 20 outages cases in a year while its rival Ethereum has none in the last three years. So of course, the network was not designed to cater for transaction. And I think the limited, they have a limit of 65,000 so network did not know how to take care of bot attacks. I mean, that's what happened, you know, the, if I, if I just code one instance, the outage that happened in April, or I think early May, it was happened because there were a lot of bots, they were trying to maintain NFT on Solana blockchain. And they kind of like, you know, 100x the transaction counts. So of course, they had to be outages. And that is why it got just down for seven hours or more. And this is actually ridiculous. But yeah, that is it. They have to really work on it. All right. So maybe maybe it's just part of the growing pains is not actually a downside to the network. Now, what do exploits in the Solana ecosystem mean, Marcel, and I'm curious to learn from you what, what do these exploits mean? Well, first of all, I don't buy this growing pain theory, for instance, Ethereum guys, the ecosystem as a whole, they think, well, we should build and use the systems as we're building. So we're kind of getting to know how bridges work and getting to know how the DeFi system works. It's a great attitude, but you cannot place like $10 billion on a DeFi application that's still being developed. So Solana is doing exactly this. They're trying to develop and invest huge loads of money at the same time. So it doesn't work. So the main issue with Solana system is centralization. So there's a low number of developers and ecosystem players building all those ventures. There's only maybe a single or two stable coins. And in Ethereum, you already have over 10 different stable coins, over 50 different DeFi applications. So there's less risk. So Solana is too much centralized. I can't hear. Yashu, you were shaking your head. Do you agree with Marcel here and what is your take as to why what do these exploits mean in the Solana ecosystem? I totally think that every new PO is that proof of stake service that comes into view, they first rely on centralization. And I think somebody just wrote that it's still in a beta mode. The only problem is that because we are invested very early in our project without even seeing that if it can prove itself or not. So there's a lot of money being poured into a project that is still in its ideation or in a beta stage and that is always a problem. But yeah, centralization is important at that time because they really need to test the system in the sandbox environment in here. But the problem is they have already taken money for that. There are people already invested to it. Otherwise, if you look at any random startup, they do the same way they fail, they learn, they fix it and they come back. But the only trouble is that people are invested here. So there's nothing wrong in failing and just, you know, there are always stepbacks. Ethereum had a step back in 2016 when DAO was hacked, but they overcame it. But the thing I'm trying to say that it is a proof of stake system and Ethereum is a POW, even now it's a POW system. POW is actually far more secure. So that is why we have not seen any incredible outages. Yes, they have in DDS attacks, but that has not impacted the chain itself. And Ethereum also has a fee system in which you can actually put up your transaction fee and the miners will actually give you. But when you include bots and when you don't have that transaction fee system where you can actually prioritize your transaction, the bots can attack you. So LANA has suffered something similar, which is why they're also trying to change this mechanism by learning from it. So which is why I say that it is getting a lot of feed. But again, if Ethereum turns into POS, who knows if we see the same problems in that network? That's what I'm saying. It's not a 100% scenario with POS. Go ahead, Marcel. Yeah, wrong again is saying on chat that Solana is still technically in beta version. Dude, you cannot have a $10 billion TVN, TVL network with hundreds of venture capital funds piling money and say, we're in beta, sorry, we're doing mistakes or learning as we go. You shouldn't be offering those products to retail investor if it's still in beta. For instance, like in network, nobody, everybody tells the users do not put over 100,000 satoshis over there. It's still in beta. It's still developing. There's no billion dollar TVL. There's no company inserting $100 million to provide liquidity in channels. It doesn't work that way. So either you're in beta and you work small and announce it to the retailers that they shouldn't put too much money or you release the ready made product. You cannot do both at the same time. Yeah, I guess that is the unfortunate thing in crypto sector that you get money just by the hype. People want to get into this technology early and some of it's very young and nascent. So I guess should Solana holders or sole holders be worried at all Marcel? Well, let's go back in time. So what caused Solana to be a top 10 crypto? Let's be honest here. The project was dead before Sam from FTX took it under his wings. Then after the necessary funding for the ecosystem development, which includes expensive validators for the proof of stake network, there were some venture capitalists. So funds with deep pockets spend money on marketing defy liquidity and incentives for games and web three applications and users developments and users. But there's a problem here. It is not sustainable. So either those VCs, those venture captors will be able to sell their positions at a large profits and move on to the next deal or the developers and the users will be constantly seeking incentives to stay on a network because a competing chain is offering more money. So a similar movement happened in the past for Tron and EOS. So I don't think it's sustainable what you're doing to Solana right now, my opinion. And Yash, where do you fall here? If you're a sole holder, should you be worried? I believe every crypto holder should be worried. Yes, because whatever that has happened with Luna, it was just a so-called amazing project. It was just going in the right direction, but suddenly everything crashed. We don't know about the vulnerability until it really happens. So yes, there's always a very incredible risk associated with these tokens. But it's also my job to really look beyond it because I can talk about the same thing every time that, yeah, there's a risk, there's a risk. But I also want to see that if Solana is doing something about the existing problems. So I think Solana is, they are really attempting to resolve the issue that they have a new series called V1 series. And they have added various stability and performance improvements to address the network congestion experience on the main net. So this series actually introduces a QUIC. It's actually a feature that allows block producers to instruct bots to propose only a small number of transactions at a time. So it simply means, in other words, in very simple words, bots cannot take control over the network, which was the core reason why these outages were taking place. They could not take care of it. Now they are trying to take care of it. They spotted the problem, they're trying to solve it. And there's another feature in this V1 series, it's called Quality of Service. So what it does is it actually focuses on free prioritization, the one we already had in Ethereum. And so like any other network, I think Solana will now focus on the transaction that is offering higher fee. So bots, of course, they are their entire purpose is to simply limit bots from taking over the network. So which is why despite of all the hoopla around, you know, it can be a long-term risk, I think they are going in a right direction as a project. Very good. That's new stuff that I have not known about the Solana ecosystem. So I appreciate you doing a deep dive there. And Marcel and Yashu sharing their thoughts about what's going on with the Solana ecosystem. So thank you guys. I want to quickly turn to the chat and let you guys know we're giving away that market's pro subscription $100 of value. Make sure you drop your Twitter handle in the chat today, which brings us up to our next segment this week. We have our two tokens for markets pro that you should have been watching this week. So let's go ahead and get into our markets pro segment for this week. All right, newsquakes. That's what happened this week. If you watched the show last week, you also saw us. Rad was on the alert system for markets pro last week. And it happened again this week. So what happened while the newsquakes, if you're not familiar with them are the automated alerts that instantly notify users when market moving events happen this week, markets pro subscribers were alerted to the news that Binance US would list rad. The notification was sent out when rad was trading at $2.43 and it quickly jumped to $2.63. That is a 9.8% increase in just a couple hours. You can see there on the chart, we have a huge newsquake actually it's 17%. Newsquake and the white price line goes all the way up with that 17% gain. You love seeing the big gains after those newsquake alerts. And that's the power of the markets pro app. The next coin that you should have been watching this week was based on the vortex score. And if you're not familiar with the vortex or is a comparison between its current market and social conditions of those in the past, what happened this week? Well, DigiByte folks, toward the end of the week, green vortex scores flashed for DGB. These scores informed markets pro subscribers that trading and social conditions around the token were similar to ones from the past that preceded bullish price movement. Not long after the scores flashed, the price climbed 12%. Big gains during these bear markets. And that is why you gotta get markets pro folks. And we're going to be giving away that one month subscription. So make sure if you haven't dropped your Twitter handle in the chat, we're going to be giving that subscription away at the end of the show. And that is our markets pro segment for this week. All right, guys, I want to get some closing thoughts from you all today. What would you like to leave our audience with first? And I'll start with Marcel here. Well, my point is, remember, there's people in Venezuela, in Argentina and Iran that is either going through hyperinflation or government sanctions, like they can't send money abroad or receive money from friends and family or even provide services. People are getting their Github accounts shut down. What's happening to you? What are you going to use to circumvent this importance of cryptocurrencies and not only Bitcoin, the decentralized applications as well? So understand that for you that live in Europe, that live in Brazil, that live in the United States, maybe cryptocurrency is a little game, it's something that's not much relevant because you have a strong currency because you have liberties. But those can be taken down in a minute and you're gonna need cryptocurrencies whether you want or not. Excellent thoughts there. And Yashu, what would you like to tell our audience here with your closing thoughts this week? The guys, like I said, the winter is coming. It is coming. We have talked about recession. So it is very important guys that you stick to your cash for a while. You don't have to, you know, invest money anywhere you feel that's going to be a risk. Because right now it's the best time to really hold on to your savings. You try to save as much as you can. And if you can actually afford to invest, if you have those $2,000, which you can actually spare, which you're not going to use anywhere, please go ahead and listen to Marcel. Please buy something, buy something that can protect you from this inflationary pressures that can protect you from this sanctions and what not. So many things are happening in the world and we cannot actually cover in this section. But yeah, stick to your cash. You don't know what's going to happen. The cash will have you in the end. So yeah, that's going to be my advice. All right. Thank you guys for sharing your closing thoughts for today. I want to go ahead and give our winner for today's Market Spur subscription from the chat. I see Tricrypto's today was chiming in a lot. So the at T-R-Y-C-R-Y-P-T-O-S Tricrypto's. Thanks for tuning in. And all of you tuning in from around the globe today, we appreciate you coming and hanging out with us here on the Market Report this week. And we would love for you to like and subscribe to the Cointelegraph channel here on YouTube. So until next time, folks, make sure you tune in every Tuesday at 12 p.m. Market Report. Until next time, thanks for tuning in.