 Hello friends and thank you for hanging out. Let's stay here on the mark report on Cointelegraph. I'm your host Benton and we are joined by a resident experts Jordan Finnesseth, Marcel Peckman and Sam Borgie. Jordan uses his background in psychology and human behavior to spot emerging trends and crypto. Sam Borgie is a business editor at Cointelegraph 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. Fellas, little bounce, little stability, we're hovering around 20k now for about a week now feels good. But are we going to wake up to a rough nightmare? What is going on this week? Jordan, I'm going to start things off with you. How are you feeling? What is happening this week in the markets? I'm feeling good after coming back from a vacation. I know the markets are kind of stagnant down the lower like a month ago, we're like, yeah, it's hovering around 30,000. We're gonna hold here now. Like, yeah, it's hovering around 20,000. We're gonna hold here. Like, let's hope we don't go like, yeah, or holding around 10,000. We'll see. I don't think it's gonna go that low, but it's not looking very fun out there right now. And Sam, what's going on this week, man? How are we feeling? Well, at 20,000, I can't feel good. Can I? I'm not quite sure this level holds. If you would have told me six months ago, whether it hits 20,000, I would have been very skeptical of that. But now it seems like we have another leg lower before the inevitable bottom. So I guess we'll find out we'll find out soon enough how that's going to play out. In Marcel, I know you have some thoughts today that we're going to be diving into what's going on this week, man. Yeah, Benton, I kind of agree with with both of them. Like, like, yeah, every time we say, yeah, 40,000 is the ultimate bottom. 30,000 the ultimate bottom 20,000. So how is this going to end? We don't know the truth is no one knows because there's too many unknown unknowns. And that's precisely what we need for a rally. Because if some by a miracle, Apple or Microsoft announces tomorrow, one billion investment in Bitcoin, the game changes. So that's precisely why we should be continue to invest and buy every month, because we don't know what's going to happen. And if you did know what happens, then I, you know, you may not be sitting here listening to the show. But today, we want to welcome everyone that's been tuning in from around the globe. We see Catherine Rhodes is back from LA glad to have here, Ahmed Vikram, Adrian always glad to have the crowd watching today's show. I know we got an excitement news articles that we're going to dive into a lot of interesting stuff. We had hacks out there, we have a few experts kind of talking about some bull, some bull whip effects happening in the market, we're going to dive in some macro things. But first things first, I know we have a market roundup video. And if you haven't liked and subscribe point telegraph, go ahead and do so now YouTube Tuesdays at 12pm Eastern, the marker report is giving you the news nuggets from around the Twitter sphere and around the crypto sphere so that you can stay up to date and know what you need to be doing here and these type types of markets. So first things first, Danila, let's go ahead and jump into our weekly roundup video this week. Those were some of the biggest headlines in the Twitter service week. Quick shout out to friend of the show, Luciana, always a pleasure to have you here. We appreciate everyone for tuning in again around the globe. If you're just hopping on today's show, action pack lineup today, bunch of headlines we got to dive into we're going to get you the market analysis you've been waiting for. But first, Adrian, we have memes today. We got memes. Let's let's get into some memes first. If not, we're going to get into our market news. We got we got some memes. Alright, memes are coming in hot here. Here we go. Alright, what is the first meme that we have of today? ETH at 11,002 days ago, or 1100 ETH at 1100 today. Well, got the Pepe the Pepe memes. Love them. Got a lot of Pepe. I love the Pepe. You would myself. Alright, Monday, fix it now. This is why we don't love you. You told us to buy a theorem at 4,000. Now it's a thousand classic. That's a great one. Telling all the family members to get into crypto. It never does. That's an accurate depiction of the NFTs right now. Oh boy. Tell us your favorite meme folks while you're watching this day at home. Tell us your favorite meme. How come such a lovely lady is sitting here all alone? Do you want to know more about my new NFC question? Yeah. Telegram and Twitter bots. Yeah, they're always some nice ladies from Italy or whatever. Yeah. Classic. Alright, well done, Adrian. Thanks for scrounging up the old memes from across the Twitter sphere this week. We're gonna be giving away $150 voucher towards the coin telegraph store today. So make sure you drop your handle in the chat and you can get swag the CT swag. It's all over the place in our store. We got hoodies, hats, coffee monk shirts. You name it. It's gonna be in there. First, let's get into our market news this week. I know get a lot to dive into the Celsius fallout is still happening. We have tether fud. Community's gonna react to Gary Gensler's interview yesterday at CNBC. So let's go ahead and jump into our market news for this week. Alright guys, first on deck here is the crypto community confused as Celsius continues with weekly rewards. If you're a Celsius user and you're seeing these rewards get distributed to you yet you can't withdraw them. Is that just putting salt in the wound? I want to start with Jordan. I want to hear your take of the whole Celsius fallout so far and where you think this could potentially head next? Well, it might be a move to just kind of limit the amount of freaking out that people do like if that's still coming in, they're kind of like giving the the signal that we're still solvent. We're okay. Everything's fine. This is just a brief pause. Things will get back to normal in a little while. But like, yeah, we got bankruptcy talks and all this stuff. I don't know, like, this is this is all making me really think about like even just the greater financial system and the repo whole the whole repo thing going on with the government, like, we don't have the crypto obviously doesn't have the funding to stay solvent when these kinds of things happen. But this was a happening in the larger economy with big banks and institutions, all the way back at the beginning of COVID. So I think we're just kind of seeing the whole collapse of a lot of the economic system as we knew it, it's gonna have to be restructured. And unfortunately, for us crypto folks, it's really hitting us hard. And the whole Bitcoin is an inflation hedge thing ain't really working for us right now. Hopefully that that that reverses in a little while. But yeah, these different large entities collapsing, kind of a symptom of the bigger problem with our whole economy, in my opinion. In something I want to quickly highlight here in this article is that, according to Celsius website, which is currently undergoing revamped liquidity issues, the company is still advertising percentage yields AP wise up to 18.6% on crypto deposits, which many have argued is unsustainable. Is this like, is this a dilemma? I'm going to kick this over to Sam. Why are they still marketing this stuff? If they could potentially be insolvent? I have no idea. I have no idea what's going on there. But it really reminds me of, of why I never got got involved in any of the Celsius or the block fi. I'm not I'm not criticizing those who have I'm just saying that we're investing in an exponential market that can gain 1000s of percent over over the span of a few years. Yet, we want to go for that 5% yield by giving up our assets in the process. So for me, the risk reward never really made much sense. But you know, the I think a lot of this really stems back to the Terra ecosystem collapse and everyone who was exposed to that, even three arrows capital had some massive exposure to Terra. And I think you're starting to see the ripple effects. And with Celsius potentially going under, again, that's going to have wider consequences. And I was concerned about block five before we heard the news of a potential loan. And now you have Morgan Creek Digital, I think, wanting to pursue a takeover there or at least want to revise the terms of what FTX offered them. So it's a complete mess. And I think that it's going to get probably a somewhat worse moving forward as the fallout continues. I wouldn't touch these that I wouldn't touch these protocols with a 10 foot pole. Not your keys, not your Bitcoin, hold spot and you can weather the storm. But when you're exposed like this, it's very difficult. And Marcell, are you using the staking the CFI protocols at all? And I don't know, maybe can you can explain some of these risks to some of the users that are watching today, viewers that are watching today? I think the number one message here is, when you send cryptocurrency to whoever, a company, an exchange, a landing provider, a bank, even if it's a bank. So you're essentially giving away this cryptocurrency and getting in return IOU means a debt instrument. Okay, I have your coins here. So I own you, I shall repay in whatever period or whenever you ask for redemption, the coin plus some yield. So whenever you log in at balance, whenever you're logging in at sales use or whatever company, a centralized company, what you're seeing there, the balance that you're seeing there is an IOU. It's a debt. You don't have access to those cryptocurrencies. You cannot withdraw them. You cannot go on the blockchain and check if the balance is still there because you gave away your coins in promise of a potential future return. So you should avoid that at all costs, no matter how reputable the company is, even if it's a bank, because the main goal, the main the main benefits from cryptocurrencies is for you to do your own custody for you to do to be your own bank. So you don't have to rely on the risk management of other people. So that's my whole message here. That's a very, very important takeaway, Jordan. Go ahead and jump in here. Yeah, I was gonna like point out like, there's been a big change in the whole crypto ecosystem the last four or five years. My first guy didn't especially you had Trace Mary out there, not your keys, not your crypto pull your coins off the exchanges every year they were trying to do this and it slowly just kind of fade away and it kind of seems more like we've moved towards traditional finance, like all these firms whether 3ac or Luna, they're doing like fractionalized reserve lending in this crap, which is causing these contagion or the systemic risk to the whole environment. We we're back under a trillion dollars. Now we're a really small market. So any big blow up is going to really affect everything like it is currently and it kind of seems like they're doing this to get a better hold of the crypto market like the institutions are pushing people out and they're basically getting people's cryptos for free because you put them on Celsius and then they go bankrupt and then a company comes in and buys them for cents on the dollar. So this seems like a whole lot of the traditional finance system is getting thrown in here and we're crypto people are just letting it happen like don't don't give up your cryptos folks. You could not have said that better in these like C5 products. They're no different than a bank like back when we had bank runs in the United States where you couldn't withdraw your deposits and the FDIC was created to ensure those deposits. It's the same thing. It's just a newer you know version of it and like I think this is kind of what we're doing. It's an evolution. You got to have it fail in order to kind of like rebuild the infrastructure inside the ecosystem. So we will see what the fallout brings. You know Celsius has I guess has speculated that they're looking at hiring bankruptcy lawyers. So we're going to see what happens. The next thing I want to get into today though is the tether stablecoin FUD here it's back it's all over the place. You got short sellers circling the wagons and people are talking about it. I didn't know I want to go ahead and just pull up this article real quick from Cointelegraph tether CTO refute stablecoin FUD as short seller circle. Yeah people are looking to short tether is USDT the last stablecoin out there that you know could survive something USDC. I want to start with Marcel here with what is your take around this tether FUD in potentially short selling on USDT. OK man so saying that 15 billion dollars withdrawn from tether in the past month doesn't say that OK so we're 100% sure they have there is enough backing for the remaining 60 billion. They've never given us an audit not an attestation by a top 10 firm as they promised five years ago. So if you're still waiting on that on a confirmation that they have the enough money from a top 10 from dude I have bad news for you it's not going to happen. So having said that keep in mind that tether is an important if not essential mechanism for the derivatives exchange and the exchanges in Asia that don't have access to fiat money especially the dollar. So the incentives to keep the system working are huge and currently tether is the oil that runs this engine. So I don't think it's going away. Something I want to quickly note and I'm going to kick this over to Sam is that the CTO had confirmed tether has already reduced its commercial paper exposure from 45 billion down to 8.4 billion this month intending to clear out its commercial paper backing in coming months. Sam what does this tell you what tether is kind of doing behind the scenes in what could potentially be risk associated with this or are they trying to batten down hatches and make sure everything's safe. Yeah if you take a look at tether's attestation and the breakdown of its assets a lot of people have raised concern about the percentage of its assets held in commercial paper which is considered you know riskier. So what they're doing is they said okay if you think that's a risk we're going to reduce our exposure to commercial paper and in fact it's going to go down to zero eventually. So it seems like tether is working behind the scenes to maybe consolidate their their backing in a perhaps less risky you know asset and that will assuage a lot of the you know the fudsters but you know you really haven't gone down the crypto rabbit hole unless you've gone down the tether fud and the tether fud goes back to goes back years. So for me I don't see any immediate risk but you never want to say that in the crypto industry right. We just saw a whole bunch of blue chip companies go down you know Celsius three arrows capital and the tarry ecosystem these aren't just some fringe projects these were crypto blue chips. And it's so Jordan it sounds like there could potentially I'm speculating here that hedge funds could be the ones that are trying to short USDT. Sam just said we've seen the fud happen for years and years and years and years with tether. Is this just another fud attack in a big nothing burger in your opinion what are your thoughts on this kind of whole situation with with tether right now. Yeah I'm kind of approaching it more like that like in early I remember I freaked out back in 2018 like tether is going to fall like oh crap show you I say yes it's always love you sit on the sideline like wait the year later like wait tether still here so like as Marcel was mentioning it's such a systemically intertwined crypto like that's just saying like if the dollar loses its reserve currency the whole world's gonna be like in a shit show for a while. If tether goes down the whole crypto industry is gonna be in a real big shit show for a while is it gonna happen I don't think so just because it would cause way too much havoc and like they're actually trying to build something if we get crypto prices collapsing down like a bitcoin of five thousand nobody's gonna want to come back to crypto for like a decade and I don't think they want that to happen. So I don't think tether is gonna fail they're adding new other like they're supporting the British pound now and other things that could just some might be other just their grasp and straws are trying to make it look like they're solving I think that they it's fine this is just more fud if you ever if you've been around when the market's down they pile on the foot like somebody's really trying to get good deals and they pile on pile on pile on that's just what's going on right now just don't sell your cryptos folks they steady hold firm they're trying to shake you out don't let them do it. Great great advice love the advice George I so I want to pivot to the chat real quick if you guys have questions ask them in the chat for our panelists here we got the experts in house and they got the answers for you so I want to highlight a question that Vikram had how to stable coins earn money what's their revenue model the dollar peg stable coins does anyone want to jump in and maybe explain what are typical revenue models for some of these stable coins. Go ahead Marcel. So I'm going to give you the answer that those companies hand out to us what they say is that they put this money in tbs or corporate bonds or very safe that instruments so the yield that they get goes to the company even if it's two percent per year so they do really not risky investments and they get yield on that and they don't have to redistribute this yield or this wealth to the holders so that's their supposedly their business. Yeah never really fully transparent with these things yet they're so closely tied together with assets like Bitcoin and Ethereum so it does seem like they have to go hand in hand with each other. I want to pivot us over into some recent news. I don't know if you guys caught this on CNBC yesterday. Jim Kramer did an interview with Gary Gensler and I want to pull up this article because what he said might be pretty interesting for those watching today. So Gendler said he saw many crypto assets having attributes of security adding that Bitcoin is the only crypto he is comfortable publicly labeling as a commodity. Is this big news for Bitcoin. We've heard Gary Gensler talk about this previously. Sam I want to hear your takes being the macro expert on what does this mean for Bitcoin and is this serious. And what did you take away from his interview with Jim Kramer yesterday. I saw it more as a nothing burger and I'm surprised that the community was was so gung-ho about it. He didn't really give anything new. He just said that based on what my predecessor said Bitcoin is a commodity. It's the only one that I would say doesn't fall into the securities bracket potentially. But we already knew that. Right. So I don't really see anything new. I'm actually kind of surprised that the reaction to it. If you provide any kind of new information I would have you know paid more attention to it but he didn't. Just reaffirmed what his predecessor said that Bitcoin. Now has the characteristics of being fully decentralized which makes it more along the lines of the commodity as opposed to a security. So I don't really see any any changes in implications on Bitcoin when it comes to that. And I guess the next thing you know with this is that this is like not new news. And like you said Sam like this is not like a huge revolution. So Marcel what is your take. What's the next step for the SEC in your opinion. Where do you think they're going to kind of let go. Is Bitcoin spot ETFs going to become a thing. Now that Gary Gensler is talking about how it could potentially be a commodity. What's your thoughts. So there are two separate things there. The first one is that yes the SEC already said they don't have the team or the knowledge to be the regulation body that handles cryptocurrencies. So most of that will be shifted to a CFTC. And the CFTC will simply say well OK I think Bitcoin Ethereum this and that are commodities. Those are allowed to trade etc etc. So not much change. Nobody wants to have this hassle of having to go through 200 coins and see what how was the ICO. If there is a team involved how centralized it's impossible task and nobody wants to do it and nobody will do it. But what CFTC wants to do is get the biggest ones that already have interest from institutional investors and say OK these are commodities. This we can do futures. Now to the second part as for the ETF. I don't think the spot ETF will be approved right now. I don't know exactly what are the incentives pushing the SEC towards one side or the other side. But considering what they've said for the past five years for the nine spot ETF which which was basically there's a lot of volume going through non-regulated exchanges especially in stablecoins unregulated stablecoins such as that are. So we don't know who is moving the price and that is potentially dangerous for retail. Nothing has changed in that sense. So I don't think they're going to approve the spot ETF any time soon. Jordan one thing that Gary Gensler did not talk about yesterday was ETH. Why do you think he did not speak on that. And I guess I'm curious to hear what you think what could potentially become of ETH. Is that going to be a commodity one day in your opinion. I think that one probably has a little bit more of a like question about as a commodity security and there's lots of different applications. But I just told conversations is just making me realize why I've been so bored. This is like the summer of shitty secrets like whether it's a Bitcoin ETF. Tether fud all this crap. It's like this. I remember this in 2017 2018. Like all this really says is the government's fricking dragging their goddamn feet. I think what they're doing is trying to get to the point where they can release their CBDCs because they were so behind the ball. They're like let's not do anything and try and get control of this by releasing CBDCs in the future. So like are they going to do anything. I think there's going to keep dragging their feet like they have been for four years. Nothing ever gets done anymore. It seems like I don't know. Did you say CBDCs. Sorry. I thought I was I was about to throw up when you said like no government's going to like full on coming and accept crypto. They're waiting so they can get their CBDCs out so they can actually kind of have some competition in the field. Maybe. I don't know. But hopefully people don't fall for that. It's just like a bait and switch with Fiat CBDC. They're prepping the slave coin. Yeah. It's brutal. Well the last last headline that we have here is the hack. I don't know if you guys heard hundred a million dollar hack from Harmony Harmony Hacker since stolen funds to tornado cash mixer. He's still about a hundred million from the Horizon Bridge and this seems to be kind of a recurring theme. It's obviously been part of crypto. This whole hacking narrative has played out time and time. You saw it with Ronan. You've seen it with the original Ethereum. It's just happened. This is part of the ecosystem. What what is what are we to make of these hacks and could they could these potentially start to pile up in the house of cards completely falls over. Marcel what's your takes on a lot of these hacks and how people how it's affecting the ecosystem. Well but this centralized finance. There's too many risks for the regular investor even for the professional investor. So there's like the beside the smart contracts that can have failures. There's the M.E.V. which is bribing the miner so you can have your transaction send send out first. So there are too many risks and that can causes what happened to Harmony. So having said that I think that if if you are a regular retail investor and you use DeFi application to get some yield you should spread out between different blockchains and between different that decentralized applications. There's just too many risks. But as for the whoever stole the hacker of the 100 million I'm not really sure he can convert it to fiat money without getting caught. That brings up a good point because Jordan I want to hear your expertise on it for those who don't know what tornado cash is. This hacker had sent about 20 million over tornado cash so that he could then mix that together. Jordan can you break down what is tornado cash and then kind of piggyback on what Marcel said. Why can this hacker potentially not convert it to fiat at the end of the day. I've actually never used tornado cash but it's just a mixer where you send it and they kind of send the mix the ETH around so it's harder to determine who who where the ETH came from. But again we're getting into smart contracts technology eventually they're going to be able to determine every transaction from point A to point B to all the way to point Z. What are what wallets they've been in where the money came from. So we were talking about this before it's going to be really hard especially as time progresses and the security gets even better. The hacks are always going to happen just because that comes along with code and the inability to really audit it really well. And but people are going to have a hard time kind of cashing out these cryptos in the future just because there's so many firms starting to rise that are monitoring different wallets that have been identified as part of a hacker network and whatnot. So like being especially trying to convert out from cryptos into fiat currencies is probably going to become eventually like impossible for most people and even just trying to transfer your crypto or change it for other places or other on even decentralized exchanges they can kind of freeze exchanges or blacklist wallets now. So as time progresses it's going to get even more and more difficult for these hackers to be able to catch out their funds. But it's always going to kind of be a system just because smart contracts and coding will always most likely always have mistakes because that's just the nature of reality. Here's an idea though. What if the hacker just sent it to a crypto debit card and then not necessarily converts it to fiat. Sure. I don't know. Those do centralized entities and that's a pain point. That's a point of pressure. That's where the regulators come in like stop because that's like it. Yeah. You're getting into the traditional system and they got that shit locked down. See how would you navigate these these hacks and our bridge is always going to be the most exposed areas when it comes to these types of hacks. Yeah. For me it's just another day in crypto right 100 million dollar a year 100 million dollar there 500 million dollar. I think we've run the tens of billions of dollars if you take a look at over the past year year and a half. You know as we were talking about earlier I'm not quite sure how these hackers are able to actually make use of the funds unless they're looking at some kind of ransom. But but then I mean on the blockchain moving things around is not the best for you know privacy and illicit behavior. So I'm not quite sure how they make use of it but apparently they are you know that's why you're starting to see you know with DeFi especially the emergence of a new type of risk and the bridge is one of them. So I just stay away from that entire ecosystem to be completely honest. I hold spot and if I like a project I'll look into it. But these bridges these different you know wormholes are all very very risky and as Jordan mentioned you know the nature of code and blockchain and technology in general is that these vulnerabilities will always be there. But with such a patchy work and such a nascent industry it seems like exposure to these types of events is a lot more prevalent. Exactly right. You got to know your risk when it comes to a lot of these things. So great thoughts from all of our experts here. You heard it first. Go ahead and ask your questions if you have them in the chat today we're going to be looking at that while we go through a couple of our other segments today. Next though we have our quick crypto tips for this week we're going to talk about trading plans. So Danila let's go ahead and jump into having and setting up your trading plan. All right well you wouldn't launch into a crypto investing without a plan right. Well if you do this it's time to stop your success as an investor comes from proper trade planning and your crypto trading plan is your anchor as you invest it enables you to stay detached from emotions that could set in. We all know those euphoric or depressive emotions that we felt over the last six months a good trading plan should cover your overall investment objectives the cryptocurrencies you want to trade and the market conditions for trading such currencies through this you'll be able to control your risk to a reasonable extent and have a more prepared approach to the market. Such approaches include your entry and exit time and price trade volume and even assessing your profit taking areas. So trade plan empowers the focus trader by providing several benefits from risk reduction to easing away fear and guarding yourself against greed a good crypto trading plan may not guarantee success but it certainly makes a significant contribution toward one last tip is that set your profit targets when you are making trades do not get greedy that is big the one of the biggest tips I have for you today and thank you for listening to the crypto tips segment drop your Twitter handle in the chat so that you could win fifty dollars to our C.T. store and you can get all the swag you want for the fifty bucks. What is that you need a mousepad you need a coffee cup. We got you C.T. store. All right. Marcel is going to be diving in to some heavy topics about Bitcoin Ethereum this week and he's going to be talking about contagion not the movie but the contagion inside the ecosystem of crypto. So Marcel let's go ahead and have you take it away to know fire it up. So contagion is the word of the week in crypto. After all who could expect the Celsius Voyager of BlockFi and Babel Finance without face severe insolvency risks after the three arrows capital implosion. So the issue with centralized credit lending firms is the complete lack of transparency. We don't know and we'll likely never have a clear understanding of what were their risk to Teja Luna to grail scale J.B.T.C. arbitrage and to uncollateralized loans to a single counterparty. But first who are those giant trading firms such as Alameda Research giant capital Cumberland and are they really necessary. So otherwise known as market makers those high frequencies traders are the backbone of exchanges. So do you really think that Binance OKX and Coinbase have millions of clients buying and selling 400 coins every day every time at all times. No no of course that's not true. And even in traditional markets such as stock markets and bonds there are official market makers. So those are hired by the issuer itself meaning the stock or the bond or the bank behind the IPO. So apart from lower trading fees those entities have access to loans credits in the forms of the bond and stock. So it's much easier for them to trade high volumes. But in short market makers are hired to boost the trading volume no matter how it gets done. So let me share you a screen with you just a sec. OK Danilo. So whenever you hear 70 percent of trading volume comes from institutionals like Binance CEO said Binance USO said or 99 percent of all Bitcoin volume and transaction comes from institutions. So what they're really saying is that the market makers are doing the volume. So yes there could be some regular companies such as MicroStrategy eventually buying or selling Bitcoin but they do not compose the majority of the trading volume. Thank you Danilo. Now back to the contagion risk. Is there a considerable risk that order market making firms can go down if the markets continue to tank. Yes there is a risk but it's unlikely because too much money was already drained from the market. So those firms are either requiring additional collateral so more margin deposited or simply divesting taking money away from crypto markets. And to prove that points we're going to check out the chart with the amount of stable coins issued. Danilo can you share my screen please. So that's the sum of all the stable coins that exist including that are USDC die whatever. So the peak before the lunar collapse was a hundred and eighty billion and it's now at one four one forty eight billion dollars. So it's a thirty three billion dollar decrease. So even if it's exclude the Teja USD there's another 15 billion that has gone missing mostly on that. So those firms withdraw money that could salvage. Thank you Danilo. So contagion risk. Sure it exists but leverage players have already been wiped out. They got liquid dated. They lost money here out of the market. So whoever survived the 74 74 percent price crash from the out time hide of six sixty nine thousand dollars to the bottom of seventeen thousand dollars we will likely handle some additional turbos. So I don't think it's a risk right now. So are you saying that we could potentially go lower than this twenty K mark that we're at right now. Yes there's a risk of the traditional markets. Traditional economies going down because of a crisis or a lack of confidence in the US dollar itself. So yes we could revisit 14 K 15 K. It's possible but it won't because of the contagion risk. It's because we're highly correlated to risk assets right now but not because of contagion. Seems like we should have been having this contagion conversation a couple months ago like when Tara first fell like it seems like the contagion is already spread. And it's also kind of highlighted that we weren't all that decentralized. Look how many funds were invested in three AC. That's not the centralization. I don't know there's a lot of issues that we need to work out and not not adopt so many traditional finance things in the crypto because it's causing problems same kind of problems that we're seeing in the wider economy. Exactly right. Yeah. Yeah. Yeah. Part of it. It's because of the market makers itself that exchanges can only exist if those market makers are there providing liquidity. So once we remove one or two of the biggest market makers it's going to take two months or six months for other ones to step in and restablish liquidity and the market gets enough confidence to go back to its levels. Fascinating times. Any questions from our cell. All right. We're going to take a look at the chat. Looks like we did have one question from Moon Sahayi and he wants to know is it time to buy and how would you approach this question. Well Moon well if you need the money in the next six months don't do it. If you're going to have to withdraw no matter what three to six months don't do it. If you can handle the pain for at least 12 months at least a year without looking at the screen at the price it's time to buy. That's my opinion. And not financial. Yeah this is not financial advice but to me this is a decent spot to start doing some dollar cost average in DCA just because it's it's a nobody can pick the bottom. Well one person gets the bottom obviously but if that's a really tricky game it causes a lot of stress. If you want to you want to take the least stress approach a accept that like we could go down lower except buy assets that you think have a really good long term viability and then just kind of set it on all a pilot and don't think about it too much don't focus on the price. Just kind of put that on all a pilot like I said because that's how that's how you make money in crypto. You buy in in the crypto winners and you sell during the crypto talks which like nobody did last year. But it's just part of the learning curve. It's a tough game. A lot of long term bank holders and this is a good time to buy but we never have the conversation is just a good time to sell because we're always so damn bullish at the top. So like like you said earlier Benton trading plan before you even buy an asset pick a sell point and stick to it. That way the emotions can kind of stay out of it. Exactly right. Now do I have a burning question though with you know title of the show today is you know Bitcoin bulltrap in play or are we heading to 30 K I want to kick this to Sam first what what would a bulltrap look like right now and what is your take you know short term here over the next six months where we could potentially head. Well I don't even think we've seen the condition for a bulltrap in the send at what we hit twenty one thousand. I mean I think a bulltrap would have required us to maybe retest twenty five get everyone excited again before we nuke back down lower. I do expect prices to go lower I do expect another leg down right now I think sixteen to seventeen thousand is a possibility it could go lower than that. But again in terms of picking the bottom I don't know what that's going to be. If you think that Bitcoin is a long term investment then buying at these levels is probably a good idea despite the fact that it can go lower so I don't really see any kind of bullish indicators anytime soon so if we have a spike toward twenty five thousand which I thought was a distinct possibility that always set us up for one more leg lower but I guess I guess we'll find out right now the one thing we've gotten is twenty one thousand dollars which that's not even enough to entice you know even even the on chain guys who are always bullish seemingly so that's that's my take on it. And I want to pull up a quick chart so to know if you want to mind just pulling up a chart for me here on the screen share. I want to quickly note here this is we've had a fifty five percent drawdown from the top here this was back in April twenty twenty one then we had fifty two percent drawdown from November twenty one to January twenty two then from this local high and March this year we've then drawn down another nearly sixty two percent this trend line here if this is going to hold up I think this blue line is probably we're going to see we're going to see chop maybe we bounce up to a twenty five cave but it tells me I think we're probably going to get rejected and go lower I put this this horizontal right here around fourteen K for me that's the mark I'm kind of keeping an eye on I think we consolidate and chop then there's one last drop down and I'm kind of monitoring that fourteen K ish level but I want to hear you know Jordan your take on how you're kind of looking at things what levels you're looking at how are you approaching trades right now if at all are you just sitting on the sidelines and they're doing too much trading more trying to accumulate some certain tokens on a dip like chain link or something but I think I wrote an article yesterday and some some analysts were pointing to fifteen thousand dollars if we go to like the historical norm and eighty five percent bullbacks from the top that would put us at like a ten K Bitcoin which is terrifying right like is that gonna happen I don't know and like we can't can't focus on the crypto bubble like crypto we find ourselves in the crypto bubble and we forget that like there's this whole of the world out there where there's like wars and inflation and interest rates that are also like unknowns so like yeah we could get a pop up in the crypto market some really good news and then all of a sudden something happened in the greater economy that just tanks every market there's no way crypto can can kind of fight against that so like I said that's why deep dollar cost averaging is the least stress like you accept that you you're gonna be purchasing assets that might go down but long term they're gonna go up and then don't think about it because in the short term there ain't no time what's gonna happen in the wider world or in the crypto world so just kind of put your head down and choose a plan and stick with it and go outside and enjoy the sun when you can. Marcel I got a question from the chat here says Marcel mentioned that price is influenced by institutions but what about the whole planet traders and users what percent do they consist of is that a ballpark figure you might be able to kind of like you know point this one person sharple in the right direction what are your thoughts here okay so what why is what I mentioned is that the institutionals the market makers and those large entities such as three hours just capital and Alameda research they have like ninety ninety percent of the volume but that doesn't mean they're the price makers yes they can I don't know sell fifty million dollars at market and crash the price ten percent but then other buyers will step in and say well twenty K seventy K is too low we're gonna be making buys here and this guy don't don't have in unlimited ammunition so yes they are price makers for the short term but in the long term so if you if you select daily candles or weekly candles we shouldn't you shouldn't have to stress out about market makers but if you are trading fifteen minute candles five minute candles they're gonna eat you up they're gonna steal your lunch because they have deep pockets and can withstand pain for much longer than you can so you're trading and should be excellent as strategy do some DCA and if you reach certain level you don't have to sell a hundred percent of your share but you can sell well I'm gonna reduce fifty percent of my position and sit back for a couple of months and stop the DCA so what Jordan said is the best strategy during stress and volatile markets excellent insights so we are not in a bull trap it appears that you know I think the consensus is we're gonna be consolidating or chopping here you know for the foreseeable future with a potential drop so I want to get into the markets pro because we talked about trading having a plan what better way to have a plan than to be on markets pro so we had two coins that you should have been watching this week so to know let's go ahead and jump into our markets pro segment for this week let's do it all right well the first token that we had watched on our radar this week was brought to us by a newsquake alert this was the coin trading under the ticker LDO Lido and preceding significant price pumps on June 20th a newsquake hit markets pro subscribers with an alert that will be global would list this token following announcement the price soared from fifty one cents all the way up to sixty seven cents that's an increase of thirty one point seven percent that is a flavor of blaster of gains and you just love to see that when you get the newsquake alerts and you're able to trade an action that you have a plan with markets pro and you stick to it when you hear those newsquake alerts go off on your phone you action that trade and get in on these types of trades thirty percent gains in these types of markets I don't know who would not take that so next up we have the token auto trading under the ticker AUTO this one was alerted by the vortex score which is a comparison between its current market conditions and social conditions in the past score of eighty or higher is considered company bullish thirty or lower historically bearish so the vortex algorithm picked up an historically bullish pattern for auto several times this week with the green vortex were flashing head of positive price movement after the first high score the price rose from a hundred ninety two dollars to a peak of two hundred and sixty four dollars an increase of about thirty seven percent a few days later a second score came when the price was two hundred fourteen dollars ninety nine cents traders who bought at this price level and held until the peak would have seen the increase of twenty two percent a third score briefly lit up when the price was two hundred thirty three dollars traders buying here would have still benefited a twelve point ninety nine percent increase that is the trifecta folks that's what we call that so the vortex or is a valuable tool and if you're trading on auto this week you saw not just three massive pumps but you saw those vortex worse light up green across the board and that's why you have to get started with markets pro I keep telling you all every week get your free month try it out get your game plan together and try out markets pro help us help you that's the old motto at markets pro we thank you for the markets pro segment this week and don't forget drop your Twitter handle in the chat we're giving away fifty dollars to the coin telegraph store today guys we're going to wrap this thing up today with some closing thoughts and we will select our winner for today Jordan let's hear your closing thoughts for today show well it's going to be similar to what I usually say like crypto winners suck man it's going to be rough try and find your inner peace go outside and enjoy some sun don't just stare at your blockfolio or the crypto markets because like there's some bad news is going on the wider world so like we're like the whole world's in for maybe a rough patch so try and find whatever kind of relaxation and fun you can and if you got spare funds that you don't need for your life you maybe like start accumulating some cryptos if that's your if that's your game but yeah just just take a deep breath and relax always such wise advice Sam any closing thoughts for today yeah I think most of us should be you know concerned about cash flow making sure our lifestyles are funded so that we don't have to dip into our spot holdings that aspect of your life keep that held that's what I would do I'm not going to be selling my Bitcoin at these levels kind of ridiculous whatever mistakes were made were made whatever market manipulation happened happened whatever correlation we had with equities that we didn't think was going to be so strong happened now is just time to kind of focus on moving forward focus on cash flow if you have a steady cash flow in life you don't have to worry so much about how your equities are how your assets are performing if you have a decent time horizon so that's all I could say really about it. Excellent advice and Marcel. I'll advise the viewers not to be an investor and a trader at the same time so either you decide yeah I'm going to do some short term traders or you're going to say well I'm going to buy those coins and hold them for two or more years you cannot shift in and out of those strategies you cannot mix those strategies yes you could have a portfolio for long term but you're not going to trade those coins so either you're an investor or a trader don't be shifting from one to another every time the markets goes up or down. You heard it here first folks great advice from all our experts on the show today we appreciate everyone for tuning in to this episode of the Marker Report don't forget to turn on the notification and like and subscribe coin telegraph here on YouTube this is the Marker Report and we're here 12 o'clock eastern on Tuesdays we appreciate everyone for joining us and until next time we will see you next Tuesday.