 Welcome to July set news to get top stories and crypto and break it down to bite size pieces today We're gonna go over three reasons potential reasons why Bitcoin and the entire crypto market took a big dip So we're gonna take a look at those three reasons in a bit We're also gonna get into a little bit of good news because there's really nothing to panic about So we'll take a look at all those things but first let's take a look at what is the market and what the heck is going on So right now we've got a market cap of just below 2.5 trillion Yeah, a little ouchy because we hit 2.8 trillion like yesterday So it was going pretty good and I woke up and I was like wow, that's a lot of red But here we are what's interesting though is that the sentiment for today is still neutral people like yeah, whatever And I think that's just a testament to what we're all getting used to this volatility and it's big volatility But there's reasons behind that volatility itself and then as far as like the price goes I mean look Bitcoin still holding around 54 almost 55. So all right great. Ethereum is above 4,000 and don't I mean if you Remember not too long ago. We were talking about how great it was that Ethereum blasted over 3,000. We couldn't believe it now Here we had we were at 4500 now We took a little bit of a pullback and everybody's freaking out But it is what it is by Nance coin last 24 hours down 7% tell you nobody cares that kind of Solana everything's down and anything up. That's the real question is anything up in the last 24 hours No, not really boot mana mana was up 20% last 24 seven days. It's pretty good so on and so forth So that's what's going on. What I also want to do is I want to take a look at Just by category there's this there's this great little little piece on coin get go If you just click on categories, you can see just how things are doing over the last hour and 24 hours We take a look here over the last one hour piece smart contracts in general Ethereum Solanas Cardinals type of things up 1.8 percent 24 hours. Yes, it's down But it is what it is and stable coins I highlighted this because as things start to Take a dip down you see people usually start to sell and panic which is which is fine If you not panic, but if you're trying to take profits It's not the best time when everything is you know crashing But if you do it at the very beginning, I mean hey, it is what it is And I like to highlight this just to show people that hey Once the stable coins start to actually increase a little bit You're gonna see why because people start to get into stable coins and it leads me to another point Which is you know, I talk about you know dollar cost averaging in and dollar cost averaging out and taking profits for days Like today so I know people don't like to take profits or even talk about profits on YouTube for some reason But it is a necessary evil for these days so just remember that and then as we move down there's two pieces I want to make mention of is Gaming and metaverse and over the last hour everything's up, you know doing pretty well but metaverse and gaming in seven days up 30% for metaverse and 45% for gaming the engine the Sandboxes the the unity so don't discount those because I think they're gonna be a very a very big play And it's looking pretty positive so far in those realms and there was also one for I think it was Polygon up 1.4 percent Solana Cardano Yeah, so and then that's about it. I thought there was one for avalanche the avalanche ecosystem was looking pretty strong But that's not what it is So that's what we have there and also let's just take a look at some on-chain analysis Because that's the most important so one of the most important things to take a look at and just so we know As far as like our miners selling no and in purple right here You can see like before they used to sell a lot and now they're still holding strong So that's positive sign even though as the as the price hurts a dip. Okay the exchange reserves Well, are people you know clamoring to put Bitcoin back on the reserve to sell off? Not really I mean a little bit here and there As far as Ethereum, how's that going? Well, they did there's a little bit of an uptick right here as people started to put it back On the exchange and sell but it's they've been taking it off again And this one I think is is a most of one of the most important for today It's called the Bitcoin all exchange taker by volume and what I want to do is I'm going to put it on to the hour And I'm going to blow this up so you can see it and what we're looking at here is Let me move this what we're looking at here is seeing this purple Right here. These are all the the prices as Whales or retail or just a group are actually putting things in to push or prop the price up And you see right here where it it's it takes a pretty nice turn almost at 60,000 and then the As far as a taker by volume just kind of drops off as the price drops off But as soon as it drops off to a certain point around 54 55,000 look at this spike right here on the very right-hand side people whales Institutions are like this is where we want it to go we don't want to go too far below this because we want to freak everybody out and It's like they just prop it up at around 54 55,000 and that's going to play an important part in our next piece So that's what we have there and then do round it all out Just so you know liquidations, of course When you get greedy and and you go too long or too short you get wrecked and this is almost This is a three-quarters of a billion got got liquidated or wrecked in the last 24 hours So just be aware of that if you see too many shorts might be a good idea to do long See too many longs might be a good idea to do shorts But I don't play that game, but just be aware that is what is going on So that's it for you know looking at the at the market in general Let's just break into the reason number one as far as why there was a big dip and what the heck's going on So first if you're living on a rock, there's this thing called COVID and People freak out when there's a new variation discovered even though they don't really know like well, is this going to be super contagious What is the? Mortality rate and so on but I'm not here to get into that that is not this channel is not science channel This channel is all crypto digital assets But this was a problem because European officials was concerned over alarming new COVID variant I know we're sick of hearing about it. Well, whether you believe in it or don't believe in it The reality is is that the effects on the market are real and that's that's the fact Jack And we have this on the crypto markets and also in in Stocks and traditional equity. So what do we have this this new variant comes at a time when different European nations are grappling with surgeon cases of Delta variant and therefore announce social restrictions to contain the spread and I didn't really go into the big details because you're gonna hear about this all day long But a handful of nations notably South Africa and Botswana have identified cases of a new variant known as B 11529 so you're gonna hear a ton about this and This spooks the market because they kind of see this as like another You don't have to call it a black swan. He called a grace one if you want to but what happened last year in 2020 They're like, oh, no, it's a new variant and people get a little skittish over these things and I start to do You know just a flight to safety So that is the first thing but I will remind everybody about this is I remember that the Delta variant That was coming out was supposed to wipe us all out Still here. So see how this all plays out. I don't that's just the The first reason so a new variation was found just everybody knows and or you want to take from that It is what it is and also here's a second reason the second reason is what happened here 3 billion Bitcoin options expire on black Friday, which is today. Congratulations. We made it So just you know these holding put options We're expected to sell in order to get the profits from their options before the 73,072 contracts expired Let's put more selling pressure on the Bitcoin price and this was the number I want everybody to remember that around 54 55,000 the bears needed to lower the price below 57,000 this dump or they would have lost a huge amount of money, which they did How do they not lose a lot of money? They push it down to around 54 9 and then of course everybody's like whoa It's way too much. It's let's let's not go that far and they sort of buy things up and then here we are With this with this price of around 55 55 to Bitcoin so again You've got the first part the variation found second part Bitcoin options expire on Friday A lot of whales are doing their thing trying to you know make them as much money as they possibly can And then unfortunately there's a third reason and the third reason Just basically goes like this the first two we talked about we're pretty short-term I'm really not concerned too much about those. We'll see how they all play out But right now options and variations sure right, but this one right here is a long-term thing And I can I can understand where this is all coming from so Goldman Sachs says Fed may accelerate taping from January and this is gonna play into another Article in just a second. So what do we have here Fed reserve doing their thing which is the central bank? Everybody's favorite will double the pace of scaling back its liquidity boosting asset purchases to 30 billion from the current 15 so that's they're gonna scale back which is what they're trying to do which is prop up the markets and Now they're gonna say look it's not a free It's not a big free handout and we can't just keep printing money Even though they'd like to do that so much. They're like we're gonna scale things back and then also the economists The geniuses in the room Predict three rate hikes in 2022 and two and 23 2023 so just be expecting that when the rate the interest rate hikes go up Then of course things will just like what the heck is going on We can't afford this because we just like to print money But that's the reality and they knew they were gonna have to do it at some point Better sooner than later, but this is interesting the new product the new projections Means the asset purchase program would end in March Experts expect the first rate hike from near zero in June of next year. So around between March and June Right now these little tapering people know about it, but they're not really Understanding exactly what's gonna happen over the next months and quarters So it's not a big big deal, but when we start to see rate hikes and we start to see Asset purchase programs ending totally Look at the timeline around March if you've been listening to a lot of people out there a lot of smart people and some not so smart just kidding they will talk about how the extension of The crypto bull run that's going on going past Q4 2021 which we're in right now and going into Q1 possibly Q2 of 2022 when is that well and a Q1 would be March and then end of Q2 Be June so it's amazing how those coincide with what the Federal Reserve is talking about as far as like tapering and Doing these programs because they can't print money forever So those my friends are essentially the three reasons now Here's the good news and it's not all bad. I mean look it is what it is And I think if you've been with me for quite some time, you know, I don't really get too Concerned about these dips and now in all honesty, it's a great time to buy because you know Black Friday sales and all those things but We take a look at this as far as like the good news and that is If you look back at the different price ranges for Bitcoin And I put I had tweeted this out and that is that in 2012 Bitcoin price on Thanksgiving was 12 bucks $12 713 a 29 2014 376. Why did it come? Why did it go down for your cycles, right? 2014 15 16 17 376 327 740 in 2017 8754 that's pretty good. They're not as good as these ones right here 2018 19 20 21 4,000 713 at 16 and 58,000 so do I believe that in you know January 1st 2022? It's gonna go all the way down. No, just like it didn't go down from 2013 to 2014 initially it had to go through the whole year. I think the extension is going to really pick up now We might see January February March, maybe even April who knows so that's the good news We keep going up and if we've played a long game, I think we're gonna be okay and lastly just as you might know If we take a look at dips Especially in November this is in Q4 of 2017 see that timeline November down here Actually, let me put this up timeline November. Let's go all the way up. That was when we had the last 33 somewhere around from their percent dip, which is which is pretty big For it for a dip, but it goes right in line with exactly what we're going through and that my friends Just means that the same thing happens over and over again now variations and different things that are you know happening With With the pullbacks as far as like what the Fed wants to do and and all that stuff It's a little bit different But it seems like it just kind of repeats and it's the ones that kind of stick in there They kind of take the time make it out. Okay, not financial advice It's financial opinion and that's it for today So look if you I know those little bits is it kind of short But there's really those are the big things that I feel are really going on and really contributing To these dips and these swings and that's really all we got today So look you like today's video give it a thumbs up give it a like consider subscribing again these next Few months are gonna be pretty big. I think still fireworks, but that's it So thanks so much. I appreciate your free time and I'll see you on the next one