Cryptocurrency for Beginners: with Crypto Casey

Crypto Market Bloodbath! (End of Bull Cycle?) - Last Week Crypto

April 26, 2021 Crypto Casey Season 2021 Episode 19
Cryptocurrency for Beginners: with Crypto Casey
Crypto Market Bloodbath! (End of Bull Cycle?) - Last Week Crypto
Show Notes Transcript Chapter Markers

This is another episode of a weekly cryptocurrency news series called Last Week Crypto.

We cover the latest global news stories affecting the cryptocurrency markets April 18th through the 24th of 2021.


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This week we will discuss what’s going to happen when excess savings people have accumulated start hitting the streets, what rocked the crypto market, how smart money is reacting to it, and bullish news on more crypto adoption.


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What a bloodbath! The crypto charts are red, red, red. What happened? 

Hello, I’m Crypto Casey, and welcome to another episode of Last Week Crypto.

Every Sunday, we review the performance of the largest cryptocurrencies, top gainers, as well as the latest global news stories affecting the crypto markets this past week.

This week we will discuss what’s going to happen when excess savings people have accumulated start hitting the streets, what rocked the crypto market, how smart money is reacting to it, and bullish news on more crypto adoption.

To check out the links to all of the articles we discuss, go to CryptoCasey.com/Last-Week-Crypto.

This week’s episode is brought to you by Crypto.com, an exchange with over 100 different cryptocurrencies and over 20 different fiat currencies.

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If you use the link below to sign up for Crypto.com, you will receive $25 worth of cryptocurrency for free when you use the referral code “CryptoCasey,” all while supporting the channel.

Also, every Wednesday I conduct a weekly AMA or an “Ask Me Anything” at Instagram.com/CryptoCasey.

So use the link to my one and only official Instagram account listed in the description area to follow me and ask me anything you want, every Wednesday.

0 - If you’d like to see me livestream with some other crypto experts in the space, I’ve started livestreaming on the Crypto Banter YouTube channel. 

Most Fridays at 10am eastern standard, I plan on bantering with the crew about crypto, and I also will be co-hosting some of the weekday shows as well. 

So make sure to follow me on Instagram to get notified when I’m going live. And you can also subscribe to the Crypto Banter YouTube channel for notifications as well.

Sweet, Last Week Crypto, let’s go -

1 - Looking at the top cryptocurrencies by market cap, bitcoin down 18.4%, ETH hanging in there, down 6.9%

Binance Coin down 1.2%, and XR, massive pullback, down 31.4%.

2 - Looking at the top gainers this week: 

Pirate Chain up 338.5%, Solana, up 53.5%

Nano up 22.3%, and Pancakeswap up 21%.

Definitely not a week for the faint of heart. But before we dive into the crypto pullback, let’s talk about how 3 - Consumers have $5.4 trillion in excess savings. That could unleash a global spending boom.

4 - As lockdowns ease, consumers are expected to spend nearly $2 trillion this surplus cash, setting the global economy up for considerable gains.

5 - All that extra spending may also stoke inflation, a growing concern among investors and economists because it could force central banks to raise interest rates and taper asset purchases sooner than anticipated.

Yes, so a lot of US dollars have been dormant the past year in the form of savings. With all this money that hasn’t been realized in circulation yet, in addition to massive printing of more US dollars, we will absolutely see prices of goods and services increase, as the value of the dollar decreases.

Oh, and if people continue to hold their cash in savings, eventually, the government and their big bank cronies can just force you to spend it. Check this out:

6 - European Central Bank President Lagard responds to criticism about negative interest rates and describes how they support companies and people in the eurozone.

Governments and big banks want people debt-ridden. They want people to spend money they don’t have on things they don’t need.

They don’t want you investing and accumulating wealth. They want you working, paying taxes, taking out loans, spending money on things that rust, rot, and depreciate.

The traditional view of a good, healthy economy requires the vast majority of people around the world trading their precious, non-renewable resource with an uncertain supply: time, 

in exchange for an amount of money that oftentimes is not nearly enough to live off of, money that is taxed by the government, money that they want you to put back in circulation by spending it, 

and they want you to create more money by borrowing it and taking out loans, to keep money circulating to keep the economy healthy.

A so-called healthy economy is simply a wealth generator for a small group of elites achieved by basically enslaving people, and they’re able to do this through deliberate noninclusion of financial education to the masses 

and deliberate distraction and manipulation of the masses to create insatiable consumerism and materialism.

Amazing, right.

Yeah, anyway let’s get into what may be our only saving grace, despite taking a massive hit, the crypto markets.

7 - 5 reasons Bitcoin and Ethereum plummeted 15% in a single day.
Bitcoin and Ether fell 15% and 20%, respectively, in one day — but why so much and so quickly?

8 - Five factors likely caused the price of Bitcoin and Ether to steeply drop in a single day, including mass liquidation, an overheated futures market, the decline of Kimchi premium, whales selling, and concerns over United States President Joe Biden's tax plans.

So let’s break this down, one, on Friday in a 24-hour time period over $4 billion dollars worth of positions were liquidated. 
So as prices tumble, stop losses on exchanges get filled, and it becomes a domino effect. Every price decrease sets off a chain reaction of stop losses liquidating investors’ positions.

And exchanges allowing anyone and everyone to leverage trade doesn’t help this scenario either. Because two, the futures market is overcrowded. Billions of dollars of long positions were liquidated, so a lot of people got burned.

Three, the kimchi premium. The kimchi premium basically refers to the price difference of bitcoin and ether on South Korean exchanges compared to all other exchanges.

On South Korean exchanges, the prices of bitcoin and ether are higher than other exchanges. So South Korean investors can buy bitcoin and ether from other exchanges, and sell it on South Korean exchanges for a profit, hence the kimchi premium.

So, as the price and bitcoin and ether dropped, the kimchi premium dropped to 0%, so there was no more incentive to buy bitcoin and ether elsewhere to sell in South Korea, because the price difference was eliminated.

Four, a rather basic and familiar reason for crypto crashes, whales selling for profit and scaring everyone else. 

And five, US President Joe 9 - Biden eyes capital gains tax hike to 43.4%; for New York, it could be 52.2%, for California, it could be 56.7%

Yikes, right? Well, the crypto market agreed. But what about the traditional stock market?

10 - Hmm, odd. Nothing nearly as extreme as the crypto market’s response. Why is it so?

Well, one key thing to understand is the difference between the type of investors who are in the stock market versus the crypto market, as well as differences between how each market works, one being Monday through Friday 9:30 to 4 eastern standard with limited access, 

the other never ever sleeping or stopping, crypto is 24/7 365, baby, and there are a ton of easy ways to access it.

Investors in the US stock market are largely big, sophisticated, financially trained institutional investors that reside in the United States with deep connections with the government. And by deep connections, I mean that they buy and pay for the politicians that run the government, they are the real puppet masters.

Meanwhile, crypto investors largely consist of a lot of individual people like you and I all around the world. So what do the US government’s puppet master’s know that the rest of us don’t? Yeah, a lot.

So they consider things like the process Biden would need to go through to get something like the doubling of capital gains tax approved, as well as the likelihood of all their bought and paid for politician’s actually pushing it through.

Will it get pushed through, personally, I don’t think so. It would definitely put a hamper on much needed growth, innovation, and investment at large in the US economy. But at the end of the day, the uber rich elite will absolutely not be paying these taxes, so they don’t care.

We will be paying those taxes. So sure, it’s possible. We shall see. At the end of the day, Wall Street didn’t care, but I think the crypto market cared because again, our community is made up of individuals around the globe that freaked out when they saw these bearish headlines.

Wall Street didn’t freak for several reasons, one of them being the recognition of what it was, just headlines. Doesn’t mean anything right now.

So that and the confluence of the other items we discussed, is why the crypto market took a dive. And after a dive like this, there is only one salient question:

11 - What y’all shopping for today? #Bitcoin #Alts #ClearanceSale

I mean we’ve got some sweet deals this. At the time of this video, some large, and midcap projects that I’m looking at are: DOT, 30% discount, LINK 24% discount, 

AAVE down 26%, Algorand down 26%, Kusama my lort 33% off, 

Snythetix 31% off, Enjin 31% off, Zilliqa 37% off, ANKR 34% off. 

Take advantage of these dips. When you see red, that’s when you should buy. And when they go up, take profits. 

Take profits along the way, but buy and hold, by and large. Because look: 12 - This chart measures the amount of bitcoin that is being HODLed by institutions and individuals for the long-term. The strong hands are growing.

Do you know what this means? It means, when you sell during a crash like this. You are selling to institutional investors. They are buying up all the bitcoin and all the ether and taking them off of the exchanges to hold long term.

This is what smart money is doing. They are manipulating you to sell them bitcoin and ether at a discount. And if you don’t believe me, here’s someone some of you may have sold to this week.

13 - Grayscale Added Nearly $1B in Crypto in 24 Hours

What does it mean when big, institutional smart money buys a billion dollars worth of bitcoin at $49,000. It means that it’s a bargain, okay. If smart money, trained financial wizard money, thinks bitcoin at $49k is a great buy? 

That means it’s not going to fall much lower because there’s too much demand, as the supply continues to drop faster and more extremely than the crypto markets this week.

In fact, 14 - looking at this 90 day chart, in my opinion, I don’t think we will see bitcoin break down below this $44,000 support we’ve bounced off of back in mid-february, again in late february.

We shall see. At the end of the day, this is something a lot of people fail to realize: 15 - Bitcoin is in its 4th dip this year. 32%, 26%, 19%, 27%. 

Yet somehow, we're up 75%. Those that stay through the volatility have been rewarded.

So buy and hold for the long term, because 16 - A mistake people made early on was thinking of the internet as a new channel: radio, TV, and internet. In reality it was *all* channels: internet radio, internet TV…

Same with crypto. It’s not an “asset class”. It will be all asset classes. Cryptocurrencies, crypto-equities…

And if you don’t want to take my word for it, take it from the 17 - Former New York Stock Exchange Prez who says: Crypto is 'The Best Kept Secret in the World'

NYSE’s former boss Thomas Farley is “all in” on crypto, especially Coinbase and DeFi. 18 - Play Video

Nice. Here’s another reason to buy and hold. SHOW CHART THROUGH HERE*** 19 - Look at this chart comparing the bitcoin price movement during the 2013, 2017, and 2021, crypto bull markets. Keep in mind this bitcoin prices on this chart have been scaled to 2021 pricing.

The yellow line represents 2013 price movements, the orange line represents 2017 price movements, and the red line to the far left represents 2021.

We are around day 144 through this bull cycle if you look at the shaded red oval to the left, so you can see all of these lines are playing out very similarly. 

Looking at the chart, if we continue to mirror past bull cycles, around day 288 is when bitcoin will peak, which would be sometime in September of this year. **SHOW CHART THROUGH HERE

Typically following bitcoin’s price peak, we see altcoins moon hard for the next 30 to 60 days, before crashing back into a bear cycle.

But we shall see, this market is highly unusual due to the blackswan covid pandemic, unlike previous bull runs we have a big, smart institutional money heavily invested, we have massive corporate and retail adoption, 

massive printing of the US dollar of course, rising fears of inflation and hyperinflation, so, at the end of the day, who knows what that red line against the chart will do through rest of the year.

Either, way, we are going up, and as the value of crypto increases, make sure you are transferring your crypto from exchanges to hold safely in a cold storage hardware wallet.

You can scroll down to the description area below to access the correct and official sites of my recommended hardware wallets.

BC Vault is my personal favorite, another option is the Ledger nano backup pack. So Scroll down to check them out.

Or if you would rather make income from your idle digital assets you’re planning to hold long term, you can safely earn interest with services provided by BlockFi.

With a BlockFi Interest Account, your cryptocurrency can earn up to 8.6% APY. Interest accrues daily and is paid monthly. There are no hidden fees and no minimum balances.

So if you’re interested in learning more about BlockFi, you can get up to a $250 bitcoin bonus when you use the link in the description area to sign up, all while supporting the channel.

Protecting your ability to generate income so you can buy more crypto is another important thing to consider. So if you’d like to learn more about the advanced technical concepts of blockchain and become a developer in the space, check out Ivan on Tech’s academy.

If you use the link below, you can access the academy at a discounted price, so scroll down, and check it out.

Nice. Let’s quickly hit on some bullish adoption stories in crypto before wrapping up.

In case you haven’t noticed: 20 - The entire front page of the most popular finance iOS apps now let you buy and sell Bitcoin. Here we’ve got Robinhood, Coinbase, Trust Wallet, Cash App, PayPal, Venmo, and Binance

Venmo? That’s right, like we discussed last week: 21 - Venmo users, which is over 70 million and counting, can now buy and sell bitcoin and other cryptocurrencies

Also, 22 - WeWork To Accept Crypto—And Will Pay Its Landlords In Crypto

23 - WeWork, a real estate company that provides shared workspaces, said it will accept Bitcoin, Ethereum, USD Coin, Paxos and several other cryptocurrencies as payment for its offerings, including memberships.

The company said it would retain any payments on its balance sheet—rather than converting it to another currency—and would look to pay landlords and partners in crypto if they are amenable. 

Cool. Got some bullish news for all you degen-meme coin lovers out there, myself included 24 - Newegg Shoppers Can Now Pay with Dogecoin

Newegg, one of the leading tech-focused e-retailers in North America, today celebrates #DogeDay by announcing that the company now accepts Dogecoin as an official payment method on Newegg.com.

And on a more professional note: 25 - It’s not NBA Top Shot, Beeple or a tweet, but IBM is about to turn patents into NFTs

26 - The patent industry has long struggled to identify value with only an estimated 2% to 5% of all patents equalling $180 billion in the market.

A new effort from intellectual property specialist IPwe, partnering with IBM’s blockchain group, seeks to unlock $1 trillion or more in patents and other intellectual assets through turning them into non-fungible tokens.

27 - “The tokenization of intellectual property (IP) will help position patents to be more easily sold, traded, commercialized or otherwise monetized and bring new liquidity to this asset class for investors and innovators,” the companies said in a joint release.

And finally, a change of heart across the pond 28 - After a bitcoin crackdown, China now calls it an ‘investment alternative’ in a significant shift in tone

So it looks like China will continue to surge past the United States, leaving us in the dust as we’ve been discussing for the past several months now.

Awesome.

Well that was Last Week Crypto, with me Crypto Casey.

If you enjoyed the episode, please make sure to like this video and subscribe to my channel for more crypto content.

To check out the links to all of the articles we discussed, go to CryptoCasey.com/Last-Week-Crypto.

So were you freaking out over the crypto crash?

Feeling a bit more at ease now?

Or are you still licking your wounds?

Let me know in the comments below.

Be safe out there.

Introduction
Crypto.com
Wednesday AMA
Market Movements
Consumers have $5.4 trillion in excess savings
Lagarde on Negative Interest Rates
5 reasons Bitcoin and Ethereum plummeted
What y’all shopping for today?
The strong hands are growing
A mistake people made early on...
Crypto is 'The Best Kept Secret in the World'
Bull Cycle Chart
Buy a Hardware Wallet ASAP!
BlockFi Crypto Services
Protect Your Ability to Generate Income
The entire front page of Finance iOS apps...
Venmo users can now buy and sell bitcoin
WeWork To Accept Crypto
Newegg Shoppers Can Now Pay with Dogecoin
IBM thinks patents should be NFTs
China now calls Bitcoin an ‘investment alternative’
Outro