Foreign [Music] Bureau weekly crypto review here at this Week’s top headlines in the crypto news [Music] Crypto Market rally coins and tokens of All kinds post unprecedented Double-digit games with some altcoins Pulling more than a 2X is this the end Of the crypto bear Market or just Another bull trap important altcoin Updates Aptos doubles in price cardano Introduces side chains polygon proposes A hard fork and Avalanche pens a Partnership how could this impact apt Ada Matic and avax Dcg in debt digital currency group Reportedly considers selling assets After confirming that it owes three Billion dollars to creditors while Gemini calls for dcg’s CEO to resign When will this fud be resolved tethers Usdt delisted Canadian authorities Force Crypto exchanges to de-list the largest Stablecoin leading to speculation that a Crackdown on Tether could be coming Everything you need to know Banks and BlackRock some of the biggest Names on Wall Street release concerning Earnings reports for the fourth quarter Of 2022 and won a recession is coming What could it mean for crypto And of course the thoughts of Mr Benjamin Karen all this and More in just
A moment Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not Financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week the crypto Market collectively Pumped by more than 20 percent the Counter Trend rally reportedly resulted In nearly a billion dollars of Liquidations over four days as Speculative shorts got absolutely Wrecked to put things into perspective It was the largest wave of crypto Liquidations in almost a year and a half What’s interesting is that the rally Appears to have been led by bitcoin’s BTC this is underscored by the fact that BTC pumped more than most major altcoins And Bitcoin dominance the percentage of The total crypto market cap that’s BTC Likewise increased significantly above Its most recent levels this is Interesting because it suggests that the Rally may have been caused primarily by Institutional investors had it been a Retail driven rally then most large cap Altcoins would have outperformed BTC More importantly institutions are the Only ones with the billions of dollars Required to cause such a rally Regardless it’s clear that the Catalyst
For this crypto rally was the release of The December CPI in the United States Both the crypto market and the stock Market began rallying a few days before The actual CPI release last Thursday This correlation again suggests that it Was likely an institution-driven crypto Rally if you’ve been keeping up with our Coverage of the Federal Reserve you’ll Know that the FED is looking for Convincing evidence that inflation is Coming down before it starts to pause or Lower interest rates naturally the Markets have rallied every single time a Statistic showing lower inflation has Been released if that didn’t make it Clear enough the CPI print for December Was extremely positive inflation fell From 7.2 percent to 6.5 percent which is Exactly what investors were expecting The markets rallied because investors Are very hopeful that the FED will Decide to pause or pivot at its meeting On the 1st of February the only problem Is that fed chairman Jerome Powell has Been explicit about the fed’s desire to See both Financial conditions tighten And the labor market cool down in other Words the FED wants to see markets crash And unemployment go up significantly yet The exact opposite has been happening This has led to speculation that the FED May try to Spook the markets by raising Interest rates more than the 0.25
Percent that investors are Overwhelmingly expecting after the Positive CPI print a higher than Expected rate hike would cause markets To crash and would also further squeeze The real economy Even If the Fed follows Through on its 0.25 rate hike Jerome Could send another warning signal during His speech there’s also no shortage of Macro and crypto-specific factors that Could take markets lower in the coming Weeks and you’ll know what these are if You’re subscribed to my newsletter link Is in the description Now last but not least BTC and most Cryptocurrencies are extremely Overbought on both the daily and weekly Time frames in fact BTC is the most Overbought it’s been in years This suggests that the crypto Market may Be about to roll over and we could see Billion dollar Liquidations in the other Direction down Speaking of which short squeezes have Been a significant contributor to the Recent rally especially for altcoins for Those unfamiliar a short squeeze is when Traders who bet that the price of crypto Would go down are forced to buy the Crypto because it’s pumping instead and They don’t want to lose money logically Buying a cryptocurrency causes its price To go up which causes more traders to Buy back the crypto to cut their losses
And so on and so forth until it causes a Mind-melting rally consider that Institutions were shorting BTC and eth At record levels back in November big Thing Now one of the most shorted altcoins Meanwhile has been Aptos this is in Large part because it was heavily backed By both FTX and Alameda research which Both collapsed in November many in the Crypto Community also saw apt as a VC Coin meaning that its only purpose was To dump on retail investors buying into The Aptos hype that’s why it’s not Surprising that apt saw the largest Gains of the top 100 cryptocurrencies Over the last week at least according to Coin market cap Because apt was being so aggressively Shorted it saw the most aggressive short Squeeze rally Solana’s Soul likely saw similar gains For the exact same reason more about Solana in the description I digress For some other altcoins their rallies Were based on more fundamental factors However for starters there’s cardano Whose core developer iog announced the Release of a toolkit to create custom Side chains iog is reportedly using the Toolkit to create a side chain that’s Compatible with the ethereum virtual Machine Cardano founder Charles hoskinson noted
On Twitter that privacy preserving side Chains are also in the works this has Led to speculation from the cardano Community that the ecosystem could see Exponential growth in the same way Ethereum did when it started introducing Side chains and layer twos as many of You will know ethereum’s most popular Scaling solution has been the polygon Side chain which recently announced that It will be undergoing a major blockchain Fork the fork is expected to lower gas Fees and increase transaction finality Which will mean faster exchange deposits For Matic polygon developers also Announced a successful test of polygon’s Zero knowledge rollout based layer 2 Scaling solution for ethereum it’s not Currently clear exactly when polygon ZK Evm will go live but when it does it Will be a major milestone for both Ethereum scaling Solutions and polygon Itself as some of you will know polygon Has secured lots of high-profile Institutional Partnerships too well the Same is true for Avalanche which Recently partnered with Amazon web Services for easy Avalanche node hosting Now I can’t say that I’m a fan of Storing blockchain data on AWS but it is A significant announcement nonetheless Now as amazing as all these altcoin Announcements are the reality is that ADA Matic and avex are far from their
All-time highs and may not go much Higher for now as for apt it appears to Be printing a double top which should Take its price down to proper bear Market lows in the months to come now Before you claim I’m spreading fud let Me remind you that digital currency Group or dcg one of the largest Companies in cryptocurrency is currently Experiencing severe liquidity issues According to the financial times dcg Owes its creditors no less than three Billion dollars and is seriously Strapped for cash As almost all of you will know dcg’s Troubles began back in November after Genesis trading one of its subsidiaries Closed its doors due to the collapse of FTX this forced the Gemini Cryptocurrency exchange to pause Withdrawals for users of Gemini earn Which had given 900 million dollars to Genesis now although it was initially Believed that the contagion was limited To Genesis a Dutch cryptocurrency Exchange called bitvavo initially Sounded the alarm in December that dcg Was experiencing liquidity issues too Vitvarvo recently demanded that dcg Repay the full 300 million dollars it Owes the exchange at the same time Gemini co-founder Cameron Winklevoss has Gone on the offensive demanding that dcg CEO Barry silbert get his company’s
Assets sorted out and repay the 900 Million dollars Cameron also recently Demanded that Barry resign but this is Unlikely to happen given that Barry is a Restructuring expert Cameron’s uproar Also attracted the attention of the SEC Which has now charged both Gemini and Genesis for selling unregistered Securities as I joked on Instagram this Is like two Juiced up WWE chaps fighting In the ring and a bald Banker jumping in To take them both down all in the name Of investor protection of course Jokes Aside dcg is now reportedly Planning on selling 500 million dollars Of Assets in its VC portfolio this is Scary because dcg has invested in almost Every major crypto company and project That comes to mind The list includes coinbase Circle Polygon xrp and even crypto Builders Like polkadot’s parity Not only that but it seems that dcg is Prepared to sell even more to make ends Meet this is because Tron founder Justin Sun is reportedly prepared to offer up To one billion dollars for dcg’s assets Some of you may recall that Justin is Interested in acquiring grayscale dcg’s Current money-making machine this makes Sense given that grayscale’s two largest Trusts alone are generating around 30 Million dollars per month in fees According to the blog and when the
Crypto Market was peaking greyscale’s Trusts were earning the company nearly 100 million dollars per month let me Reiterate that this is just fee Revenue Now obviously dcg would be foolish to Let grayscale go but if its financial Situation gets bad enough it may be Forced to do so just to stay afloat if It does then Valkyrie a grayscale Competitor affiliated with Justin would Take over greyscales Bitcoin trust and Allow investors to redeem and sell their BTC in any case it’s clear that dcg has No other options available but to sell Assets and this will do damage to the Crypto Market it’s also clear that the Eye of Sauron AKA SEC chairman Gary Gensler is fixated on the crypto Industry and it will not surprise me at All if we see more enforcement actions From him soon I’ll be covering the dcg Gemini Genesis Saga in more in-depth Video tomorrow so keep your eyes peeled For that And this ties into a very important Crypto headline that the community seems To have missed and that’s the crypto.com Has delisted tether’s usdt for Canadian Users effective 31st of January any usdt That’s not withdrawn or exchanged past This date will be converted to usdc Which is very peculiar now to my Understanding the sudden D listing has Its origins in the crypto regulations of
One of Canada’s largest provinces the Ontario Securities Commission banned Select cryptocurrencies including usdt From being traded in The Province back In August 2021. what’s odd is the Regulator never explained its reasoning As reported by cointelegraph an unsealed Document suggests that tether wasn’t Holding sufficient reserves to back usdt In Canadian Banks inadequate backing of Usdt has been a long time concern of Regulators and crypto holders alike Though tether has managed to honor all Usdt redemptions so far note that tether Has been around since 2014 and recently Redeemed 10 billion dollars of usdt Without issues Now the reason why usdt’s delisting in Canada is so important is because it Could foreshadow what’s about to happen To tether in the United States and Elsewhere If you watched our video about the Tether papers you’ll know that Alameda Was the largest recipient of all the Usdt Ever issued by tether if I had my Tin foil hat on I would tell you that Collecting sensitive information about The largest crypto companies was the Purpose of Alameda research all along This sounds ridiculous until you Remember Alameda had a stake in a U.S Bank with close connections to tether More about that later this week
Now conspiracy theories aside it’s Evident that U.S authorities have the Same concerns as their Canadian Counterparts when it comes to tether one Of the reasons that they perhaps haven’t Resorted to the same actions is because They know that tether holds a lot of U.S Treasuries if they were ever to Perpetrate a run on usdt redemptions Then these treasuries could be sold Which could harm the U.S government debt Markets this selling of U.S government Debt could drive interest rates higher In the United States and that could Cause issues for the Global Financial System it’s the same reason why everyone Is concerned about the bank of Japan and If you’re subscribed to My Weekly Newsletter you’ll be familiar with the Specifics there Even so a Crackdown on usdt is arguably Inevitable simply because tether cannot Be controlled by special interests usdc On the other hand can be controlled and Circle has apparently been captured by Megabanks like Goldman Sachs and asset Managers like BlackRock more about that In the description And this brings me to the final topic I Want to tackle today and that is the Q4 2022 earnings of the very same megabanks And asset managers that are trying to Take over the crypto industry while Earnings came in above investor
Expectations their stocks chopped Sideways due to deep recession fears as Explained by JP Morgan CEO Jamie dimon Quote we still do not know the ultimate Effect of the headwinds coming from Geopolitical tensions including the war In Ukraine the vulnerable state of Energy and Food Supplies persistent Inflation that’s eroding purchasing Power and has pushed interest rates Higher translation future earnings will Likely be lower due to deteriorating Economic conditions the same sentiment Was echoed by Bank of America CEO Brian Moynihan and Wells Fargo CEO Charlie Schaff Some of you may have also heard that Goldman Sachs recently fired 3 000 People in a single day Now we won’t know how bad it’s looking For that Mega bank until tomorrow’s Earnings but well I think you can guess Now believe it or not but BlackRock the World’s largest asset manager also Recently announced some layoffs this is Because its Revenue declined by 15 in Q4 Last year This is coincidentally consistent with The drawdown in blackrock’s assets under Management from 10 trillion dollars to 8.4 trillion dollars over 2022. Unfortunately flows into blackrock’s Investment vehicles reportedly increased In the final quarter of last year
Compared to previous quarters now I Suppose the Silver Lining is that BlackRock is offering institutional Investors crypto exposure through Coinbase as of last summer but well I’d Rather they stayed out of crypto thanks All the same after all BlackRock Technically has the ability to buy up The stake it needs to take control of Almost every single proof of stake Cryptocurrency sure the prices of those Cryptos would go to the moon but at what Cost at the end of the day you’d be left With a blockchain enforced ESG dystopia With some luck crypto will be able to Evolve independently of the influence of Asset managers like BlackRock and mega Banks like JP Morgan there’s no denying That institutional money will be Required for crypto to grow but never Forget that the real end game is to Break away from the current system and With all that said let’s now join Benjamin Karen Hey guy thanks again for having me as Always is it a pleasure to be here with The most recent move up in the crypto Verse I thought it might be worthwhile To see where this stands within the Context of our fair value logarithmic Regression trend line the red line is What I would call a way to represent What is the fair value of crypto at any Given time and we can spend many years
Being undervalued or overvalued in the Context of History shows us that that Undervaluation levels can can stay for Approximately two years before we go Into another bull market in the Overvaluation regime but right now the Total market cap comes in at around 994 Billion with a fair value sitting at About 1.886 trillion this represents an Undervaluation of approximately 47 if You take the percent difference between The market cap and the fair value you’ll Get this chart and with the exception of What we saw back in 2012 every every Single cycle has hit about that 65 Percent undervaluation before ultimately Starting a a sustained Bull Run Sometimes we scrape the lows for the Better part of a year you can see that In the 2018 bear Market we didn’t even Come close to that 65 undervaluation Until all the way in March of 2020. and The reason why it actually became more Undervalued than Then in December of 2018 is because Again this red line is a monotonically Increasing function so while the market Cap was not that dissimilar or maybe Even slightly higher than December 2018 By the time we were in March 2020 the Fair value was much higher and so it was A much obvious a much more obvious time To get into the cryptoverse but I also Wanted to sort of switch gears and talk
About Um you know the the Bitcoin dominance And the the changes in that we’ve been Seeing one of the things that I’ve Mentioned uh for the last few weeks when I’ve come on your channel is this idea Of us heading into Bitcoin season and if You just simply look at this altcoin Season index metric it shows you sort of The ebb and flow of going from Bitcoin Season to altcoin season and and back And forth and we noted that we were Increasingly heading towards Bitcoin Season if you take a moving average of It of course it becomes a a bit more Clear and of course a thesis is that no Matter what direction Bitcoin has in Terms of its price the dominance of Bitcoin should continue to go up as we Get closer to bitcoin season and we’ve Actually seen that the dominance of Bitcoin has continued to slowly move Higher we’ve you know we’ve now held Support here on our on this um I call it The bull market support band I I Normally use it for the price of Bitcoin But now is a good time to use it for um Uh the dominance of Bitcoin and you can See it finally is holding support and And pushing higher and perhaps not that Dissimilar from what we saw back in in Sort of the middle part of 2022 and then The other thing to consider again this Is when you include the stable coin
Market and arguably it’s worthwhile to Investigate the dominance of Bitcoin by Excluding the stable coin Market because If you include the stablecoin market you Could or you could simply argue that That’s just sort of looking at the cash On the sidelines but there’s also a lot Of cash just sitting in say uh Fiat Currencies like you know US dollars that Sort of stuff that is is also on the Sidelines and of course that’s not being Counted in the Bitcoin dominance and Therefore the argument is why should the Stable coins and if you look at the Dominance excluding stable coins you can See that we simply just continue to Slowly push higher it’s not necessarily You know the the favorite part of the Market cycle for everyone to to see most Altcoins bleed against Bitcoin over the Macro scale most of them have gone and Down over the last year it’s a year and A half of course not all of them some of Them have held up and there’s always a Few that do But the dominance has continued to to Slowly head higher and the nice thing is Eventually once the dominance uh you Know continues to move higher and is at A much higher level then I think you Know we’re at levels once we reach that Then we’ll be at levels that could Actually support All Seasons like we’ve Come to love like we saw back in 2021
And like we saw back in 2017 in the Early part of 2018 but the thing to Remember is that these major alt Seasons Tend to get kick-started because the Dominance of Bitcoin is high you can see That occurred in 2017 and then in in um In in late 2017 as well and of course in 2021 we’ve seen it we’ve seen it happen Quite a few times and and the argument Is is by getting that dominance higher It can then better support a future all Season but hopefully this is insightful And I I wanted to thank you again for Having me I do appreciate the chance to Come on your channel and if you’re a Subscriber of mine and you’re watching Me on coin Bureau make sure you Subscribe to coin Bureau one of the best Channels in crypto can I recommend him Enough thank you again for having me I’ll see you next time bye thank you Ben And don’t forget folks that Ben Rob from Digital asset news and myself now have a Weekly live stream show every Thursday From 9am eastern time we take it in Turns to host and this week yours truly Will be hosting on coin Bureau Clips our Second channel so I hope you can drop by It would be lovely to have you and that Is all for today’s coin Bureau weekly Crypto review so if you enjoyed it you Know what to do hit that like button Subscribe button and Bell icon too if You’re looking to maximize your gains
During the bear Market the coin Bureau Deals page is where you should go you Can find the link to that resource and Many others in the description below Thank you so much for watching and I Will see you all in next week’s episode [Music]
