Crypto Market Drop! What Should You Be Thinking as an Investor Right Now? ---------------------------------------------------------------- Get the insider info on crypto investing! Join the INNER CIRCLE: https://www.boroncap.com/cryptoinnercircle Text “info” to (817)771-0615 or email info@boroncap.com for more information on investing in our crypto hedge fund ---------------------------------------------------------------- Volatility is an opportunity. With the right mindset and proper execution of appropriate strategy, volatility can be maximized to your advantage. Join our weekly live show to learn more about Crypto!
KEY TAKEAWAYS:
00:00 Intro
02:39 Bitcoin correlation to stock
03:30 NASDAQ 100 at 23% down
04:00 Is Bitcoin following NASDAQ?
04:20 Why bearish market is good?
04:55 Next buy zone
05:28 Long-term investing advantages
06:23 Long-term Holder Net Position Change update
07:23 What do long-term holders do during a bearish market?
07:51 Why are you worried about the money in a short period?
09:00 What's going to happen in Crypto on a downtrend market?
09:20 Right mindset during a bearish trend in Bitcoin
09:45 The patient capital mindset
10:15 Will Bitcoin continuously follow stock market trends?
11:25 Report from Goldman Sachs
12:12 Crypto is its own asset class
13:05 Fundamental Updates:
Africa is fully integrating Bitcoin as a currency
Argentina's Bitcoin trading platform
14:20 Is buying Twitter a positive impact?
15:48 Elon Musk's companies owning Bitcoin
16:30 Advice for younger people
#bitcoin #boroncapital #thesolomoninvestor
----------------------------------------------------------------
Get the insider info on crypto investing!
Join the INNER CIRCLE: https://www.boroncap.com/cryptoinnercircle
Text “info” to (817)771-0615 or email info@boroncap.com
for more information on investing in our crypto hedge fund
----------------------------------------------------------------
*Other Episodes of The Solomon Investor Show CRYPTO ADDITION*
CRYPTO State of the Market; What you need to know today
https://youtu.be/hgiQg4VQwwQ
Don't be a Part of the "Wait and See Group" - Start Investing in Crypto Now
https://youtu.be/pWpDKoMBCJk
CRYPTO News Update of the Market; How to manage your portfolio
https://youtu.be/R9hlNDh2Fzc
The World is changing around CRYPTO with or without You
https://youtu.be/agnjnu_t29w
Is Crypto Melting? and What is APE Coin?
https://youtu.be/hykN92cbDm0
----------------------------------------------------------------
★☆★ CONNECT WITH BORON CAPITAL ON SOCIAL MEDIA ★☆★
Subscribe to our channel so you never miss an episode!
👋 Facebook: https://www.facebook.com/BoronCapital
🤳 Instagram: https://www.instagram.com/boroncapital
💬 Twitter: https://twitter.com/boroncapital
----------------------------------------------------------------
-- DISCLAIMER: Past performance is no guarantee of future results. Any historical returns, expected returns or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. No communication by Boron Capital, LLC Inc. or any of its affiliates (collectively, “Boron Capital, LLC™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing in this episode is intended as an offer to extend credit, an offer to purchase or sell securities, or a solicitation of any securities transaction.
All right, what's going on everybody? This is Zach Morrow with another crypto market watch. So we're here today is Cinco Demayo. And it has been a crazy day massive sell off in almost every major market. And I'm sure people are worried you guys are wondering what the heck to do? Is it the end? Right? Is everything going crazy? And do I jump in? Do I not jump in? Am I going to catch a falling knife? Or is this a great buying time, we're going to talk about all that. So I'm here with Jeff second, your Chief Investment Officer over here with Brian digital, and our main man when it comes to breaking down some technical, so I'm gonna put all the pressure on him, make him break down some technicals for us. But, look, guys, let's just call a timeout real quick. And just realize that in these times, the best thing to do is take a breath, right? We all have known that there's going to be volatility, we've all known that the Federal Reserve is juggling. What is you know, their own monster that they've created. We've all known that there is risk inside the markets. And we've also need to remember now that our long term strategy is where we can gain confidence and conviction. So we're going to talk about what's going on the short term, how we utilize this to our benefit for the long term, and what kind of things you should be processing right now and then have some fun towards the end talking about some great fundamental news. And so those are the things that keep in mind what's going on short term, and how do we turn it to our benefit? So, Jeff, let's jump in real quick and process through some of those crazy technicals. Everything that's been going on over the last couple of days, right? So fed just popped out and said they are going to raise interest rates 50 basis points. And that's exactly what was expected, which I think is a good thing, right, moving forward expectations. But then all of a sudden, the market decides it wants to have a nice little pump up today. And then all of a sudden, or I mean yesterday, and then today looks a little bit crazy. So what's going on?
Unknown Speaker 2:07
Yeah, so exactly like Zack mentioned, they once again brought rates up another 50 basis points, which was to be expected. Some people were even speculating on 75 basis points, but it was in fact 50. And a lot of the times, you know, the market price is that in prior to the hike, so I think it was kind of like a little bit of a bounce yesterday, which we were actually expecting in the stock market and with Bitcoin. And I'll tell you, you know, one major thing is that the Bitcoin in particular and the rest of the crypto market cap has also been following stocks very, very closely. And specifically the NASDAQ 100 It's almost been tick for tick on how correlated it is, which we kind of view as more of a bearish sign we like when you know, Bitcoin has traditionally been pretty uncorrelated if you look at correlation coefficients, but there's certain times in the lifecycle of Bitcoin, where it has been very correlated. And over the past like three months has been like extremely correlated almost tick for tick for you know, any the majors, tech indexes in the US stock market has been very, very close. Can you actually see my screen right now Zack are cool. So this is actually the QQ Q, which is the NASDAQ 100. Essentially, it's 23%. Down from all time highs, you can see it's just trading inside of this region. And we're about to touch that 200 period. But we're well below that on the one day as far as the moving average goes. So we're definitely trading in a bearish channel here. And we see that continuing to play out I don't see made many things to try to point to the market going up and why does that matter what stocks are doing? It's because again, we're highly correlated to you know, Bitcoin and Bitcoins, just pretty much following the NASDAQ 100 tick for tick. So it's important to kind of look at what is that doing? What's the potential for the future of that index and for, you know, just stocks in general in the in the US and it's definitely looking a little bit more bearish and we'll talk about why that's probably a good thing. We're also starting to break some previous support on the total crypto market cap, we primarily like to study Bitcoin. And we are this is a three day chart on the 200 period moving average, we use that very much so as support and if you look at previous cycles, as well, if you go way back you'll see that typically it holds us support and then breaks through and that is exactly what is happening right now. So we are breaking lower Blount beyond that below that channel and we are shooting for this next by zone, which we actually use yesterday as a an exit liquid It is what we call it. So it's like, it gives you an opportunity to create more liquidity in your profile, or in your portfolio, excuse me. And that's exactly what we did yesterday was we sell, we sold some of our risk on assets, so that we had more cash to be able to buy at this time, and potentially if we had lower as well. So there's times like this is actually can be a really good thing. I'll share with you one other thing. And the reason is, because we're more long term investors, we're not trying to day trade and create the maximum return and just always hold long positions in our portfolio, we are actively managing a portion of our portfolio. And times like, This just creates opportunities. So if you, you know, start to frame it like that prices going up and down, that's not good or bad, it just kind of depends on your perspective and your strategy. And we use it to our advantage, you can leverage short on these, you can trade options on this, you can you know, increase your cash position and set buy limit orders. And it's important to realize like you have options other than, you know, just doing that. And if you don't have the time and expertise to do that, that's exactly why you invest with a fund that has a good track record. So another thing I want to point out is, this is the long term holder position change. So this is just what is, you know, what are long term holders doing people
Unknown Speaker 6:27
that hold Bitcoin over 155 days are they buying or selling. And typically, you'll see, long term holders accumulate as prices go down, and then they start to sell as the price goes up. And you've seen that and cycles over and over again, right, in 2017, I just showed you in 20, you know, 1314 and 15. Right, they start to accumulate during the bear market, they sell into strength, and then they accumulate. And then once again, they sell into strength, as seen in the red right here. And what we're having right now is starting to have a we were kind of having a little bit of consolidation after this big sell off in the summer, early summer. And then we saw some, you know, that the highest point at 69k. So a decent amount of red, we then saw a little bit more green, as we sawed off from there, a little red that we saw a little green. So it's kind of like consolidating, because the market was trying to figure out what's going on. And now that we've started to break that zone, you're starting to see a lot of long term holders once again, accumulating Bitcoin. So overall, I, we we love this stuff. Because again, volatility is just opportunity. It's not like a thing where you panic. And I think, you know, even if you're not using a phone, if you're not accredited, and you don't have the opportunity to invest with, you know, with a fund, like what we run, I think it's also an important question, ask yourself, Do I need this money over the next three and six months, right? If you don't need the money in a short period of time, and you believe in it, and you have conviction in that asset long term, then there's no reason to really worry and panic and you know, get stressed out, that's just kind of a waste of your energy. Instead, you could be focusing on going to make more money or focusing on your career or spending time with your family or just living a happier, healthier life. So I think a lot of people don't ever think have that context in their head is like, if I don't need this money for a long period of time, why am I worried about short periods of time? So I think that's a question, you know, people should probably ask themselves, if price is going down, whereas you if not, if you're looking at like an opportunity, then come join the happy bus over here at boron digital. I'll go ahead and pass the ACC you got anything? Fundamentally, or maybe some things you want to add? On the back of what I just went over? Yeah, for sure. Really just a couple of mindset things.
Unknown Speaker 8:47
I think he did a great job sharing. But, you know, a couple questions that I've been getting just some perspective things is, you know, people are asking the question, well, you know, s&p is down, you know, all the major indexes are going down the stock market trading. Now, what's going to happen with crypto? And I think what a lot of people have to realize is like, presently, I think it's reasonable to assume that in the next six to 12 months, we're going to see volatility, right. And during this volatility, like Jeff shared, this can be utilized for everybody's benefit that is having the right mindset around it, and is executing on the appropriate strategy. So for us, that's a long term strategy. And we're believing in the long term fundamentals over the volatility of prices today and tomorrow. And so what that allows us to do, and this is something that we try to talk about on a regular basis is when you take a long term mindset, I believe that patient capital will always win out, so the more patient you can become, and it'll allow you to make better emotional decisions. And so when these prices are moving down, this creates buying opportunities. And when you're able to dollar cost averaging and bring more money into something you believe even long term at these lower prices, it gives you the opportunity to build a larger portfolio in position for that long run. So this is not the time to panic and freak out, this creates opportunity for buying presently. So those are things to think about the next thing with people asking the question about what's gonna happen the near term, is it gonna follow the stock market? Well, you know, historically that that coefficient has been, you know, uncorrelated between the crypto markets in the stock market, but we've seen it become more correlated recently. And I think that's because major markets and major players in the markets, the institutions and the investors and things like that, that are moving in, are starting to utilize it more. But at the same time, it's it's more widely regarded presently, I think, as more of a risk on asset or a riskier asset. And so when people are starting to trim positions, and they're going risk off, they may sell some of these positions. And you may see prices dropping in a correlating with the stock market. But as more and more people begin to understand the value and the differences and all the fundamentals inside of this market, I think we'll see a decoupling there. And I think over the long run, you'll see that crypto markets will not move in accordance with the stock market, because they're significantly different asset classes. You know, just jump in real quick here. I was going through a let's see. I'm going to share screen real quick here. I was going through this portfolio here. Can you see this report here from Goldman Sachs? Jeff?
Unknown Speaker 11:33
Now again, yeah, okay, perfect.
Unknown Speaker 11:35
So this is a report that came out from Goldman Sachs, about a year ago. And something you'll see down here. And I think this is important, this is something that I talk to people about all the time is that crypto is its own asset class. So Goldman Sachs came out. And they said the exact same thing that it has to be treated as its own asset class. So as you scroll through here, the jump in and you can see that they're talking about everything, we're talking about bitcoins, the dominant asset, right, you'll see that inside of this here, they're sharing that you know, where it's deriving its value, and that it is its own asset class. And I think that's such an important thing for people to remember is that over time, we're going to stop seeing that correlation, because people will trade it how it's supposed to be traded, but that won't happen until more people understand it. And with increased understanding, I think we'll start to see the separation. And so even though prices are down today, the encouragement I would have for each and everybody listening to this right now, is that when you have price going down on an asset, but the fundamental value is continuing to go up, it creates a great buying opportunity for those who are willing to be patient and long term with inside the space. And so that's something that we want you to hold on to today. And speaking about fundamental stuff. There's just been some really neat things that have been going on. Actually, we had another country, as the central republic of Africa came out and has now made Bitcoin legal tender they are utilizing as currency, the President has come out and said that Bitcoin is universal money. So there's another country actually fully integrating Bitcoin, you've had the world's largest family owned bank lgt actually has come out and they're going to be offering bitcoin trading and custody for their clients and customers. Argentina's largest private bank has launched bitcoin trading on its platform. It's not just, you know, businesses that are moving it on, you've got countries and major players and institutions globally that are beginning to adopt and that fundamental adoption is what's going to drive that long term price. So long term, I think we're all still in a great position and something to hold on to. But some some fun short term stuff. Jeff was the acquisition of Twitter. What do you think So Elon is gonna come and bring on Bitcoin to Twitter or what?
Unknown Speaker 14:02
Yeah, I think it's a pretty high likelihood. I don't know what his whole sentiment around Dojo is anymore. So I don't know if he's gonna, you know, make make Doge pretty prevalent on as far as like for payments on Twitter. Or maybe they continue with using the Lightning Network and stuff. I think that Ilan probably understands that Bitcoin is likely the better option considering that now it is really scalable and can be used through the Lightning Network and it's already being used with you know, some of the biggest merchants in the entire world and especially here in the United States. Now you can buy you know, Chipotle Whole Foods, things that CVS with Bitcoin through the Lightning Network because of what strike just did with their app and integrating with those merchants. So that's a really really big deal. But um, yeah, I think overall, it's like him acquiring that platform is really positive for crypto, and I think he's gonna bring it a lot more attention to Twitter and it could be a lot more fun of a platform for like younger, you know, people specifically because I think Elon has a lot younger have an audience and younger people are generally more accepting of, of, of cryptocurrency. So I think overall, it's very positive for it. And he also just changed his I don't know if you saw but he's changed his profile picture to a bunch of board apes nfts. Yeah. Typically, what he does is he makes fun of the thing first, then he promotes it, and then he buys it, which is pretty funny. He's not like front running stuff. He's literally just like, telling everyone about, about something, and then he'll buy it on the back end.
Unknown Speaker 15:44
So which is interesting, you know, just on Elon thing, and then I'm gonna hit something important you said was, with Elon, all of his other companies, I mean, SpaceX, Tesla, they own a massive amount of bitcoin on the balance sheet, I think it's reasonable to assume that Twitter will do the same, I think the opportunity of what they can create with Twitter as far as integrating payments and expanding the space is interesting to kind of process through kind of a little bit of game theory. But Tesla did come out and a new SEC filing and they said straight up in the filing that they believe that Bitcoin is a long term, as a long term potential as a liquid alternative to cash. So I mean, that's coming from Tesla. And I think we'll see that with Elon kind of leading the way on that. Now, the thing you mentioned is like, for younger people, I think for everybody listening, we have to realize that like long term, you have to do two things, when you're gonna process where things are going to be most successful. You have to follow the money, you got to follow the talent. I heard it said this way here recently, I thought that was so good. And Paul Tudor Jones, one of the most renowned investors in the world actually was doing an interview recently. And he basically said, he finds it extremely difficult not to bet on crypto. So everything about him, he's like, I have to bet on it. Because all the upcoming talent wants to work within the blockchain industry. And when all the talent is going a certain direction, you got to know the long term success of that is going to is going to be there as well. And so as as, as all of us are trying to make our decisions, and we're trying to place capital and allocate and things like that, those long term fundamentals are so important to keep in mind that the money is now moving this direction, that talent is moving this direction. And the retail adoption is moving this direction as well. So regardless of the ups and downs on a day to day, it's exciting to see all the great things happening. But let's, I think we got to wrap up for today. Got some other things we got to jump into. And so anything else you'd want to add? For everybody checking it out today, Jeff?
Unknown Speaker 17:47
Patients pays you go, write that on your wall, forehead, whatever you need to do.
Unknown Speaker 17:57
That's it. All right, well, everybody, thank you so much for jumping in today. I'm gonna pull this up on the banner real quick down, down below. If you text the word info inf o to 877-771-0615. You can see it right down here at the bottom. If you text that we actually have a actually recorded a masterclass on crypto to a private wealth group recently, if you text in you can automatic will just send you access straight to it for free. We want to do that as a blessing to all you guys who come in and watch. I think you guys will enjoy it. And then for anybody else who's wanting to learn more about what we're doing with Warren digital in our investment offerings, you can do that same thing as well. We'll get connected with you. Other than that, have a blessed day. We'll talk to you soon.