Is Crypto Dead? Terra LUNA Crash! What to do Now ---------------------------------------------------------------- Get the insider info on crypto investing! Join the INNER CIRCLE: https://www.boroncap.com/cryptoinnercircle ---------------------------------------------------------------- What should you do when the Crypto market crashes? Is it possible to still be profitable during the bearish market? During the downtrend market, what matters is understanding what's happening in the market and not getting overly emotional. Watch the full video to understand and learn more about the market crash and what strategies you can apply to take advantage of the market volatility.
KEY TAKEAWAYS:
00:00 Intro
01:28 Is everything dead-end for Cryptocurrency?
02:05 What does a coordinated attack mean?
03:00 Terra Luna crash explained
04:00 How do loans and bonds affect the bearish trend in Terra Luna?
06:00 Terra Luna vs. UST
08:45 Is Luna a scam?
10:30 What's the best strategy to invest in Crypto?
12:38 The domino effect that compromised Terra Luna's liquidity
13:40 Did it happen previously?
14:05 Will this happen again in the future?
15:05 Buy Zone at BTCUSD
15:50 Oversold at the weekly timeframe
16:40 Rare situation of 7 weeks of the bearish trend is
17:00 Possible bounce
18:00 Can you make more money in a bear market?
19:20 How to take advantage of the market when it's overselling?
22:00 Bitcoin Dominance and Altcoin season
23:10 A buying opportunity at 200 Moving Average
25:00 2-year Moving Average
#bitcoin #boroncapital #thesolomoninvestor
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*Other Episodes of The Solomon Investor Show CRYPTO ADDITION*
Bull or Bear? Is Bitcoin Broken?
https://youtu.be/AuUKnZHt5vA
Management and Investment options that active and prospective crypto investors didn't know they have
https://youtu.be/UKmLgHDxKYU
Are we at the END of the CRYPTO Cycle?
https://youtu.be/powZY_Y9whI
Kazakhstan. Crypto Mining. Market Crash. Is it time to SELL?
https://youtu.be/-IhRNDLOezQ
What the smart money is doing now (plus 2 top altcoins)
https://youtu.be/80iRH-4nfjI
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-- 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.
Blake Templeton 0:02 Good, good. All right. Welcome guys to the born digital state of the market. This is where we bring you live every Thursday, what you need to know about the cryptocurrency and crypto market the news, and how you can actually build all weather portfolio. A lot is happening right now in the market. And I have Zach in studio and Jeff in studio. Jeff is Brian Digital's Chief Investment Officer officer, he's going to share from the depth of charts and really seeing what's happening maybe what's happened in this what we might call bloodbath in certain terms. And so let's just jump right into it, guys. We have so many voices. And what we do on this channel, oftentimes is It's realizing that the control the voices in our head, and we've got to actually call a timeout, cut the emotions and ask the quality questions. What's happening? What actually provides something value? Why is the market dropped so much? And so I'm opposed the question. We'll start with Jeff and Zack, we just toss it back and forth. But Jeff, is the cryptocurrency market data? Is this the Is this the beginning of the end? Is everything over for cryptocurrency?
Unknown Speaker 1:26
I think so I did just buy the 30 year treasury bonds, so I cashed? Exactly. I mean, yeah, I think the whole tariff situation was pretty devastating to a lot of investors. I mean, we're talking about a $30 billion dollar market cap that pretty much just got demolished. So and that's not even including the mark cap of ust as well, which that that took a major hit. It's down 50% still. So it is a big deal for sure. But it's definitely not the end of crypto and I think it's a sign that I think a lot of people would agree that that was a coordinated attack. It's not like it's a legal thing to do. Or illegal, I should say. It's, it's, it's absolutely you can you can do that in investing. I think a lot of people they hear the word coordinated attack and they think it's like a terrorist attack. And it's illegal. That's part of the investing game is if you you know great investors, they spot holes and things and they will then pursue that hole and in order to profit from it. And that's exactly like what George Soros did bank robbing the bank of England right a long time ago when he shorted there currency. So it's pretty much the same exact thing. And there's a lot of speculation on who did it and no one really knows but that kind of started the whole collapse because ust did have, you know, we were already like forming a bear flag. And then we did have a little bit of a sell off. And then bam that Luna and Tara thing happened and they had to sell their Bitcoin, which they had billions of dollars of Bitcoin. So just further brought Bitcoin down and the overall market down. And then Tara. So USD, and Luna just took an absolute massive hit. I mean, Luna is pretty much almost zero right now. So
Blake Templeton 3:19
let's, let's dive a little deeper into that. Because I think that's so important for people to realize. If you're just looking at the News, the news is actually painting this picture that it's actually death of cryptocurrency or it's, I mean, it's obviously it's always taking everything from a slant. And so if we pull back perspectives of whether it's an agenda or a political view side, like I'm sure more on the actual Terra Luna scenario and what actually transpired and and how that became a negative spiral downward for the whole current market.
Unknown Speaker 3:58
Yeah, so I mean, a lot of the so you can go to a protocol called Anchor, and you can deposit Luna and then you converting that to something called bond and Luna, and then you are taking loans against the bond and Luna. The problem was that people were taking loans against the bonded Luna multiple times over and over again. And they were using high loan to value loans like over 75% loan to value speed would take a loan, they take the cash out, then they go by Luna, take another loan, and they just keep doing that. It's like one person would have like five loans. And you know, whoever was spotting this this opportunity is they went and grabbed a bunch of us tea, put it in anchor and then they pulled it all out at one time. And that created a really big liquidity problem. The market was already dropping, and then it created a cascading of liquidations and they shorted it. So that's how they just made a ton of money from that is by Um, as by pulling a bunch of liquidity all out at once and talking over a billion dollars, and then, and then letting the whole system collapse. So it was just honestly a thing that's, that's over leveraged. And then the other thing too is like, you know, Tara, they had this great thing going with ust and then they all of a sudden started to have a desire to back the stable coin with Bitcoin and then they backed it with other cryptocurrencies. And then everyone was kind of staring around, like looking at this like thing that's supposed to be stable, but they're backing it with these highly volatile assets. And that just started to happen over the past like month, it wasn't something that was like, you know, they started from day one doing that. So that was an interesting, like, I think people from the outside like in traditional finance saw that didn't make a lot of sense. They look into it, oh, it's also over levered. Here's a system that we're going to exploit and here's how we're gonna do it. And, and then they took advantage of it. Yeah,
Unknown Speaker 6:00
I like jump in real quick. So for those you guys don't know if, if maybe you haven't been watching the markets, Luna or Terra Luna is a cryptocurrency and then USD T is what is called a stable coin. It's supposed to be pegged to the dollar. And so good, it's not confirmed who this attacker or attackers were, there's a lot of speculation. But clearly, they saw a vulnerability inside of multiple connected assets. And then they came in and put a lot of downward pressure to help essentially, break what was a small crack in the wall and turn it into what became a flood. And then a lot of fear sent into the market. And then it created almost like what you might call a bank run, where everybody was trying to pull funds, and it caused a downward spiral. And so that didn't just impact those assets, specifically, because those assets did have the Terra Luna Foundation did have a large amount of bitcoin, that didn't they had to sell that, which was their collateral. And then that forced Bitcoin to have a lot of downward pressure, which was stacking on top of what was a market that is already somewhat, shall we say, where the sentiment is already somewhat fearful, right? I mean, all the major markets right now have pressure downwards. And so you had, you know, a mix of fear and market sentiment moved in with a coordinated attack towards a vulnerability that then created, you know, the prime mover Bitcoin to have that downward spiral as well. And then you had all of these assets kind of following suit where people were rushing to pull their money out. So it was a a tough week for the crypto markets, no doubt about it. And with that, I think this is kind of a good thing to process through is hopefully all you guys listening weren't crushed, like Luna was, I mean, like Jeff mentioned, what 30 billion market cap originally. You know, we can go and what's it today?
Unknown Speaker 8:13
It's it is way, Hades Island is under 50 cents, and it was at $114. So
Unknown Speaker 8:20
yeah, so that was within like a month ago, it hit an all time high, actually, I think right around 116 $116 per coin, now down to 50 cents a coin. So very, very rough.
Unknown Speaker 8:30
Like it's under a million market cap from 30 billion.
Unknown Speaker 8:34
Got it. And so I think a lot of people are like, wondering like, Was this some kind of scam? So it was I guess that's a good question, Jeff. Was Luna a scam?
Unknown Speaker 8:43
I don't think so. And I think it also depends, I think people nowadays call everything a scam that they don't.
Unknown Speaker 8:50
Right. The wrong way.
Unknown Speaker 8:51
And it's a scam. Yeah, exactly. It's like, what's your definition of a scam? Is it like, your your shoelaces went on tight. And now that's a scam. I mean, anything that goes against people kind of they kind of just revert to that word I've kind of noticed, but I don't think it was I think it was a really unique project that was just exploited. I think that and it just it evolved and grew too quickly. And it didn't obviously have as strong of a you know, stability that it should have had what that meant burn feature between us t and Luna. So it's, I think it's just a thing. It's just a part of the the industry, right? If there's an exponentially growing industry, there's bound to be a few coins that have 20 plus 1000 coins that go down, right, there's no way to have an exponentially growing industry without exploits that take down like some of the projects because like when there's when something grows that fast, there's definitely opportunity to take advantage of situations.
Blake Templeton 9:51
Okay, so that's really important for us to process through then, because most people what they've done is they have their Robin Hood account Want to or they have an exchange? And they've, you know, picked a coin or two and then purchased it. What is the best strategy then? Versus this standard for the long haul weather the storm of the storm that the coin you chose might be the wrong coin. I mean, there's so much noise coins have. There's optics and metrics that have to be looked into to decide what coin? What's the best strategy for someone when you understand that things like this can happen?
Unknown Speaker 10:32
Yeah, I think that if you're accredited, you should totally look at investing into funds. Number one, if you are not credited, I think it is important to do a lot of your own research and like realize what different sectors there are within cryptocurrency. And then pick a sector that you understand and you believe in, and you can do some research into that sector. A lot of the times, I always kind of revert back to the smart contract sector that has his own blockchain and has the native coin behind that blockchain, because you can do research into you know, that blockchain and see if it's actually growing or, or diminishing, and the more that the chain grows, the more that the coin has value. It's kind of like AWS, as AWS continues to grow, it kind of builds this massive ecosystem of people developing on top of it, it's the same exact thing with these smart contracts that have their own blockchain. So that's my favorite sector to be in, because you can actually put some analytics and make some sense of like how much a protocol could potentially be worth. And I think that's probably one of the easiest things is like, start to realize, yeah, there's gaming coins or stable coins. You know, there's Metaverse, there's defy, there's a bunch of different, you know, sectors. And I think it's important to kind of narrow your focus and understand and build conviction. That's number one is conviction behind what you're investing in, because it's so volatile, that you're going to end up selling the bottoms and buying the tops, if you don't know why you're buying what you're buying.
Unknown Speaker 12:07
That's a good point. You know, one of the things that, you know, I've obviously, we we've all been on multiple calls, you know, visiting with different people over the last few days since this happened, but one of the questions that I got was, you know, what's to stop somebody from doing this again? And, you know, is this just something that anybody can do at any point? Is this a vulnerability specific to the crypto industry? And, you know, what I had to share with him was that the answer's no, right, this was a very unique situation, where somebody with a lot of money came in and found a series of dominoes, that if they lined up just right, and if everything worked out, just the way they went with it, and then they had the compound interest of, you know, this project was connected to this project, and that project was pegged to a different different project, and then one project swapped over, so its liquidity was temporarily, you know, lower, and then the collateral was new, and then they're gonna have to sell the collateral that then connected to the total market. And then, you know, obviously, then you had market sentiment that was already somewhat slanted, negative. And so there was all these dominoes that had gotten lined up. And the person that did the attack really didn't have control over any of the dominoes. They just were able to find these dominoes lined up. And, you know, as we're talking about, we're talking about today, but then the one other reference was George Soros back, when was that?
Blake Templeton 13:33
Was it the 79? Two,
Unknown Speaker 13:35
there was oh, and that allows way off, then. Well, there you go. 1992. So it's been, you know, 30 years, since something like this really took place the same way? I mean, am I missing something on that?
Unknown Speaker 13:50
No, I mean, pretty similar. Honestly, it's a person with a ton of money or an entity with a ton of money. That's exploiting a weakness. It's exactly what happened. And they don't control an entire bank for an entire country went down. Right? So right, it's it's not just a crypto thing. This is a this is a this is the investment game that I'm speaking about this can happen, right in any type of a market.
Unknown Speaker 14:17
Yeah, and it doesn't mean that it's going to happen again next week. What it means is that there are times from time to time over the decades where these things line up and if you know if one domino had been moved over slightly, they wouldn't have all fallen right. But this this created this the sell off, so maybe we could jump in real quick because we're I know we're running tight on time. Jeff, can you pull up some of the charts real quick and show everybody where everything's at right now?
Unknown Speaker 14:43
Yeah, let's see here. Yeah, so few things I mean, about
Unknown Speaker 14:55
what we can what people can be processing through as far as opportunity now.
Unknown Speaker 15:00
Yeah, yeah, I mean, we, this was one of our first like, five zones for Bitcoin is if you're seeing this, this green box right here, so the wick went right into the box and then came back up, there's a lot of opportunity, which is trading this volatility right now. So you can catch these times where you will put, you know, buy limit orders and certain areas on previous support and resistance that's also kind of based on like buying and selling volume previously of at certain price points. And you'll set these buy limit orders and the and it's so volatile that you can and you can also do it on like unique pairs, you'll catch a wick lower and then you can sell a lot higher on these big bounces. So there's still a lot of opportunity in, in bear markets. But there's no denying that we are oversold even on a weekly timeframe. If you look back at the history of Bitcoin, you can see we're getting really close to the 30 down here on the RSI every time we've hit the 30. On the RSI, we have had a time that has been extremely, extremely oversold. So we look at this time, and obviously this time in 2018. So 2015 and 2018. And let me go into it. You can't even see this back here. Because it's so small, I'll go into a logarithmic chart. But that was the very bottom of the bear market and 2015. Same thing over here in 2018. And as you can see, we're getting very close. And the only other thing that was somewhat close that wasn't quite there was the COVID like Flash Crash where we we went down over 50% in a day. So we are definitely getting to the point where we've got some overdraw exhaustion. And I would also say this is very rare. And that hasn't happened in like, what is it, I guess four years. And before then, and I think it's actually even surpassing that if we close red this week and go into another red week. But you can see there's, there's seven weeks of red candles right here, that is very rare for that to happen. So there, you know, we are expecting a bounce here shortly kind of depends on what the stock market is doing. But we do overall think that, you know, just because we're oversold, it doesn't mean prices aren't going to go lower. And we are kind of targeting the low to mid 20s. And that's where we believe we're likely heading over the next you know, few months. But we're gonna either way, like we set the portfolio up that we can, we can capitalize on it either way, because it's not like we're all in cash. And then we're all in positions, we've got a really nice balance of you know, our cash to digital asset ratio in our portfolio. And we also have the ability to make money in other ways other than just buying on spot and buying and selling on spot.
Blake Templeton 17:51
That's super helpful, Jeff, to understand how boron digital works. And you mentioned, you know, we're able to make money and volatility and guys, if you haven't heard said before mean that's a massive secrets is the money's made in the bear market. If you dollar cost average in a bull market versus a bear market at any time for Bitcoin, you're always more made more money in the bear market. So what he was saying about how we can buy and sell in the volatility, that is how we actually can make a positive return in a negative return. Cryptocurrency market, Zack tie a bow for us on specifically, you know, the hedge fund is able to do well, if certain plays are made, but how does one get into it? What's the what's that look like? Maybe some of those that picture of a call to action for somebody who's interested in shifting gears and having an actively managed portfolio? Yeah,
Unknown Speaker 19:02
for sure. So, you know, want to circle up real quick and what Blake was saying is money. When we're saying money's made in the bear market for all my real estate investors, it's the same thing. Were you saying? Well, money's made on the on the buy, not on the sell. So in these downtimes, if you can actually realize that, if when in Jeff saying calling it oversold, what oversold means is the price currently is significantly below what we feel the value is or what the market would deem the value. And so it's the same thing like buying something on a discount, it doesn't mean that the price may not go down further presently. But as you're making good price purchases on these lower times, that's where you're able to accumulate more and have a much stronger position. foundationally will also have a much stronger likelihood of success and great returns in the future. But you know, as far as what we do, you know, that's what we're what we do is We set up a portfolio a structure, a strategy, where we're managing these funds inside of the hedge fund. And then, you know, Jeff mentioned accredited investors. So if you are accredited, and you're interested in working with us, you know, from a portfolio standpoint, we go and we take care of this stuff. 24/7. So, you know, if you're just in the buying hold, and you potentially were holding on to Luna, and you know that the little crash happened within 24 hours. So if you didn't look at the chart that day, you missed it, right? It's gone. Right? So whereas we're in the charts, you know, nonstop, Jeff, how many hours? How many hours? Were you on the phone with Austin that day?
Unknown Speaker 20:40
I don't even know.
Unknown Speaker 20:42
Right? And if Austin wasn't on the phone with Jeff, he was on the phone with me, because me and Austin, were on for a couple hours that they do.
Unknown Speaker 20:48
Yeah.
Unknown Speaker 20:50
And you're you're having to be in there on time. And so you know, that's, that's the benefit of obviously working with a group in the fun in the portfolio, where you have an A team actively manage and make sure you're moving into to make the best decisions. But I know we're running tight on time. Jeff, I know you had something else on the chart, was there anything else you'd want to share? Maybe for anybody that's processing, you know, their decision to either continue their investments in crypto to add more to sell to even get into the market? What might you share with
Unknown Speaker 21:21
them? Yeah, maybe just give them a little bit of value. And it kind of goes to the, to the kind of what we were just speaking about earlier is that, you know, Bitcoin is still the king. Okay, so if you want to be a little bit safer, and what you're investing in inside of the crypto world, it does absolutely help to have more exposure to Bitcoin. And what we're looking at on this chart is the Bitcoin dominance. So one thing that we will do instead of going all to a cash position, even though we're paid pretty substantially to hold our cash position, we can go we can de risk slightly by selling some of the altcoins that have lower market caps, and putting more of the allocation into Bitcoin. And you can see right now that this is the dominance that Bitcoin has over the entire crypto market cap, you can see used to be 100%, right? All the way back in 2014. There was no there wasn't really other altcoins back here. And then it all these other altcoins came out in 2017. And then you can see there's these like big waves depending on where we're at that cycle. And right now, you know, all coins erupted. Alright, this is pretty much all season where Bitcoin went down, and the dominance of the market, that doesn't mean the price goes down, but the dominance and now we're starting to see Bitcoin hold its price stability, much better than all coins are you can see this week, right? This huge green candle that's Bitcoin holding its value more so than other all coins. So that's another thing you can do is the risk slightly and hold a little bit more Bitcoin during like bearish price action.
Unknown Speaker 22:59
And you know, a couple other things we're watching. Jeff, can you pull up the 200? day moving average real quick? Yeah. I think it's an important thing. So and the reason I'm having to pull this up is because historically,
Unknown Speaker 23:15
this 200 week, it's pretty much a 200 week moving average, because we're on the weekly but you're talking about this price point.
Unknown Speaker 23:22
Yeah, where where historically, when bitcoins dropped below that 200 day moving average, what we're seeing is great opportunities to buy. And so even though I'll just tell everyone, the fear in the market is absolutely high right now as it is in most markets. But because of this attack, it makes people more fearful. And when they're more fearful, they rush to sell, and then the market price drops, which then creates if you can do the opposite, if you have the discipline and the understanding of what the true long term value is, these are great buying opportunities. So whether you're, you know, an investor in the fund or looking to get invested, or you know, going to be managing it yourself, you have to be watching these types of trends to understand where your pricing entry points are. So, you know, I had a call with somebody the other day, and they're like, Well, what do you do when it goes back down? I said, Well, you know, when it hits the right sounds were put more money in, right, and you can actually increase your overall portfolio return by putting more money in at these lower points. So you know, it's just something for everybody to consider, right? You obviously, like Jeff mentioned, you got to have the conviction in what you're doing. You got to have the belief but if you have the belief, like we do, that the long term value of this is significantly more than where the price is that today, then you have a great opportunity to potentially buy something at sub 30 30k. And I'll just tell you, I didn't know I think we're all thankful on this on this call to be able to say we're gonna get to buy more Bitcoin at sub 30k. So pretty excited to present and so go ahead and show the 200 day moving average so people can see what I was saying.
Unknown Speaker 24:57
Yeah, are you looking at my screen right now? Yes. Yeah, so they walk through it. Okay. Yeah, I mean this, we're on the 200 200 period moving average on the on the one week I think you may be talking about even this, which is this chart, which is a two year moving average. Okay, maybe we fall below. Yep, there we go. There, we fall below these regions, it's historically you've had over 1,000% return after we've fallen below the two year moving average, every time we fallen below the two year moving average, doesn't mean it's gonna happen every single time. But it's been historically a really good time to be able to buy bitcoin in these regions. And if you look, we just went under the two year moving average right here. So historically, at least, and if you look at you know, indicators, and typically that's how you can make unemotional decisions, and that's what you want to strive for in investing is when you've been able to buy Bitcoin at these prices, you would have been buying back here at $244, you would have been buying back here at $3,600, you would have again been buying up $5,000. And what did we do after that? We went to $69,000, right? And we went to 20 grand up here and 1100 over here. So historically, this is a really good time to get into the market.
Unknown Speaker 26:22
Awesome. Well, I know we're, we're pressed for time now. So let's go and wrap it up. Blake, wanna
Blake Templeton 26:30
man, guys, we appreciate you guys so much for being on. It's our desire to pour in to educate you to help you control your emotions, and to have wisdom. It's all about gaining wisdom and investing wisely. So if you if you have a desire to to get with us and process your current portfolio process, how you can allocate your funds and have an allocation into cryptocurrency. What we'd like you to do is plug your cell phone and text the word invest to 877-771-0615. Again, we'll put that in the show notes and blessings on you guys. We'll see you next time.