U.S. has $3.6 Billion in Bitcoin!? Russia make BTC Legal and Inflation soaring ------------------------------------------------------- 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 ------------------------------------------------------- Amidst the soaring inflation rate, the Bitcoin fundamentals are strong and exponentially growing. Russia just made Bitcoin legal. Legal tender in El Salvador is happening. KPMG added Bitcoin and Ethereum to their balance sheets. How will these impact the Bitcoin market? Inflation has been crazy. The Bitcoin price is going down, but the fundamentals are very high. It is a good combination for a strong price appreciation. Learn more about Bitcoin updates based on fundamental and technical analysis. Join our weekly live show to learn more about Crypto!
KEY TAKEAWAYS:
00:00 Intro
01:49 KPMG - Accounting Firms/Auditor (Bullish)
03:00 Impact of KPMG with the Bitcoin market
03:45 Bitcoin as currency in Russia
04:53 Russia as the third largest Bitcoin mining operations
05:51 What will the US do regarding Russia making Bitcoin legal?
06:57 US recovery of stolen Bitcoin
08:06 Importance of security in Bitcoin investments
10:25 How to secure your Crypto - https://youtu.be/kWt680Ns0Ms
11:00 Is Crypto traceable?
12:45 What will the US do with the recovered stolen Bitcoin?
14:31 Crypto as a legal tender in Miami City
17:00 Technical Analysis with Bitcoin
17:15 Bullish price action movement
17:30 RSI indicator - Bitcoin bullish or bearish?
18:18 Bitcoin movement based on Moving Average MA (50 and 200)
19:34 Open Interest and Funding Rate of Bitcoin
21:22 BTC - Long-Term Holder Net Position Charge
22:01 Bitcoin for the last 2 years based on Exchange Net Position Change
23:13 All-time high based on Illiquid Supply
23:53 Good recipe for a Price Appreciation
25:00 Possible Bitcoin reversal trend at 44,500
26:30 Highest inflation rate
#bitcoin #boroncapital #thesolomoninvestor
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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
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*Other Episodes of The Solomon Investor Show CRYPTO ADDITION*
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 alt coins)
https://youtu.be/80iRH-4nfjI
"Crypto Volatility is just Opportunity" -here is HOW to USE the Opportunity
https://youtu.be/cyomRHxueBs
How to Secure your Crypto in 7 Steps
https://youtu.be/kWt680Ns0Ms
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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.
All right, what's going on everybody Zach Morrow here with boron capital going live today to talk to you guys about everything going on in the crypto world a ton of craziness, a lot of new exciting news out we're gonna be covering a lot of the news from a fundamental perspective man. US has $3.6 billion of Bitcoin currently, Russia just made a Bitcoin legal, we've got new adoption, we've got huge companies taking crypto on the balance sheet, we've got states coming out saying they want states rights to be able to own by utilize crypto. And so we want to break that all down, and then we want to flip to the technicals for you. At the end of the show. Jeff is going to be breaking down the technicals of what's happening in the market right now and help you analyze what type of decisions you could be making as far as your allocation here going forward. So awesome. Jeff, welcome. Good to see your guys's faces and excited to bring some heat for everybody today. Oh, yeah. That was not here. Okay, we might have to try it again. Um, guys, I think there's some technical difficulties going on Jeff and Austin, the audio was out a little bit. So I said we're gonna be bringing heat and then I got an N Oh, yeah. So I thought I was waiting for like a handoff or something. I'll take it from here. Okay. Bring it out. Yeah, I was waiting for like a layup or something. But it's all good. So I I'm very bullish on the KPMG news that just came out, I believe was two days ago, three days ago now. So KPMG, one of the big four accounting firms, very conservative auditors and tax and all that stuff. They added Bitcoin and Aetherium to their balance sheets. So for a company like that, to do that, is one very bullish, but to these big four firms, I bet they're battling for business there. And like, they not only like added Bitcoin and Aetherium they're preaching, we want to be the leader in defy, we want to be the leader in bringing these new companies to web 3.0. So like, it's just one company after the others, no huge deal today like seeing this, but like, it's just a huge flashing sign a new a new company after new company day after day is taken off, and you just gotta love to see it. Yeah, one thing that, you know, on KPMG, these are companies that I mean, they deal with compliance on a massive level, right across different countries and things like that. And so to see some a country that is built in kind of integrated with the financial system, understanding compliance, and all the different use cases and things of that nature, for them to come in and adopt really means something, you know, because these are, they're really setting off as industry leaders, like you said, and I think I think it's important to note, like we're coming out of January, everybody was looking at January and was like crazy month, big pullback and things like that. We're starting to see some of the technicals flip Jeff's going to cover that, like you said, but even after such a rough month, you have lots of news coming out about more and more people coming in the bull case growing and the adoption continuing. So just like we were visiting about, even though there's price fluctuations, we're still seeing the adoption and the utility continue to grow. So yeah, KPMG is is awesome. Before we started, you know, we're talking a little bit about Russia. So, Jeff Rossen, you want to jump in real quick on Russia, what are your thoughts on that? Yeah, I'll take this one again, if you want. So, Russia has had a whole want to complete 180 This week, which is awesome. So at first, they're debating of banning crypto, and, like preventing the innovation in the country. And this is a country with a lot of adoption, a big mining presence already. So they went from thinking about banning it to now treating it as a currency. So it's, it's legally recognized and and that's a huge sign for Russia, obviously, is a monster country like and the fact that they're opening their arms to crypto, like, even if it is to kind of like get away from the US dollar, it's really pushing the the crypto portion and kind of be bullish about that as well.
Unknown Speaker 4:37
Yeah. So so as supporters of Kryptos investors, obviously, you know, people watching the show, we got a lot investors, obviously watching. For those of you investors out there, you know, this type of adoption seen a country like Russia, like Austin mentioned, you know, I think it's they're the third largest mining operation in the entire world. I think they've got around like 12 million citizens actually We own crypto. So it's a large adoption over there. And now them recognizing as a currency really opens up the door for it to be utilized in a significantly larger manner. So you have more adoption, more utilization, and opens up the doors, whereas before it was going to be illegal. Now you've got their, their central bank and everybody coming on, on board and we're going to streamline the system, we're going to actually be licensing and working to create systems for intermediaries, like, you know, different banking systems and things like that, to be able to recognize this and start moving it. And that just speeds things up a ton. So Russia was pretty crazy that that was, that was interesting news. And now I think that with Russia doing that, kind of the question that everybody has to ask is not like, what's the US gonna do? Right? Because, you know, it is it is a standoff power of like, retaining strengthen the dollar, how they could potentially use other things whenever they trade, you know, obviously, some, some friendly allies over there with China, you know, people looking at different options. So I think the US is really in an interesting position right now, where this kind of forces them to speed up their hand a little bit to decide what they're going to want to do. From federal standpoint, the US has been more or less like, we want to tax it want to regulate it. But as far as their participation, they haven't really shown what direction they're gonna go. But now, with this happening with Russia, and what happened with the recent recovery, the US actually has roughly $3.6 billion in Bitcoin, that it has a decision to make with and so you know, Jeff, you kind of brought this one up earlier. So I'll let you kind of jump in and kind of talk on this one for a second. And then we can talk more about this, but for those of you for those that haven't heard about this recovery, I want to share a little bit about it. Yeah, so the US recovered some bitcoin from hackers. All the way back because it didn't 16 Austin 26 Yeah, it was 16 Yep. Yeah. So yeah, they finally and actually the the female that is actually hacked the bitcoin is like been very shy. I think she was verified on Twitter post a lot on on Tik Tok, and she posts she has rap songs on YouTube. And they're like altra ridiculous like, she's has done a very good job at embarrassing herself. So everyone's making like a ton of memes right now on on her, you know, being like, if this person can act $3.6 billion, a Bitcoin, you can do anything. There's like all these hilarious memes. And yeah, they just recovered that because she was storing it. I think there's one other one other person involved in it as well, but they're storing it in the cloud and Dropbox. And apparently, the Feds went in and secure their their private keys and pulled the Bitcoin. And that just goes to show that like, it's really important to have proper security and not be storing something such as your private keys, through you know, a cloud services are really, really important to secure that the proper way. You know, use a custodian if you have millions and millions of dollars, you know, and if you have seed phrases like on meta masks, wallets and things you need to be writing them down on an actual piece of paper, maybe even ingrain them into a you know, like a metal sheets, like a card, there's actually metal cards that you can ingrain things in in case there was a fire or something stored in a safe, all that good stuff. So yeah, that just goes to show that you can easily lose your crypto if you are not securing it safely. But that was that was the biggest hack I think we've ever seen. Right? I believe. Yeah, this one. Yeah. So a little bit more details on it. Like Yeah, can we argue it's the biggest one now today's value, but when the coins were stolen, I think there were like 30,000 coin? I think the total 61 million. So yes, stolen it was worth 71 million and now it's 3.6 billion.
Unknown Speaker 9:11
Exactly and what definite extent is a paid out or the law the stolen funds and like US dollar value at that time? So that's the kind of what the government gets to decide now like we got billions you only lost your customers millions and you paid them back. And we the government's may be thinking we know bitcoins amazing, like we're going to try to hold as much of this as we can. So it's now we're gonna see a battle between BitFenix and they're definitely going to be suing the government to try to get 100% of those Bitcoin back and the government's gonna argue, hey, it's US dollar value at the time, blah, blah, blah, but I don't know I mean, like, think about it as if you get your car stolen, and the government finds it like they should give it back to you. But that's right. It's a it's a it's gonna be a moral like, bad For sure, kinda interesting, you know, for those who are, you know, completely unaware of what happened. So there was a hack on an exchange from BitFenix years back, the Bitcoin was stolen, it's appreciated in value like crazy. Now the US has recovered, it's I think there's really was two stories we're gonna circle back to, obviously the US decision, adoption and things like that. But, you know, Jeff mentioned security, we obviously want to be as far as security, we actually did a full video on that, if you haven't seen that go back, recorded that one last week on securing your crypto but I think one of the other stories here is understanding what, what the US is going to do. And then understanding the recovery process, you got so many people that still think, you know, Bitcoin, or crypto is this sort of like shadowy place where, you know, criminals are running rampant. And it's just not the case. Like, what happens is in the blockchain, this ledger verifies every transaction historically can be seen viewed at any one time. So what the, what the Feds had to do is just go in and follow the trail and the trail is there, and it exists, right? So it's actually much simpler, I think there's probably a lot more criminal enterprise that's working through Fiat who's not traceable, so the US dollar any other fiat, whereas Bitcoin or other Kryptos is fully traceable. So from a security standpoint, you're seeing now the government is actually getting to the point where it can make these recoveries, it can help protect, it isn't going to be able to, you know, look into these things. And so I think that's a huge net positive for people to understand that, like, the lies and the things that people have shared about how Bitcoin is just this, like, you know, you know, currency for criminals, I mean, that thing, it should be dead and gone, it should have been dead and gone years ago. But this is just one of those things that I think people need to understand from a security perspective from it from a transparency perspective, very important. But, you know, like, also was saying, the US now has a decision to make, it's got this, you know, 3.6 billion, technically BitFenix, who lost the money? They had already made their investors hold. So their investor has been paid back, but that Bitcoin belongs to bit FinEx and their investor. So, you know, now we're going to see what's going to happen. See us going to give it back? Are they going to use this as their initial investment? I think that regardless, I have, I'm with Austin, here, I think it belongs to BitFenix. And it should go back to the company and to the investors there. But regardless of whether it goes back or not, I think that the government should be buying Bitcoin. And here's my simple take an easy way to, to see if this is something extremely bullish, because it's a, it's a forced decision for us here. So we got to one understand they're going to fight to keep this coin, it doesn't matter whether it was Bitcoin or US dollar or anything, they're going to try to keep the assets just because that's just how the government works. But the second thing is, if they do in fact, our like, if they're, in fact able to keep these coins, or they're going to sell it on the market, or they're going to keep it because if they decided that they're gonna keep that Bitcoin boom, like that means the US values like Bitcoin more than their own currency, and they are holding it and
Unknown Speaker 13:20
I can't wait to see what happens like, yeah. And that kind of, yeah, that that's actually a really good point. I wonder, I'm sure it'll be a long process. We'll see. But over time, you're going to get to see that play out. But without having to wait on the federal government. You know, a couple other points was that there's a lot happening at the state level right now, when it comes to crypto. So you've got a guy named Jason Powell from Tennessee, he came out he's put a bill forward up to the state basically saying we want to invoke the 10th Amendment, which gives the states rights to choose and not have to wait on the federal government to make their decisions of how they're going to handle these things. So he's wanting to be able to use you know, Bitcoin in FTS bring those on the balance sheets of the state things like that. You've got we don't need to stay on this too long. But you've got Arizona who's trying to put a bill forward to to make Bitcoin legal tender there in the state Florida's obviously super bullish on crypto. You know, Jeff does a lot actually with the mayor of Miami. And I know you've you obviously consulted with him quite a few times. What's going on down in Miami in Florida right now. I mean, yeah, they have I literally just ran into the mayor like 45 minutes ago, so I literally just don't didn't do him and shook his hand and he's like, what's up? Like, what's up? He was at the mall for some reason I was shooting content out there. It's like right around the corner from the office. But um, I mean, yeah, they have like a cryptocurrency Taskforce. It sounds like it's a bad thing, but it's actually a good thing. They're trying to get bitcoin and crypto just in general implemented more in the city and they're already you know, with the Miami coin, they're already going to be dispersing Bitcoin to resident As of Miami, so like, yeah, it's that he is. So he's done wonders for the city and for crypto. And, you know, I don't know if they have a bill, I haven't seen a bill for it to be legal tender. But I know that the it's about the most bullish city in the US. I'm surprised they haven't submitted a request for but the thing is, like, even if they do, how is that that's not going to matter? Because the Federal Reserve is not going to be okay with people not paying tax or when they're using Bitcoin to buy coffee, you're using Bitcoin to buy a car, you know, that's like, they're gonna have a realized capital gain or loss. And there, there's no way the Feds gonna be like, oh, yeah, Arizona, you're okay. You know, like, I don't I don't know, I don't know if that really matters until there's, you know, consent from the Fed to, you know, maybe there's a way around it that I'm not aware of, but for tax purposes, at least I don't see it getting around the tax, but it is a huge step in the right direction. Yeah, definitely. I mean, Kentucky's making steps that direction, like we said, Tennessee, Arizona, Florida. I know, the governor as well down in Florida. Ron DeSantis, is obviously one who seems to be in favor. We've actually got a lot out in Texas, as well. I mean, there's a lot of mining coming out to Texas, you've got a lot of different things happening, you know, down at the Capitol, down through the state government here as well. So very, very interesting. So, alright, let's wrap up on kind of some of the news is kind of get down. I'm sure everybody's like, ready to actually look at the charts like the technicals. So let's flip it over to that. And I think there's been some major moves here recently, some indicators that we've been waiting for, have come around the corner. So once you share those out for us, Jeff. Yeah, I actually just need you to help me share the screen there. I think we've got some salary.
Unknown Speaker 16:47
Now now we're going back. New Tech, how to get the seed phrase here. Come on. That's it. All right. Come in when you get hacked. Spring. Thank you. Yeah, so I mean, a few things. We're going to do a massive, Deep Dive. But we did have some really bullish price action, obviously recently. I mean, we we had a move that was pretty significant all the way up to today, you know about 30% Move. And what happened was we broke a really long term downtrend in the RSI all the way starting. This started all the way back in October 18. So since then, we've seen the strength so the RSI is a relative strength index, it just shows the strength of whatever asset you're looking at. And when it's when the RSI comes especially below 30 It's considered oversold. And when it goes above 70 It's considered overbought. So we actually hopped below the down to like what was it 21 And that was a lowest we've been at all the way since back in code during the COVID crash all the way back in 2020. So we are actually more oversold than any time since COVID. Which was a big deal and we then sit since seen a pretty large bounce. And when you see an RSI with just literally looks like vertical. It's pretty pretty powerful. Last time we saw the RSI with that intensive a move we went up you know 130% Another few things I like to look at just moving averages even on like a shorter timeframe, the 50 in the 200 if you look at these moving averages, especially during this this entire bull market, what has happened is when you have a cross above so the shorter term moving average was the 50 crosses above the 200 day moving average will go back all the way to the beginning of really the cycle. You can see we cross when was this all the way back at October 8 of 2020 We crossed the state all the way up we had one really big volatile move that took us over just briefly but we stayed all the way up until the very top of the market then we obviously crossed below that's a bearish sign we fell 55% We crossed above held it almost the entire time except for that big correction and then once again held it all the way to 69k and then we crossed below held it all the way down and now we have a huge cross upwards again. So just showing there's a lot of short term momentum and it's likely to take us much higher just based on you know historicals on on these different moving averages. So overall I mean short term looking pretty bullish. We also like to see just like on chain you know the the open interest which is like the amount of derivatives in the market, it's not exponentially high. It's actually been kind of in a downtrend. As you can see since the high I think it was at yeah at 69k and C this is the high we've come down but now we're starting to bounce from that recent low here and what we like to see is not so much you know how much open interest is in the market, but how healthy is that is the open interest what you can identify from the funding rate. So the funding rate is just you know, if there's more people going short in the market, that means the shorts have to pay the Long's of funding fee. And that's what you'll see red here. So it's more people here, I've been betting on the market going down, you can see just how much green there was when we were at the beginning of this, you know, exponential phase in the bull market in 2010, towards the end of 2020. And then we had a huge correction, we went more green with all time highs that we've come through. And what we were looking for is the thing that we were worried about, it's almost this entire time, it was still green, which means that there were still people betting on the market going up with leverage. And that also means that there, there hasn't been that liquidation event yet, we usually like to see like a strong liquidation event where the all of a sudden, the screen will turn red, and there's a lot of long liquidations, which brings the funding rate negative. And that can help build more of a foundation for the spot market. So that that when more derivatives do enter the market and open interest goes up, it's healthy, and you can then build a base and a foundation to then launch from and we have seen some some nice, you know, negative funding in as you can see with this red right here. So that's something we like to look at. And then also, you know, just on a more longer term perspective, I guess we'll look at long term holders real quick, they are definitely confused. And typically, you see long term holders like selling all the way through really strong price action, which they did. And then they start to accumulate on the back end when prices going down, which we saw. But now, since breakin 69k, you can see that they're quite confused, you know, they're selling, then they're buying, and then they're selling. So, you know,
Unknown Speaker 21:43
people are definitely uncertain right now in the market. And it shows and it reflects in a lot of on chain metrics. And another strong thing that I just like to look at it just like, you know, especially over the last, I mean, the last two years has been pretty incredible. In the amount of bitcoin that's been moving off of exchanges, let me actually take you way back to I'll take you way back to 20. Oh, go to 2015. So you can really see what I'm talking about. But this was this is pretty exceptional as far as the amount of people moving Bitcoin off of exchanges into cold wallets, like look how much red there is here, that just shows like people were moving in a place where it cannot be sold. That's where the hackers should move their bitcoin is to a cold wallet. And what what happens is like, anytime there's more Bitcoin moving off of exchanges, there's a bullish sign because it can't be sold quickly. And that's what we like to see this is more of like a longer term fundamental type of approach to analyzing like price action, and just also shows the conviction on the market, when more people are pulling Bitcoin off of exchanges, they're doing that for a reason to, you know, hold it in a safer place. And in a place, they don't necessarily need to sell it. So you know, over the last year and a half, and the one that has resulted in is let's see, where is the illiquid supply right here is continuous all time highs and the illiquid supply, which is this orange line. So we love to see that continually trending up, that means that people are continually pulling Bitcoin into a place where it is illiquid. And obviously, that's pretty bullish, especially long term for price action. And I guess we'll kind of all kind of summarize to what the cool thing is when this is what like, intelligent investors look for. I remember Jeff Bezos saying this about his, his stock when after the tech bubble, he was like, so the price of Amazon was going way down, right, because everything was selling off. But he was like, meanwhile, our fundamentals and our financials were so strong, and they continue to rise. That's exactly what's happening, like with Bitcoin right now is like it's going down in price, but the fundamentals are the most bullish thing we've ever, I mean, they're exponentially more bullish than what we've ever seen, especially over the last, you know, 10 it's just starting to have this news about public companies buying it, you know, the legal legal tender actually happening in El Salvador. And all this started to happen in the last 12 You know, 12 to 15 months, which is a really really big deal. And when you see price going down and fundamentals are strong and exponentially growing, that's obviously a recipe for great price appreciation over long periods of time. So honestly, I love to see it. I hope to see a little bit more read would love to accumulate even more awesome man Thanks for breaking that down Austin got anything to add to that? I think is set up pretty well. Yeah, so for me, I was looking at a 44,500 on Bitcoin to break which we've had multiple taps above right and right around there. And the reason being is, that is the first higher high, we've had, on a larger timeframe go to Jeff go to like a three day chart or something. So if you, if you go in on this short downtrend around, you can see lower lows and lower highs the entire way down. And just now we finally broke that high right there at that 44,500. Yeah, yeah, yeah, we were waiting for this to break. And then I was waiting for those moving averages across. And that happens. I think yesterday, actually. So when they officially I mean, they cross a little bit earlier, but then like price action was below that. And when we had a confirmation of the the cross, and then break in that price action, and then you're looking at quite a few other things, too, we feel pretty confident that we are starting to the trend is being reversed. So we were we're definitely a little bit more cautious, like five days ago, but today is that as you know, the past two days have given us a lot more confidence that the trend is reversing. Yep, initially hit that 44,500 rejected and broke above it pretty quickly. It is trading down a little bit right now, today was a wacky day in the market with the inflation numbers. But I'm a buyer like 42,400 and lower to for if we get down there for another bounce higher. Yeah. And kind of on that point, inflation numbers came out was a seven and a half percent. It's like the highest in 40 years or something.
Unknown Speaker 26:34
Yeah, so much for transitory transitory. Yeah, basically, there wasn't going to be inflation that inflation was transitory. And now you you there has literally been people on the news saying, Stop complaining about inflation. Interesting. That's, that's interesting. So unapologetic about the inflation out there. I think everybody can see it, and no doubt about it. So anyways, yeah, inflation has been crazy. So yeah, why don't we wrap up there. I think it's been really good. We appreciate all you guys watching everybody tuning in. Any questions you have, leave them down in the comments below, we get together every single Thursday at 530. Eastern to go live with you guys and share more on what's happening in the markets. If you got questions in below. If you want to get connected more with what we do, or you're interested in more education, more direct help, we've got an inner circle, you can text us to get the information or there's links down in the description. Just go down the description, you'll be able to find the stuff there. And then if you're an accredited investor, and you're interested in working directly with us, we have hedge fund opportunities. And we manage a fund where we take care of an actively managed index inside the crypto space. So if you're looking to have allocation, and exposure to the crypto markets, which we believe everybody should be considering at this time, reach out down on the links below. Connect with us. We'll get with you from there. So appreciate you guys tuning in. Make sure to leave your comments like subscribe, we appreciate you. We'll talk to you soon. Take care
Unknown Speaker 28:06
bye