- "Buy the dip,"
a common phrase tossed around by crypto investors
which simply means buy the market when it's down.
However, crypto participants who've heeded this philosophy
over the last seven months are most likely
significantly down on their investments.
And with new data coming out
I don't see this changing anytime soon.
And with the stock market declining now
six straight weeks in a row,
and the Dow Jones having its worst week since March of 2020.
I think one thing we're all wondering is,
"Is the crash finally over? Were our portfolios
going to continue plunging deeper into the red sea?"
And despite what a lot of people are saying,
I don't think we're out of the woods yet.
And I'll be sharing data on exactly why that is
as well as what I'm currently doing with my portfolio
and things that I'm currently investing in.
There's also another saying in crypto
that goes, "When in doubt, Zoom out."
And when looking at Bitcoin over the last year,
you can see that Bitcoin has now fallen back
to its year lows of $30,000.
Zoom out even further, and we can see that in March of 2020
when the markets crashed, Bitcoin hit a low of $5,000.
So in the last two years, Bitcoin's heading
to 20K has had a couple of different meanings,
both good and bad.
A common narrative I'm seeing amongst crypto communities
is that this is like March of 2020.
And from here, we're just destined to sort a new heights.
However, there are a few key differences.
The first one being the yield curve is inverting
and the yield curve inversion has predicted every recession
since 1955.
That usually happens seven to 24 months
after the yield curve inversion takes place.
Also the Federal Reserve in Congress back in March 2020
pumped trillions of dollars into the market
propping up the economy and the stock market as well.
And two years later, we're starting to feel the effect
of all of that money pumps into the economy
with a predicted inflation rate this year of 8.5%
which is the highest since 1981.
And you may be thinking,
"Well, that's the exact reason we put our money into crypto,
is because crypto has a finite supply
and it's deflationary."
However, it's not that simple.
As of right now, the stock market and crypto market
are directly correlated.
So if the stock market goes down, Bitcoin is soon to follow.
And the traditional rule of the market is when
the Federal Reserve cuts interest rates,
the stock market goes up, and when the Federal Reserve
increases interest rates, the stock market goes down.
And this leads us to where we are today
with the Federal Reserve announcing that there are going to
be increasing interest rates by at least two more times
to help slow down inflation,
leaving much uncertainty up in the air.
And right now,
if you think of inflation as this moving runaway train,
that's driven by the Fed,
we're trying to slow this train down,
but it has to be done in a certain way
to keep the tracks from disintegrating
which in this case, the tracks are representing the market.
And I'll leave a video down below from a YouTuber named
"Meet Kevin" where he breaks down what the Fed is proposing.
And this is something after watching it that,
"I'm not betting on in the short term,"
this leads me into three things I'm doing right now
to help maximize my investments come the next bull run.
But before we get into that,
if you could hike up that like button
similar to what the Fed is doing with those interest rates,
it would really help the video out.
Consider subscribing
and be sure to join that email list which I have down below.
I do giveaways every single Saturday.
So you'll wanna make sure that you stay tuned for that.
And I don't say this often on my channel
because I think it's an overrated term YouTubers say
but I'm not a financial advisor
and no one can predict the markets.
We can only use past data to try
and help us predict the future outcome.
The first thing I'm doing with my portfolio
is making sure that the majority of it in cash
or in non-algorithmic stablecoins, earning interest.
The reason why I'm only using stablecoins
backed by physical assets,
is because of what just happened with the stablecoin UST.
And I think that these coins are less likely
to have that happen.
I'll leave a video down below
that explains the stablecoins I'm currently looking at
and why I'm looking at them.
But as of right now,
I think Bitcoin is going to pull back to $20,000
and it could go lower
because the last bull run in 2017,
Bitcoin pull back from around $20,000
to an all time low of $3,000 which is about an 85% pullback.
And if Bitcoin were to do that
from its all time high of $69,000,
a low of 85% pullback would be around 14K.
So I don't think we're going to get that low
but I wouldn't be surprised if we hit $20,000.
And that's when I'm going to be making long term positions.
It is worth saying too
that even though Bitcoin is at $30,000
the Fear and Greed Index is extremely fearful right now.
And the thing to know about the Greed and Fear Index
is usually it's a good rule of thumb
to buy when it's fearful and to sell when it's greedy
but that's only one variable that measures the market.
And usually when markets go up or down
it's never just a straight path.
It usually does so in a stairstep manner,
usually going up or down.
And I think we might go up
in the short term before heading down to that $20,000 mark.
This leads me into the next thing I'm doing.
And I'm shedding my portfolio of riskier place
and keeping things that I believe in long term.
If you think of the market as the pendulum,
Bitcoin is at the center of that,
and the farther you go down the pendulum,
the smaller the projects become.
This means that whatever way Bitcoin sways
other projects will do so in an exaggerated fashion,
either up or down,
which means that these smaller projects are much more risky.
This means that everything I'm keeping long term
will probably be in the top 30 to 50 cryptos, mainly because
many cryptos in this type of environment died.
There was a study that came out
in March of 2021 that showed there were
over 2000 failed crypto projects
at that point out of the 10,500 that existed.
And as of right now, that 10,500 has ballooned
to over 20,000 projects just listed on coin market cap
let alone all of the other projects that aren't listed there
and keep in mind
that's just the project that closed their doors.
What about all of the ones that still exist
but they're just a fraction of their all time high?
And I can list many of these
but many of you have never heard
of the project called Vertcoin back in 2017,
it reached an all time high of $9 and it's still around
but currently has been trading at 15 cents for years.
Basically taking this project to zero,
and there are hundreds of projects like this.
And based on all of this data
I think we're going to go through a reset period
where many of these projects that we're currently seeing
are going to die and not survive.
But I don't think that's a bad thing.
I think a reset is good for a healthy environment,
which leads me into the third thing I'm doing
and which projects I'm currently investing in
or looking to invest in.
When a bear market ends and a bull run begins,
Bitcoin and Ethereum are always the first to rally
before money moves into other all coins.
So I'm taking note of this and I'm going to
be investing heavily into Bitcoin and Ethereum first.
This can be seen when Bitcoin hit one of its all time highs
at 63K in April of 2021 before pulling back.
But ABAC's didn't even come close
to hitting its all time high until November of 2021.
But after what I'm currently putting my money in now,
there aren't too many things that I'm looking at.
The first, being Yield Nodes.
It's something that I invest in every month
that I've talked about on the channel before
that will probably average about a 5% return this month.
Another is a crypto trading bot
and that will also average me about 5% return per month.
And I have not talked about that on the channel yet.
I'm not that far along in it
but I do plan on doing a video on it here in the future.
I'm also on the hunt every single day for new projects,
NFTs and nodes that have an element
of passive income that I see being here
for the next three to five years.
And in my next video
I'm going to be discussing a project that I've not
been this excited about and at least a couple of years
and to be clear, I'm not bearish on Bitcoin.
I think we will see a hundred thousand dollars Bitcoin
in the next couple of years.
I'm just speaking short term
and I'm trying to maximize those gains in my own portfolio.
And if you are interested
in some other projects that I've invested in
or that I'm currently invest in,
I recommend checking them out somewhere on the screen here.
One video a day will go much farther than you think.
Be sure to like and subscribe
for new videos every single week.
Thanks for watching and I'll see you next.