However, there is danger in our midst, as global leverage ratios are now starting to reach unstable levels. Once again, this means that there will most likely be at least one more shakeout before we get. The fourth quarter face melt that weve all been waiting for now. I do believe that q4 ends with a bang to eloquently and poetically wrap up. This bull run that weve been experiencing since early 2020 but, like i said, im expecting some rocky and choppy waters before the blue sky breakout. That is the key to financial freedom and intergenerational wealth, for many. So with that said, lets dive in because today we have danger warnings as well as massive bullish signals across the board, its a tale of two cities and im going to be giving you the keys to understand and unlock it. My name is elio trades, and if you want to make the absolute most money in crypto, then all you have to do is follow. This channel subscribe. Put that bell notification on and im going to be putting you in a position to be way ahead of the market with that said, lets dive in. So this is an image that was sent over to me by my good buddy crown whos, one of the most gifted futures and options traders in the entire crypto space. And what do we see here, except for a very, very strong rebounding of the global leverage ratio? This means that, once again, the market is getting greedy and leveraged to the upside people are trying to borrow money to trade, their bitcoin at a higher velocity, and that means that we risk once again a little bit of a leverage wash.

It created a lot of the price, washes that weve seen over the last few months, so keep an eye on this, because this is precisely precisely what will create a massive down spike before we end up getting our quarter four face melt. So this is the big warning sign that we have to be aware of if we want to keep all the variables in our purview. Of course, that is some blood that i will be buying. Personally, you make your own decisions now, once again, bitcoin has proven itself. One more time: in the times of peak uncertainty in global financial markets, we see btc showing incredible strength, proving it is indeed the safe haven. It is intended to be. Most importantly, bitcoin has surpassed a total market cap of one trillion dollars once again. Now, of course, we see will clemente in here explaining that bitcoin had a little bit of a short squeeze here with 26 million dollars of bitcoin shorts, absolutely wrecked in 10 minutes again, shorting bitcoin is bad for your health. Be careful well talk about leverage in depth. Again, at the end of the episode now, of course, todays btc pump seems to have mostly been spot driven. This is the healthiest form of progression for bitcoin, which makes sense with open interest being rather muted and liquid supply of btc at record lows. However, despite the supply shock, remember the global leverage ratio is climbing up, so you got to keep your eye on that and thats why this is a warning, video and it actually is time sensitive.

What were seeing is that there are billion dollar, bitcoin buys occurring, and what well see is that the people buying this bitcoin right now are some of the biggest money bags in the world. The people who we could have only dreamed of buying this asset class. All of three four years ago, and even more bullish, we see the resilience that bitcoin has during a stock market moment of weakness. This, of course, is the bitcoin chart with the chart of the dax shown below, since the american markets have yet to open. At the time that this was written, stock markets are in a clear downtrend, while bitcoin has entered at least a short term uptrend. This is a huge, huge disparity that were seeing here and one that is absolutely proof that bitcoin is a disconnected asset from mainstream markets. Although it does occasionally trade with correlation now, suzu comes in with his take one of the most legendary bitcoin bulls. He says for close observers of all asset markets. The current strength of btc is quite remarkable. There is some confluence of middle east softbank, latin american high oil stocks, dump bitcoin moon. That may have my spidey senses tingling. To be quite honest, intergalactic moves occurring at the moment truly dynastic, stuff, barry, silbert, says bitcoin knows something. I wonder what bitcoin knows now once again: bitcoins strength in a time of macro uncertainty could have different reasons: the spike in inflation metrics, the dwindling trust in the uss ability to keep its fiscal and monetary policy in check.

Of course, the continued onboarding of institutional investors who seek bitcoin as a system hedge, in other words, a way to get off shaky stock markets. We know the mainstream markets are shaky. We know that theyve been upheld by inflationary money being pumped into the system, which is of course, the very reason why bitcoin was created as an opt out for that system. So is it a coincidence that bitcoin has broken 50k at the same time as the news media is full of stories about a potential us default as a function of a failure to raise the debt ceiling in october? The chart shows that bitcoin the white line sparked exactly as ust bills, yellow spiked very interesting, even investing legend george soros. The man who broke the bank of england is feeling uneasy about the stock market, confirmed through the cio of the 27 billion soros fund management family office to hold bitcoin. Today, it is the first on the record confirmation that george soros is holding crypto, and is it any surprise that the billionaires have scooped up the dip? We know who has been buying. We know who has been engineering those fud stories. We know why the china story has run and run and run time and time again. We know why these old stories are getting dug up and somehow run on forbes and bbc and cnbc, and all the mainstream investing news sites all in tandem as the bitcoin whales dump the price to make.

It seem like theres, some kind of systemic change, a sea change and who are they targeting you theyre, targeting you, the average small holder they want you to sell. They want to own these networks, just like they own the networks of the legacy system. Here we see, soros is cashing out of stocks, putting some capital into cryptocurrencies and do you notice? It says cryptocurrencies not just bitcoin, and meanwhile we get even more green flags, something that probably all of us knew, which is that bitcoin and crypto were never going to be banned like they are in china or banned in china. We say that with heavy heavy air quotes, but we know that they will be regulated to some degree, and this regulation remember overall, over the long term is extremely bullish for the ecosystem. Short term. A ban was put off the table. They will not ban your crypto. This is not being made illegal and that statement alone was seemingly a significant green flag, because the reality is is a lot of people. Dont understand the stuff. They think that there is a looming potential for a government ban and so hearing from government officials that this stuff will not be banned, but, yes, probably regulated. That is a very big green flag. Remember once firm regulation comes in and the banks and the big financial institutions know that they can dump money in here with impunity and on terra firma. Legally, then, there will be a massive massive, massive inflow of new capital to the tune of trillions and trillions of dollars and remember theres, some kind of blood magic here where market caps tend to expand about.

You know an estimated 25 to 50 x of every new dollar that is brought into the system. So if we get a trillion dollars, its estimated that 25 to 50 trillion new dollars will be created in the form of market cap. Market caps are by no means a one to one comparison with the actual amount of money that can come into the system now, for some regulatory crackdown bear market game theory heres a good one, and i think you should keep this in mind. We have maya zahavi saying my regulatory crackdown scenario is impose stablecoin, limiting their issuance to fdic banks. Maybe maybe a flight from stablecoins will price them at a discount. Maybe fud will crash crypto discounted stablecoins approved crypto etfs for federal uh financial institutions and banks to buy the dip. So essentially, this is once again another sort of orchestrated play for the current financial system to come in and control more of crypto. I also saw this take coming out of michael van pope and he says deflation and crisis to come within the next 12 to 18 months. Sell all your crypto in max 6 to 9 months sit on cash, buy crypto commodities one year later and youre king for life. Now, of course, this is cute its a cute way to look at it perfectly timing, the crash and perfectly timing buying the blood. This is a super high risk game, and so i encourage everyone to think of everything in shades of grey, as opposed to black and white.

Saying hey im going to take this much put it off to the side for dry powder. This is my forever bitcoin fund. This is my forever this and have more of a scale here that you scale in and out of positions. Dont go all in or all out, because then most likely youre going to miss it. There will be another massive pump. Youll jump back in youll. Think that oh no, this crisis isnt coming, then it does done and youre worse off than you were before so just make more methodical plans. But i do believe that there is a deflationary crisis that will loom over the next sort of year year and a half that is a product of global instability. Right now and then, of course, the ability to have dry powder to have cash on the sidelines to buy that crash is going to be huge, but thats, not really where my heads at right now im focused on q4 strategies taking home a lot of bacon for Winter keep saying that, but you know you need bacon in the winter time. Sorry vegans and finally, as the leverage in the market continues to explode. Remember that leveraged trading is a game where youre playing with fire and most people lose this almost everybody gets wrecked playing with leverage yet for some reason, its where all the noobs go and focus their time. Theyre, like oh, if bitcoin goes up one percent, i could make a hundred percent do not trade leverage unless youre a pro and if youre a pro manager risk.

You know what to do, but for a lot of people, its just not right that they trade leverage without years of experience, and so, if youre new around here leverage trading very, very, very bad unless of course, youre a seasoned pro and have been doing this. In other markets, for you know five ten years so as we approach a quarter, four face melting pump, its important to keep your eyes on warning signs that there may be another washout and know that this is part of the game. This is part of the psychological warfare, the economic warfare that is embodied here in this crypto movement, but i believe in youtube outlast and to see your way to valhalla, which here, in q4, means being in the highest quality altcoins in l1 gaming metaverse nft d5. These sectors will pump like crazy at the end of q4. I believe none are more relevant than gaming and metaverse. I believe that the projects in gaming metaverse those ecosystem tokens and the assets within important nft communities well have the highest upside im going to be taking those gains and actually jumping into stable coins, largely towards the end of the year. Im talking about december im going to be looking to sell the altcoin peaks into stables, get ready for winter, hoping it never comes, but being pretty realistic that a blow off parabolic top looks fairly likely, given how parabolic the rise has been over the last several months.

Now, of course, creating a huge amount of dry powder is never a bad idea, because you can always reallocate to new opportunities if the bull market keeps going. But what im looking forward to is creating a massive massive war chest that i can use to go reinvest in the market if we do get a down cycle in 2022. At some point, i want as many resources as i can to trade that cycle to go ultra long on the future of crypto and when the next cycle arrives, i wont even have to be trading ill, just be sitting on the best bags in the industry riding It up smiling knowing that i probably sat through the last bear market. Let me know what you guys think in the comment section below, as always, crypto is very risky. I encourage you guys to make your own strategies if you got some value out of this, though smash that, like button come on, give me a thumbs up here were bringing you daily content each and every day helping you identify projects that are 400x gainers, like bears Deluxe, no pre sale, ido special access treatment projects for you, no walled gardens just real opportunities here on the market that anyone and everyone can get into by working hard, looking around corners and better understanding this crypto ecosystem. With that said, im elio trades.