Not only has amc been falling through the floor, but crypto has also been falling through a floor and there seems to be no bottom in sight. You now have aetherium, which is trading down nine percent in the last 24 hours. If we click on coinbase, uh, market cap or coin market cap, i should say: bitcoin is down 33.31 in seven days, ethereum down 35. In seven days. This is creating wealth, destruction. The likes of which we have never seen before the notional dollar value of wealth destruction is getting absolutely ridiculous. Crypto was under a one trillion dollar market cap uh like a week ago, right before this 30 percent uh drop 35 drop on ethereum bitcoin now trading at 18 998. This is a really really big deal for a lot of different reasons: thats. What i want to get into here in this video and potentially why this could be worse, um than whats happening in the equity markets, how this could drag on the equity markets and really be a big thorn in the sides of our backs for quite a long Amount of time now lets dive into the information here in this video. If you guys want to come, trade with me live in real time link down below in the pin comment, we have been doing very, very well as of recently and its really helped out the portfolios. When you know everything else is going down. At least you have something that is winning for you uh and a lot of that is done with options so know the risk um with trading options before you even uh, join that, but nonetheless, guys.

Okay, so lets talk about crypto and why this is so different and why this is such a big deal and the first thing that i want to start with theres multiple pieces to this but theres one main point. The first thing i want to start with is the size of money or a size of money, the amount of money that was in crypto at the peak there was over two trillion dollars in the crypto markets, now youre sitting at 838.69 billion dollars, which is still A lot of money, but its not nearly what it used to be at the peak right bitcoin, is down like 60 percent from its peak. Aetherium is down like 80 from its peak, so there has been a lot of wealth destruction in crypto, but the reason wealth is being destructed in crypto is the same as equity markets right. The initial reason why crypto started to go down in november, just like the nasdaq is because the fed is raising rates. Weve never had crypto accounts in a market environment where interest rates are going through the roof. We have been in a low rate regime for the last 15 years and we dont know what its like in recent times to have higher interest rates, which is starting to happen so thats. The initial reason why crypto fell, but on top of that, the lack of transparency in crypto is really going to hurt it for a long period of time and what i mean by that is out of nowhere.

You have celsius that comes out and is having a lot of liquidity issues, so they stopped all withdrawals right, thats, not good. You know what that does. That creates lack of trust. It kills trust. So now people are looking at. You know gemini coinbase, ftx, other platforms and theyre like hey. Are they gon na? Do that to me, especially if crypto continues to fall, because in the grand scope of things bitcoin in the last two years is still up over a hundred percent, its still uh? You know even from the covet bottoms uh, you know, re returned a lot to those initial investors, so a lot of people are down substantially in their their crypto positions and even if the brokerages are gon na, not let you withdraw, then what is really going on Under the surface, at the same time, hedge fund, three arrows, fails to meet lender margin, calls um and thats definitely causing a lot of fear, and it makes you wonder how much leverage is actually going on under the surface. And then you have uh tara luna that essentially goes to zero. Overnight really makes you question what the hell is going on, and the lack of transparency in crypto markets is a lot different b than like equity markets like buying a stock. If you buy a stock in a company, they are supposed to have their results audited, so you know that they are uh factual to you know, plus or minus one percent.

Whatever the the you know, margin of error is for earnings reports, i believe plus or minus half percent one percent, whatever it is thats thats, all fine and dandy. At least you have a glimpse into whats, going on with crypto. You have no idea, so it creates a really uh bad environment, bad psychology like right now, i dont want to buy any cryptos besides ethereum and bitcoin and im not even jumping at that, not because you know i, i dont think they will make money, but whats Going to be the next one that falls whats going to be, you know whats actually going on. How much leverage is there is. Is it all going to fail, because everyones leveraged out and everyones going to take massive hits? Not even the crypto brokerages can stay in business right thats. What celsius is showing us so its like nowhere is safe, especially in crypto, and the lack of transparency is really hurting crypto markets and its going to take years to get trust back. People are not going to forget about tara luna overnight, theyre not going to forget about celsius, not letting people withdraw their money and whatever else happens from here its going to take a while and thats going to be a big thorn in the sides of markets backs Because you start to get this wealth destruction effect where, if you had gains in crypto, you wanted to go out and buy a house.

Maybe you did, but now your crypto, your remaining crypto, is down through through the ground. Obviously your your housing values start to fall. Maybe you have a portfolio at the same time that starts to fall, so you start to get destroyed just on all different aspects, and when you throw in leverage and margin in that equation, you can start to push and pull from different assets. A lot like if you uh, had a lot of margin in your crypto accounts for an example, and you had a stock portfolio. Well, if you get margin called your crypto portfolios, youre probably gon na, have to break the piggy bank on your stock portfolio to pay for that and considering the size of uh crypto as an asset class, still 800 billion dollars like thats. More than all of the margin that is reported to us by over a hundred billion dollars right so take all the margin in the markets and add another 100 billion dollars onto that thats the size of the crypto market. Still today, it used to be much more. So thats why this is such a big problem for uh equity markets, for all markets really theyre going to feed into each other, and it wouldnt. Surprise me, after seeing crypto falling this much over the weekend, that it does directly feed off into markets and markets likely fall as well. Now, like i stated here in this video that crypto and the nasdaq or just equity markets.

Overall, they are going to feed off of each other and the fact that crypto is down bitcoin off of its 65 000 high, its going to be down for a while its going to affect equity markets negatively for quite a bit of time. But i do actually expect a near term bottom for equity markets, at least for the next one to three weeks, because we have seen such a substantial crash down 31 and a half percent on the nasdaq year today in the first six months of 2022.. Historically, i believe this is the worst start to a year in, like a hundred years for the nasdaq. Well, obviously, the nasdaq has not been around that long, but for equity markets in total. Usually this does not happen and it is a huge buying opportunity, probably the best, buying opportunity that most people have ever seen unless you were actively aggressively investing during 2008. This is the best time to invest in the markets that you have seen in a very long time now. Why, specifically, i think, over the next one to three weeks, you could actually see a market bottom is because we closed friday at the second worst close of 2022. The first worst close of 2022 was actually on thursday when the s p closed at 3. 65. 07.. We close friday at 365.86, so its right there at the yearly lows or the year to date, lows and what we have over the next week.

As far as economic data is really not much, you have existing home sales, uh, canadian inflation rate, uk inflation rate, which wont be as important to our markets. You do have initial jobless claims, some things that are not really expected to move the markets, not too many of these uh red highlighted uh time stamps for the us new home sales theres, two of them for this week, not really a lot of data. That is actually expected now, the week after that, on monday, you have durable goods orders that can be more important and that subsequent week june 27th will be more important, but you have the fed meeting out the way you dont have earnings. Yet you dont really have anything unless we get new information that were just we just dont know about yet theres, not really a whole lot of reasons to continue to sell off equity, uh markets beyond what weve already seen, because you guys got to realize weve weve, Gotten our ass kicked already thats thats a fact. So until we get more information, that leads lends credibility to seeing the nasdaq down 31.5 percent in six months, a very historical uh decline. Then i think we might take a little bit of a breather here, possibly retract uh, even five or ten percent back to the upside. A five percent move to the upside from here would put us on the smp uh at about three 385. A 10 move up.

Would put us at about uh 402 on the s p? 500, so i do think that is possible. A five to ten percent move back to the upside. Like you get, these vicious bear market rallies its going to happen, but then, ultimately, i think we will hit lower lows when the markets do realize. The fed is raising rates at a time where growth is slowing down and is negative aka in a technical recession, and inflation is way too high. The only thing that could really save the markets as of right now is, if we see the price of oil plummet for one reason or another, and that does not look likely, at least until russia backs off of ukraine, because the price of oil is directly related To a recession and possibly a depression, if prices of gasoline and barrels of oil remain so high good news is: we were down six percent in the price of oil on friday, but we got a lot more uh room to move to. The downside, before you know, were out to clear weve been over a hundred dollars a barrel of oil for the whole entire year of 2022.. Historically speaking, that has never happened. Weve went over a hundred dollars a barrel for a couple months at a time like 2008, when bear when one barrel of oil hit 140 ultimately came plummeting back down to about 44 about six months after the peak thats. The only other time weve been over.

A hundred dollars a barrel, and we had a recession right after that, so i think its very likely that thats what we get as well coming this time around a lot of it directly related to the price of energy, so that is going to be all for This video, if you guys, found value out of it, hit that, like button subscribe to the channel source, your comments, questions or concerns down below in the description of, or the comment section of this video free stock down below.