So if you have to sacrifice someone who used too much leverage and its always leveraged it, does this somebodys over levered positions are complicated, theyre, not transparent, theyre, not liquid, and they go to zero. Someone is out there on the brink of zero, thats. Okay, in fact, id argue thats a good thing when we get it now, do we get it this week? Do we get it next week, someones going to zero? I dont know who but itll be great for everybody else. That survives because everybody will learn from that and thats. What i like about a washout, an event – and i think were were due for one in in crypto land and i dont know who its going to be, but i guarantee you, 100 ive, seen this movie before you will learn later that somebody put on a heavily Levered position they got wiped out and its good its a good thing: Music, hello and welcome to money talks in todays, video, well known investor in shark tank, star kevin oleary updates about the recent cryptocurrency crashes, including bitcoins, dramatic, fall to 20 000. The possible reasons behind this tremendous volatility and the importance of regulation in this space. He also addresses the chances of bitcoin market booming out the future of stable coins and why we must focus on policy in the crypto markets, make sure to stick around till the end of this video, where kevin oleary explains why the recent crashes are good for the Bitcoin market, along with his prediction about another crypto asset, going to zero in 2022, so without wasting any time, lets dive right into the video, no im actually averaging down on a couple of the big market cap names.

I mean one of the challenges, and this is this is proof now for why we need legislation and policy on crypto, because if we had institutional capital coming in under the market, if they had allocated 50 basis, points or 100 basis points to lets, say ethereum or Bitcoin salon or polygon whatever you would have had a bid instead because were basically under owned by institutions. We have tremendous volatility and weve seen this before this is not new um itll. You know recover eventually, but this is the nature of crypto, unregulated and so my argument is this really should get us focused on policy right after the midterms im, hoping for policy on stable coins and then into into other assets as well nfts. That kind of thing were at the nasa stage, but the volatility is because we dont have the institutional bid. Kevin oleary said the cryptocurrency market, which has already seen its value crumble below one trillion dollars from a high of three trillion dollars wont hit a bottom until there is panic in the crypto world, we need someone to go to zero. Such panic events define bottoms that signal market capitulation clearing the way for a recovery to begin the shark tank star added. He has also pointed out that the usdc stablecoin has weathered cryptos recent wild ride, helped by the cash and short term treasury assets behind it. No, i mean everybody has challenges with volatility, but i remind everybody: just go back 17 years to a stock called amazon.

It also corrected 38 to 50 every year for 12 years in a row as people tried to figure out what this new entity was and so theres always tremendous volatility in new and nascent technologies and new markets and crypto is a new market. I still predict in 12 minutes 10 or 12 years, itll be the 12th sector of the s p, theres, just too much productivity opportunity here, around payment systems and all kinds of other attributes of these blockchain projects that we just dont yet know what the upsides going To be and id argue this, if you go to any graduating class, particularly now its very timely, to say this – ask any engineering cohort youre going to find a third of the engineers go into the chain they want to work there. They dont want to work in the other 11 sectors of the economy. They want the opportunity to create something new and thats why youve got so much intellectual capital going into this space. You know with certainty down the road that the next genius ideas are going to come from this any college, any university, any engineer they all want to work on the chain. Olearys comments come as bitcoin. The largest cryptocurrency by market capitalization has lost 29 over the past week. According to data from coin market cap on wednesday bitcoin tested the twenty thousand dollar price level falling from a high of sixty nine thousand dollars reached last fall.

The crypto route has extended to other popular crypto heavyweights, with ethereum slipping 38 percent over the past seven days, while solana slid 26 over the same time period, theres, two categories of crypto companies, ones that use leverage and ones that dont. Now, when you have a very volatile asset and you have the fortitude im going to use that word to use leverage to enhance your returns, you also run the dark side, downside risk of what happens when theres a major correction. As is occurring right now, you can get caught offside, pretty quickly and so celsius thats. A good example of that, and i dont want this to sound trite, but let me explain what how bottoms are made in any market. I dont care, if youre in equities or in debt or in crypto or in real estate, you always need a big player to go to zero that always helps whether its long term, capital or whether its one of these crypto infrastructure companies. I dont use leverage on crypto because ive seen volatility like this in the past, there are certain assets where i might put leverage on, but it wont be. In crypto i mean, when you see volatility of 50 on an 11 month basis, which were seeing in bitcoin 60 percent days on ethereum. You cant afford to put leverage on that, but you know people will learn their lessons. This is a good thing in in, in the sense that this generation of crypto investors has not gone through.

Corrections like this and not gone through them with leverage now theyre going to learn an important lesson. Everybody i know that has survived. Volatility has had a very important lesson or a date with leverage, and they didnt have a great dance. That night. I must tell you and the market sell off isnt showing signs of abating as wall street investors continue with persistently high inflation that is yet to slow. Despite the federal reserves rate hikes, i think right now, if youre, you know licking your wounds, go to the large cap projects, i mean the ethereum bitcoin, obviously, polygon solana, thereons polygons been slaughtered and its a good project, great opportunity to add to it. I have very big positions in these in these names and ive been nibbling as well theres, nothing wrong. The one thing i would tell everybody: is you cant pick the bottom, its impossible? You have no idea when its going to happen, but if youre, if youre staying along the category, you need diversification. I have so many different positions on right now and theyre all over the map now come year. End whatll happen because this is a year where were going to be looking at tax returns on all crypto trading and income. Therell be a lot of maneuvering on the projects that did not recover to take them as tax losses versus the ones that did and thats going to be the nimbleness of trading and thats. Why its important to look at your positions and make sure you have liquidity in them, because – and most of these projects are very, very liquid, so its not a problem and we have we actually havent seen we had the binance story.

Yesterday they looked for a couple of hours of room on what they called a lazy trade. The celsius thing well thats a gate thats, not good, so um that will not end end well and when you lock the gate in a hedge fund. Basically, you upset a lot of investors and they when they get the opportunity to sell they do with a vengeance, never good to do this cant help them, but you know they didnt understand the situation. I guess but therell be some money lost there, but finance is the big daddy of them all on platforms and they seem to be surviving. Ftx looks fine, um circle, rock solid, didnt break a buck, put out an announcement to their uh investors. Yesterday, saying, look weve to the extent weve had to have margins calls there hasnt been a problem. These are the things you look for its stress situations. Youve got a lot of infrastructure holding its own, so i think there has been some maturation or maturity coming into the crypto market by these behemoth infrastructure projects. Ill say the same for bit by and for wonderful holding their own making sure their clients are being being taken. Care of. I have big positions in those companies as well. So were all you know, weathering the storm, and you have to do this. Theres, nothing theres! Nothing else to do except watch with wonder kevin oleary also said he isnt ready to call a bottom in the crypto sector, short of a major negative occurrence.

Oleary said this as markets capitulate before crawling out from their lows and slowly recovering. Well, the great news about the crypto economy and even positions like bitcoin or ethereum. These are decentralized holdings, its not just the american investor exposed here. Bitcoin is all around the world and its only 880 billion before the correction, which, as you rightly pointed out, is a big, nothing, burger and so thats. Nothing, i mean you know, even all of crypto under 2 trillion is still nothing in financial services, so theres. So much upside to the sector. When we do get policy when we get institutional investors and sovereign wealth involved, then youll start to see real assets. But you know if bitcoin went down another 20, it wouldnt really matter because its spread around everywhere and and most of the holdings are not institutional for all. The excitement about bitcoin no institutions own it yet and thats the decision you have to make at a time like this when youre an investor i mean this is an opportunity to say to myself or anybody. Look if i believe in three years 36 months that this therell be policy on bitcoin. Do i want to own it after policy comes and all the institutions start buying it or do i want to take a chance and live with some volatility now and buy it here at 24, 23 or 20 000, whatever its going to go to, i dont know, But if you believe in bitcoin its a buying opportunity, but you cant guarantee that youre catching the bottom, nobody catches the bottom.

It never works that way. So when do you think the bitcoin bear market will end? Tell us in the comments also dont forget to like and subscribe see you soon with the next video.