So yesterday the federal reserve chairman jerome powell acknowledged the real possibility of raising interest rates high enough to cause a recession with that news. Wall street reacted negatively with this s: p, 500, nasdaq and dow jones closing the trading day with lower prices. So in todays, video were gon na be covering what jerome powell said about the sec and how the central bank views cryptocurrency. On top of that, well also go over coinbases announcement on removing their pro version and what that means. For us. Consumers got a little bit of a different scenery. Today we got actually surprisingly weve got the editor ben in the back. I dont think any of you guys have really seen ben. Luckily enough ledger was kind enough to actually fly us out check out one of their events theyre having just yesterday. I went ahead and saw a whole bunch of their keynotes, their collaborations, and i posted a lot of it on my instagram story. So if you guys dont follow me there make sure you guys do that as well, all right so the market. Today, surprisingly, its actually up about one percent, even though, were seeing the stock market sliding a bit. Bitcoin is still sitting at around 20 330 dollars. We have ethereum sitting at 1092 and a lot of the all coins are still trading, pretty sideways, believe it or not, though, within this market today, we actually have polygon matic about up 19. Today, sitting at 48 cents, we have cosmos adam up 14, alongside even some other cryptocurrencies, that we talked about like solana, which is currently up about seven percent and having a solid gainer in the last seven days.
So far, now, with a little bit of consolidation in the market, we are still seeing the extreme fear sitting here right now, but were at an 11 where pretty much all of last week were sitting at anywhere from seven to even nine on the crypto fear and Greed index scale, so bitcoins price action today has been trading around twenty thousand dollars and twenty one thousand dollar level for the past three days now, and this means that we could see bitcoin make a move in either direction. This upcoming weekend, theres two scenarios thats going to play out in the short term if bitcoin breaks above and holds the one thousand dollar level. The next critical resistance level that we would see is twenty two thousand five hundred dollars, but if bitcoin does break down and fail to claim the twenty thousand dollar support level, we would see the retest of what we talked about in our last update, which is seventeen Thousand six hundred dollars low clearly here i do think theres much more downside, and this is why many investors are still sitting on the sideline if we go into the crypto market and even take a look at the volume youll notice that the crypto market volume is Just insanely low right now were sitting 58.41 billion dollars or another 10 decrease in the market. This type of volume is just indicative of how much people are willing to invest less in this market even right now, while um in new york city, i thought the vibes would be a little different.
You know the market is down, so i assume many people wouldnt be coming out. Surprisingly or not, it seems like a lot of people are still enjoying these times, but it seems like anyone i talked to not many people are actively investing long term for uh crypto at this moment, but this doesnt mean that people arent starting to trade. I just do think we need to see a little bit more green in the market before we get that volume spiking as well now going over what we discuss a lot on our channel, which is rsi or that relative strength index to gauge just whether or not Where crypto is moving towards the upside were seeing a four hour rsi sitting at a 51 or neutral. The daily rsi is sitting at 31 or close to oversold levels, and the weekly rsi is right now to 26 sitting at oversold levels with bitcoins weekly rsi. That has never been this low based on trading views data based back since 2015.. Now you can clearly see this data on your screen, but when we get a visual interpretation of whats happening in the market, it definitely is pretty awe dropping now something i wanted to do. Real quick was also talk about some analysis of past bitcoin. Drawdowns a lot of you guys are still questioning. How long is this going to last for have we seen the bottom yet well lets talk about what drawdowns weve experienced and how long theyve experienced before in the past.
So a market analyst from bitcoin magazine named sam rule went ahead and shared this chart of bitcoin returns over the last four significant crashes back in the 2011 crash. We actually saw a 93 drawdown over the 160 day period during the 2013 crash. It was an 85 drawdown which lasted 410 days, more than double the amount of time. In 2017 we saw an 83 drawdown lasting 360 days, so it was not as long as a previous cycle, but still about a one year length and for the 2021 and 2022 crash, which were currently in now were sitting at a 69 drawdown shout out to the Culture shout out to crypto hes, pulling through 69 drawdown over 225 days and right now sitting at the 17 600 low. We are now down about 74. So what does this mean for us investors? Is this giving us any data that you know? Could we be seeing a crash that lasts 400 days 300 days? Is it getting shorter? Well, the previous percentage drawdowns range is between right now, 93 and 83, suggesting that this current live drawdown of minus 69 has more to fall before reaching a bottom. So for anyone who claims that were getting closer to the bottom, they may be right, and this is just because predictions are still predictions. At the end of the day, a lot of people are drawing their own conclusions about the market, but we really have no idea. Whats gon na happen next, each period so far has progressively less severe drawdown, suggesting that bitcoin is becoming significantly less volatile over time.
If the same pattern does continue to play out, then we could see the market bottom being a 75 to 80 drawdown from what weve seen historically before in the past, which would result in a 13 500 range for bitcoin at that near bottom. Other analysts have also argued that, since we have had a 74 low in this crash, we probably have already seen the market bottom, but at the same time it doesnt mean things may not get even worse. Keep in mind the current conditions within crypto going down is affecting most major industries. We have stocks still going down, we have most assets, even the housing market is coming to a collapse. Right now – and i know many people are arguing that you know housing is going to stay up and its going, but the data is not actually showing that even just yesterday we got an article from bloomberg stating that jp morgan laid off hundreds in home lending after Rate surges, they also have it right here, highlighted hundreds more to be reassigned as demand for home loan cools and the biggest u.s bank sites. Silicon changes within the mortgage market now as jp morgan being one of the top banks within this country, laying off hundreds of their employees in their mortgage division. I think this is right. Now is the start of whats to come im working on a recession, video right now, thats gon na be coming out next week, once i get back home to the main studio, but from the data that were seeing its getting pretty bad and were seeing a lot Of the layoffs starting right about now now, although this isnt good news and ive been through it, ive seen the effects of recession, im gon na share with you guys in that next video on why you should actually be excited about the upcoming recession previously before in The past i made a video on my channel just talking about what you could do to make life changing money in this recession too, and just talking about a bit more of my story and what i was able to do over the past few years.
Well, have that end screen at the end of this video, so were also seeing from the data that previous bitcoin crashes did not have the same macro economic factors that we are having now. This all comes down to that recession that i was talking about. It all comes down to the unique circumstance trillions of dollars getting printed all that stimulus money, all that quantitative easing seeing the effects of it now and a lot of the markets that we were all involved within whether it was amc whether it was crypto. Even the watch industry or houses or even cars, everything seemed to have just kept going up in value, but at some point things need to cool off. This is that correction and if it lasts for a longer period of time – and we enter that recession, this is pretty much just the after effects of all the money that weve seen happen now, with inflation still not seeing like it is cooling down at all. Every time i feel like im buying uh some coffee or avocado toast its getting even more expensive. I think, even at this point, until we get any type of drawbacks with the data from the government were going to continue to see interest rates going higher until a lack of inflation may start taking place. Another sign of increasing bear sentiment in crypto markets is the sign from stable coin dominance, which is now at record highs. According to data from coin at gecko, the combined market cap of all stable coins is sitting at 155 billion dollars.
Keep in mind, the total crypto market cap is sitting at about 913 billion dollars, meaning stable coins represent about 16 of that total. Now half of the top six cryptocurrencies by market cap are still stable, coins, thats going to be usdt or tether usdc and then binance usd were seeing less volume going in thats what the data is showing, but obviously more and more stable coins are just getting more Value over time now going to the next headline, we actually have the us federal government evaluating the secs position on digital asset custody coming from jerome powell himself, so the sec launched their accounting directive in april with their staff accounting bulletin number 121 bill in this publication. To just break it down, the sec has advised firms and holding customers digital assets that they need to consider those assets as belonging to the companys balance sheet. Now this move here prompted coinbase to declare in a public filing that customers assets were intertwined with the companys assets during a time of potential bankruptcy. So mr powell went ahead and said yesterday that this recent much debated move by the sec has brought up the question of how the u.s central bank and banking regulators will now view digital assets held by lenders. He stated custody assets are off balance sheets and have always been. He also quotes the sec made a different decision regarding digital assets for reasons it explained, and now we have to consider those as the entire crypto markets still relates highly to traditional finance market, that the federal government oversees within the us.
It looks like jerome powells, sec interpretation is quote what theyre saying. Certainly something were focusing on very closely right now now. Another big headline is binance.us is actually stepping up their game, so binance.us went ahead and launched a zero fee, bitcoin trading app. Now it looks like binance.us is no longer charging fees for buying or selling bitcoin using usd backed stablecoin. Pretty much is eliminating any fees for you to get involved with crypto as well, and it seems like after weve had some of the other exchanges like ftx coming in really dominating this market. Some of the other players are stepping in and trying to find that traditional model as well keep in mind a lot of this didnt start with crypto. We even had robinhood in the very beginning which ended up being one of the largest retail friendly uh, just stock exchange brokerage apps and with crypto getting into the scene and things taking a little bit of a turn within the market. It looks like theyre doing everything that they possibly can in order to make it a lot more beginner friendly and to cut out any of those fees. Now i will say, binance.us does need to tread very carefully because we are in a bear market. I dont know how many new users theyll be able to get, and on top of that, if this has a giant impact on the companys revenue, it may really backfire. While binance is the largest crypto exchange in the world, coinbase has beat it for its popularity in the us, and i know that binance at us did raise some money.
They had a series, a that happened recently. I actually met a few members of their team at the well. Was it the bitcoin conference back in miami theyre telling me yo were trying to step it up in the u.s. I was like get ready for that, because the markets are not in the best position for a new exchange to start ramping up their efforts. But we will see because right now, theyre making some headlines within the news and if theyre able to do something a little better because it seems like all these exchanges are doing the same thing right now. If they can do something better appeal to others or market. It in a different way, i do see a possibility of finance at us being able to have a little bit of an impact within this market when things start riding up again now, regardless. This is still excellent news if youre an american crypto investor, it gives us more options to find a primary trading platform, and if you happen to be a whale, you have six to seven figures worth of crypto. I can tell you it is not easy liquidating. All of those amounts all at once. If you had all your money say you had it all within an app that were not going to name cough celsius, then all that money will be locked up. You wont be able to get it out, but if youre diversified with a lot of these exchanges that have backing – and you know – binance.
us has a strong parent company – they have great leadership. You may not have to worry about that as much now, if youre still against any type of holdings within traditional exchanges. This is why we talk a lot about ledger now. This is not a sponsored video, but they did fly me out here so might as well. Give them a little shout out. I did mention on my channel that ledger was having a 20 off and i wasnt capping when i said they were gon na. Take that away and people are gon na want it and theyre not gon na, be able to get it because its too late ledger right here, theyre actually doing a lot more theyre expanding their marketplace, theyre having a credit card, theyre doing a ton of great things. As well too, and the whole reason i bring them up is if youre scared of most exchanges – and you want to store your crypto long term having a cold storage wallet – is still one of the best ways that you can protect yourself and make sure that, during A bear market you are covered now. The next headline that i want to discuss was coinbase phasing out their pro exchange and calling it the advanced mode in their main app. The coinbase announced today that it plans to discontinue its advanced trader focus coinbase pro service by the end of the year. Now the standalone pro service, which exists independently of coinbase.
com, where this would offer you lower fees to traders who interacted directly with the coinbase exchange order books. This feature was definitely a lot nicer. Youd pay a small flat fee instead of getting just wrecked by the regular coinbase exchange offering and right now it looks like they are trying to change up their business model during this time after a slew of layoffs have been happening too. Now it looks like coinbase right now is getting a ton of backlash over from twitter. We had one user legate, william legate random guy, who stated i will never use coinbase again. If the coinbase pro discounted rates, arent included in this new unified trading interface, he says im not going to get ripped off paying retail trading fees if you guys have been trading crypto as a retail investor and use not the pro version of some of these apps Youll know how much they add up. I myself ive lost definitely at least five figures worth of fees in the beginning over time accumulating and if you guys want to avoid that, just make sure that you are using other exchanges. We talk about some of them on this channel too. That provides you lower trading fees because they do add up, especially over the lifetime period, and especially, if any guys are like plankton right now, trying to move up to be a shrimp, eventually a whale. You want to make sure that you start now. It doesnt really affect us too much unless youre a die, hard, coinbase user, all right guys that is going to be todays update.
Thank you all so much again for watching this video. If any of you guys happen to be in new york, definitely say whats up. I love running into you, guys um dont forget to drop a like down below on this video, if you guys have not done so already, and also, if you guys want to follow me over on twitter and my instagram, the links for that are down below. If you do follow me, please watch out for scammers and impersonators. On top of that, i have an exclusive discord group, if you guys want to have access to that or join down below uh check out the links for that as well. If you cannot get in, we also have a google docs form where, if you submit that down below were going to be manually, approving and sending out some invitations to the group, but for the past month or so weve completely sold it out, weve been closing it Out so, if you guys do want to have the next opportunity to join the link for that will be down below as well. Okay with that being said, the secret code word for this end of the video is going to be empire because were in new york empire state building. Thank you so much again for watching this, video have an amazing day, um theres a chance. We may not have an update tomorrow friday, so just saying thats a possibility but ill.
Let you guys know im gon na still try to come out with it but uh. In the meantime, we will be back to our normal uploading schedule after the weekend on monday. In the meantime, im gon na enjoy my time here in new york, and hopefully you guys have a great rest of your weekend as well.