Russia Destroys The US Dollar & Another $100 Million Crypto Fraud | Market Update
Actually, it was relatively good for equities for a couple of reasons that well get onto into a moment, but, as you can see, its mostly green tech did relatively well with the nasdaq slightly outperforming the rest of the indices. Healthcare was quite strong. Consumer defensives were quite strong. Financials were slightly weak, though again well get into why that is in a moment, and then energy was weak as well, simply because oil prices fell a little bit more for the whole, then the s p 500 rose by about one percent, while the nasdaq rose by About 1.5 percent and the dow jones by 0.6, now in the rest of the world, it was actually a little bit worse for the most part, um, the rest of the americas was quite poor. Canada didnt do very well central and south america didnt do particularly well either. Europe was quite weak. The ftse 100 fell by one percent, the stock 600 fell by 0.8 and so on the whole. The msci world index actually fell by 0.5. The dollar didnt really move against the benchmark of its peers, but the euro did fall against the dollar by about half a percent, its back down to one dollar and five cents. Now the pound is still sitting at one dollar and 23 cents, and then the yen did a little bit better than usual and rose to 135 yen per dollar in the world of fixed income assets in the bond markets, we had another day of frankly huge volatility With the us 10 year, treasury yield falling by seven basis, points down close to that three percent.
Mark 3.08, the german 10 year yield fell by 21 basis points and the british 10 year yield fell by 18 basis points all across one single day. Basically, because investors and speculators are gambling about the recession, changing how central banks are going to be uh, treating their monetary policy into the future, oil prices then fell again slightly. Wti crude fell about two percent from yesterday and is down at 104 a barrel brent crude oil is sitting at 106. Gold prices fell very slightly down to 1830, an ounce, but no significant moves there. So why did stocks perform this way? Why were american equities up while bond yields were falling and so bond prices were up well its mostly because of these recession? Fears that weve been getting a lot of news about recently uh demand for copper and other commodities which tend to indicate which direction the worldwide economy is going in well demand for those commodities fell, jobless claims in the us is actually higher than usual, which isnt necessarily Good, but this means that the economic outlook for the u.s is bad and thats good for equities in a weird roundabout way. Basically, what the markets are trying to price in right now is the economy hitting a recession or crashing sooner than it had previously expected, and so the federal reserve, if the recession really does kick off and destroy the world economy? Well, then, the federal reserve and other central banks theyre going to stop their quantitative tightening theyre, going to stop raising interest rates and theyre going to go back down to 0 interest rates and printing money, willy nilly all again to try and turn the economy back around And so the markets are sort of taking bad economic news as good news for the markets, because it might mean that the monetary environment is going to get better into the future in the world of crypto.
It looks very green on this graph, but in reality there havent been major changes for the most part. Bitcoin is still below 21 000 ethereum is still below 1200. Most altcoins did gain another two or three percent over the last day, but again theyre still at historic lows at the lowest points, weve seen most of them in about two years, so no real major shifts there. There has, though, been some actual pretty bad news coming from crypto coming from what is called the harmony one bridge uh, a protocol that basically makes it uh easier and possible to transfer between various networks. Uh, the ethereum network, bitcoin uh, the binance smart chain and then harmony itself, and basically this protocol was hacked for 100 million dollars now theyve come out and said a few different things. The first thing is that apparently, the bitcoin bridge, which is their main one, has not been affected at all, which is a silver lining. I guess, but still this is not good news. Someone just stole 100 million dollars out from this protocol. The reality is that this kind of stuff is just super common in decentralized finance, um, and it all comes from the fact that were still early to this space. Smart contracts are great. They can be really really useful, but when there are flaws, those flaws can be exploited and it becomes easy to literally steal money out of what basically amounts to peoples. Bank accounts or institutions.
Bank accounts, something that doesnt really happen with traditional finance at all. Another big problem with things like this is that its very difficult to actually get your money back once its stolen, as you can see from this second tweet that harmony put out well, they know who has the money they have. The address listed right there that is holding all of the money that has been stolen, but that doesnt really mean anything because its a decentralized network, so they cant just get their money back like they could. If this were a traditional finance setting as a result, this organization and when organizations in general are hacked in d5 theyre, pretty much resorted to negotiating with those hackers to try and get them to give back the assets, usually in exchange for maybe 10 or 20 percent. Of what they stole – or they just appeal to the hackers good nature, because sometimes they are happy to return it, because they dont want to go to jail for stealing money and things, and they are actually just wanted to expose a flaw in a system rather than Profit from it, there is a problem for the hacker as well its actually a little bit difficult to get access to this money. Yes, its in that wallet there, this uh this address that is listed. Yes, they do technically have that money at their disposal, but major exchanges like binance and coinbase will usually basically blacklist these sort of addresses and any addresses that work with these addresses to try and make it difficult for them to get that money out.
So with hacks. Like this, you often have a lose lose situation where the hacker doesnt actually make any real money, and the organization loses money and investors lose money as well, and that seems to be likely whats going to come from this. In the end, this certainly isnt good news for crypto. Now, in the same sort of vein, uh coinbase is getting rid of their pro version of their app or their exchange, theyre, basically killing it off and theyre, replacing it with something that theyre just calling advanced mode, which is going to be in the main app. Now. This kind of makes perfect sense because coinbase versus coinbase pro has been an awful system for a long time. It isnt streamlined at all. They are two separate apps and two separate platforms, just for basically a paid version of the other one. Its always been a little bit awkward and it means that a lot of customers dont get access to products that they could have had access to, and that would have saved them lots of money because they just didnt know that they were even available. This is supposedly going to fix that problem, and so should be good news for coinbase users. There is, of course, the chance that coinbase used this as an opportunity to change their fee structure to try and uh squeeze more money out of their customers um its also possible. They move into the institutional vein of being an exchange and start to compete with ftx.
In that sense, which again would make sense for coinbase as a business decision, uh coinbase has suffered a lot recently over the last year or so with their share price. They went public last year in 2021 to so much fanfare. Pretty much every major youtuber was buying their stock ipo for something stupid like i think it was 300 a share its now trading for a mere fraction of that and the company is sort of in that similar situation to robin hood being grossly undervalued. Actually, a really good deal in a lot of different ways, but the monetary environment is just so poor for crypto and for coinbase right now, but it doesnt really matter and its probably going to see its share price continue to fall. Crypto exchanges in general are in a very turbulent time. They are competing for a diminishing pool of users. As the crypto bear market starts, investors will start to leave and they already have started to leave. Actually, finance has come out and removed all fees for bitcoin trading, which is going to attract a lot of customers and, i think, were going to see a race to the bottom. Uh, like we saw with traditional brokerages when robin hood came on the scene and offered uh commission free trading were going to see. Crypto exchanges go in that same sort of direction over the next years and its really going to eat away into the margins and the revenues of companies like coinbase.
Now something that i dont usually talk about is the fact that vladimir putin came out and gave a really long speech yesterday and a lot of it was the the usual spiel from him. Uh. The sanctions against russia are failing, theyre, causing more harm in the west than in russia. Inflation in the west is out of control. Theres, an energy crisis, theres a loom in recession, money printing was irresponsible and that the west in general is net importers. Um. You can go and find the speech if you want, but really its the same sort of thing. That putin says you know every couple of weeks when he has these sort of speeches there wasnt anything groundbreaking there, but what was quite interesting was that it all tied together at the end and he basically spoke about how the euro and the dollar are losing their Position as the worlds reserve currency and that this is the end of uh, a unipolar world where basically, the us dominates everything. And so i thought id just very briefly talk about this and give my point of view on this because, frankly, its getting quite a lot of attention, especially amongst people who might want the us to lose its position as world hegemon. But in reality things just arent. That simple and well, the us is probably past its peak power in comparison to the rest of the world. Well, it certainly isnt near the end of its reign.
So putin basically made this argument that uh monetary sanctions in particular, basically the us and the west in general, locking up russias foreign currency reserves and stopping them from using them. Well, that erodes away the value of those foreign currencies in the first place and hes absolutely right that it does erode away that value and hes basically said that weve already seen the start of the end of the us dollar and the euro as reserve currencies as Uh having our status and its a very popular talking point, the problem is theres. No data to back this up. Um about 85 percent of world reserves are either the euro or the dollar, and then uh 95 are actually western aligned currencies. So the other 10 is made up of the pound of the australian dollar of the canadian dollar and then just five percent of worlds reserves. Fiat currencies are in the one, nothing in the ruble at all, im afraid. Uh putin was sort of pushing for this idea that its gon na move to commodity reserves, which again there isnt really much evidence at all to actually suggest this is the place. There are a lot of crypto bros out there saying that actually putin was indicating that its going to shift to bitcoin, again putin didnt actually say that at all and theres no evidence to suggest this is the case at all. I do feel that were going in this general direction, that yes, the uss days as uh the world reserve currency is a little bit numbered, but were talking a century or so until thats gone ill, probably be dead, youll almost definitely be dead, and we will never Really see that now the final topic to talk for this video today comes out of netflix and again its just this general idea that a lot of companies in the us companies, which were you know massively revered for being so successful over recent years.
Well, theyre starting to have trouble and theyre starting to fire. Their staff netflix has just fired four percent of its workforce this month so far, thats 300 employees. Last month it fired 150 employees, which was two percent of its workforce, so they are really cutting away. The chaff, um netflix, is another one of those infamous companies a little bit like twitter, where they hired software developers for ludicrous salaries and gave them ridiculous perks. So they werent necessarily working as hard as they should have been, and they maybe werent worth their salt as capital just becomes more scarce in this new environment. As a recession creeps up, companies are going to have to change and theyre going to have to be more careful and more selective with how they spend their money and thats. Just simply what were seeing here, netflix in particular, has actually struggled and is seeing its business and its growth in particular, wane by quite a lot. Its stock performance itself has been absolutely awful. Weve had two separate occasions where a hundred billion dollar, what was half a trillion dollar stock at a time? Well, it dropped off a cliff by 20 over the course of a day. Thats not healthy for a company like this theyve, been investing in weird woke, shows that, frankly, no one really watches like cuties. I try not to get too political on this uh this channel, but check out cuties. If you want its pretty disgraceful that netflix put that and published it on their site, netflix is actually trying to innovate to try and maintain their growth, but it isnt really working so far and theyre not moving quick enough theyre planning a cheaper ad substituted uh subscription.
In the future, which should help them to get more people, theyre planning on cracking down on account, sharing and theyre, releasing shows a little bit periodically, rather than all in one go to try and stop people binge watching for a month and then cancelling their subscription. Frankly, though, all of this stuff should have been done over the last year or two: they are now late to the party and theyre, no longer the disruptors or the innovators in this market. Frankly, this is just one more example of companies being forced to shift their strategy because the tech bubble is well and truly over. If you enjoyed this video then make sure to like comment and subscribe to bless the youtube algorithm. It really does help if you want to join our exclusive community, then check out our patreon. You get access to our discord. Server and extra content like access to my portfolio and buy and sell alerts for all. My own investments also make sure to check out the link in the description to masterworks. It can help you protect your portfolio against market turmoil through fractional shares of art from world famous artists. Art has historically proven to be uncorrelated to the markets, so its a really valuable resource with the markets falling every week, theres also a link in the description to i trust capital, which helps you to invest in crypto through your tax advantaged ira, which could literally save You thousands, if you like me, think crypto going down is a buy in opportunity.
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