Crypto Market Crashing Don’t Panic !!!
James Gives An Astute Explanation
James of MoneyZG gives a detailed explanation of the current downturn in the Crypto Market Prices.
He ties it together with what’s going on with the Fed.
THEY JUST CRASHED CRYPTO – Warning to Investors
71,668 viewsJan 6, 2022
343K subscribers
Crypto crash: The Fed just crashed crypto. Enter the giveaway: https://gleam.io/QGdAd/moneyzg-pionex… MoneyZG Crypto Course: https://moneyzg.academy Trade on Bybit (Deposit Bonus): https://bit.ly/Bybit-ZG Celsius Wallet $50 BTC Bonus (use code 1530957b9a): https://bit.ly/Celsius-ZG Best Crypto Tools & Deals: https://moneyzg.co/tools FOLLOW ME: Twitter: https://bit.ly/Twitter-ZG Instagram: https://bit.ly/Instagram-ZG TikTok: https://www.tiktok.com/@moneyzg TIMESTAMPS: 0:00 Intro 0:55 Charts 3:00 Why the market crashed 11:27 It’s different this time… 15:04 Valuations USEFUL VIDEOS: Pionex Guide: https://youtu.be/KLnW0U3IGmE Celsius Network: https://youtu.be/IhTJl-a9g-Y This video is for entertainment purposes only. It is not financial advice and is not an endorsement of any provider, product or service. All trading involves risk. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites
Chapters 
Intro
0:00
Charts
0:55
Why the market crashed
3:00
It’s different this time…
11:27
Valuations
15:04
Crypto Market Crashing Don’t Panic !!!
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FULL VIDEO TRANSCRIPT
00:00the fed literally just crashed the00:01market on purpose this is one of the00:03most bearish and hawkish meetings the00:06fed has ever had and they’re doing it00:08for a reason and that reason is00:10inflation i want to talk about that in00:11this video i want to talk about how that00:13affects the crypto market and the00:15outlook that we have for the immediate00:17short term and the median term this year00:19is crypto just something you shouldn’t00:21be in is it all over what is going to be00:23happening to the prices i’m going to go00:25through all of the points um that have00:27really you know seen risk off in the00:29crypto market and in tech as well00:31generally over these past few days um00:34and i want to talk about that and how00:35it’s going to affect us and where i see00:37that going forward so let’s get into the00:38video00:39firstly i do actually have a crypto00:41giveaway in january so go and check that00:43out i’ll leave the link in the00:44description giving away ten thousand00:46dollars uh six thousand to one person00:48two thousand to two people that might00:50really help you out and i hope it does00:51so check out the link in the description00:53if you want to enter that so um going00:56through to the chart we can see this big00:58sell-off and this area of value that01:00we’ve been seeing this consolidation we01:02are we we’re out of that now right so01:04we’re not mucking around anymore we’re01:05not seeing well it might go up it you01:07know what’s it going to do this is very01:09clear now we are in a risk risk-off01:11phase of the market and the reason why01:13we got this big sell-off suddenly is01:16because of um the minutes the minutes of01:18a fed meeting in december i want to go01:21through that and i want to go through01:22why that’s important01:24a lot of the bad things that they were01:26saying and some of the potential upside01:28that i see01:29as well because this meeting was in01:32december in mid-december and things01:34actually have changed in a month so i01:35want to go through that in terms of01:37technicals if you are looking at bitcoin01:39i’m really seeing 40 000 as an01:41absolutely monumental area of support01:44for the price we have a massive area of01:46value there you can see it was01:47resistance up here three times you can01:49see it was resistance right here once um01:52and then broke through and then it was01:53support um during a sell-off there so01:56that is a massive next area of01:57resistance and i just see basically02:00clear um a clear path to 40 00002:03considering um we are really you know we02:06might bounce a little bit a dead cat02:08bounce from a sell-off but at the moment02:10the market is waiting on really the next02:12economic figures there’s a lot of worry02:14right now and so everyone is risk off02:16and the fed has told them specifically02:18to be risked off02:20so what i mean by that is that there02:22were minutes and these are the minutes02:23you can go and read them of the fed uh02:25the meeting of the you know the fed02:27committee um and it was very very02:30bearish in terms of their outlook um in02:33terms of inflation and the the fed has02:36two remits the first one is full02:38employment and the second one is02:39inflation they call it price stability02:41their um their remit is to make sure02:43that inflation doesn’t get out of hand02:45and they do and they control that02:47through interest rates and02:49money printing basically and we know02:51that they’ve printed a lot of money i02:52want to give you um02:54really a synopsis of this uh meeting and02:57go through it right now so you can see02:59this on screen03:00firstly um03:03the the main points here are all kind of03:05pretty03:06pretty bad for um03:08what we call hawkish from the fed right03:10so this essentially means that they are03:12going to be putting the brakes on the03:14economy so when the economy slows down03:17obviously asset price is full right03:18because asset prices are based on the03:20ability of a business to make money and03:22grow and if that’s happening a lot and03:24everything is easy and money is easy and03:26people can borrow money companies will03:28borrow money buy back their stock push03:30up their asset prices all asset prices03:32go up um and cryptocurrencies basically03:34are trading03:36like um tech stocks now and that’s03:38because they are right basically we call03:40them cryptocurrencies we call them03:41tokens but you know everything except03:44for bitcoin really is a technology stock03:46if you want to call it that bitcoin is a03:47little bit different um with different03:49properties we won’t get into that now so03:51firstly the balance sheet they said is03:53bigger than normal03:55um i should actually undo that and have03:56this in red because it is very bad um so04:00comparatively to previous times where04:03they’ve had to bail out the economy and04:05this is you know um a leftover of what’s04:08happened over the last few years the04:10balance sheet is way bigger than other04:12times where they’ve bowed out the04:14economy um and you can see the charts on04:16that right so you can just see how big04:18their balance sheet is and how much04:19money they’ve printed this is obviously04:22incredibly worrying for them right there04:24the whole point their remit is to04:26obviously not have a massive balance04:28sheet printing loads of money so04:30obviously that’s bad and they’re going04:31to want to um they’re going to want to04:34remedy this the way they remedy that is04:37by taking their money that they’re04:38putting into the market out and they04:40obviously want to stop putting money in04:42and actually receive money04:44this means that um there’s no federal04:47reserve bid for assets right04:50because basically what they want to do04:51is take money out the system and not put04:53it in that’s bad for asset prices um the04:57second kind of rough rough ride that04:59we’re getting is that they said and this05:01is in the minutes this is what you know05:02the committee was saying this is the05:04highest level of inflation they’ve had05:06from uh compared to previous times that05:08they bowed out the economy this is also05:10very very bad for the economy in general05:13now because high inflation means that05:16they have to raise interest rates when05:18you raise interest rates the economy05:19stalls people05:20[Music]05:22people invest less and you could even05:23spark a recession the the dreaded r word05:26right you could even spark a recession05:28because of very high rates um and05:31uncertainty with what’s going on right05:33now so05:34again this is kind of very hawkish from05:36the fed and they’re intentionally being05:38so i’ll explain that in a second05:41the fed sees more inflation risks so05:44back when inflation was skyrocketing six05:46months ago let’s say call it four months05:48ago and we all saw that we said look05:50inflation’s like 10 it’s crazy right you05:53had all this anecdotally and in the cpi05:56figures um which are lower than actual05:59inflation they were saying it’s06:00transitory don’t worry about it and now06:03later they’re now saying actually no we06:05see more inflation comparatively now06:07than at other times this again means06:10that the fed has to come in the hawkish06:12raise rates fears of a recession06:14inflation is broadening so it’s not just06:16one sector but basically the whole06:19economy is out of their control06:21completely this is a total mess right so06:24inflation is broadening all of this is06:26like oh this is awful and we’re gonna06:28have to raise rates we have to suck06:29money out of the economy and basically06:31again fears of a recession supply chain06:34issues persist they do yes06:37so obviously with more kind of lockdowns06:40in various countries including china06:41which is a supplier of most of the goods06:43again this is not good news06:46for inflation and inflation has to be06:48dealt with06:49inflation now and this is almost a joke06:52if if it wasn’t real it would be funny06:54but it’s i guess uh you know truth is06:57stranger than fiction inflation now is06:59what they call partly reversing this is07:01almost embarrassing so when inflation07:04was very very high months and months ago07:06and we all said hey do you know07:07inflation’s really high they said no07:09don’t worry about it it’s transitory and07:11now the inflation is basically high and07:14staying there instead of saying that07:16they’re now saying it’s partly reversing07:19if you can understand that then please07:21let me know in the comments signal um07:24basically they signal heavy and hard07:27rate hikes this is what they’re07:28signaling to the market hey everything’s07:30out of our control we are going to come07:31down hard and heavy on you we’re going07:33to raise interest rates hard and fast07:36and we’re going to suck money out of the07:38economy okay the free lunch is over take07:41risk off the market do not um you know07:44do not go risk on do not borrow money do07:45not grow your business if we can go back07:48this is what risk off looks like07:51bitcoin is a risk on investment it’s07:53traded like that over the past07:55few months for sure and we can see that07:57when risk is on and we can go back when08:00risk is on08:01it does very well when the fed says it’s08:04time to go risk off then obviously08:06people um you know all the investors08:08come in and say okay risk is off we’re08:09going to stop buying it right so that is08:12really what we mean by risk risk off08:14just basically you’ve stopped buying08:16risk assets and investors have listened08:18here’s the the the silver lining to this08:21um08:22in my opinion the the fed has done this08:25for one reason that’s because it has a08:27remit to control inflation and so they08:31have eventually said look we have to we08:34have to control this and they can08:35control it through two ways one is08:37actual policy actually raising interest08:40rates and another one is just coming out08:42and saying hey look we are going to08:44raise we’re going to have to do this08:46we’re going to have to raise rates and08:47we are going to basically force you as08:50the market into changing the asset08:52prices for us you know please please08:55kind of08:56you know come out of risk assets and um08:59you know calm this market down for us09:01please do that right and so please09:03handle this inflation for us before we09:06actually have to step in so in my09:08opinion they’ve really come hard and09:09fast in december and said look the the09:12first thing we can do is tell everyone09:14please handle inflation for us or we’ll09:17step in09:18so here’s the other silver lining i09:20think that um all of the the virus fears09:23are kind of already over right i think09:24the peak that we were seeing it09:26definitely isn’t as bad as before and so09:28that means everything can calm down and09:30people can get back to normal and09:31hopefully the supply chain as well the09:33second one is that the latest pmi09:35figures and jobs reports have been09:36pretty good pmi is an inflation figure09:39and it doesn’t look to be as high as09:40people had anticipated so that is very09:43good if inflation’s coming down and not09:45as09:46what do they call it partly reversing as09:48they say09:49essentially that means they don’t have09:50to be as hard with the interest rates09:52and the and taking the money out the09:54system people can relax and get back a09:56little bit back to normal and so asset09:58prices risk asset prices won’t be coming10:00off as hard and the jobs look okay10:03this is good so as long as you know the10:05jobs figures are great this is you know10:07fairly good for the economy that they10:08don’t have to kind of change anything10:10there so10:11this is what’s happened to bitcoin if10:13you’re saying what is going on with the10:14price essentially that the fed have just10:16come in and said look we have to deal10:18with inflation we’re going risk off and10:20there are lots of fears there’s lots of10:22fun around with that um but hopefully10:24that explains what’s happening and i10:26want to get on to kind of um what’s10:29going to happen happening over kind of10:30the next few months so you know10:33essentially10:34we’re in a year where there is the10:36midterm elections in the states and10:38usually if the economy is doing very10:40poorly then politicians get removed for10:43the opposition party and obviously10:45that’s not what uh the federal10:47government wants to happen in in the10:49state so what they’re going to do is get10:50all the bad stuff out the way now and10:52say hey everyone we’re going to come10:53down hard and fast on you and we’ve gone10:55through that but towards the you know10:58towards the election time we’re going to11:00be a lot softer on the market and we’re11:02going to say hey do you know what we’re11:04actually not going to raise rates as as11:06hard as we thought we would have to11:08things are a little bit better than we11:10thought and you know we don’t have to11:12reduce our asset purchases as much11:14and you know we’re happy with what’s11:16going on the market will kind of oh11:18that’s good and so everyone will feel a11:19little bit better going into the11:20elections that’s just my opinion on11:22things i’m not going to get into11:23politics but hopefully this explains11:25some of what’s happening right now in11:26the market the other silver lining for11:28me and why i’m here long term is because11:31of genuine adoption and it’s very11:32different to short-term movements so if11:35you are a member of my crypto course go11:37and have a look at that in the11:38description if you want11:40i talk about you know investing over the11:41long term and really taking out market11:43movements out of things because things11:45happen short term that’s for trading11:47longer term is about investing in11:49projects that actually fundamentally11:50grow and really the growth story for11:53crypto is still intact and so you know11:56i’m happy to be exposed to this market11:58so just yesterday i think it was goldman12:00sachs right so you know one of the12:02biggest investment banks in the world is12:04now bullish on bitcoin after years of12:06saying it’s a scam or not even12:07mentioning it at all bitcoin will12:09compete with gold as a store of value12:11it’s it’s pretty obvious by now that um12:14you know the world’s largest banks and12:15investment houses are all getting into12:17crypto and see it as a um an industry12:20that will grow and be here for a long12:22time so if you can just take out these12:24short-term market movements out of12:26things the economy is going to affect12:28asset prices over the longer term though12:31you can be in a growth sector and i12:33think12:34why i’m in this is because i think that12:36this will be a growth sector continuing12:39for the long term so one of the things12:41uh one of the the kind of areas that is12:43very um on right now is you know open c12:46volume so this is nft trading so one of12:48the things i want to kind of highlight12:50is you know crypto isn’t just bitcoin i12:52think a lot of people were coming into12:53the crypto market through bitcoin12:55initially and up until a few years ago12:57it really was kind of the only a1 asset12:59there and everything else was you know13:01just kind of you know very speculative13:03and that is still the case with a lot of13:05altcoins but there’s just so many more13:07use cases now if you’re into crypto and13:10you enjoy crypto13:12there are many other things you can do13:13other than than just investing in13:15bitcoin you can lend out stable coins13:17for a yield okay so you can de-risk your13:19portfolio like that13:21even if you just want maybe 10 or 2013:23percent of your portfolio in risk assets13:25and the rest in a stable coin like the13:27us dollar earning good yield you can do13:29that so there are many more options13:31other than just to say i’m going to13:32expose myself to loads of risk um you13:35know and deal with the consequences so13:37there are things that you can do one of13:38the things you can do i’m not saying go13:40and trade nfts but it’s a use case and13:43these use cases are exploding and this13:45for me is why um cryptocurrency the13:47market in general will grow over time is13:50because there are more use cases than13:52just buying and selling something for a13:53profit the majority of human beings13:56don’t really care too much about13:58investing13:59but cryptocurrency can help many people14:01in many different ways nfts and games14:04can bring people on board and create14:06revenues for these protocols which means14:08that they are much more defended against14:11just random speculative ups and downs14:14so you can see right here ethereum14:16active addresses it’s not yeah it’s14:18definitely in a period of consolidation14:20right here and this is because the price14:21is consolidating obviously when the14:24price of ethereum is going through the14:26roof you’ve got more people using it14:27more people trading it people selling14:29out to other new people coming in but14:31when the price comes off a little bit14:33yes there won’t be as many addresses14:35people aren’t doing as much and that’s14:36totally fine but the general trend is14:38pretty clear to me we can also see14:40bitcoin addresses again you know bitcoin14:42really for the most part is just um14:45a store of value or right we’re going to14:47buy this because the price keeps going14:49up and when you see the price high you14:51get more action you get more people um14:53having addresses starting a check14:54exchange accounts and trading it14:56swapping it out for something else14:57swapping it out for some more coins14:59obviously when the price goes off that15:01um that cools off a bit but the general15:03trend is pretty clear again15:05what i want to highlight is the value15:07that cryptocurrencies can have have15:09besides just a speculative bet on other15:11people buying it in the future this is15:14how cryptocurrencies will be valued on15:16their protocol revenue it’s quite clear15:18that ethereum is by far and away the15:20biggest by protocol revenue so this is15:22in the last 30 days they actually earned15:24almost a billion dollars so15:27this is why i think the market is a15:28little bit strange i get that ethereum15:30is a risk asset it’s a risk on asset but15:33it is also earning a billion dollars a15:35month in revenue so hey look it’s a new15:37asset and people don’t understand it yet15:39but there must be some sort of price15:41level for a floor like if you’re selling15:43off ethereum maybe you can say well if15:45it makes a billion dollars in revenue15:48every single month15:49maybe you can start valuing this and15:51saying having a lot more conviction in15:53saying you know what i’m going to buy15:54the dip because actually this thing15:56isn’t valued that highly you can see15:58that the price the earnings ratio for16:00ethereum if you just treat it like a16:02tech stock is 38.16:0438 is extremely low for a massively16:06growing ecosystem like ethereum um so in16:09the s p i think the average price to16:11earnings ratio probably be about 20.16:13it’s obviously going to change but you16:14know correct me if i’m wrong but16:16ethereum with a price to earnings ratio16:17of 38 is is not higher in my opinion um16:21and i’m happy to you know value16:24ethereum as a very solid tech stock16:26which is basically what it is that’s how16:28i would value it you can see other16:30protocols right here you know exchanges16:33games they are making money and so16:35things that make money and return that16:37money to shareholders token holders um16:40yeah they have they have value now16:41they’re obviously not shares and they’re16:42going to be regulated there’s just so16:44much fun and uncertainty this is what16:46we’re in right now i enjoy it this is16:48part of the market cycle happy to be in16:50the market in the good times and the bad16:52times and just ride through the market16:55in general um and over the long term16:57obviously hopefully we all hope that16:59things will go um pretty well and grow17:03over the long term and obviously if you17:05want to know more about investing i have17:06my investing course i would seriously17:08suggest checking it out it goes through17:10investing how to set your portfolio up17:13for the long term the types of thoughts17:14you might want to go through17:15diversifying and everything like that um17:17i think it really might help you also17:20you know enter the giveaway giving away17:22ten thousand dollars that link is in the17:23description as well i’m james with17:24money’s eg cheers for watching and i’ll17:26see you in the next one English (auto-generated)