Latest / The Paul Barron Crypto Show / Weekend Flash Crash📉Crypto Market Update

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Weekend Flash Crash📉Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: The flash crash is here today. We'll break it down
• 0:02
  Speaker 1: for you try to figure out why all this is happening.
• 0:04
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• 0:56
  Speaker 1: over and lead off with what's happening in the market.
• 0:58
  Speaker 1: This is where it gets a little fusing because there's
• 1:00
  Speaker 1: a lot of different directions here. Stocks are rising, like
• 1:04
  Speaker 1: the US economy is soaring, we know it's not. Oil
• 1:07
  Speaker 1: prices are falling like we're entering a recession. We think
• 1:11
  Speaker 1: that might be happening. Gold is rising like the FED
• 1:14
  Speaker 1: is cutting rates to inflation. Yeah, well that might be happening.
• 1:17
  Speaker 1: Bitcoin is falling like FED rates are postponed. That's not
• 1:22
  Speaker 1: necessarily the case. And you can kind of see what
• 1:24
  Speaker 1: we're dealing with is a lot of different angles here
• 1:27
  Speaker 1: around many of the markets in general. But we are
• 1:30
  Speaker 1: definitely entering a new monetary policy now. I think that
• 1:33
  Speaker 1: will be the lead out going forward. Most people were
• 1:35
  Speaker 1: just saying, why is this happening? Most likely it looks
• 1:38
  Speaker 1: like a lot of this was based on leverage. Many
• 1:41
  Speaker 1: people will get frothy, the market likes to retrace those
• 1:45
  Speaker 1: and I think that's essentially what's been going on. If
• 1:48
  Speaker 1: you look at this right here, a billion of worth
• 1:50
  Speaker 1: of crypto lungs were liquidated just in the past thirty
• 1:53
  Speaker 1: and this happened on the twenty second and early in
• 1:56
  Speaker 1: the day, so people were moving overnight on this. We
• 2:00
  Speaker 1: look at just in general, now we've got a lot
• 2:02
  Speaker 1: of tether starting to be minted. So are we in
• 2:05
  Speaker 1: a position where people are prepping to go in and
• 2:07
  Speaker 1: start to purchase, Well, some of them have already started
• 2:10
  Speaker 1: to purchase as of today. And if you look at
• 2:13
  Speaker 1: just the all coin season and the fear and greed
• 2:16
  Speaker 1: side of things, you can kind of see right there,
• 2:18
  Speaker 1: fear reed holding in at neutral right now, even though
• 2:22
  Speaker 1: the market is still significantly up overall, but holding at
• 2:26
  Speaker 1: neutral right now. If you look at the CNN fear
• 2:29
  Speaker 1: and greed, this is on traditional markets. Greed is still
• 2:32
  Speaker 1: on top, and of course that's in alignment with what
• 2:35
  Speaker 1: traditional assets are doing out there. From the treasury side
• 2:38
  Speaker 1: of things. Other things I want to hit on is
• 2:41
  Speaker 1: this right here, BnB smashes a record. This of course
• 2:44
  Speaker 1: is building around CZ's political lifeline. And this all comes
• 2:47
  Speaker 1: from the potential of Donald Trump doing something a little
• 2:51
  Speaker 1: bit unusual, and that is could we.
• 2:53
  Speaker 2: See a pardon for CZ?
• 2:56
  Speaker 1: Now, there is a lot of interesting connections to c
• 3:00
  Speaker 1: B and B and we're a liberty finance and that's
• 3:04
  Speaker 1: something that you have to pay attention to because we're
• 3:07
  Speaker 1: a liberty five as now, they're the single largest asset
• 3:11
  Speaker 1: within the finance ecosystem, largely due to a two billion
• 3:14
  Speaker 1: dollar investment routed through Trump's USD one stable coin. And
• 3:19
  Speaker 1: remember B and B or Binance got in trouble for
• 3:22
  Speaker 1: this working on the tether side of things. So take
• 3:25
  Speaker 1: it for what it is, understand where these things are going,
• 3:28
  Speaker 1: and then step back and kind of understand why the
• 3:31
  Speaker 1: markets are moving in that direction, and you start to
• 3:33
  Speaker 1: kind of open your.
• 3:34
  Speaker 2: Eyes a little bit.
• 3:35
  Speaker 1: If you look at the polymarket on this will Trump
• 3:39
  Speaker 1: pardon CZ, it's kind of trending down. I think this
• 3:44
  Speaker 1: might be wrong. I think he might pull it off
• 3:46
  Speaker 1: and actually do one. If he does, this is the
• 3:49
  Speaker 1: potential of who gets a pardon, even though the percentage
• 3:51
  Speaker 1: is based on that. You have Roger verin their Steve Bannon,
• 3:55
  Speaker 1: Santos is in there, Eric Adams, etc. But point being
• 3:58
  Speaker 1: is that I'm surprised Bankman freed seven percent on that one.
• 4:02
  Speaker 1: I don't think that would be a different one. But
• 4:04
  Speaker 1: CZ forty two percent, even though the overall piece is
• 4:09
  Speaker 1: trending down. Let me know what you guys think of
• 4:11
  Speaker 1: we're LIBERTYFI in the comments. I'm just kind of curious
• 4:13
  Speaker 1: on your input. This looks a little sketchy and when
• 4:18
  Speaker 1: you see sketch, sometimes you just have to call it
• 4:20
  Speaker 1: out for what it is. Other things you have to
• 4:22
  Speaker 1: look at right now is where the market is starting
• 4:24
  Speaker 1: to trend to Warren Buffett's indicator hits two hundred and
• 4:27
  Speaker 1: twenty percent for the first time in history. Stock market
• 4:30
  Speaker 1: topped at one hundred and ninety during the dot Com bomb,
• 4:34
  Speaker 1: and I think that's an interesting point to look at now. Granted,
• 4:38
  Speaker 1: everybody will say, well, that was a different time, Paul, Yes,
• 4:42
  Speaker 1: timing was a little different. Yes, you could look at
• 4:45
  Speaker 1: inflationary capture as being a part of how the market
• 4:48
  Speaker 1: is up. And yes, that would be a you know,
• 4:51
  Speaker 1: maybe a comparison there, because many people would look at
• 4:54
  Speaker 1: where we are right now, it's maybe like nineteen ninety
• 4:56
  Speaker 1: six ninety seven, which was where we were just getting started,
• 5:00
  Speaker 1: which would go to a very frothy, over the top
• 5:03
  Speaker 1: market that ended in two thousands.
• 5:05
  Speaker 2: So that I do agree with.
• 5:07
  Speaker 1: The Other thing that gets a little scary is the
• 5:09
  Speaker 1: US housing market now has reached its most unaffordable level
• 5:13
  Speaker 1: in history. And Guys, this is the first time. I
• 5:15
  Speaker 1: think I say this a lot on my X account,
• 5:19
  Speaker 1: but I'm gonna say it here as well. And I
• 5:21
  Speaker 1: think that it is time to move away from real estate.
• 5:26
  Speaker 1: I don't know that this is unless we see a
• 5:29
  Speaker 1: major retracement in the market to at least get back
• 5:33
  Speaker 1: to housing prices that were somewhat affordable. I just don't
• 5:37
  Speaker 1: know how you could buy the top here in any
• 5:40
  Speaker 1: store of value and look at real estate. I think
• 5:43
  Speaker 1: digital assets are the only way, and for the young
• 5:44
  Speaker 1: people that are under forty. Not financial advice, but I
• 5:47
  Speaker 1: think this is the only route is digital assets. Buying
• 5:50
  Speaker 1: a home is definitely not going to be in the
• 5:52
  Speaker 1: cards until we see a reset of the market. Now
• 5:55
  Speaker 1: that's very possible that it could happen. I want to
• 5:58
  Speaker 1: go to a clip real quick because this clip will
• 5:59
  Speaker 1: get into whether or not this is the top. This
• 6:03
  Speaker 1: is Rabul Paul and Hit one of his research team
• 6:05
  Speaker 1: take a lot.
• 6:06
  Speaker 2: There's so much fear in the space, and I guess
• 6:09
  Speaker 2: we start at top level. Where the hell are we?
• 6:12
  Speaker 3: It just feels like the scars issue from the last cycle,
• 6:16
  Speaker 3: which we all felt is manifesting in a lot of
• 6:19
  Speaker 3: the commentary that's coming through at the moment. It's a
• 6:21
  Speaker 3: four year cycle. This is when it has to end. Therefore,
• 6:25
  Speaker 3: it will you know, last cycle it was like to
• 6:27
  Speaker 3: the moon forever.
• 6:28
  Speaker 2: So even I failed in the last cycle because I
• 6:30
  Speaker 2: thought there was another leg to go.
• 6:32
  Speaker 3: You know that there are frameworks out there that are
• 6:35
  Speaker 3: credible that should say that you know, this is you
• 6:38
  Speaker 3: know time when things start to get you know, pikish.
• 6:42
  Speaker 3: But we haven't had the typical business cycle. There is
• 6:46
  Speaker 3: definitely definitely trend exhaustion signals in the bitcoin chart, but
• 6:52
  Speaker 3: I think that's a function more of the transition into
• 6:56
  Speaker 3: higher beta crypto through eighth high quality alts, not you know,
• 7:03
  Speaker 3: a dash for trash sort of market that we saw
• 7:06
  Speaker 3: in twenty twenty one when people are getting stimulus checks,
• 7:09
  Speaker 3: but a high quality alt season run at the moment.
• 7:12
  Speaker 3: So that's kind of where I'm at all right, And
• 7:15
  Speaker 3: I would.
• 7:15
  Speaker 1: Say that is similar to our theory is that the
• 7:18
  Speaker 1: high quality alts are most likely going to be the
• 7:21
  Speaker 1: winners here. Now, there's going to be a handful of
• 7:25
  Speaker 1: rare tokens out there that are going to see ten
• 7:27
  Speaker 1: x moves, twenty x, fifty x moves. Yeah, there are
• 7:30
  Speaker 1: those always. But the problem is is back in twenty
• 7:33
  Speaker 1: twenty one, there was a lot of those that you
• 7:34
  Speaker 1: could win on. In fact, you could almost throw a
• 7:37
  Speaker 1: kind of a pin the tail on a docking type
• 7:38
  Speaker 1: of thing and hit on a lot of these. We
• 7:41
  Speaker 1: had a whole slew of those Dejon tokens. I don't
• 7:44
  Speaker 1: necessarily see that being the case this time around. I
• 7:46
  Speaker 1: think we will see more structured capital coming in that's
• 7:49
  Speaker 1: going to stay on the high end of where we
• 7:52
  Speaker 1: see the market watch these blue chips, those are the
• 7:55
  Speaker 1: ones to pay attention to. Sailor, of course, is buying
• 7:58
  Speaker 1: the dip right now, and he buys eight hundred and
• 8:01
  Speaker 1: fifty bit coin worth another ninety six million. You look
• 8:04
  Speaker 1: over here, Meta Planet buying another four and nineteen bitcoin
• 8:08
  Speaker 1: worth six hundred and thirty three million, out doing Sailor
• 8:11
  Speaker 1: there on that purchase.
• 8:12
  Speaker 2: So you can.
• 8:13
  Speaker 1: See there are people out there that are going after
• 8:16
  Speaker 1: this dip because these dips don't necessarily come often, and
• 8:19
  Speaker 1: this is an opportunity, especially if you're brand new to crypto,
• 8:23
  Speaker 1: maybe today is the good day to enter. Anytime you
• 8:26
  Speaker 1: see red in the market like this and you're brand
• 8:28
  Speaker 1: new to something, don't assume that that's a bad thing.
• 8:31
  Speaker 2: It might actually be a good thing.
• 8:32
  Speaker 1: And we're setting in a position right now where you
• 8:35
  Speaker 1: could start to grab up a lot of these high
• 8:38
  Speaker 1: quality alts and start to position overall for the next
• 8:42
  Speaker 1: leg up. Eth of course faces its biggest liquidation. This
• 8:46
  Speaker 1: was a cascade since twenty twenty one. A couple of
• 8:48
  Speaker 1: points within this if you look at just what people
• 8:52
  Speaker 1: are doing when ETH is dipping down at this point,
• 8:55
  Speaker 1: I think a lot of people are now starting to
• 8:58
  Speaker 1: look at ethereum as a definite possibility of a retracement up.
• 9:03
  Speaker 1: And I think this is the key right here, because
• 9:05
  Speaker 1: remember last week we actually showed a couple of tweets
• 9:08
  Speaker 1: of Tom Lee and his research team and they were
• 9:10
  Speaker 1: talking about this issue of around forty two hundred being
• 9:13
  Speaker 1: the potential of where we could see a retracement to.
• 9:17
  Speaker 1: Is that what we're seeing right now as we start
• 9:20
  Speaker 1: to lead into ethereum going to its next level. If
• 9:22
  Speaker 1: you look at the strategic reserve, what I've done here
• 9:25
  Speaker 1: is I've just popped this out on the chart, and
• 9:27
  Speaker 1: that big orange bubble right there, well, that's Tom Lee
• 9:31
  Speaker 1: and Bitminor going in and grabbing a whole ton of it.
• 9:34
  Speaker 1: You can kind of see it right there. Two in
• 9:36
  Speaker 1: sixty four thousand in ethereum just in the past week.
• 9:40
  Speaker 1: So continuing to stack tokens. And if you look at
• 9:43
  Speaker 1: this right now, Bitmin's Ethereum holdings now top two percent
• 9:46
  Speaker 1: of the supply with two point four million eighth and
• 9:49
  Speaker 1: they're trying to get to five percent of the supply,
• 9:51
  Speaker 1: which would be unbelievable in terms of value overall. And
• 9:56
  Speaker 1: I think this is something to keep a close eye on,
• 9:59
  Speaker 1: which is why I think we'll see these high quality
• 10:02
  Speaker 1: alts continue to run. Ethereum does it see its way
• 10:05
  Speaker 1: into seven k or even a ten K position toward
• 10:08
  Speaker 1: the end of the year. Tom Lee is pointing at
• 10:10
  Speaker 1: an over two hundred k bitcoin by end of year.
• 10:14
  Speaker 1: It's still early, guys, it's still September. We haven't seen
• 10:17
  Speaker 1: quarter four start, so this is just a lull in
• 10:21
  Speaker 1: the market.
• 10:22
  Speaker 2: Get ready.
• 10:22
  Speaker 1: I think we're going to see some moves. Stocks just
• 10:25
  Speaker 1: saw and here's one reason. Stocks just saw its largest
• 10:28
  Speaker 1: weekly infull inflow all year from retail investment. So we
• 10:33
  Speaker 1: do see retail starting to rotate in and as we
• 10:36
  Speaker 1: start to see all time highs on the S and
• 10:38
  Speaker 1: P five hundred, once we see replacement on that and
• 10:41
  Speaker 1: profits are taken, they'll be looking for risk markets. That
• 10:44
  Speaker 1: is where you might start to see some of these
• 10:47
  Speaker 1: mid caps which kind of correlate to all coins going forward.
• 10:51
  Speaker 1: Another big news item was this right here, and this
• 10:55
  Speaker 1: was Agriforce. This is basically they're launching as a Avalanche
• 10:59
  Speaker 1: focus company for a dat so a digital asset treasury.
• 11:03
  Speaker 1: The interesting point behind this this is all led by
• 11:06
  Speaker 1: not only Scaramucci, but it's also led by KKR, JP, Morgan, Chase, Apollo.
• 11:13
  Speaker 1: And remember you've got a lot going on here because
• 11:17
  Speaker 1: there is a lot of connection. If I go further
• 11:20
  Speaker 1: in the article right here, fifty institutional crypto native investors
• 11:23
  Speaker 1: including Parafig, Galaxy, DCG, Crack, and CIDE for I mean,
• 11:28
  Speaker 1: you see the list right there. The point being is
• 11:30
  Speaker 1: that Anthony Scaramucci is in a position right now with
• 11:33
  Speaker 1: Skybridge to potentially line up.
• 11:36
  Speaker 2: To a huge move for Avalanche.
• 11:39
  Speaker 1: This could be the biggest one ever and maybe this
• 11:42
  Speaker 1: is the one that actually starts to win on the
• 11:46
  Speaker 1: secondary ETFs and also on the secondary digital asset treasuries.
• 11:50
  Speaker 1: I'm watching Avalanche in a big way because maybe finally
• 11:54
  Speaker 1: we're starting to see some movements here. I want to
• 11:56
  Speaker 1: go to the clip that Anthony Scaramucci talks about Avalanche
• 12:00
  Speaker 1: trying to explain it listen to what.
• 12:02
  Speaker 2: He had to say. Avax one.
• 12:04
  Speaker 3: That's a company aiming to maximize ownership of avax, which
• 12:07
  Speaker 3: is a native token of avalanches to confuse you a
• 12:10
  Speaker 3: little more of the blockchain used by black Rock and Visa.
• 12:14
  Speaker 4: And we're going to have a digital asset treasury for Avalanche.
• 12:18
  Speaker 4: It's a smaller token in terms of market capital.
• 12:20
  Speaker 2: Letter to the bigger ones, but lots.
• 12:22
  Speaker 4: Of big corporate CTOs andrew are picking up Avalanche as
• 12:27
  Speaker 4: part of their story to tokenize their funds. They have
• 12:30
  Speaker 4: something called subnets so that you can do some customization
• 12:34
  Speaker 4: on the chain through the contract layering.
• 12:37
  Speaker 3: They've fallen a bit, but obviously they were on a
• 12:39
  Speaker 3: run also.
• 12:40
  Speaker 4: Yeah, listen, September is the worst typically the worst month
• 12:43
  Speaker 4: for the cryptocurrency businesses. Some of it has to do
• 12:46
  Speaker 4: with tax selling. You'll see November into December I think
• 12:50
  Speaker 4: being good buying periods and still a tremendous amount of
• 12:54
  Speaker 4: demand for the assets. Remember you guys were kind enough
• 12:56
  Speaker 4: to bring me on the show in October twenty twenty
• 13:00
  Speaker 4: where we made our first bitcoin investment, and it was
• 13:02
  Speaker 4: around twenty thousand, and people ambased us and said that
• 13:06
  Speaker 4: it was Internet magic money.
• 13:09
  Speaker 1: All right, So one thing that you'll notice, you know,
• 13:10
  Speaker 1: his performance on bitcoin very good. They didn't necessarily get
• 13:14
  Speaker 1: in line with what was happening with Slanna, But I
• 13:16
  Speaker 1: think he might be onto something here with Avalanche because
• 13:18
  Speaker 1: he's opening up a new market that hasn't existed and
• 13:21
  Speaker 1: that's kind of the uniqueness here for Skybridge. So that
• 13:25
  Speaker 1: could be a very positive thing for a lot of
• 13:27
  Speaker 1: investors starting to go into this. So let me know
• 13:29
  Speaker 1: in the comments what you guys would do. How would
• 13:31
  Speaker 1: you play this out? Would you go into a digital
• 13:33
  Speaker 1: asset treasure company like this one? Would you go after
• 13:36
  Speaker 1: the token, go after you know, chasing yields? How would
• 13:39
  Speaker 1: you create a strategy? Other things that could start to
• 13:42
  Speaker 1: move the market is this speech right here. Even though
• 13:45
  Speaker 1: that datement or that date is a few days ago,
• 13:49
  Speaker 1: this is actually happening tomorrow.
• 13:50
  Speaker 2: So when j.
• 13:52
  Speaker 1: Powell delivers his speech, there's two things that could happen here, guys.
• 13:56
  Speaker 2: He could get a little bit.
• 13:57
  Speaker 1: More hawkish, or he could come in and say, you know,
• 14:01
  Speaker 1: I'm feeling pretty good. The market is in a position
• 14:03
  Speaker 1: where I think we're ready. And if that happens, meaning
• 14:06
  Speaker 1: he's more dubbish on the potential of us seeing more
• 14:09
  Speaker 1: rate cuts which would solidify October. Then this would move markets,
• 14:15
  Speaker 1: and maybe that is the kind of thing that we
• 14:17
  Speaker 1: will see to help spin this around at least in
• 14:20
  Speaker 1: the short term. All right, So just think about that, guys,
• 14:22
  Speaker 1: because we are dealing with a lot of variables in
• 14:25
  Speaker 1: the market. I think Powell is going to position. We
• 14:29
  Speaker 1: are also looking at all time high on gold, all
• 14:32
  Speaker 1: time high on S and P. This is going to
• 14:35
  Speaker 1: see some rotation and I think we're in for a
• 14:37
  Speaker 1: last leg. So let's just see how this plays out
• 14:40
  Speaker 1: in through the end of September. Is October really the
• 14:44
  Speaker 1: month where we could see unbelievable gains? And then how
• 14:47
  Speaker 1: would you play that? I think that's the question mark
• 14:49
  Speaker 1: that everybody has is how do you play this out
• 14:52
  Speaker 1: toward the end of the year.
• 14:53
  Speaker 2: When do you take profits? Let me know in the comments.
• 14:55
  Speaker 1: If you guys are not part of the Diamond Circle,
• 14:57
  Speaker 1: make sure and get in on that right now. Just
• 14:59
  Speaker 1: visit at paulbaronnetwork dot com. You can sign up for free.
• 15:03
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• 15:07
  Speaker 1: it's an email to you guys, we drop additional research.
• 15:10
  Speaker 1: I also give you some insights, ask to how I'm
• 15:11
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• 15:14
  Speaker 1: on x at Paul Baron. We'll catch you next time
• 15:16
  Speaker 1: right here on The Paul Baron Show.