Latest / CRYPTO 101 / Crypto Rundown: The $600 BILLION Dollar Catalyst for the Crypto Sell-Off

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Crypto Rundown: The $600 BILLION Dollar Catalyst for the Crypto Sell-Off · CRYPTO 101

• 0:09
  [SPEAKER_00]: all right everybody welcome back to the crypto one down happy Tuesday to everybody we have some red in the market uh we have some overseas bloodbath in the Asian markets almost six hundred billion dollars wiped out from Asian markets and we're seeing that sell off reach the states specifically uh attacking crypto here as uh I saw a tweet just from Tom Lee before we hopped on saying you know obviously the Koreans have a lot of exposure to crypto and we've seen uh
• 0:37
  [SPEAKER_00]: We've seen a lot of blood from bloodbath from Koreans trading the the leveraged ETFs around the AI trade.
• 0:45
  [SPEAKER_00]: We covered that and they had to enact a lawbrend and banning these, you know, three, four, X leverage ETFs because people were getting wiped out and it was some of the biggest margin calls the countries ever seen.
• 0:56
  [SPEAKER_00]: So,
• 0:56
  [SPEAKER_00]: Another bloody day it seems in the Asian markets, leaking over to crypto.
• 1:02
  [SPEAKER_00]: Give us a hot take on this.
• 1:03
  [SPEAKER_00]: Welcome back to the show and then I know you're going to pull up the charts and give us some technical analysis.
• 1:07
  [SPEAKER_00]: Let us know where Bitcoin and Ethereum and crypto is heading next.
• 1:11
  [SPEAKER_00]: What's the next move?
• 1:11
  [SPEAKER_00]: But welcome back to the show, Brendan.
• 1:14
  [SPEAKER_01]: Yeah, good to be back, good to see all of you.
• 1:16
  [SPEAKER_01]: Everyone out there, we're glad to have you on this Toasty Tuesday morning.
• 1:21
  [SPEAKER_01]: I can say Toasty.
• 1:22
  [SPEAKER_01]: I know it's certainly getting colder on the country, but Tivo and I aren't far to.
• 1:26
  [SPEAKER_01]: So it's not tell you what, that it's still a little Toasty here.
• 1:30
  [SPEAKER_01]: But, you know, the crypto market, Tivo, you're right, getting some of the ripple effects from this.
• 1:36
  [SPEAKER_01]: I saw a lot of people asking, saying, guys,
• 1:38
  [SPEAKER_01]: Crypto's looking good, it was looking hot, we were squeezing up into those highs on Bitcoin and a lot of other cryptos as well.
• 1:46
  [SPEAKER_01]: And then all of a sudden, it felt like the floor was kind of ripped out from underneath us.
• 1:50
  [SPEAKER_01]: And this was like one of the big catalysts.
• 1:52
  [SPEAKER_01]: What you started to see was the Asian market's really start to get mass liquidations, see some huge downside moves.
• 2:00
  [SPEAKER_01]: You saw some fear coming in and with that.
• 2:03
  [SPEAKER_01]: I mean, you have it right here $600 billion
• 2:09
  [SPEAKER_01]: And, you know, the cost be over there is the big one, right?
• 2:12
  [SPEAKER_01]: The South Korean exchange, 7% to the downside is a pretty gnarly move to have over the course of about a day or so.
• 2:21
  [SPEAKER_01]: You can see Taiwan and the other ones around there, you know, down one and a half, two and a half, one percent.
• 2:27
  [SPEAKER_01]: It's a lot of value that's being drained and obviously they're big into crypto.
• 2:32
  [SPEAKER_01]: And when you're looking at the Asian markets as a whole, right?
• 2:35
  [SPEAKER_01]: If you're seeing huge sell-offs there,
• 2:37
  [SPEAKER_01]: They're heavy in the tech and those ripple effects kind of work their way through the risk asset pool and crypto sitting at the top of that risk on asset pool is going to be a little bit affected by something like this.
• 2:50
  [SPEAKER_01]: the good news is that nothing is fundamentally wrong with crypto.
• 2:54
  [SPEAKER_01]: There's no gigantic hack that just happened.
• 2:57
  [SPEAKER_01]: There's no huge lawsuit.
• 2:59
  [SPEAKER_01]: There's no cryptocurrency being banned.
• 3:02
  [SPEAKER_01]: There's not the end of tokenization.
• 3:04
  [SPEAKER_01]: In fact, as we'll talk about it here in just a little bit.
• 3:08
  [SPEAKER_01]: It's accelerating at a really, really rapid rate.
• 3:10
  [SPEAKER_01]: We have a lot of tokenization based stuff to talk about.
• 3:13
  [SPEAKER_01]: But the crypto market here is seemingly stronger than ever.
• 3:16
  [SPEAKER_01]: And what you're getting is just a sell-off because of fear from other sectors, which I think is presented a really good buying opportunity.
• 3:24
  [SPEAKER_01]: I know I've been looking at this again.
• 3:26
  [SPEAKER_01]: You know, I'm a trader, so I like to play this both ways, but I'll tell you what, the one thing that I think all of us agree on over here is that we're very bullish on the long term future of the crypto market regardless of what happens in the short term.
• 3:41
  [SPEAKER_01]: But yeah, there's that fear and greed index to you, though, coming back.
• 3:45
  [SPEAKER_01]: Yeah, you troll to you.
• 3:47
  [SPEAKER_00]: Finally, a neutral, and I think with this move today, it's going to even creep closer to that 50, maybe even hit 49, if you will, and then I pulled the other one that we like to look at the alternative.
• 3:58
  [SPEAKER_00]: Still in greed, but I think after today, that's going to tick down into neutral.
• 4:04
  [SPEAKER_00]: So again, a good space to again, take a full look at your strategy, a full look, you know, at the education you're getting the research you're getting and again, I think we kind of
• 4:17
  [SPEAKER_00]: hammered this home is you know if you're not seeing the price action you want and you tune out well that's where you're missing the opportunities of all the people that you know we're sticking with us through the you know the late uh winter spring and summer and then we saw that rocket of a move up uh into August and September you know that's because you put in the work.
• 4:37
  [SPEAKER_00]: So don't leave us now, and if you're interested where we think the opportunity might be with this pullout, we do have some research from Brendan Bryce and the rest of the team that we're doing especially if you guys want to check the link below.
• 4:47
  [SPEAKER_00]: For the number one coin to own right now, it's a research team put together.
• 4:53
  [SPEAKER_00]: It's good time to check it out now that we're having a pullback.
• 4:55
  [SPEAKER_00]: You can, you know, again, if you do your own research and then like what you see, you know, might be a good time to jump in.
• 5:01
  [SPEAKER_00]: So Brandon, with that said, show us the way, show us the way my shaman pull up these charts.
• 5:06
  [SPEAKER_00]: Let's see what's going on like we said, we're getting some effects from the Asian markets, but let's see where we are technically.
• 5:14
  [SPEAKER_01]: Yeah, I mean, definitely have gotten some sell off over here, right?
• 5:18
  [SPEAKER_01]: Bitcoin pulling back off of this $87,000 level.
• 5:22
  [SPEAKER_01]: I mean, you saw Bitcoin hit it once, come down, hit it twice, come down, hit it a third dime, come down, hit it a fourth time, and then this is when you saw that deeper scarier roll over happened, you had Bitcoin moving down.
• 5:36
  [SPEAKER_01]: About seven and a half to eight percent here, over about a three-day window, three to four-day window here.
• 5:43
  [SPEAKER_01]: I think that's what scared people is that you got such a quick drop out of something that was seemingly looking like it wanted to push higher.
• 5:50
  [SPEAKER_01]: You kind of had the floor ripped out.
• 5:52
  [SPEAKER_01]: It had about an eight percent pullback.
• 5:54
  [SPEAKER_01]: back down to the prior highs, back down to the 50-day moving average.
• 5:58
  [SPEAKER_01]: And you did get a bounce here.
• 6:00
  [SPEAKER_01]: Now, one of the things I've been keeping and I out on TV is that now that we're beneath this 20-day moving average, you know, I want to see this break above here, right?
• 6:08
  [SPEAKER_01]: I don't like to reject the moving averages.
• 6:10
  [SPEAKER_01]: I don't like the clothes below them.
• 6:12
  [SPEAKER_01]: I like to see us using them as support.
• 6:14
  [SPEAKER_01]: I won't say that this is like an end-all situation because
• 6:17
  [SPEAKER_01]: We saw something similar happen here, and what do you know, right?
• 6:20
  [SPEAKER_01]: We had a huge candle come out of it despite us kind of rejecting the 20.
• 6:25
  [SPEAKER_01]: So the 20 probably the most insignificant of the moving averages, right?
• 6:30
  [SPEAKER_01]: It's the weakest, it's the shortest, but I want to watch here to see, hey, can we close back above this or can we get rejections?
• 6:36
  [SPEAKER_01]: I like the lower high coming in from here to here, or excuse me, the higher low coming in from here to here on Bitcoin.
• 6:45
  [SPEAKER_01]: I think that's good, I think the number one thing that we want to watch out for moving forward is can we get back above this 20-day moving average around 84,000, and can we hold above these prior lows around 80 to 81,000 down in here?
• 6:59
  [SPEAKER_01]: I think if you spill to the downside, you have room to probably see a decent size move to the downside after that, back into the 70,000s, maybe even the mid 70,000s.
• 7:11
  [SPEAKER_01]: Um, but if you kind of break above here, I think you are going to be contesting those swing highs back at 87k with a real chance to break out above that and send Bitcoin back into the 90s after this.
• 7:22
  [SPEAKER_01]: So a couple of key levels to watch for again.
• 7:24
  [SPEAKER_01]: So long as we hold these lows and kind of break back above, that wins in a half decent spot.
• 7:28
  [SPEAKER_01]: I would say a really good spot.
• 7:30
  [SPEAKER_01]: But if you break these lows, that's where you're looking at retracement territory.
• 7:33
  [SPEAKER_01]: Um, and we have a really cool report that will be coming out later this week.
• 7:38
  [SPEAKER_01]: I'm sure we'll, we'll,
• 7:39
  [SPEAKER_01]: You know, run more and tell you all more about it later in the week, um, but it goes into a lot of this stuff and we spend a lot of time on that as well, um, so yeah, it's it's an exciting time for sure with Bitcoin, um, I think all eyes are on here saying, okay, can we hold here because one of the things that we talk about in this report is.
• 8:00
  [SPEAKER_01]: you know Bitcoin historically has about a dozen about 10 to 12 double digit pullbacks inside of a bull cycle and inside of a bull market and so far that's yet to be seen right we have yet to see a double digit pullback you know over here if you look at this guy.
• 8:16
  [SPEAKER_01]: This is about a six to seven percent pullback.
• 8:19
  [SPEAKER_01]: This one over here was about a 9% pullback and so far over in here.
• 8:23
  [SPEAKER_01]: This one's been about an 8% pullback or so.
• 8:27
  [SPEAKER_01]: So we're not, we have yet to have one of those double digit pullbacks, which is a pullback of 10% or more.
• 8:33
  [SPEAKER_01]: So 10 to 20%.
• 8:34
  [SPEAKER_01]: And we just haven't seen that yet.
• 8:36
  [SPEAKER_01]: And historically, we see,
• 8:38
  [SPEAKER_01]: about 10 of them inside of a bull cycle.
• 8:41
  [SPEAKER_01]: So I do like to look at those as again, really good opportunities when you get that 10, 20 plus percent pullback on Bitcoin inside of an uptrend.
• 8:50
  [SPEAKER_01]: Historically, there's been good value there so long as you obviously are in that bull market.
• 8:54
  [SPEAKER_01]: And that is one of the big things that I'm watching for.
• 8:57
  [SPEAKER_01]: So listen, I'd say crypto's health here as a whole.
• 9:01
  [SPEAKER_01]: Still fine, so long as we hold these higher lows, that's a very, very important condition.
• 9:06
  [SPEAKER_01]: The only thing I would say that, you know, again, not world-ending, but, you know, one of the things I want to see here is some of these smaller cat-cryptocurrencies in comparison to Bitcoin, still large caps, you know, Ethereum, Solana.
• 9:22
  [SPEAKER_01]: XRP, B&B, those guys, I want to see those get back above their 50 day moving averages.
• 9:28
  [SPEAKER_01]: Because similarly, you have them kind of coming up here, breaking through the 20, failing to break out, breaking down through the 20, down through the 50, and then rejecting the 50 and closing beneath it.
• 9:39
  [SPEAKER_01]: I think that's something that needs to change, right?
• 9:41
  [SPEAKER_01]: If you're a bull here, you want to see these things get back above those short term moving averages, and that would be a really, really good sign and show of strength from the bulls.
• 9:49
  [SPEAKER_01]: If you don't get that, again,
• 9:51
  [SPEAKER_01]: closing beneath the short-term moving averages is something that happens, but when it does happen, it makes me want to be a little bit more cautious.
• 10:02
  [SPEAKER_01]: If we continue to close beneath these short-term moving averages, then it makes me a little bit concerned, but if we can invalidate this bearish move and get back through them to the upside, it's a huge show of strength from the bulls.
• 10:15
  [SPEAKER_01]: So I'm going to be watching this really, really closely what I don't want to see here is kind of that death cross, where the 20 comes down over the 50.
• 10:22
  [SPEAKER_01]: But yeah, I mean, a lot to watch out for.
• 10:24
  [SPEAKER_01]: There's still big, bin, some big altcoins here to you, though, that I've been making some epic moves.
• 10:30
  [SPEAKER_01]: And so, you know, popcorn season is still in effect.
• 10:34
  [SPEAKER_01]: So it's not to say that there aren't trades.
• 10:36
  [SPEAKER_01]: But yeah, I mean, overall still I'll go in on.
• 10:40
  [SPEAKER_01]: And I'm sure we'll cover some more of this.
• 10:43
  [SPEAKER_00]: Yeah, and that's why that, you know, sticking around, getting your research diving deep, especially during popcorn season.
• 10:50
  [SPEAKER_00]: I know, you know, you fit a lot of those hunter, especially, Brian and Joe had quite a run there heading into the fall.
• 10:59
  [SPEAKER_00]: So all the more reason to go down check the links number one point on if that's not something you're interested in check the links You could be part of the community and get access to the team every single day and I say that because I don't think crypto's going anywhere I know that's what me and you believe in our whole team because she's stuff like this Morgan Stanley
• 11:16
  [SPEAKER_00]: says the tokenized asset market will become a three trillion to 10 trillion dollar market by 2030 and you know obviously 2030 it always sounds so far away but man we're more than halfway through the decade here time flies and you know obviously this tokenized asset market has a lot of things behind it i think um you know we we've said how uh you know crypto tokenized assets downstream from AI
• 11:43
  [SPEAKER_00]: on the future of AI and also 24-7 trading, which is going absolutely nowhere, which you continue to see, you know, just so many people supporting and the demand for it is there.
• 11:57
  [SPEAKER_00]: We'll go back to tokenize stocks in a second, but you brought this chart of just how much demand is out there.
• 12:03
  [SPEAKER_00]: So break this chart down first.
• 12:05
  [SPEAKER_00]: What are you seeing?
• 12:06
  [SPEAKER_00]: And then I think another
• 12:08
  [SPEAKER_00]: who where is this demand coming from is it individual investors you know that the retail investor is it you know other other people around the world is it based in the US because you know traditionally um i i kind of feel like robin was like really the first ones to offer right to the retail investor traditionally you know the retail investor would wake up and they turn on
• 12:28
  [SPEAKER_00]: You know, the the business channel at, you know, eight in the morning and they'd see stocks moving and they had no way to go in and buy it.
• 12:35
  [SPEAKER_00]: It was it was for the big boys only.
• 12:36
  [SPEAKER_00]: So obviously the innovation is changing that.
• 12:41
  [SPEAKER_01]: Yeah, I think you're right.
• 12:43
  [SPEAKER_01]: It is changing and this is where everyone's looking, right?
• 12:47
  [SPEAKER_01]: Everyone's looking at tokenization.
• 12:49
  [SPEAKER_01]: This is the chart that that really put me on here because it all stems from what people want.
• 12:57
  [SPEAKER_01]: The big asset managers, the big banks, the big financial players, call whatever you want, all of the above.
• 13:03
  [SPEAKER_01]: their job in the financial market, one of their jobs, is to understand what people want and how they can best service that.
• 13:10
  [SPEAKER_01]: This is a really telling chart where it shows us, right?
• 13:15
  [SPEAKER_01]: What people are looking for.
• 13:17
  [SPEAKER_01]: And it says like, investor demand for this thing is skyrocketing.
• 13:21
  [SPEAKER_01]: The almost 70% of investors, right?
• 13:26
  [SPEAKER_01]: Of people saying, hey, we want this, which is fascinating.
• 13:32
  [SPEAKER_01]: So, or excuse me, I think I read that a little bit wrong, but you guys know what I'm saying.
• 13:35
  [SPEAKER_01]: The vast majority of people here regard this want to be able to trade.
• 13:39
  [SPEAKER_01]: And what you're seeing here is that people are trading after hours.
• 13:42
  [SPEAKER_01]: That's what this chart is showing.
• 13:43
  [SPEAKER_01]: People are trading after hours.
• 13:45
  [SPEAKER_01]: They want to be able to do this.
• 13:47
  [SPEAKER_01]: And people have been doing this in crypto.
• 13:49
  [SPEAKER_01]: There's a reason when you see all these different geopolitical conflicts or, you know,
• 13:54
  [SPEAKER_01]: things that are happening around the world that are outside of the stock market's normal trading hours, people will trade exposure to those.
• 14:01
  [SPEAKER_01]: They used to just do it with Bitcoin and the crypto market and altcoins.
• 14:04
  [SPEAKER_01]: Then it expanded with hyper liquid in some of these other players, where they could trade a lot of different products, including equities and commodities and indices and all these different things, and they could trade those through hyper liquid or through some of these decentralized exchanges.
• 14:18
  [SPEAKER_01]: Now it's gotten to the point
• 14:20
  [SPEAKER_01]: where some of the centralized exchanges have also started offering trading outside of normal hours, but not through the weekends.
• 14:28
  [SPEAKER_01]: And then now we're getting to the point where even like the NASDAQ and New York Stock Exchange are saying, hey, we understand that this is what people want.
• 14:37
  [SPEAKER_01]: And a lot of these these big financial players understand this as well.
• 14:41
  [SPEAKER_01]: And now you're seeing this huge push for tokenization.
• 14:45
  [SPEAKER_01]: And I've
• 14:46
  [SPEAKER_01]: frame this as a win win, because as investors and traders, we get to trade things 24 seven.
• 14:52
  [SPEAKER_01]: That's something that excites me.
• 14:54
  [SPEAKER_01]: I don't know about all of you out there.
• 14:56
  [SPEAKER_01]: It's funny.
• 14:56
  [SPEAKER_01]: I've seen a lot of people on X really, really dislike the idea of 24 seven trading, which I can't wrap my head around.
• 15:03
  [SPEAKER_01]: You know, I think some people just like to complain.
• 15:08
  [SPEAKER_01]: But what I will say is I think it's a win-win.
• 15:10
  [SPEAKER_01]: We get more exposure to things that we want.
• 15:13
  [SPEAKER_01]: You get more exposure with tokenization.
• 15:15
  [SPEAKER_01]: You get it whenever you want.
• 15:16
  [SPEAKER_01]: You can trade things at any point, any time, any holiday doesn't matter through the weekends.
• 15:22
  [SPEAKER_01]: And you're still able to kind of adjust risk or increase it.
• 15:26
  [SPEAKER_01]: And...
• 15:28
  [SPEAKER_01]: for the people that are managing this stuff, will they benefit too?
• 15:31
  [SPEAKER_01]: Because if you're going to be able to trade 24-7, you're going to be able to collect more fees.
• 15:35
  [SPEAKER_01]: They win, I think we win.
• 15:38
  [SPEAKER_01]: It's something that I'm excited about.
• 15:39
  [SPEAKER_01]: And so what's the backbone for all of this Tvel?
• 15:42
  [SPEAKER_01]: Well, it would be trading those after hours, which is, again, something I think a lot of people want.
• 15:49
  [SPEAKER_01]: And you've seen this overflow from just being a crypto-based thing to now really getting a big push
• 15:55
  [SPEAKER_01]: You know, we'll talk more about these tokenization numbers.
• 15:57
  [SPEAKER_01]: But I think that's what Morgan Stanley's seeing.
• 16:01
  [SPEAKER_01]: That's what a lot of these other group big groups are seeing.
• 16:03
  [SPEAKER_01]: And I was just funny.
• 16:04
  [SPEAKER_01]: I was just looking at the tokenization numbers a little bit earlier.
• 16:10
  [SPEAKER_01]: And you know, they're basically shooting up here to all-time highs, right?
• 16:15
  [SPEAKER_01]: You look at different metrics and stuff.
• 16:17
  [SPEAKER_01]: You look at, you know, different tokenized holders and how many of them there are.
• 16:23
  [SPEAKER_01]: what's being tokenized, and it's growing at an exceptional rate, especially in the last one to two years, no matter what timeframe you look at.
• 16:32
  [SPEAKER_01]: Through a time period where I think most people have been somewhat bearish on the crypto market, it's still seeing astronomical growth, which is again fairly surprising to a lot of people because of how, how,
• 16:48
  [SPEAKER_00]: Yeah, and one of those that we just keep seeing Pippiparebolic is base.
• 16:55
  [SPEAKER_00]: So again, this month alone, there was four to 40 to then 250 stocks available on base.
• 17:01
  [SPEAKER_00]: That's Jesse Pollock there.
• 17:03
  [SPEAKER_00]: I give it a presentation on it, and then Coinbase tokenized stocks, and now passed.
• 17:08
  [SPEAKER_00]: two billion dollars in trading.
• 17:10
  [SPEAKER_00]: The first billion took one month, the second billion took about two weeks, half the time.
• 17:16
  [SPEAKER_00]: So the ramp, the ramp up of this is definitely something to see.
• 17:22
  [SPEAKER_00]: And again, we're having to work on this and many others now because the SEC
• 17:27
  [SPEAKER_00]: laid down that foundation of saying hey here's here's the the example you know the clarity act didn't get voted in but then the SEC laid out the rules and said hey if you'd like to follow a framework here's the framework to follow and so I think a lot of people are going to opt into that and then again maybe the clarity act gets a second look after election season November 5th
• 17:50
  [SPEAKER_00]: you know, maybe the end of the year, maybe after you'll get revisited, see if we get some bipartisan support, but as we've been covering it, I don't want to say it doesn't matter, but there's there's framework in place between the CFTC and the SEC that's allowing this tokenization effort to move forward.
• 18:05
  [SPEAKER_01]: One of our guests that we just had on our on our podcast for all those, and I see literally you said it doesn't matter, right?
• 18:11
  [SPEAKER_01]: Um,
• 18:13
  [SPEAKER_01]: Again, would we go that far, maybe not?
• 18:14
  [SPEAKER_01]: But he's, he'll tell you what, he may in a good point.
• 18:18
  [SPEAKER_01]: And this is coming from someone who is the former CFTC chairman.
• 18:21
  [SPEAKER_01]: And he's like, I don't think it matters.
• 18:24
  [SPEAKER_01]: And he explained to us again, if you haven't listened to podcasts, fantastic one.
• 18:28
  [SPEAKER_01]: I believe we put it out yet, too, though.
• 18:30
  [SPEAKER_01]: I think we have.
• 18:31
  [SPEAKER_00]: Yes, as Christopher John Carloe, if you haven't, and it's the second time he's been on.
• 18:35
  [SPEAKER_00]: So we've talked about it a lot.
• 18:36
  [SPEAKER_00]: How that was the first time, Bryce and I went to the out east conference at the tie in July and then middle July and he kind of laid out that thesis that it doesn't matter.
• 18:47
  [SPEAKER_00]: He's not worried and then you know, that whole
• 18:51
  [SPEAKER_00]: thesis played out.
• 18:52
  [SPEAKER_00]: The Clarity Act didn't pass.
• 18:53
  [SPEAKER_00]: Crypto retire.
• 18:55
  [SPEAKER_00]: And then he came back and joined us to give us an update.
• 18:58
  [SPEAKER_00]: So definitely worth going back.
• 18:59
  [SPEAKER_00]: We've had a couple good pods recently.
• 19:02
  [SPEAKER_00]: So, you know, obviously, you know, just the channel has been been active really active.
• 19:07
  [SPEAKER_01]: Yeah, it has.
• 19:09
  [SPEAKER_01]: Yeah, listen, these coin-based numbers too are super impressive.
• 19:13
  [SPEAKER_01]: The first $1 billion here when it comes to coin-based tokenized stocks took them one month and then they're looking at the next $1 billion, the second one billion dollars coming in took half the time.
• 19:27
  [SPEAKER_01]: Again, this stuff is growing, right?
• 19:30
  [SPEAKER_01]: The numbers speak for themselves.
• 19:32
  [SPEAKER_01]: You have to be excited.
• 19:35
  [SPEAKER_01]: Um, aerodrome here, continuing to crush it.
• 19:37
  [SPEAKER_01]: They had that big partnership come out.
• 19:39
  [SPEAKER_01]: I should have attached a link to that.
• 19:41
  [SPEAKER_01]: So that's on me, Tvo.
• 19:42
  [SPEAKER_01]: But they had that big news announcement and partnership and stuff come out.
• 19:48
  [SPEAKER_01]: Um, and they had that big update.
• 19:49
  [SPEAKER_01]: And I know that they were basically pushing pretty high up back up just about a dollar off that news.
• 19:56
  [SPEAKER_01]: Um, so aerodrome back in the news again and again and again over the last week or so.
• 20:01
  [SPEAKER_01]: Yeah, this is that this is that news.
• 20:04
  [SPEAKER_01]: It's the merging of error drum and Velodrome.
• 20:06
  [SPEAKER_01]: And I think we actually covered this.
• 20:07
  [SPEAKER_01]: I want to say like a week or two ago.
• 20:10
  [SPEAKER_00]: But yeah, I've been working on getting Velodrome back on to talk about it or somebody from arrows.
• 20:16
  [SPEAKER_00]: So stand by for that, but working on it.
• 20:20
  [SPEAKER_01]: Yeah.
• 20:21
  [SPEAKER_01]: yeah it's good to see i mean listen guys we've been talking about i can't tell you i mean we had these people on forever ago right we had you got error drum on the podcast forever ago we've talked about them a lot uh... looking at their recovery off the lows has been just great i mean what were they add i don't want to you know d rail us too much here to you but i got to give us a little bit of a pat on the
• 20:47
  [SPEAKER_00]: 27 cents about at some point, maybe I would have been around 27.
• 20:53
  [SPEAKER_01]: And now they're almost at a dollar.
• 20:55
  [SPEAKER_01]: So man, a little bit of a pat on the back for you and I and the team over here.
• 21:02
  [SPEAKER_01]: But I will say, you know, that's why we do this.
• 21:04
  [SPEAKER_01]: That's why we want all of you to come in here, tune in and listen.
• 21:07
  [SPEAKER_01]: And we like to look at things that we think have true long-term value coming out of those dips, right?
• 21:13
  [SPEAKER_01]: Prices go up and down.
• 21:14
  [SPEAKER_01]: That's what they do.
• 21:15
  [SPEAKER_01]: These markets were made to move up and down quite literally.
• 21:19
  [SPEAKER_01]: So you're going to have that and encrypt though we know that there is
• 21:23
  [SPEAKER_01]: volatility.
• 21:24
  [SPEAKER_01]: There is extended amounts of volatility.
• 21:27
  [SPEAKER_01]: So you get that with the crypto market, right?
• 21:30
  [SPEAKER_01]: But in the dips, we like to look and we like to actually see what has the true fundamental long-term value, what we think is actually worth a good buy.
• 21:39
  [SPEAKER_01]: And this just is one of those projects.
• 21:41
  [SPEAKER_01]: So again, I don't want to like chill too much.
• 21:43
  [SPEAKER_01]: You know, obviously we like them.
• 21:44
  [SPEAKER_01]: Obviously some of us over here have exposure.
• 21:47
  [SPEAKER_01]: But, um,
• 21:50
  [SPEAKER_01]: You know, listen, it's a project.
• 21:52
  [SPEAKER_00]: It's a project that I remember when Arrow came out.
• 21:54
  [SPEAKER_00]: It was, you know, inside the community.
• 21:56
  [SPEAKER_00]: There was newsletters on it.
• 21:57
  [SPEAKER_00]: We got the interviews on it.
• 22:00
  [SPEAKER_00]: And you guys did a lot of research into it.
• 22:02
  [SPEAKER_00]: So, you know, if you're in the community, that's the kind of stuff you're getting first.
• 22:04
  [SPEAKER_00]: And then over the time period of that it's been out.
• 22:07
  [SPEAKER_00]: It's been talked a lot on the podcast as well.
• 22:09
  [SPEAKER_00]: And definitely.
• 22:11
  [SPEAKER_00]: an opportunity that we've highlighted inside the community but also on the podcast and you can just see here on the chart You know one month 60% you know, it's hard to find those type of gains anywhere.
• 22:20
  [SPEAKER_00]: That's a huge winner So even in this volatile market, you know, staying true staying engaged is not disappearing You know stay in true to your your research and your plan is is what it's all about and Find a final thought on era jump before we move on or anything No, let's move on
• 22:39
  [SPEAKER_00]: Well, I just think that nothing like the volatility kind of building off what you're saying.
• 22:42
  [SPEAKER_00]: Like the volatility is not going anywhere.
• 22:44
  [SPEAKER_00]: 24, 7 trading is not going anywhere.
• 22:45
  [SPEAKER_00]: This is what people want.
• 22:47
  [SPEAKER_00]: And then kind of how we started the show saying how in Korea they outlawed these three, four, five X ETFs around the eye trade.
• 22:58
  [SPEAKER_00]: Because it was like the biggest liquidation in that market's history.
• 23:03
  [SPEAKER_00]: The US market continued to want some more and more leverage.
• 23:05
  [SPEAKER_00]: I saw this one last week.
• 23:07
  [SPEAKER_00]: Some BTS were filed and the SEC recently approved a rule change request.
• 23:12
  [SPEAKER_00]: So it's like we're looking like we're going to have some three X leverage on gold silver Bitcoin Ethereum crude oil and natural gas.
• 23:22
  [SPEAKER_00]: Again, I don't, when every time we bring up this type of leverage, like you got to your research, you got to know what you're buying this stuff.
• 23:29
  [SPEAKER_00]: Yeah, sure.
• 23:29
  [SPEAKER_00]: It can fly on the upside.
• 23:31
  [SPEAKER_00]: It can decay and crash you on the downside as well.
• 23:35
  [SPEAKER_00]: So, you know, you need to be very careful with this and understand the product that you're buying because again, you're not buying Bitcoin or Ethereum or silver or gold when you buy these things you're buying, you know, a product that's giving you leverage to it.
• 23:47
  [SPEAKER_00]: But I think it's just the sentiment of, you know, the
• 23:52
  [SPEAKER_00]: this is a volatility's not going anywhere and and you know stuff like this kind of makes you bullish on crypto in my opinion.
• 24:03
  [SPEAKER_01]: Yeah I listen I think it does you're right we always like to talk about the risks that come with this I think that's part of our responsibility over here we don't like to talk about leverage too much or recommend that people use it but I think giving people the
• 24:20
  [SPEAKER_01]: Yeah, you know, just be careful with this stuff, right?
• 24:22
  [SPEAKER_01]: I think the way that people get themselves in trouble with these kind of products is that they buy,
• 24:30
  [SPEAKER_01]: when the market's too overexcended, right?
• 24:32
  [SPEAKER_01]: Because with these leverage ETF products, there's a factor called volatility decay, that basically says that the moves down hit harder than the moves up, and then that idea is multiplied with these leverage ETFs.
• 24:46
  [SPEAKER_01]: So if you see a 20% drawdown, well if it's a two or a three X ETF, that 20% drawdown is multiplied to 40 or 60%.
• 24:54
  [SPEAKER_01]: Right, if it's a two X or a three X.
• 24:56
  [SPEAKER_01]: Well, 60% drawdown, all of a sudden takes a drastically larger amount of percentage gain to get back to the same place that it was before, right?
• 25:05
  [SPEAKER_01]: And so let me just like, I guess run the numbers on this, for example.
• 25:09
  [SPEAKER_01]: So if we are going to look at, you know, let's just say I'm going to create an imaginary thing where you saw a 50% drawdown in the price action of something, right?
• 25:19
  [SPEAKER_01]: Well,
• 25:20
  [SPEAKER_01]: Let's make it less extreme.
• 25:21
  [SPEAKER_01]: Let's just say it's 30% TV.
• 25:23
  [SPEAKER_01]: So if you saw a 30% drawdown in something, well, the 2x ETF would go down 60% roughly speaking, right?
• 25:30
  [SPEAKER_01]: Well, if you're going to go back up to that same high where you fell 30% from the regular ETF that's not leveraged, would have to rise 43%.
• 25:40
  [SPEAKER_01]: And I think that that's something that a lot of people
• 25:42
  [SPEAKER_01]: Don't understand.
• 25:43
  [SPEAKER_01]: They think, oh, well, it fell 30%, it has to go back up 30% to get to where it's at.
• 25:48
  [SPEAKER_01]: That is not the way that this works.
• 25:50
  [SPEAKER_01]: If something falls 30%, it takes a 40, I think about a 43, 44% gain to get back up to that point.
• 26:01
  [SPEAKER_01]: right?
• 26:01
  [SPEAKER_01]: And so that's the first thing.
• 26:03
  [SPEAKER_01]: Well, then you take that and with the 2x ETF, it's even more so the case.
• 26:08
  [SPEAKER_01]: That gap going from a 30 to 43% is even greater.
• 26:13
  [SPEAKER_01]: And then with a 3x ETF, it's even greater than that.
• 26:17
  [SPEAKER_01]: So because you're having drastically larger amounts of drawdowns in the leverage ETFs, you basically have to get exponentially more upside to get back to that break even price of where it fell from in the first place.
• 26:31
  [SPEAKER_01]: And that's what volatility decay is, and that's how it hurts people so bad, because they don't understand exactly how that works.
• 26:37
  [SPEAKER_01]: Again, it's an awesome tool to multiply your wealth and to do things but it's not something that we like to recommend because I think a lot of people don't understand that and there's other factors that play you mentioned it's not a spot ETF as well so they're not actually buying and selling Bitcoin behind the scenes based off of how much you and the rest of the people are buying and selling of these assets and so that's something that kind of matters because people think oh I have real exposure to Bitcoin and you don't.
• 27:05
  [SPEAKER_01]: So, yeah, you know, just be careful with these things.
• 27:10
  [SPEAKER_01]: But that was my, my cup of tea there, to you, I had to say that from a trading perspective, because I cannot tell you how many conversations I've had inside of our communities, even with friends who talk about it, and there's just a slight misunderstanding.
• 27:24
  [SPEAKER_01]: And if, you know, if you don't understand it completely, you can get you in trouble.
• 27:28
  [SPEAKER_00]: Yeah, no doubt, no doubt.
• 27:30
  [SPEAKER_00]: And I think all of the news and stuff is something that at a higher level will keep us on our toes.
• 27:38
  [SPEAKER_00]: And again, I don't think anybody, at least at the one of one level needs to worry about these products, it's just more kind of letting you know what's coming down the pipeline.
• 27:47
  [SPEAKER_00]: And I always find it interesting, when gold's still a big point of theory, I'm oiled.
• 27:52
  [SPEAKER_00]: that ass are getting kind of wrapped up into the same product.
• 27:55
  [SPEAKER_00]: It just shows the maturity of the Bitcoin and even Ethereum now asset being included in that type of cost.
• 28:02
  [SPEAKER_01]: to wrap it up.
• 28:03
  [SPEAKER_00]: I mean we did 30 about 30 minutes, 20 minutes today with Brendan.
• 28:07
  [SPEAKER_00]: That's going to be all for today.
• 28:08
  [SPEAKER_00]: I really appreciate everybody joining.
• 28:10
  [SPEAKER_00]: Give us a like, bottom right, subscribe if you're new.
• 28:12
  [SPEAKER_00]: I'm going to be back later this week with Hunter.
• 28:15
  [SPEAKER_00]: Brian's out the speaks.
• 28:16
  [SPEAKER_00]: We're going to do a double RTA guys, and we'll get Hunter to throw up the charge to give us some opinions as well.
• 28:21
  [SPEAKER_00]: But we always appreciate everybody tuning in and watching.
• 28:25
  [SPEAKER_00]: Thank you so much.
• 28:26
  [SPEAKER_00]: We always appreciate everybody listening.
• 28:29
  [SPEAKER_00]: Again, go back, listen to those other episodes with Brendan and Bryce on the interviews.
• 28:33
  [SPEAKER_00]: We have some really great interviews, but we'll also be back later this week with another run-down.
• 28:37
  [SPEAKER_00]: But that's all for now.
• 28:38
  [SPEAKER_00]: Bye-bye, everybody.