Bitcoin Is The Bottom In Or Is More PAIN Coming

Today in crypto, we're all still alive. Congratulations. You just made it through the worst day in crypto history. Now as we try and pick up the broken pieces, many people are now starting to ask, well, was $3800 the bottom and what the heck just even happened? Well, in this video, I will explore those exact topics. The crypto-alarm, this is where you subscribe for all of the

hottest and the latest happening in crypto land. By the way, if you are new to crypto, welcome, by the way, great week to join. But if you are still trying to figure out all of really what is going on in crypto, like what is Bitcoin, what is Ethereum, how to buy Bitcoin, how to send Bitcoin, how to store Bitcoin, then check out my course, cryptocurrency and

how to sell cryptocurrency explained in a design specifically for beginners. There is a link down below where you can learn more. So I want to start today off with this story. Andreas Antnopoulos called the crash back in January. Now I don't think that he thought it would happen so soon, but here's what he said. He said, in the beginning at least, crypto will crash hard. In

the reason it will crash hard is because there is a lot of venture capital, corporate investment and private investment for individuals that is based on cheap money and disposable income and excess cash in portfolios will dry up. Well, you know what? Andreas is right. This is exactly what happened. We have seen it. We have seen a mass dropping of Bitcoin by many of the big players

who have bought into Bitcoin over the last two years. All of those people, they are dumping all risk from their portfolio. They are fleeing to cash and they are fleeing to bonds. Those guys were here for the revolution. They were just tourists here for the sick gains. And now they are out. And while Bitcoin and really the entire crypto economy got crushed in the short term,

farther into this financial crisis, I would look for investors to actually start clamoring into Bitcoin again. The reward potential will just be too massive for many of them to pass up. Now another big factor that saw the price drop so damn fast was a cascade of liquidations taking place across the market. Bitmix, the biggest derivatives exchange out there for crypto, saw an incredible amount of liquidations

over a billion dollars. With liquidations over the last couple of days, it got so bad that Bitmix actually just shut down briefly during the madness. And as soon as Bitmix went offline, the price of Bitcoin bounced. Well, Bitmix was the biggest catalyst for some of the rationality we saw the other day. All of the exchanges actually contributed in part to this madness. And the falls in

price also resulted in a cascade of liquidations across the market. So, I'm going to talk a little bit more about what happened in the lending markets here in a moment. But just a quick word about trading. Always remember to be super careful when trading. This market is insane. Use stop losses. Understand how to manage your risk. Keep your trade sizes small. Lock in profits. Maintain those

good trading habits. Now that being said, I want to talk about the possible long term implications of what happened yesterday. With so much financial pain, it becomes a possibility that we will see some crypto companies going under in the near future, especially if this continues. And we do see more and more rough days and pains in the market. So please do be aware of those risks.

Remember that back in the global financial crisis of 2008, some major players went under. No one was expecting it. And then, Blammo. Crypto is way smaller. And, a lot of ways, way more exposed to risk. Now there are a few different groups to really, I think, keep a watch out for in the crypto context. The first, of course, has got to be the miners. So the

break even price for the majority of Bitcoin miners. This time is around $7,500. It means today they are mining at a loss. After the Bitcoin having, which is less than two months away, the break even price for most Bitcoin miners around the world is going to be $15,000. Bitcoin is currently around $5,000. So it is already massively below the break even price. And after the having,

it's just going to be crushing for most miners. And they're simply going to go out of business. Now, unless we have a lot of upward price action happen here in the near future, then all the small miners, they're done for the big miners. They'll adjust. They have enough capital to be able to wait out the winter. And they will win. And we'll see a monopolization of

power in the hands of the big miners. Oh, sure. The network is going to be a lot of money. So the network, it will adjust down if it needs to, but likely not in time to prevent all of these smaller firms from getting crushed by this market. The silver lining, though, for some of these small miners could be that as the energy prices drop significantly, as

we've seen with this, the price of oil just going right down is Saudi Arabia and USA and Russia all kind of have their dick measuring competition on who can have the cheapest oil. So, we could see that come out for some of the small miners. Now, the other thing to watch out for here too is the lending platform. So maker Dow nearly experienced an emergency shutdown

the other day, which would have converted all die stable coins in to ether. Now, that actually did not of course come to pass, but it was getting very, very close maker was on the verge of breaking falling prices combined with Ethereum gas fees spiking and transactions on the network. So, the network slowing down led to a breakdown in the system in a way that it should

normally operate. A lot of eth port and maker to help collateralize those loans, but many people were unable to get Ethereum on to maker in time and they had their loans liquidated, which of course only compounded the sell pressure into the market liquidating even more loans. Now, this story with the lending platform is that played out right across the spectrum of different lending platforms, liquidations happening

to people who never thought that they would get liquidated. I've seen a lot of posts have had a few messages about people who took out loans for cash using Bitcoin or using Ethereum and they got liquidated. Now, a lot of this happened so fast that there was very, very little time to actually be able to respond to any what was happening. There was no time to

actually be able to deposit more collateral to secure your loans, so that you didn't lose your crypto collateral you actually put in more than a hundred million dollars in margin calls. So, I came in the other day, which is massive, so please always remember that risks do remain with these markets that you can lose a lot of money fast. So, beware when taking loans and beware

with decentralized finance, risks do remain. So, please understand those risks when using these products. Please do always be keenly aware at all times of your margins and never assume that the worst case scenario won't happen. It can happen, it does happen, it did kind of just happen. Now, the one group that is probably loving all of this volatility has got to be the exchanges, all of

the big ones they'll be making a killing. Price up, price down doesn't matter, they are winning on exchange fees. Of course, this kind of volatility though does underline the need to make sure you're using trusted exchanges because some of the less trusted exchanges, they may not be as liquid as they promise to be. Anyway, all of that being said, I think we earn for a lot

more stormy weather in the markets overall. There has been a lot of things that I think are going to be a lot more difficult to do. There has been some massive things that have happened over just the last two days. So, the United States has declared a national emergency. France in Spain, they have gone into a near complete shutdown. Israel also effectively shut down. So, in

these countries, all restaurants, all bars, all cafes, all museums, they're all shut, all public events are canceled. Public transport is being limited. Just stop for a second to think about how many people are going to be out of work. How many businesses are going to go under during this period? I don't think this is just, we ain't seen nothing yet guys. This is absolutely crazy. There

is going to be a lot more financial pain. And of course, the responses of many governments around the world to the financial aspect of this crisis is to print more money. Now, in the USA, $1.5 trillion being put up to save the banks, Wall Street, the financial markets. And on the contrary, the effort to fight the virus only gets around $50 billion because priorities, man. Regular

people are going to get destroyed again just like in 2008. Here's to imagine for a second if they gave that $1.5 trillion to every person in America. To be about $1,000 a month for five months. Crazy stuff. But it gets even better than the $1.5 trillion because the Federal Reserve in the European Central Bank, they have now both publicly stated that they are going to be

ready to provide unlimited liquidity to the financial markets. They're ready to print the dollar and to print the euro into complete oblivion to save the banks and to save the corporations. This is one of the many reasons to be super bullish on Bitcoin long term. But short term, expect the unexpected in the markets as the fear around the pandemic increases. We could definitely see more pain

for crypto. Now, check out this chart here from Rhett Capital as just a bit of thought of what could be going on moving forward. He shows that there is an inverse relationship between the keyword coronavirus and Bitcoin's price. So basically, when fear of the coronavirus increases, the price of Bitcoin decreases. And when fear around the virus goes down, the price of Bitcoin goes up. Now, this

course of our short time span, but it just gives you an idea of what the market is. It is thinking in terms of its fear profile at the moment. But the short term panic, I think actually does little to paint the full picture of what the knock on effects could be from this crisis. There will be a lot of damage from this. This is having a

severe impact on many of the world's most important industries from finance to energy to travel. Entire countries are being shut down. This is unprecedented and absolutely crazy. The equity markets, I think they still have a long way. To fall down. And in spite of the promises of unlimited free money for banks and corporations, it is highly unlikely that the equity markets have bottomed out. And as

the margin calls continue to roll in from the equity markets, then you can probably expect that more crypto will get offloaded. A lot of it will have already been offloaded from the hedge funds and all this stuff. But there's going to be some more out there. I mean, just think about what you're going to do. What just happened? We just went from a raging bull market

in the stock world to one of the worst financial events of modern times in a matter of days. Many investors will still be in shock. Also, a reminder for you as well that during 2008, gold got hammered as well. Everybody wanted cash. Everybody wanted bonds. Gold went down by around 30% in 2008. Currently, it's down by 11% so far into this crisis. Gold only really stood

out. And it started to soar after the biggest days of pain after the equity market bottomed out. But gold and Bitcoin, I think they will both do well as investors realize the financial insanity that is about to unfold in the global financial markets. Unlimited liquidity, unlimited money printing, negative interest rates will be everywhere. Okay. Now on to answer the question. Was $3800 the bottom for Bitcoin?

The short answer, no one really knows. That's the truth. There is so much fear and there's so much uncertainty in the global markets right now that anything is possible. How will global markets react on the opening bell on Monday this week? That the US has gone into a state of national emergency in that Spain and France are essentially closed for business. Monday could be a big

deal. There will be a lot of investors out there that they're going to be late to the party. They still need to de-risk from crypto. They still need to get cash. The reality is that COVID is still raging and global economies are about to face some intense pain. So we could actually be on the verge of a global depression. So yes, we could definitely drop further.

So be prepared for that eventuality. Now at a technical level, almost every single relevant line and trend has been just crushed. So it's not even worth looking at at the moment. And in a more macro view, we are in the first week of what is likely going to be the most significant financial event of our lifetimes. So anything is possible. Be prepared, manage your risk. That

being said, bottom or not Bitcoin after this really initial shock from this financial crisis, I believe is going to go very fast. Very, very well. Fear will subside and people are going to start looking for gains again. Bitcoin's price will soar. There will be massive opportunity. Bilo. Sell high. That's it. Also, please don't understand that the crypto economy, and spice some of the massive bumps that

we've just seen, it survived. Nothing went to zero. No block chain stop work. The ash resource fees go up in some places. That's not such a big deal. Focus on the big picture. Focus on what is being built in a long-term trend of what is being built. Anyway, those are my two. Should you think that we are going to go lower or was $3800? The bottom

for Bitcoin. I would really love to know your thoughts about that. Down below. Stay safe. Stay strong. Stay focused. Thank you so much for watching today's video. Thumbs up button. Subscribe to the channel. You guys know what's up. Help me have an awesome day out there in spite of the turmoil in the markets and all the craziness going on out there. Long. Live the blockchain. And

peace out the next time.