Today in crypto we’re all still alive. Congratulations. You just made it through the worst day in crypto history. Now as you try and pick up the broken pieces many people are now starting to ask well was thirty eight hundred dollars the bottom and what the heck. Just even happened. Well in this video I will explore those exact topics the crypto Lark. 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 a 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 a ethereum. How to buy bitcoin how to send bitcoin how to store bitcoin then check out my course crypto currency explained it is designed specifically for beginners. There is a link down below where you can learn more so I want to start today off with this story Andre is and novelist called the crash back in January. Now I don’t think that he thought it would happen so soon. But here is 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 in excess cash in portfolios will dry up. Well you know what Andre us is right. This is exactly what happened. 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 never here for the revolution. They were just tourists here for the sick games. 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. Bit Max the biggest derivatives exchange out there for crypto saw an incredible amount of liquidations over a billion dollars of liquidations of the last couple of days. It got so bad that bit Max actually just shut down briefly during the madness and as soon as bit Max went off line. The price of bitcoin bounced well a bit Max was the biggest catalyst for some of the irrationality that we saw the other day. All of the exchanges actually contributed in part to this madness in the falls in price also resulted in a cascade of liquidations across the lending markets as well. 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 trades 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 in pain in the market. So please do be aware of those risks. Remember that back in the global financial crisis in 2008 some major players went under. No one was expecting it and then buy ammo 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. First of course has got to be the miners. So the break even price for the majority of bitcoin miners this time is around seventy five hundred dollars 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 fifteen thousand dollars. Bitcoin is currently around five thousand dollars so it is already massively below the break even price and after the having is 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 there done for the big miners still 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 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 the 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 shut down 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 a theory of gas fees spiking and transactions on the networks slowing down led to a breakdown in the system in a way that it should normally operate. A lot of eith poured into maker to help collateralized those loans. But many people were unable to get him onto maker in time and they had their loans liquidated which of course only compounded the sell pressure into the market liquidating even more loans. Makers survived Black Thursday but it came out with some big bruises and a lot of people lost a lot of money maker will now mint some new maker tokens as compensation for losses maker has now gone into debt with nearly six million dollars in outstanding debt for the network. But it has survived the worst day in cryptos history. Now this story with the lending platforms that played out right across the spectrum different lending platforms liquidations happening to people who never thought that they would get liquidated on their loans. I’ve seen a lot of posts I’ve had a few messages about people who took out loans for cash using bitcoin or using or theorem 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 loans that you didn’t lose your crypto collateral you actually put in more than one hundred million dollars in margin calls came in the other day which is massive. So please always remember that risks do remain with these markets that 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 at the worst case scenario won’t happen. It can happen. It does happen. It did kind of just happen. Now the one group that has 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 using trusted exchanges to some of the less trusted exchanges they may not be as liquid as they promised to be anyway. All that being said I think we are in for a lot more stormy weather in the markets overall there has been some massive things that have happened over just the last two days. The United States has declared a national emergency. France and Spain they have gone into a near complete shutdown. Israel also effectively shut down so when 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 it’s we ain’t seen nothing yet. Guys this is 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. One point five trillion dollars is being put up to save the banks Wall Street the financial markets. By contrast the effort to fight the virus only gets around 50 billion dollars because priorities man. Regular people are going to get destroyed again just like in 2008. Here’s the Imagine for a second if they gave that one point five trillion dollars to every person in America to be about a thousand dollars a month for five months. Crazy stuff but it gets even better than the one point five trillion because the Federal Reserve and the European Central Bank they have now both publicly stated that they are 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 Red 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 corona virus and bitcoins price. So basically when fear of the corona virus increases the price of bitcoin decreases. And when fear around the virus goes down the price of bitcoin goes up and this course where a short time span. But it just gives you an idea of what the market 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 off loaded a lot of it will have already been offloaded from the. The hedge funds and all this stuff. But there is going to be some more out there I mean just think about 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 percent in 2008. Currently it’s down by 11 percent so far into this crisis. Gold only really started to soar after the biggest days of pain after the equity market bottomed out. But gold and Bitcoin I think they’ll both do well as investors realize the financial insanity that is about to unfold in the global financial markets on limited liquidity unlimited money printing negative interest rates will be everywhere. OK. Now on to answer the question was 38 hundred dollars 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 U.S. has gone into a state of national emergency and that Spain and France are essentially closed for business Monday could be a very red day for the markets. There will be a lot of investors out there that they’re gonna be late to the party. They still need to deal risk from crypto they still need to get cash. The reality is that cove it 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 moment and in a more macro view we’re 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 a risk. That being said bottom or not bitcoin after this really initial shock from this financial crisis I believe is going to do 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 by low sell high. That’s it. Also please do understand that the crypto economy in spite of the massive bumps we’ve just seen it survived. Nothing went to zero no block change stop working Asher We saw some fees go up in some places that’s not such a big deal. Focus on the big picture focus on what is being built on a long term trend of what is being built anyway. Those are just my dues. Those should do you think that we are going to go lower or was thirty eight hundred dollars the bottom for bitcoin. I would really love to know your thoughts about that down but low. Stay safe. Stay strong. Stay focused. Thank you so much for watching today’s video. Thumbs up button. Subscribe the channel. You guys know what’s up. Hope you’re having 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 then.