BTC rejected $50K, Cardano ADA correction? NFTs, WAX, GNO | The Market Report w/ The Chart Guys

We are back at it again. Welcome to the Market Report with Cointelegraph. I am your host, Benton. And we are joined again by our resident experts, Jordan Finiseth. Jordan uses his background in psychology and human behavior to spot emerging trends in crypto. And we're also joined by Marcel Peckman. He applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. What is up today, guys? How we feeling today?

I'm pretty hyped, guys.

Feeling pretty good.

Yeah, I know we got a lot, we got a lot in store today. So we're going to jump into a lot of different segments. Talking market talk, we're talking ada, we got bitcoin. We got a special guest today, Dan McDermott from Chart. Guys, it's going to be a super, super exciting show. And hey guys, fun fact for us, did you know 11 of young Americans have invested their stimulus checks into crypto? What are your thoughts about this? And Jordan, were you able to take some of your stimulus check and put it into crypto?

No, I think had other bills at the time. But I think that that's a smart move on their part. Like they've increased the amount of government spending they've gotten. So I, it was a smart move.

I know I plot all of mine into, into crypto. It was all crypto. Thank you very much, US Government.

I'm afraid I don't know if these guys are accustomed to crypto volatility. So if the market crashes down to $30,000 again, they might sell at a loss. So I think it's, it's good that they start earlier so they can finally understand that in order to get more return, you need higher risk, hence the volatility. But yeah, it's, it's, it's positive in.

The end, if you were able to stash away some of those stimulus checks, if you're here in the States and you're able to get some crypto, I think that was a big part of why we saw the massive run up earlier this year is those stimulus checks. A lot of people are doing it and so 11% of young Americans doing it. I know we have some exciting stuff to dive into here for our markets news this week. But before we jump into that segment, make sure you smash the like button and subscribe to our channel and share this live stream with your friends. We want everyone to join us. Come in and join in the conversation. We're always tuning in on the comments and checking in what you all have to say. So let's get into Our market news segment next. One of the biggest headlines of this week, we've been talking about it now for a couple weeks is Cardano. Cardano I $3 in ADAS chart hence at a 40. Correction. I'm very, very curious to hear your takes on Cardano overall. Marcel, are you bullish? Are you bearish? Where do you stand on Cardano? Very controversial. What's up with that?

I say Cardano is more a token that you're buying the personality of Charles Hoskom, the founder because over the four, the past four or five years, what has Cardano effectively delivered or delivered nothing. It's a bunch of promises. Maybe it's going to be the new Ethereum because the guy was the co founder of the Ethereum four or five years ago. But up to today, August 26, we still don't have the third generation blockchain with smart contracts and decentralized applications and stuff. So I don't know.

You've got a lot of research papers though. Lots of research papers out there though.

But what the hell is peer reviewed man? What the hell.

I need working stuff that's part of the scientific process. Okay guys, you have to do the research to lay down the, the framework for this kind of stuff and I'm going to take the other side of this. I think I'm, I'm completely bullish on Cardano. The entire ecosystem, I think it's gotten a bad rep and guess what? Yeah, it may have the Jesus effect with Charles Hosington, but I think when you dive deeper, you look at fundamentals, you look at what they're trying to do. I think it's going to be a highly, highly effective blockchain. And in deploying DeFi and NFTs which as we've seen have exploded on other chains like bsc, Polygon, Solana, Polkadot. I mean the list goes on and on. If you can do cheap transit transactions that are fast, I think it's a win, win for everyone.

Yeah, I think I agree there's a lot of good things with the network and you got 70% of the tokens being staked right now. So even if, if nothing else that helps kind of put a floor under the price. There's not people out there just dumping a token. And like just think of it from the perspective that there's lots of actually decent projects that have signed up to, to join on Cardano and launch on their protocol and they wouldn't just be doing that if there was nothing there. Like, if it was a complete like crap show. They Wouldn't you wouldn't have legitimate projects trying to sign up for them. You just had them sign up with the company to make sure that they meet AML and like terrorist financing charges.

What does Cardano has to offer that we don't have today on Defy, on Binance Chain or Polygon or wherever? What are the capabilities that they can create that are not possible to be run today? I don't see any.

As far as I can see, it might just be a faster smart contract platform than Ethereum. Again, we have to wait for that to fully launch. I know that's been the thing for Cardano for years now, but once it does like this is, we're still really early in this game and despite what people want to think, Ethereum, it's not going to be that easy to just switch over to Proof of stake and have the whole network operating fine. And if that ever meets any like roadblocks or stumbles, you're going to need a network like a Cardano or even maybe Binance Smart Chain or Ava Avalanche that just coming up now. Those ones are really going to step in and fill that void if needed.

And I think the thing with Cardano is they've kind of taken a different approach than most other blockchains. I think they have really targeted the continent of Africa and making sure that they're really entrenching themselves there because they need it the most. They don't have the banking systems like a lot of the other continents around the world. And so I think those, those countries inside of Africa are actually going to be more beneficial for Cardano if they're able to target that segment of the market.

No, no way. Brandon. I disagree completely. We have El Salvador which will start using Bitcoin as a legal tenor on September 7th. They're going to be using the Lightning Network, which is an implementation, a second layer for cheaper and faster transactions. It's still in beta test, it's not fully functional, but a whole country will start adapting in a couple of weeks. So it's going to be a huge test for Bitcoin and if it succeeds, if it's positive for the Lightning Network and for Bitcoin, then Cardano use case that you just said for Africa is gone.

Very interesting take. Now, real quick question. We're in price discovery right now with Ada, the actual token. Like I have some questions. Where do we see ADA going in the short term and then how do you like to trade assets that are typically in this price discovery phase? Marcel, what are your thoughts there well.

We'Ve discussed that on the last week's show and I agree, Jordan, that after it, it's up 40% in one day, 100% in a week, you should either just buy a small, like thousand dollars, $2,000, something really small just so you can keep track of it or stay out of, better yet, stay out. You gotta realize that sometimes you missed the entry point and it's really hard to predict if it's gonna, the trend is gonna continue for one week or two weeks. But if you were not closely following the name, the asset, and after it's up to 200, you decide to get in, the chances that you're gonna get wrecked are huge.

Yeah, I don't, I agree. I don't like really chasing prices like this even like when the whole market starts moving like, especially like we were for us around in 27, 2018 to see it go up and down, it's like, oh, and now like we went through it again in this year, it like went up and everybody's expecting this pump to a hundred thousand so nobody really sold out. And then it dumps and everyone's like, oh, gets this, this feeling in their stomach and we're running again. But once the market really starts running, unless it's a brand new project that's got really good long term like perspective, like I try to keep my money out of the market because it's just like I've been burned a lot now.

Yeah. Well, I want to, I want to pivot over now to some bitcoin talk. We've seen bitcoin the past week get close to that 50k mark. We saw Michael Saylor make his big announcement about his bitcoin purchases. I want to touch on this topic before we kind of go into a little bit of the analysis of bitcoin. But what is your opinion and thoughts about influencers in the space, like a Michael Saylor, does that have a big overall impact on the markets? What do you kind of think of that, Jordan?

I can't say how much of an impact Michael Sayers have now. He might get a little pop like he, he don't. He, he releases a little information and it excites the marker or something. But I think his, his real impact was earlier in the year really bringing the attention to bitcoin. And now as it gets more and more adopted around the world, I think influencers will have potentially less impact over the price. Like they did it dump and pump and dump just because of Michael Saylor. I don't know. It's possible, but I don't think that any one entity person specifically has that much power right now. For crypto, maybe countries do, like China, like, yeah. Again, when we talked about market dumps in the past, just because Elon Musk came out and said something, even though my editor's over here, like, Jordan, the market's gonna dump for two weeks. And then, then Elon Musk does something two weeks later and the market dumps and everybody blames it on him. My editor's like pulling his hair out. Like, no, I saw it coming.

I mean. But that brings up the greater question though, like, what kind of impact does influencers have specifically on bitcoin's price? Marcel, what are you seeing in particular there?

It's a different thing When Tesla invests $1.5 billion in Bitcoin, then when Elon Musk himself as a person says, I believe in dodge coin, it is the best means of exchange and blah, blah, blah. So these are two different things. So when a huge company, a top 10, 20 company in the world, uses bitcoin as a reserve cash reserve, it's something that, it's a kind of a game changer. When it's the opinion of an influencer, even if he's a CEO of a large company, usually after a couple of months, the effect dissipates. We've seen this in the past. Remember Xi Jinping, the China's president, when he said he was open to blockchain solutions and stuff? The market rallied 40%.

Yeah, yeah.

What happened two months later?

We saw a dump.

Yeah, it dissipated completely. Because people understood that they were keen on blockchain solutions, not on cryptocurrencies. They were really clear about that. So when it's just the penalty, it's just one influencer, after a couple of months, the FX completely vanishes.

Very interesting. I would have to say. I'm going to agree with you on that one is I think influencers do have an impact on the space. We've seen Elon Musk and depending on various levels. Right. And so, like, I think influencers do have an impact on the market. We've seen it play out over and over again. Now is it a long sustained impact? I think the data will show us that it is not substantial enough to sustain over the long term. So this brings us to Bitcoin. 50k. What the heck happened this week? Are we going to break through this, this resistance level? And like, why is this happening? Why do we keep retesting 50k and then coming back down? And once we break this level, is it smooth sailing all the way to 100k? Jordan, what say you about bitcoin?

I think that the 50k level is probably one of the biggest psychological levels out there. So I think it's just a lot of resistance and, and yeah, yeah, a lot of resistance coming at that level. You can see across there going back several different, there were several different tests of it on that chart. Yeah, I don't know. I'm gonna turn that one over to Marcel. He's a little bit more into the analysis of it. Is it going to go higher? I think again my long term perspective on bitcoin is that will it will go up, is it going to be to a hundred thousand dollars by the end of the year? A lot of people are starting to say that. The more people that say that the least likely I think it's going to happen. It's kind of weird but I don't know. What do you think Marcel?

I don't know Jordan. I, I, I'm not sure what it's gonna make to break the 50000 because as you said it's a psychological number. There's no really difference between 46 to 48, 000 when you compare the market cap of Bitcoin which is $800 billion to gold which is like $11 trillion. So it might seem much a large difference for us who are traders so on a day to day basis. But for the guys who are not inside bitcoin right now, well it doesn't change the game if it's above or below 50000 but perhaps, we don't know, maybe a war is coming or maybe inflation is going up and people will turn into bitcoin as savings. I don't know what's going to take for to launch us above 50,000 but I think it's going to happen as the ETF gets approved.

ETFs could be the thing that pushes it over. Hopefully that's coming in the months ahead here in the States. My question though is is 44k this new floor that we're looking at? Is 40k the new floor? How low could this possibly slide before we hopefully break through that 50k mark again? Marcel.

Personally I don't see we're going to, I don't think we're going to see anything below $42,000 because that's where the institutionals got more comfortable with not only with bitcoin but with bitcoin and Ethereum, with the space as well in the industry because they've seen that inflation is not something that's going to be temporary. And they've seen that gold, which used to be the best hedge solutions for uncertainty times, it's not going up. It's been 10 years and gold has been stuck at $1.8K. So they gotta find riskier assets. So what are good? They're gonna buy S P stocks at the highest ever in history at PES multiples trading above 100 times. They, they want. So maybe if 1% of that money flows into bitcoin, it is more than enough to drive us to 150,000, $200,000. That's what people fail to understand. We don't need a lot of money to push bitcoin price above a hundred thousand dollars.

Exactly. Like, like Scott Moko said. Yeah. Last week. It's a 2x. That's it.

Yeah, we'll see what, what can really get this market moving. I don't know. I think the, the situation in the world, what's going on just politically, geopolitically, all those stuff, it's really, it's going to have an impact on the whole, all markets. So like that is kind of like the unknown as far as what's going on right now. How different situations in the countries around the world are going to impact the overall global financial structure. I'm waiting to see that. That's, that's the unknown.

Go ahead.

I want your take on only fans that they, they were banned from the, the financials, the banking systems. Do you think that this could be what bitcoin needs to get global adoption?

Hey, now that you get the only fans taking crypto, man, next thing you know if bitcoin's going to 100k. I think it's also a little bit of self fulfilling prophecy here. The more we're sitting here talking about 100k, the more other people are talking about 100k. It's like it's gonna happen. Let's just, let's, let's just say like hey, when is it going to happen? Who knows. But yeah, in regards to the only fans they've retracted their statement about you know, making nudity and all that kind of stuff not legal on their platform and now they've retracted that. I wouldn't be surprised if they start integrating crypto into that platform though. And so maybe that could be what's next to push, push bitcoin. But I do want to move us into Marcel's expert segment for today. If you haven't make sure you liked and subscribe the YouTube channel. We're always here Thursday afternoons, 12pm Eastern. And let's get right into Marcel's expert take segment. He's going to get us into some options stuff.

Okay, guys, so this week we're going to talk about the bitcoin options expiry, which will happen tomorrow, Friday. It's always on the last Friday of the month. And there are $2 billion worth of options instruments, bitcoin options, that are expiring tomorrow that might have some important pressure on price, both from bulls and bears.

Hold on, Marcel, break it down for us, man. I'm a dummy when it comes to options derivatives, all that kind of stuff. Break that down. What is an expiry? Why does this happen every month at this time frame? And then kind of walk us through what each of those elements are.

Okay, so think of the bitcoin options as an insurance policy. For example. I have bitcoins, but I'm afraid that something bad is going to happen. But I don't really want to sell them. I just want an insurance that if something bad happens, if it plunges below $40,000, I don't lose money. So what you can do is you buy a protective put option. So it's an insurance. If the price falls down below $40,000, the insurance company pays me the, the price $40,000. Even if it's trading at $30,000 or $20,000, it doesn't care. But for that instrument needs an expiry date. It's not. Doesn't last forever. No. No one will give you insurance for you that lasts forever. It would be too expensive for that. So, okay, you can buy insurance for one month, for two months, for three months, every month. In fact, there's, there's options trading for every week, but the most active options are the monthly ones. And you can trade that at CME offers options, Bitcoin options, Dairy Beat, OkX, Huobi Multiple Exchange, even LedgerX, which is a regulated US company where institutions can trade offer those options. So there are two basic instruments, the call option, which gives you upside protection. So if I think that Bitcoin ETF might be approved and it might go to $100,000, and I need protection for that, you can buy a call option, so a bullish instrument for $60,000. So if in December it's trading $100,000 and you bought the insurance, the call option for $60,000, then you get paid $40,000 for that. Because you got it right, to buy an insurance, you have to pay an upfront premium. So Sometimes you buy an insurance for $60,000, a call option to protect from the price upside, and it doesn't happen. Bitcoin stays below $50,000, what happens? The insurance company got lucky. You paid, I don't know, a thousand dollars premium up front and it's gone because it becomes worthless. If bitcoin is trading at $50,000 and you have the right, the protective call to buy at $60,000 in the year end, it's worth nothing. Right. The insurance company got away with the money. Got it.

Okay, so it sounds like there's a lot of risk involved with this. So how do you navigate those risks when kind of making these insurance calls? I guess.

Okay, so the buyer of the insurance policy, whether it's a call option, so protecting from the price upside, or if it is a protective put from the price downside, your maximum loss is the premium that you paid up front. So for example, protection if bitcoin falls below $30,000. So you buy a protective, but at 30,000, I'm going to pay the insurance company, I don't know, a thousand dollars for that. So the maximum loss I have is a thousand dollars. So it's not that risky. It's much less risky than futures contracts, for example.

Okay, sure.

And there's another benefit. You cannot get liquidated. So if I bought a protection from the upside and the bitcoin is going down, it doesn't matter because I already paid the price upfront. So I have until my expiry date, let's assume it's October. So I have two months to decide whether I'm gonna exercise my option or not. So you cannot get liquidated during the term.

Okay. And so that, that ultimately can impact Bitcoin's price because if there's $2 billion of these expirations or expiries all happening at the same time. Tell us, walk us through that now, how does that impact Bitcoin's price?

Danilo, can you share my screen, please? I'm going to show you guys an article that I posted two days ago at Cointelgraph. Here's why Bitcoin booms might trample $50,000 ahead of Bitcoin's $2 billion expiry. So the best data that you have is this chart over here. Let me zoom in for you guys. So these are all the options that are set to expire tomorrow on Friday. The green ones are the protect, are the calls, the bullish instruments, as I said. So there are a lot of bullish bets at $50,000 as you can see and the, the pink one are the protective putts. So bearish instruments. So and you can notice them, they have put bearish bets at $35,000, $38,000, $42,000. And if the price is above that level, they lost, they paid the upfront the insurance for downside protection, the protective puts and they lost the money, they lost the bets. So it's a battle between buyers and sellers that will happen tomorrow. So if you focus on this bullet point list that I've made here, it gets easier to understand what happens at each X ray price. Okay, so it's a battle between booze the call options and bears the, the put protected put options.

I see if a person who sold I guess at, at 52k like with a call option there, like what, what happens if that. But they sold that, that option. Does that kind of make sense?

Yeah, let's, let's check the both sides. Okay. I bought a call option, so I'm bullish. I bought the $52,000 call option. If the price is trading below that at 45, 46,000 $, I pay the insurance premium up front and this money is gone. So my option becomes worthless. Okay, the seller, he doesn't care if the price is $46,000 or $30,000 or even $20,000. He only cares that it's below $52,000 which was the arranged price. So any price below $52,000 is good for the seller. He pockets in the insurance money paid up front and the deal is done. So we can measure the difference exposures between bulls the, the calls and bears the boots at each price level. And what the article says is if the price is trading above $46,000, the bulls have a 250, $240 million advantage. So any price above $46,000, bulls have a $240 million advantage. Okay, so what level are the bears aiming at? They're aiming below $45,000 because on that level the bulls advantage gets reduced to some $60 million which is manageable. But above 46 is horrible for the bears. They get wrecked, they lose over $240 million.

Marcel, do you think that these have an effect, like a long term effect on the price of maybe bitcoin or is it even just like we were talking about earlier with influencers? Like in my opinion it seems like this, these and influencers, it's more like the short term in between the big moves in the market, giving some, giving people something to do kind of a thing. Like I said before in another One, nothing happens for a long time and then everything happens really fast. Like you will see these big moves in Bitcoin or big moves in Ethereum and they don't trade sideways for a long time. That's when these call options and influencers come in and move the price. But then something happens and it causes the whole market to move up. It's not usually an influencer or like a bigger expiration, like so I'm like, for me, I'm like just like it seems like it's just giving people something to do and make a little money in the interim of waiting for big moves in the market.

Not really juggle. Let me explain. So let's assume that the price stays above $46,000 for this expert tomorrow. Then the bulls pocket $240 million cash gross accounting. What do you think they're gonna do with this money? They're gonna either buy more bitcoin or maybe wait for a drop and buy bitcoin or buy more bullish options for the months ahead. So each time that the bulls get profit, the more ammo, the more ammunition they have to prop up the price to buy bullish instruments and whatever. So yeah, the volatility is concentrated on the one or two hours ahead of the expiry, which happens at 8:00 clock UTC on Friday, which is 4:00am Eastern Time. But yeah, the effect goes on for the following months. It's not something that vanishes on the next day because bulls pocket the profit from those options.

Learn something new every day. And no, I appreciate you walking us through the options because like I said, I have tried to read so many articles about it and it's a very complex top topic. The put in the calls and the options and the expiry. So I think that really helped unpackage that so that we could kind of better understand what's going on and then the actual impact that those have on bitcoin's price. And so that's super helpful and we appreciate you walking us through that for today's Marcel's expert opinion. But now if you guys are ready, we're going to get into Jordan's expert segment. But always like and subscribe our YouTube channel if you haven't done it already. Let's get into Jordan's expert segment. Run it back. Danilo.

All right, yeah. Today I want to kind of COVID the, the NFT craze, what's been going on and kind of delve into what makes a project long term viability and, and is, are we just seeing a Little bit of a bubble here going on now. Like if you've been paying any attention, things like crypto punks and pudgy penguins and rocks, like pictures of rocks basically are selling for like thousands of Ethereum. And there's some people that are sitting on the sidelines of that going like, how do I get involved there? I don't even know where to start with that. So it's kind of confusing and I wanted to kind of discuss it with you first and then go through some of the projects that might have a little bit more long term viability. But I want to just get a quick opinion on you guys and what you guys think about this NFT craze that's going on.

Well, first Jordan, pack unpackage NFTs for those at home watching that don't know what NFTs are. Maybe you've heard of it, you don't know what's going on with it. But like, like Jordan said, like a lot of people buying them. First of all, what are they? Why are people buying these things?

Non fungible tokens NFTs, they're the one of a kind generally. Yeah. Rare item that's on a specific blockchain network that can be a, a simple picture, it could be an interactive gif, lots of different things, even sounds and stuff. But they're. Yeah, it's a one of a kind thing that's recorded on a blockchain that people can own, put in their wall and be like, I own this thing and nobody else owns it. So yeah, why this is, this is just going, tapping back into like I collected baseball cards and pogs when I was a kid, you know, like it's, it's tapping into the human's desire to collect things. Also. You're seeing people, especially wealthy people trying to find ways to store their money. And you see the art, art world blowing up because of that. And now the digital art world, NFTs are blowing up because, I don't know, people are running out of ways to store their money in physical things and the digital space is just blowing up. So that's kind of a general overlay of what NFTs are. And in the future you'll be able to have like the deed to your house as an nft. So this is, there's a long term progress on this thing. We're just dealing with the beginning of getting, getting the people to use it, which is why they're doing art and funny things because that, that gains traction with the people.

Jordan is the specialist here, but I think that the word ego is important. You can tell your friends, hey, I have a penguin image which is worth $500,000. Let me show you guys. It's purely ego in my opinion.

Yeah, there's a lot of ego going on there for me for sure.

I heard so Paris Hilton so eloquently put an NFT is a contract and, and she's right in many ways. But non fungible tokens mean they are not alike, they are unique. A fungible token like a nickel or a dime or a penny, they're interchangeable, you know, you can't really tell the difference at a glance. And so like for Those at home, NFTs, that's what they are in a nutshell. But I mean what's been happening recently, Jordan? Like they've been going bananas. We've seen Axie Infinity, we've seen art, we've seen music, we've seen. It was like an 8 year old kid that was selling NFTs for like $400,000 or something like that. Something crazy like why are people selling these and then buying them? What's their use case? What are you seeing on the market?

It's a fad. A lot of it's a fad right now, man. People are just excited about it. I think a lot of crypto people were bored. We're waiting for a defi summer, nothing was really happening. And then NFT started taking off. You have the crypto punks which are older project really start raising in price and that's really kind of got the whole market moving. But go ahead and share my screen Daniel and I'll. I'll show you guys. Like so, so the real gamble or the real like question here is how are any of these really going to hold their value over time? I know right now they're fads, but what happens when the fad fades and the value of a lot of these tokens starts to decline? And that's where I kind of get into the difference between pure like crypto punks where it's just of jpeg or it's just a piece of. It's just one NFT and doesn't have any real use case versus some of the other ones like you mentioned axiomfinity. It's been one of the hardest games and tokens in the crypto industry right now and it's a play to earn type system. So the NFTs in the act in the Axie Infinity are actually like the axes, the in game characters that people can use to battle and through gameplay they actually earn another token called Smooth Love Potion which like as kind of highlighted right here, people are earning daily income. Like in Venezuela I think the monthly income was something equivalent to like 2.40. Whereas people playing Axio Infinity can earn 23.7 at this current price of Smooth Love Potion. So.

For, for you to play you got to invest money first to enter games. That. Is that true?

Yeah. And that's, but that's the same if you think about like a lot of the play to earn games. Now even my kids play what's that game Pixel Gun. Like they're, they're, they're buying money, they're buying things weekly in that at least $5 for just some token for diamond so they can buy something. Like if you think about a lot of the even video games from growing up, we used to have to go to buy a video game, buy a Nintendo, buy the Super Mario game. Any of these individual games costed money. What? And the whole fortnight and all these games is this free to play game? Free to. Yeah, free to play. People are playing it and then they're like oh man, the ego gets in. Like I want a better gun or I want to be better than that person. So they put money in and at the end of the day like V bucks on, on Fortnite I think they're V bucks, whatever they're called. I never played it but you don't get anything out of that. You put money in and at the end of the day you have nothing left but a bunch of time. Play to game with these games you put money in. Yeah, you can go buy an axie, you battle the game. Hey look, I just got some Smooth love potion. That's income. I can either as you said with the, the traders, I can reinvest that money into the game that's propping up the price or I can pull that out and that's income. So yeah, you can put in like even looking at some of these NFTs you put in an eth and you can sell it later on for like 20s. I know that's getting to a different side of it but yeah there is inputs required into the games like Axio Infinity, but you can also extract your value via NFTs. So that's the long term benefit.

Yeah and something that I'm seeing with NFTs in general is like the marketplace themselves is that kind of seems to be a thriving element of the actual NFT ecosystem. And not only that, like you've seen space companies for example they're itemizing verified parts for rocket ships and putting them into NFTs and then putting them into a marketplace so that they can be itemized and tracked and verified that they're authentic pieces. So it's like you've seen some of these use cases apply with art and these gaming elements that Jordan brings up. And yeah, that's fun and great but like imagine the, the greater impact of having authenticity through NFTs. And that's where I really see the use case value.

If you need a company to tell you which NFT is the good one, this is the authentic, this is not the authentic. There's no use for blockchain. So that's my main concern with nft. If it's a decentralized game, a decentralized platform, okay, but if something that happens that needs the Paris Hilton or needs some company to tell me, okay, this, this NFT is the authorized one, it's worthless.

Really. I, I disagree, I disagree with that, Marcel. I, I just think it's like that, that happens to be the face of one particular niche of NFTs. I just think there is so much more at a deeper level that we have not like completely dove. That's the art, that's the music, that's kind of like the topical layer of NFTs. But yeah, I think it's like you want to have a completely trustless system for authentication. I think that's the whole premise behind NFTs and being able to verify that non fungibility. So yeah, let's go ahead and move into our Markets Pro segment today. I know that was fun talking NFTs. I know Marcel loves NFTs. But if you haven't like and subscribe to our YouTube channel, we're here Thursdays, 12:00pm Eastern every Thursday. Make sure you're tuning in. Let's get into some Markets Pro. We got some hot stuff coming for you. All right, we're going to give you the inside scoop for altcoins to watch this week according to our flagship product, Markets Pro. Markets Pro is a data intelligence platform designed to enhance investors decision making with industry grade analytics. So this week we're going to get into newsquakes and one particular token called wax. Not sure if this one's been on your radar, but our Markets Pro platform caught it because of a newsquake. So new moves news actually moves the crypto market. And so with this chart you're seeing here is the Wax token, our newsquake, which you can see at the bottom there with that red Circle the Newsquakes is a service by cointelegraph Markets Pro that helps traders stay on top of the news. Newsquakes are automated alerts that instantly notify users when something happens that can move crypto prices. Thanks to them, Markets Pro users often get a front row seat to market moving developments. I'll tell you, I absolutely love getting those newsquake alerts because the faster you act on those, the faster you're getting into a lot of these movements. And you've seen this, this upward trajectory. Look at that chart. I've never seen anything like that. Marcel. What like, what do you think of this? What like what's going on with this chart? How do you, how do you look at this and your thoughts?

But the news quake here was Binance listing. It's something that doesn't happen really often. Well, okay, you can have Coinbase listing or Binance listing, but those major exchanges are the ones that pump up the price higher on their listings because usually the, the, the, the coin gets more liquidity after it's listed on a major exchange. So for those fortunate, fortunate enough have to be subscribing to CT Pro. They got the signal ahead of the game. But because not everyone is able to monitor the Twitter or the, the blogs from every exchange at all times. So at CT Pro you have a single screen with the news cakes for all of the, you can filter, you can select. Okay, I want the top 100. I want to filter just this 10 coins that I like. Or no, I want News Quakes for every coin that's listed at Exchange. So these tools gives a great edge for trading. So but you got to keep in mind that Wax is not a very well known name. Okay. It's backed by hashed VC firm by Pantera Cap Capital by Valuenet. So yeah, there might be some substance behind it. But if you enter the Twitter for, for wax wax IO if I remember there's like the posts get like 50 to 120 likes. So it's not a huge community. They seem kind of small at the moment. So be mindful, yeah, buy it when there's a huge news quake, a potential listing and stuff like this, that, but after it's fight, if you don't know the name, if you, you're, if you're not a believer in the project, don't get in after it went up 40 to 60%.

That's a great point. But exchange listings move prices. We've seen it with Coinbase, we've seen it now with Binance when coins are Getting listed on those particular exchanges. We've seen this action. I mean, that is a straight vertical line on that chart. I cannot emphasize that enough. The, the yellow green line is the Vortex score. We're about to get into that next. So, Danilo, let's roll into our next coin, which we have is Gnosis this week. So another feature. Let's go ahead and take this chart off, Danilo. But another feature of Markets Pro Platform is the algorithmic metric called the Vortex score. This is a coin score in comparison with the current market and social conditions and those in the past. So high score means that judging from historical data, the asset's current outlook is bullish for the next 12 to 72 hours. So we're going to pull up this Gnosis chart. I don't know if I'm saying that right, but this chart here, you see the line going through, which is the green yellow line that's going to indicate the first red circle is the Vortex score. So the score went as high as 86, which also indicated the price of $267. Now, remember that the score is trained to look for patterns in the past that came 12 to 72 hours before huge price rises. In this case, it took 17 hours after the peak of the Vortex score for the price to start a hike from 263 all the way up to 364. So those red boxes there on the chart are showing you that price hike, so that when the Vortex score is in the 80s and it bumped all the way up to 86, you can follow that trend. 17 hours later, that price did a huge jump. That's the power of the Vortex Score. You want to have that in your pocket, folks? I mean, I can't emphasize that enough. I'm looking at my Markets Pro platform every day. I'm checking to see those Vortex scores. The higher that score is, the more historical data that you have kind of behind that. So very, very cool stuff from that, that token Gnosis. I'm not even sure what that token is. Marcel, do you have any insights with that?

Well, first of all, we've got to remember that Vortex Core uses a multitude of inputs, like Twitter sentiment, like volume, trading, news, quakes. There are many factors that are counted. So sometimes the voucher score will go up and you might don't even know the reason two or three hours later. So it's good to filter the. The coins that you are most mostly interested. And when the Vortex score reaches 80, for example, or higher, just buy a little bit more. So maybe 12 hours later or 17 hours later, something will come out. But the vortex is able to capture that ahead because it's going to see a spiking volatility or it's going to see a spiking in Twitter segment or in volume. So but as the project for itself, it doesn't call out for me for two reasons. Daniel, can I share my screen please? The first one is the inflation. There are currently 1.5 million gnosis out there. Let's see, so the supply, where is it?

Oh my God.

Well, we've got a realized market cap of $800 million and in 10 years that's becoming $3.2 billion. What's the magic behind this increase? It's the inflation. The current supply is 1.5 million coins and the supply in 10 years is going to be 10 million coins. So I don't like projects that have too much inflation, too many coins being issued every year. It pressures the price downwards. Okay, Daniel, thanks for that. And the second reason that I'm kind of reticent about Gnosis is the number of active addresses is the on chain analysis and there are less than 300 daily active addresses on the network. So there's not much going on on Gnosis.

Very interesting because those are actually some metrics that tokenomics that I like to look at as well is wallet holders and then actual token supply and circulating supply. But that doesn't mean you can't make a little bit of splash cash off of trades like you would have seen from the Vortex score. You just love to see that when that happens though. And I know that was a particular token that we saw this week. Who knows what the next token will be next week? By the way, did you guys see telcoin? It was a 98 vortex score at this point. That's the highest Vortex score I've ever seen. Telcoin was, was an anomaly this week. It was absolutely bananas. But yeah, though, that is our markets pro segment for today. We hope you guys enjoyed some of the coins to be on the lookout for. If you haven't like and subscribe to YouTube channel. We got something really, really exciting coming up next. We got Dan McDermott from the chart Guys coming in hot today as our guest Danilo. Let's get right into it, man. All right, we have Dan McDermott who is the co founder of the Chart Guys, which is a website designed to teach trading and technical analysis to people wanting to learn how to protect capital and become more profitable. Dan provides basic technical analysis videos for the masses to begin to learn how to use charts and TA to say one step ahead of the herd. What is up, Dan? How are you today, sir?

Very good, thanks for having me.

Yeah. Welcome to the Market Report. We are happy to have you here today. I know we have some burning questions for you to get your insights about what's happening in the market. So just kind of kicking things off here. Like what is your overall sentiment right now in regards to, to the crypto market? Where do you see bitcoin heading here in the days and weeks ahead?

So I'm a bit cautious bitcoin in the short term here. Over the next couple of weeks, We've made this 70% move from 29 straight up to 65 or not 65 straight up to the 50s with a lack of weekly consolidation. So every week's a higher low and it's just been impressive and really frustrating for the Bears every leg up that we see. But we're getting to a point where I'm expecting an equilibrium pattern on the monthly timeframe. And an equilibrium is just a pattern of higher lows and lower highs and a tightening range. And I'm anticipating that we're going to be looking for a lower high compared to the all time high initially. And just watching the pattern of the last five weeks, we've had a green day every single Friday. And that probably has to do a bit with options expiration that Marcel was talking about and just watching for some short term patterns to shift to lead to some weekly consolidation. We should be healthy, bigger picture to cool things off a little bit.

Right on. Now what is, what is going to push bitcoin like past 50k in your opinion? Is it going to be some sort of like catalystic event or is it going to be kind of several events that kind of all pair together? Like, what are your thoughts on something like that?

So 50,000 is definitely a short term resistance level and I don't think it's going to take, you know, you don't need a news event to get over 50, but if we're talking a new all time high, I think you're going to need a catalyst to see an increase in volume. Because if we're going to get over 65 from here, it's going to have to be on the backs of a very notable volume. And as you mentioned previously, the potential for the etf, I think that could be a catalyst that could do it. But in the absence of a catalyst, I'm looking for that lower high compared to the all time high and a tightening range towards the end of the year.

Very good. Now, are we in alt season right now? What are your kind of thoughts about that?

I guess that depends on what the definition of alt season is. But the pattern that we've seen since bitcoin hit the new all time high, over 20,000, is essentially that when the altcoin market is strong, it shows confidence in the entire cryptocurrency space. So I personally am a more confident bitcoin bull when I'm looking and seeing all these other altcoins essentially stronger and leading the way. So I guess you could call that an alt season. You know, we've got names like Cardano and we got soul and they're hitting all time highs. And that definitely again it just breeds confidence when there's profits flowing in the space. People are just moving their profits around one coin to the other and it's this perpetual confidence essentially. So I think it's a good thing for the crypto space as a whole. And again, I want to see the altcoins leading the way to have confidence in the strength of the entire sector.

Done. I kind of disagree with you on that because whenever we see a local top on BTC, okay, it tested 50,000, now it's back to 47. So we failed to breach the 50,000. I think that people move their money out of bitcoin to altcoins so you see an altcoin rally, but it's not that market is gaining confidence in my view it's just opposite. People don't see upside for bitcoin in short term, so they gonna risk on outcomes. Don't you think that what's usually happening.

I don't. I think that when there is a lack of confidence in bitcoin, when it starts to show a little bit of signs of weakness and a little bit of fear out there, that altcoins generally are dropping harder and you know, they've run harder, they've established less support on the way up. And so you'll see the dominance chart of bitcoin generally is going to be going up when the cryptocurrency space as a whole is dropping. And that shows me that the altcoins are dropping harder than bitcoin is. So I think that there's the most confidence in bitcoin. So I see that people flee altcoins when there's any kind of fear entering the space.

Fascinating. Now what are some of the biggest threats of to like some of the larger cap cryptos right now? Is there any threats really?

Honestly, one of the biggest threats that I See, in crypto that I'm always watching for is fear in the stock market. I'm watching for the correlation of that fear. Because when fear is this, you know, it's, it's, it supersedes everything. It just, it hits all markets. And back in, when we saw the COVID dump, we saw bitcoin dump, we saw metals dump, everything was dumping. So when there is a prevailing fear in the stock market world, crypto definitely drops with it. And that's something I'm always watching for. And we know the stock market has been on absolute fire since that Covid low. Every dip keeps being bought, but I'm always watching, I'm watching for that fear and I know that it will very likely impact bitcoin and the crypto space. And again, we're talking short term, you know, the end of the COVID dump, the crypto space recovered significantly. But it's that short term correlation of everything where the baby gets thrown out with the bathwater. And that's what I'm watching for. For the next very significant dip in the crypto space, I think it would be accompanied by a significant dip in the stock market.

What is, what is fueling the stock market right now? Like in years past, like some argue that it's been like quantitative easing, like what is fueling this continuous rally going up and up and up and up and up. And is there going to be an end to it?

That's what everybody points to. Everybody points to the Fed. It's a manipulated market, the Fed. Honestly, I don't care why it's going up, I just care that it's going up. And I'm going to continue to trade with the trend as long as that's the case. And we know that when we have these slow grinds up that are just continuous, that when they end, they end fast and hard and seemingly out of nowhere. So definitely want to be paying attention to that. But again, I, I don't care. You know, I put on my YouTube videos and every time people are commenting, it's fake, it's manipulated, I just don't care. That doesn't mean anything to me.

Exactly. Now I want to kind of shift here to go ahead, but if the.

Fed says, okay, we're going to start tapering, we're going to start not buying monthly assets anymore, the market, the exact month enters in panic in fear mode. Don't you think that could drive both S and P and cryptocurrencies prices down?

Definitely. And we're starting to get that, you know, they're starting to change their language a little bit and they're starting to throw those keywords out there to almost, you know, get us ready for it a little bit. But with where we stand right now, the S&P 500, it hasn't seen any monthly consolidation. And I'm talking about the monthly timeframe where every candle is one month. It hasn't seen consolidation on that timeframe in something like nine months. And so we know it's due, you know, and the next time The S&P 500 sees monthly consolidation, it won't surprise me in the slightest. I know it's going to happen at any point, so I'm ready for that. And it was the same thing with Bitcoin. When Bitcoin was running up to 65,000, I started getting cautious, granted, a little bit early. You know, I was scaling out upper 40s, low 50s. But it was because the monthly timeframe was so extended that I knew monthly consolidation is inevitable and just being prepared for it. So I am definitely prepared for monthly consolidation in the S&P 500. And whether it's not, whether or not it's, you know, tapering that is the reason for it, it definitely could be. It is something to be paying attention to for the cryptocurrency space as well. It's something I'm always telling people in my videos. If you're trading crypto, keep an eye on the stock market.

And what are maybe some signals that, that you would see from the stock market that would be like, hey, that's a giant red flag. Like, that's a. That's something huge. I should definitely track volume.

I mean, volume. You can't go down the S&P 500. And I'm talking about, you know, Spy, the ETF that tracks it. It can go up on very low volume. It just grinds higher and higher. But it can't go down without a big spike in volume. So you keep an eye out for that volume. And I watch the major sectors because The S&P 500 has had this beautiful rotation going on where it's just, you know, the tech sector is going up and financials are consolidating and then they flip. And so I'm watching for when all of our major sectors, the tech sector, financial sector, the healthcare sector, if they're dropping at the same time, that tells me this isn't rotation, this is money leaving the market. So I'm watching all the little components of the broader market for clues as to whether it's just the continued healthy Rotation or whether it's something different.

Yeah, those are excellent insights. Now I want to kind of shift gears from Bitcoin over to maybe some altcoins. Are there a particular set of tokens that you are extremely bullish on right now? And if so, why?

So as a trader, fundamentals are at the bottom of my reason for trading. I'm a very much leaning technical trader, Marcel. So for me, honestly, when something's in blue sky breakout, that is when I am, I'm most interested in terms of trading it. And we have a trade. I love playing bounces. So there's a trade that I call the back burner trade which is just if something is at all time highs, the first five minute oversold bounce, the first hourly oversold bounce generally had very significant gains. It's a high probability trade. So if something's in blue sky and Cardano just had this happen within the past two days, it hit first hourly oversold conditions where the RSI is dipping below 30 and it has this very significant bounce. Now that's not to say that you're just blindly buying and you know, going headfirst in. You have to manage your risk as always. But those are very high probability trades. So when something's in blue sky, it has my attention. And back in 2017 when I was first getting interested in crypto, you know, I read some articles and okay, a lot of this is over my head. I understand some of it, but I looked at the chart and I said, okay, Ethereum, blue Sky, all time highs. I know what that means and I have confidence in that technical setup. So that was a big reason for me getting involved with the space.

Apart from the rsi, what, what other indicators are you most frequently using for altcoins?

Volume, RSI and price levels, previous price supports. I also like exponential moving averages. I like the 12 EMA a lot. And when things line up. So if you're getting first 5 minute oversold and the hourly is hitting hourly EMA12 support, looking for a higher price level to form on the hourly. Again, that's multiple things lining up that have that as a higher probability trade.

Yeah, and I've watched some of your AMAs and I love how you take this, this very like holistic approach to trading and it seems as though it's, it's not just looking at numbers and charts, but it's also being in touch with the psychology, being in touch with yourself, your emotions, your environment. So like, how important is that to you personally when you're doing daily trading?

It's very important. I love that Jordan has a psychology background because I've always said psychologists would make really good traders. You know, learning technical analysis is one thing, the book learning part of things and a lot of people can do that, but it's, it's really, I mean it's a lifestyle. Trading is a lifestyle and you have to be balanced in so many aspects of your life to be able to do it successfully, consistently. And recognizing yourself and recognizing your ego and constant self reflection are a huge part of evolving as a trader and constantly improving.

Do you think most traders are successful in like managing those things?

No, that's, that's why most people are not successful traders. That is, that's the hardest part. And yes it takes, it takes a whole reworking of your lifestyle. You know, if you're, if you get angry at people in traffic, you're not going to be a good trader.

Yeah, that didn't help me try and be a better trader. Like it's mastering your own psychology and like not buying when the, oh I should buy it when you know, you shouldn't like. Yeah, it's, it's a tricky game.

What are some of the characteristics that, that you were constantly like working on in regards to kind of like the mental game of trading?

Patience is a big one. And even outside the world of trading, patience was one that I had to look to master and then again just self reflection. So you know, I'm not immune to these emotions. I feel fomo. I can look at a chart exploding and feel fomo but it's, it's zooming out and recognizing I'm feeling fomo. I probably shouldn't trade right now. And that's a really important aspect because if you have your blinders on and you're not you know, zooming out and watching the thoughts that are occurring in your head. It's, it's how you just suddenly placing a trade and how you have no game plan and next thing you know you're buying the top.

So constant self reflection now is sometimes not making a trade the best trade?

Absolutely. That is very often the, the best thing to be doing. You, you want to have a game plan established before you're ever entering a position. You want to know where you're looking to enter, where your stop loss is going to be so you know your maximum risk and where your target's going to be. And you obviously want to ensure that your target has a greater value. You know your reward is higher than your potential risk. And so you have to establish this trade game Plan before you ever click the buttons. Because again, if you're just acting on impulse, you're acting on emotion and your emotions are guiding things and you will find the more you watch markets that it's, it's acting on the opposite emotions that you would normally be feeling that would be the best scenario. You know, when there is maximum fear, I love oversold bounces. It's one of my edges as a trader. And when there is maximum fear, that is when I am my most aggressive as far as looking at trades. And when there's maximum fomo, it's when I'm trading a lot less. And like I said, I was, I was scaling out a little bit too early on bitcoin on this all time high run. But I was going to be darn sure that I was not holding when we saw that monthly consolidation take place.

And are there any like basic baseline tips or tricks for learning TA to help anybody that's kind of just getting started here watching today stop loss on every trade?

I mean there are, I don't know any long term successful trader that does not do this. And generally I know that even though I can say that to people 100 times that they still will not do it. And they have to learn for themselves. They have to feel the pain in their stomach and they have to be sick and, and that is something that is part of the path to becoming a trader. And you have to feel that enough to say, man, I don't ever want to feel that again. Well, if I just put a stop loss on every trade and I know my maximum risk on every trade then that can be that, that's a way to avoid that feeling.

Go ahead.

Are there any tokens aside from Bitcoin Ethereum that you. More like a long term hold?

I have long term no touch in Bitcoin Ethereum, some link and then some LTC from back in, in 2017. I'm not very hopeful for it. But I designate these things as no touch. Psychologically that's very important for me and I just account for them as zero dollars. You know, they go to zero, it's zero. And anything else that they're going to be in 10 years, great. And that's just a way because as a trader when I'm constantly staring at the screen, it's hard for me to zoom out. You know, I'm looking at these, you know, five minute candles. I need to be looking at the decade long candles. So I have to designate those as no touch.

Yeah, I, well I, I do want to Kind of move us into our, our fire round for today. This is kind of a fun little segment where we kind of ask you just a gam, random questions to get to know you, Dan. So I'm gonna kind of fire away here. So how do you, what is like one thing that you do to deal with the stress of trading? What is like an hour gardening outside?

I love growing plants, had a little farming background as I was learning to trade and that is how I find balance.

Okay, what's your favorite cheese?

Favorite cheese? Oh, man. I guess I would go with Gouda.

Gouda cheese. All right. What is your price prediction for bitcoin and ethereum by the end of the year?

End of the year? Well, I mean I could give without an ETF catalyst. I think that we're going to see a tightening range and I think maybe we'll be maybe in the, in the 40 thousands towards the end of the year. I think we set a monthly lower high. I think we pull back and set a higher low compared to 29 and look for things to continue tightening if there's an etf. Marcel, I'll give you an all time high with an ETF.

Now if somebody offered you five Bitcoin or 75 ETH, which one are you taking today?

I'm taking five Bitcoin.

Fair enough. Are you a believer in social tokens? If so, why?

Honestly, I haven't looked into them enough to have a long term viable opinion on them, to be honest.

All right, fair enough. And last question here. The fire round and then we're done. You're off the hot seat. NFTs, are they going to be a boom or are they going to be a bust?

I think like, like most altcoin projects where you see this, you know, huge rush and tons of things being established, I think 98 are bust, but there will be some booms.

Very good. Well, this was Dan McDermott from the Chart. Guys say we really, really appreciate you coming on. This was awesome. We hope to have you on again. Thanks for joining us today, Dan.

Thanks a lot. Have a good one.

Thank you, Dan.

Awesome stuff, guys. If you have not liked and subscribed, it's. The time is now. Okay? It's never been a better time to like and subscribe to Cointelegraph's YouTube channel. Go do it. Hit this, hit the like button. Mash that subscribe button, even turn on those notifications. So you know, every Thursday at 12 Eastern, we're here, we're here for you all. So now we're going to get into some audience questions. This is the Q A segment. We open the floor for the community. We want to hear from you all, we want to hear your voice and we want to make sure that we answer all those burning questions. So what do you have for us today for those, those viewers watching at home? Let's go ahead and dive into the questions here. Give me a second. Let's see, what do we got? Q A time, folks. Did you all have any questions while we wait for the audience to chime in here? What kind of questions you got? What's your favorite cheese? Marcel Gold cheese.

As the fans, as I are asking. Okay, just kidding.

Give me some of that mozzarella. All right, so let's see. Hello from Brazil, Ada Cardano. I think we talked about Cardano earlier today. I'll put this one up. Ada Cardano. Are you guys bullish, bearish here?

Long term bullish.

I'm bullish. I don't like to go against the trend. If there's like 2 million people or whatever that follow Cardano and think that it's going to be the next Ethereum or whatever, don't bet against it. Either buy a small portion or stay out of it, but don't bet against it. It.

Don'T be surprised if one day Cardano is worth more than Ethereum.

Oh, wow.

That's the hottest take of the day. Hottest take of the day. Hottest take. Jordan coming in, firing.

Yeah, it does obviously depend on like getting smart contracts in there, which I think they are. Again, we've mentioned it before. All these companies, all these different projects wouldn't be looking at Cardano if there wasn't something there. So we'll see how it goes.

Like again, smart contracts are coming next week. I think it's like September 10th. Like Alonzo. It's here. It's here, folks. All right, all those ADA fans, we, we have appeased your, your question. All right. What are your thoughts on trading bots? Do you guys use trading bots at all?

No.

I used to, but yeah, on the first couple of months you get a little bit of return, but after a while the other bots that are competing with you get faster, get smarter or get more intelligent. I don't know what else. They may, they may have a better connection to the exchange or whatever, but your profits simply disappear after two or three months. So you need to be continuously improving and changing the algorithm and there's nothing that. That's my expertise. So I don't recommend to 95% of the population.

Yeah, I was going to say I've used one before. Just a trade. It's like, I, I don't know if it's, it's great. But I do know on like Binance Smart chain, there's, there's sandwich bots that just sandwich your trades. They front run you and then immediately sell. It's just like, yeah, I've seen them. If I could, if I could learn how to use a sandwich bot, like, great, that would be awesome. But yeah, I don't know. Trading bots, not so much in general.

With like these people selling their system or trading bots, like realize if they were really making that much money, they wouldn't need to charge you, you so much for them. Like, like, like, yeah. There's lots of different ways to make money in crypto and some of them are less like assure than other if just go into mining or simply staking a coin.

If you buy and hold, buy and hold. All right, looks like we got a question coming in. Marcel, what are your thoughts on the CME gaps for bitcoin? So actually I'm going to tandem this question, what is a CME gap? And then we can dive into this question.

Okay, so the CME is the Chicago Mercantile Exchange. So it's the exchange, Traditional markets exchange, which happens to have a bitcoin and Ethereum futures contract which are financially settled. There's no real bitcoin or no real Ethereum trading at cme. It's just a financial bet between two savvy investors. So if the price go up, the buyer gets paid. If the price goes down, the seller gets paid. But it's a financial settlement. So what happens that the CME is closed on Sunday and part of the Saturday. So what happens that during weekends we tend to see more volatility on bitcoin price. And when the market reopens Sunday night, for example, at cme, there might be a price difference from what was trading on Friday or Saturday to the opening reopening on Sunday. So that's what's called the CME gap. It's the price that was last trading. I think, I think it's a Saturday lunch time until Sunday evening when the CME market reopens. So people tend to think, because it happens sometimes in the past, that those CME gaps tend to be closed. So if the market shoot up during the weekend on Monday or Tuesday, it's going to go down to close the CME gap. But it's a ghost. It's a story. Sometimes it happens, sometimes it doesn't. What do you think Yeah, I think.

It'S a, like you say, it's some more of a home that happens over when it's closed for a period and the price just opens differently. I know that ever since I've been getting into this game and people talk about trading, they're always talking about gaps here. We got to fill this glass. We gotta close this gap. They talk about in all the different charts, like it's like the word of God or something.

I've seen it. I've seen it before too. Like a lot of people chatter about the CME gap. Oh, it's, you know, there was a CME gap last quarter. It's going to be filled this quarter. Like, you know, so it's like, it's a floozy, it's a woozy, it's a fugazi. I don't know, I mean I, I don't know enough about that, but I have heard of it before.

We have to find things to fill the time in between the big moves in the market. That's, that's what we're all right. Even at a coin telegraph, that's what we get paid to do. Let's talk about the moves.

Yeah. Hello from Haiti. What are your thoughts about Vechain? It's a good one. Marcel, you want to take this one first?

Well, I'm not a huge follower of Vechain. I know it's not a new project. I know it has some heavy industry names behind it, some VC companies, so. But I don't think that, that the timing is now for V, for V chain. I think people are too concentrated on Ethereum 2.0 on lighting. I don't think that Vechain has an opportunity right now such as Cardano which is competing for the same market as Ethereum. So if Ethereum 2.0 fails to deliver or get postponed, then Cardano has a strong chance of Replay replacing it or getting 50 market share. So what? But I don't see that happening for the chain right now.

Vechain is also tackling supply chain, which I, I don't necessarily think Cardano and Ethereum are exactly targeting. So I, I don't know very much about Vechain, but obviously I've heard it's, it's trying to get into the supply chain management. Jordan, what are your thoughts?

Yeah, I'd say Vechain is one of the top supply chain management tokens out there. I think it'll perform well in this current market and again, I think we're gonna have a nice blow off top here eventually and then the whole market's going to collapse again. I don't think it'll be for another couple years like last time. But I think all of them, including V Chain because it's a solid top of the supply chain project, we'll have a nice run up and most likely a pullback. And with a lot of these projects I still think that even just the whole world isn't quite advanced enough to really integrate them. Whether it's a V chain, the this, the blockchain based supply chain tracking system is not really in place around the world. You have projects like EWT Energy Web Token where people are trying to sell the ability to like sell energy on an open marketplace but the whole infrastructure of that, that whole platform isn't really there. The people around the world don't have solar panels on their house. So a lot of these projects that have really good ideas or use cases are more likely to be benefit and benefit in the next few years or in the next bull cycle in my opinion.

All right, excellent thoughts to wrap up our Q A segment. We appreciate everybody sending in their questions today. We're going to be doing that every show so make sure you have your questions ready for next show. We're going to move into our closing thoughts for today. Let's go ahead and get right in. What do we got Danilo or are we going to Marcel? Here we go. What do we got?

Are you sending the intro? But my thoughts are if Bitcoin succeeds in El Salvador and we will get to know that in a month or two, if the lightning network is strong enough to get 4 million users to embrace them for daily transactions, for micro transaction, for, for paying small bills or for buying ice cream and stuff. If it works in El Salvador, it's probably going to work in Paraguay, in Brazil, in other sub developed countries that have problems with inflation, then it's going to be the main, I don't know the main focus of Bitcoin because right now it's store of value, it's digital gold and whatever. But lighting gives, opens up another window which is these means of exchange. It solves an actual problem. So I think El Salvador should be our focus right now.

Great point. Jordan, what are your closing thoughts for today?

Yeah, I think El Salvador is a really good experiment to see how this all goes. But again I think the long term trajectory here is a slow march towards mass adoption. I don't think that mass adoption is going to necessarily come in the next couple years. We are going to have to get into like more government regulation and things like a, an etf. As we mentioned before before, I think people really start coming in. So yeah, just keep your heads down, play the long game here. I'm not, I'm not a short term trader. I'm not trying to make quick buck. I'm trying to make wealth, long term wealth. So just stay the course. Patience, like my five, my five steps in life, awareness, acceptance, intention, action and patience. And as our guest earlier described, patience is one of the hardest ones. So yeah, just keep your head down. Long term, long term goal.

We're up exactly and into Marcel's point. I think this, this is an interesting experiment with what we're seeing in El Salvador. And to Jordan's point, I'm just gonna say buy and hold bitcoin. Just do it and get as much bitcoin as you can. Buy and hold. Buy and hold. Buy and hold. Those are my closing thoughts. This was an awesome show today. Thank you for joining. Every Thursday we'll be here 12pm Eastern. Like and subscribe our YouTube channels. We are Cointelegraph. We are the Market Report. Until next time. Thank you everyone for joining. Have a great afternoon.