LUNA down 100%, BTC down 56% — How to survive the bear market | The Market Report

Sa. Foreign.

Hello friends and thanks for hanging out with us today on the Market Report. I am your host Benton and we are joined by again by our resident experts, Jordan Finiseth, Marcel Peckman, Sam Borgi and we have a special guest today. The head of markets of Cointelegraph, Ray Jordan uses his background in psychology and human behavior to spot emerging trends in crypto. Sam Borgi is a business editor at Cointelegraph where he brings a decade of experience in economic analysis and financial market writing. Marcel Peckman applies his 17 years of experience trading derivatives options and and futures to the crypto derivatives trading markets. Fellas, it's been a bloodbath but we're still here, we're alive. What is going on this week? How are we feeling temperature wise? Are we hot, cold? What's going on? Marcel, how are you to this week?

Well, Benton, I think every time that and our channel of course start spreading some questions about if the market is going to survive, how to handle the crisis and crash, crash. It's time for you guys to be more courageous and buy more. I'm not saying go all in. I'm not saying use leverage, but it's time to build a bigger position in cryptocurrencies because everybody have uncertainties. The price went down 50% from the top or 60% in some cases. So it's time to get ballsy and do some purchases.

Yeah, Hearing such a bearish opinions in the market. This is like I haven't bought since before the beginning of the year. But I'm starting to feel like man, this might be a good time to get in the market because everybody's so bearish. I don't know my contrarian starting to peak.

Yeah. With the capitulation of the on chain metrics guys, they were the last ones pushing the bullish narrative. They've turned bearish now. So you know that we're either we've bottomed or about to bottom. I mean look, it's a scary time for everyone. But crypto as an asset class is here to stay. Bitcoin is here to stay. So if you feel comfortable allocating money, you know you're not going to get a better shot than that bitcoin sub 30. So I think overall the future is bright. But short term volatility is, could, could make you a little bit uneasy. But again, take that long term view.

Those are strong bullish statements. I feel good. You know, I'm a little bit disappointed that this bull market was so short. I'm very disappointed in decentralized Finance and I don't think that it's lived up to the dream, but I still see a lot of potential in the actual, you know, concept of D5 self banking, being able, able to collateralize crypto assets, you know, to self fund your own sort of ventures. Bitcoin, price wise, if you look at a one year chart, it's still trading within that same thirty thousand dollar range that it's been bouncing in between 64,000 and 29,000 since like January 2021. It's been an entire year in that range. I'm not comfortable that we're in that lower half. I'm happy that 30k so seems to be holding US support. But I think the difference this time around when looking at previous support retest, if you consider 30k or 29k as support level, is that the Fed has turned off the printer. Right? Things are different now. So the stock market's no longer pumping. The Fed is clearly resolute on their plan to continue raising interest rates. They don't want runaway inflation. And Powell has said multiple times, I would rather there be short term pain and you know, a weakening economy than deal with runaway inflation. And you know, to our disappointment, Bitcoin is correlated to these larger markets, to the S&P 500, to the Dow, so on and so forth. So the printer's been turned off and we're in new territory now. Bitcoin thrives off free money just like stocks thrived off free money and the money stopped flowing. So yes, prices are low. It's a good time to consider buying. But everyone that's telling you to buy, you know, your influencers and your institutional investors and such, they have the spare money, they're deeply liquid and they're able to take that long term sort of investment and deal with the short term volatility. But your average retail investor is not able to do that. So just because we're dipping doesn't mean that you should be buying. You know, you got to be a little bit more strategic with how you deploy capital. And considering the macro factors and headwinds at play, it might be good to sit on your hands and wait for a bottoming formation and see volume start to kick up again and to look to see the beginning of a trend change or at least a prolonged period of consolidation. Because consolidation means accumulation, but a downtrend doesn't necessarily mean accumulation even when you look at on chain metrics. So I like where we're at because I'm a seasoned investor and I'm used to the volatility. But you know, I am also cognizant that there could be much more downside that's unexpected. Last thing I'll say, because I know I'm breathing up all the air when everyone says that one level of support or resistance is where they plan to buy or where they expect price, price to stay. Sometimes price dips far, far, far below that. Like if you think about how order bits books are built and how markets are made. Of course, if the, if the bias is to buy at 30k or sub 30k, there's someone on the other side of that trade who's got a strategy for, you know, for counteracting that. So I wouldn't be surprised if we dip definitely 20, 000 or below, even if it was a quick wick down.

Yes. And so we're going to be getting into a lot of stuff today. The Terra Luna aftermath. We're going to gather everyone's thoughts about what's next. Is it still survivable? What do you think? Marcel is going to give us his expert takes of where bitcoin could go. Ethereum as well, keeping those on your radar. And today we're going to be giving away a $50 voucher to the CT swag shop. So make sure you drop a comment in the chat today on YouTube here and give us your Twitter handle because at the end of the show, we're going to give away a $50 gift voucher for that CT store. And you don't want to miss out on the swag. I see. What? You know, you can see some of us wearing them today. I think Jordan's got his Ethereum shirt on. And for those tuning in around the globe, I see Sam's got a CT shirt on. So repping the swag. Love to see that. But thank you all for tuning in from around the globe. And don't forget to subscribe to our channel here on YouTube. We have the market report on Tuesdays at 12pm Eastern. First things first, I do want to to some of the biggest headlines in the crypto Twitter sphere. So we're going to get into our weekly roundup video. Danilo, let's run it back and show the folks what's been happening on Twitter. Another wild week of headlines in crypto, but we are here for it. So this week we're going to dive into what's next for Luna. First, I want to get everyone's insights and I'm actually going to pull up Danila, if you wouldn't mind pulling up the Terra money. Dao posting board here. This is where Dwan presents what he wants to do next. And I'm kind of curious to hear what each one of your thoughts are about Terra Luna right now. If you haven't seen our previous episode where we dive into what happened, get caught up. It's our last episode on the YouTube channel. So you know what's happening with the Terra Luna ecosystem. If you were sleeping under a rock, Huge crash bank run. Guys, what do we think? Thank you, Danilo. This is kind of just for. For folks reading, but you can take it down. I'm curious to know, is Tara dead or do they have a chance at reviving by doing this fork that DO Kwon has talked about? Jordan, I want to hear from you first.

Oh, like I was mentioning before, whenever I get a bunch of people start texting me, like, should I get into cryptos? Like, that's usually a sign for me now. Like, I'm surprised at how many people that I haven't heard from in so long actually texted me or called me in the last week, asked me, should I buy Terra Luna now? And I'm like, oh, crap. Like, no, it's it. The original terror ain't coming back, in my opinion. Are they going to be able to revamp it? I don't know. Again, we. I mentioned in the last show, it's really hard to come back from breaking trust, especially in crypto, and they really destroyed a whole lot of trust with this whole scenario. They. How many BTC did they burn through? You see, you're hearing all these stories of people trying to stop this peg from falling and it still fell. I don't think that they really bounced back from that. They. Maybe if they completely rebranded and just, like, started this new project over here and kind of like, try to switch it. No, man, I don't. I don't see it coming back.

Sam, what are your thoughts here? Is there any chance for. For Tara to make a comeback even with this proposal by forking the old ecosystem and taking these snapshots it talked about?

Well, I mean, in conjunction with what Jordan just said, those. Those of you thinking about buying Luna, just know that the market supply or the number of tokens in circulation has skyrocketed. So don't expect price to go back to where it was. You got to take a look at the. The market cap. You got to take a look at how many coins are in. Are in circulating supply. Now, in terms of the tarot ecosystem in general, I mean, it's a really massive ecosystem. And, you know, The Lunatics, as they're called, are a pretty sizable community. Can that community be, be, be saved? It's possible. I think that it's going to require a lot of work. I think they're have to go away from the algorithmic stable coin. I don't know how USD comes back, which means that, you know, the, the overall view of what Terra Luna actually is might have to change. I mean, we saw a death spiral with the algorithmic stablecoin. It's just another proof that it doesn't work. So I think, you know, DO Kwon's proposals have been fairly controversial. I believe a lot of the community members voted against it or are against it. But I think at some point, if you're looking at the community itself, there's a lot of options there for that community to come across to come out the other side. But what that's going to look like, I don't know. All I know is that UST or a stablecoin like the previous iteration is most definitely not going to work.

And let us know your thoughts while you're watching today. Is Terra Luna dead or live? Let us know in the chat. I want to hear from Ray next. What are your, your thoughts here? And Danil, real quick, while Ray's talking, I'm gonna pull up this tweet from Whale Guru that shows you 90 of participants in the preliminary vote are against Do Kwon's proposal to fork Luna ecosystem. But Ray, curious to hear your thoughts here on the hold the whole next steps for, for what could happen next with Terra Luna. Thank you, Danila.

I'm with Jordan. I'm pretty much with Jordan and I'm with Sam. I mean, we've been in this space a while and once wrecked, always wrecked. Once trust is broken, it's gone. It's really hard to, to restore that trust. And there's a lot of competition within this market right now. I don't know about institutional inflows and institutional investors, but your average retail investor is looking at a portfolio that's not as profitable as it was two, three, four months ago. Right? Or even two weeks ago. So what can Luna do to entice or what can the Terra ecosystem do to, to entice liquidity after relaunching? I'm not sure because there's a lot of competition. There's a lot of other options within decentralized or even, you know, decentralized centralized finance like Celsius and Nexo. So Anchor. Well, anchor is out now, but I mean, there's other Places where you can go to earn a yield on your tokens. So yesterday I thought that the Hard Fork proposal was popular and that it had had some uptake. So I'm guessing within the last 12 or 24 hours, the tide has turned against that. Because a strategy I had heard was if you are. If the project Hard Forks and there's going to be the current Luna, which is dead, will be called Luna Classic, and then a new Luna token will be issued to those who took on losses, those that are staked within the ecosystem, then the play would be to accumulate Luna Classic, which is now the defunct Luna, with the hopes of then increasing your quote, unquote eardrop that you might receive post Hard Fork. But if that's not happening, then I honestly don't know how they come back. I do think it's good that Jo Kwon is sticking around and being very vocal and attempting to find a kind of, like, pragmatic, possible, positive way forward. Because when a lot of these projects have a calamity or a cataclysm such as this one, the development team vanishes, you know, or they absolve themselves of all responsibility, or they remind the community that this thing was purely experimental and that you should do your own research and, you know, try to mitigate your risk. So I like that he's sticking around and trying to be a positive voice in the room. I know that a lot of people aren't pleased with him, myself included. So if you think about Link Marines, there's no Link Marines left. When's the last time you heard anything about Chainlink and the Link Marines? When I think about. Right, right. There's so much utility and Danieli. Yeah, there's a lot of utility, but utility, reality, demand and application, they're all. That's. That's the crypto preps, you know, what is real world?

I mean, but is that a sign of just, like, how early we are in the space? Like, is. Is the innovations catching up with, like, the adoption?

Well, there's a lot of room for growth, I think. And, you know, Terra attempted to do something experimental within DeFi, which is an algorithmic stablecoin, which is not a new concept in this world. When you think about dollar pegged assets and other sovereign currencies that are pegged to the dollar. There's the Hong Kong dollar, there's the Arab Emirati dirham. There's like 10 different currencies that are pegged to the dollar. But the reason for that is to, like, equalize trade and to make exports lucrative for those countries. Whereas what is Terra Export? What was the need for them to. Why. Why would they need an algorithmic stablecoin? Why would you back a stablecoin with ultra high volatility assets? Why not just back your algorithmic Stablecoin with other $peg assets like Trax memory, USDT USDC? You know, create. Create an algo stable coin that's linked to other stable coins. Why would you do that with. With Avax and with us and with btc? That's crazy. So yeah, what I'm trying to say.

I want to let Marcel.

There's a lot of them, right? There's a lot of lunatics. Go ahead And Luna is a huge ecosystem and I've learned to never say never in crypto. It's possible that this thing can come back from the dead. Ethereum got attacked in the beginning and they hard forked and look at Ethereum now it's doing fantastic. Whereas Ethereum Classic is a dead chain. So anything's possible in this space. But I myself am not deeply optimistic in any sort of survival with Luna.

I want to hear Marcel's thoughts. Marcel, dead or alive, what's going on here? Terra Luna?

I think that the current state of Luna is more for dead. But I believe that a fork will emerge and something not at the same proportion, but something can come out of this. Because where there's a community, there's value. Because tokens with all those algorithmics and codes and stuff, it all boils down to community. If you have lots of users, it's the same happening to xrp. Even if Ripple the company if this is dissolved so they're no longer able to manage the XRP token, their community is so big that they embrace it and continue trading and continue doing business and creating out of xrp. I don't think Luna will ever gonna die per se, but it's gonna have to change and Do Kwan is gonna have to abandon or leave it. That that's pretty clear for me. But what is the need for the stablecoin? We. We don't need one. Especially algorithmic. It's too risky. For what benefit? I don't see value on that.

The whole ecosystem was centered around ust.

Sorry, go ahead, Ray.

Luna will come back. Possibly. Or Terra will bounce back from this. But will it come back to profitability? They had market share of Defi. They were the second largest project. There's a 40 to 60 billion dollars ecosystem. All of that is gone. So perhaps Terra Swap can come back, perhaps Astroport can come back. Perhaps the wormhole will still have cross chain flow into the ecosystem. Maybe they will go USDT and USDC native. Right. And it's just a wrapped version which with that exists within that ecosystem. But you know, I don't see Luna coming back to $100 per token or $50 per token. Of course anything's possible, but I don't know, it doesn't seem like it.

To have your entire ecosystem based around the UST stablecoin now looking back is extremely risky. When has there ever been a successful algorithmic stablecoin other than near protocol and what they're doing? We've seen a lot of different failures. Jordan, let you chime in here next.

This is also a really good learning how to. I'm surprised at hearing people had their whole portfolio in UST or Luna. That is horrible operational security. As far as crypto goes like 15% max on any and I know bitcoin maxis might feel different about that, but I'm like 15 max. Especially on a altcoin type project. If, if, if you're really exposed to risk like otherwise people need to pull that back. I, I don't necessarily feel sorry for anybody that had all of their stable money in ust. I'm like that's just foolish. So that's a little cold hearted. But this is a learning experience and crypto is highly.

So many people.

And don't get overexposed to any one project, please. Right.

Speaking of the bitcoin a little bit.

Go ahead.

Or go ahead Sam.

I just wanted to say speaking of the bitcoin maxis, I mean that was for me there were some really nice headlines with, you know, Doe Kwan backing his protocol with bitcoin. Even a lot of the bitcoin maximalists started to respect that. But that for me was the big red flag not to enter the anchor ecosystem because I was really considerate, you know, full disclosure. But when I saw the fact that they were backing their asset with an asset of a completely different risk profile, that's when I started looking into it a lot more and I'm like something here does not jive and I'm staying the hell away from this thing.

It's a good call, Ray. Last thought here and then we're going to shift into Marcel's expert segment about Bitcoin and Ethereum. Tell us what's next, Ray.

So, so about the people that lost their entire portfolios and had all their money in one ecosystem. Here's the thing with Terra and with all of these stablecoin or all of these defi interests, you know, defi platforms where you can put your stable coins there and earn interest on them, is that defi is volatile, crypto is volatile. All the defi tokens are volatile. So looking at like abracadabra money or looking at anchor or looking at some of the other protocols in Terra, it makes sense. During volatility, what do people do? They hop into stable coins, right? They want to protect their paper profits, they want to protect their portfolio size. It makes sense to go into stable coins because they're always safe and they never lose peg and you're going to earn 20 APY on that deposit, right? So I think for a lot of people, the conventional kind of practice, the conventional knowledge and the fact that it seemed pragmatic and well thought out that when the market, you know, shits its pants, we will just go into usdt. Usdc. That's what many of us have been doing for like the last three, four or five years. So ust made sense in that way and it seemed to be well guided. So I think a lot of people just got too comfortable in a strategy that had worked for them for a long time and no one expected the thing to unravel the way it did.

And the collateral damage that it caused. You know, Sam and Marcel and Jordan were talking about the contagion effect. Like, hopefully this could be the bottom of the market, but we're going to see if this is kind of a capitulation phase before we go lower or if this is just going to go sideways for the next year to two years. I want to get into to Marcel segment next because this kind of is a good segue for us considering the fallout with the bitcoin and the treasury of Terra Luna. I want to know what's next for bitcoin, what's next for Ethereum? I think Marcel's going to tell us what we need to know before we jump into his segment. I do want to chime into the chat here. Thank you everybody for asking your questions. If you have a question for Marcel and you want to answer, make sure you're dropping it in the chat. Don't forget we're giving away a $50 voucher at the end of today's show. Drop your Twitter handle in the chat. That voucher could get you $50 to the CT swag shop. So, Danilo, let's go ahead and run it back into Marcel's expert segment this week.

Okay, Benton. So we've all seen this over and over. So every time the market drops 2025% in a week. The fear and greed metric plunges, it's currently at 8%. So one thing you should notice is that such data is always backward looking. So how is the fear and greed metric composed? It relies on volatility, volume traded social media, Google search and Bitcoin dominance. So what are the forward looking metrics? Well, first of all, derivatives markets. So instead of checking past data, the futures premium, also known as the basis rate, analyzes what professional traders are paying for contracts that will expire in two or three months. So Danilo, can you share screen please? So let's start by the current 3.5% basis rate. What does that mean? It means that the Bitcoin futures contract expiring in September is trading some $300 above the prices at Coinbase and Bitstamp. So you can ask, is 3.5 a good positive indicator or not? Well, usually numbers below 5% are considered bearish, signaling a lack of demand from leveraged buyers. But you gotta step back for a minute. Bitcoin is down 25% in three weeks and yet there's a premium, there's a positive premium for contracts expiring in three months. So it means that the sellers are not confident enough to place bearish bets at $30,000. So thank you, Danilo for sharing. So another thing that I like to look, which tends to be a forward looking data, is on chain metrics and the most used on chain metric is exchange reserves. So the number of bitcoins and ethereums deposited on exchanges, so mainly what people say is that the lesser bitcoins deposits, so when those clients withdraw funds, they're sending coins to cold wallets. So diamond hands are buying, which means this is bullish. Bullish, this is positive. So, but is that really what's happening here? So Danilo, I want to share my screen again, please. So here you have crypto quant data. So the blue line is the number of exchanges, bitcoin deposits on exchanges. And you can see that it has been declined. It's currently at 2.47 million bitcoins. And if we go back in time, it was above 2.55 million bitcoins deposited on exchange. So in the past week alone, the number went down by 53,000 bitcoins. Thank you for sharing, Danilo. So what you're saying, what the data is saying is that clients withdrew money from exchange. So theoretically it's a good thing. But let's assume that the data is correct. Let's assume that those coins are moving to diamond hands. So yeah, large clients are buying bitcoins. But what happened to the retail investors, everybody who lost money on bitcoin and altcoins and sold those coins on exchanges to these large holders. So most likely they got liquidated, they got wrecked, or they said, okay, I'm down 50%, I don't want to know anything anymore about cryptocurrencies. I'm going out of that. So even if the data is positive, even if it means there's less liquidity for buyers right now on exchanges, it also means that the retail traders got wrecked, they lost money. So in my view, even though the number of bitcoin deposit exchange reduced to the lowest level in three years, I don't see that as a positive. I think we're heading to another three or six months of sideways market or maybe a price cap of $40,000 for Bitcoin because retail traders are needed for the rally. There's not going to be a rally to 50,000 or $60,000 if all the retail traders lost money. So my reading of the on chain data is not so good. It's kind of bearish. And despite the slow or low 3.5% futures premium, there's no demand for leveraged buyers here.

Very interesting. And I. So do you feel like if the Fed continues to raise interest rates that will also have an impact on the retail market segment as well?

Well, I think for me the Fed has no option. So either if that inflation continues to run up, to build up, which is horrible for the economy, which is horrible for families, or it continues to raise interest rates, the quantitative easing and start some tightening. So instead of buying bonds or buying amp mortgage security bonds, he's going to have to sell some Treasuries, some bonds. So definitely not a good time to be in risky assets. But what is the other option? What can investor do? He can go to, I don't know, excessive premiums as well, real estate. So bitcoin is not the option. It is a scarce asset. I think some money will flow, maybe 1%, maybe 2% of that money will eventually flow. Maybe next 22 we're gonna see some inflow from this institutional investors to bitcoin. But right now the tightening movement from the Federal Reserve is negative for.

Jordan and Sam. Any questions for, for Marcel here?

Yeah, it would seem that like, like we've gotten, we get a little conspiratorial about it before. Like did the government have anything to do with this, the UST debacle and stuff like that? Well, BlackRock could probably buy the whole Cryptocurrency market on its own. But yeah, what you're saying, like it's even more impactful that what they really did was scare the crap out of retail investors to get away from the market. Like even though I've had people like should I buy in now? I don't see people coming along like I want to dump a million dollars in this market. So like we could just stay sideways. But maybe it was a good opportunity for the people like the big institutions that are accumulating in the background as retailers are scared of allows the opportunity for institutional maybe to accumulate over the six months period. Like you're saying, as we trade sideways while retailers say outside, then they'll start pumping it and retails like, ooh, fomo. I don't know.

So Shalom seems to think that it's the solar cycle. I'll let Sam jump in next. Wrong again, chimes in BTC Eth. Stick with the fundamentals. So your boy Marcel is talking about those fundamentals, but Sam, go ahead and jump in.

Yeah, I just want to follow up with what Jordan said. I just saw some data, I believe from Coin Shares that said in the last week we saw $274 million flow into Bitcoin ETF products or Bitcoin institutional fund products over the past week. So it seems like the institutional investors are buying the dip. Now, I don't know if we're at the complete bottom or you can call it a dip yet, but it seems like we all know the adage, when the market is fearful, it's time to be greedy. After the the massive sell off that we saw, it looks like some of the big, big money investors are accumulating. But again, with the Federal Reserve tightening the way it is, I don't really see any positive catalysts from the retail perspective. Over the next three to six months, the Fed is going to probably introduce another 50 rate, 50 basis point rate hike. In the next meeting. They'll probably do it again. I think September is going to be the big meeting because it's going to give inflation perhaps another three or four months to cool down a little bit. And by that time we'll see if the stock market has been pummeled even more. At that point, you could start to see a shift in the Fed's messaging, maybe September, because typically September and October are very volatile periods for stocks and then by extension crypto as well. So if we come in after Labor Day and the markets are tanking again, after all that we've seen over the past six Months, seven months. That's when you could start to see perhaps the narrative shift from the Fed, but not before then. In my opinion.

We are in a very peculiar position. What seems like could be with the inflation, rising, interest rates, a lot of kind of stuff happening at the macro level. Marcel, what are you doing from a trading perspective right now? How are you approaching or assessing things? Are you still sticking to your dollar cost average baseline? What are you kind of doing in this, this kind of scenario?

Well, any spare money that I have by the end of the month, I buy btc. But from the futures trading perspective, I do think that anything below $30,000 is a bargain. Yes, we could see eventually if there's a crash on traditional markets, Bitcoin may be moving to $17,000, $18,000. Yeah, it can happen. It's small, odd or small chance that it's going to happen, but there could be a low for that. But for those that envision a six month, 18 months time frame, buying at $30,000 seem like a bargain. And if you do like Ethereum at $2,000, it also seems like a bargain for me as well. So I do think that if you have some spare money and you are still waiting for an opportunity to buy cryptocurrency it is right now, don't miss it.

That's a great point. And I mean even if you look back at the flash crash of March 2020, a lot of people thought the sky was falling, but look what happened 612 months later. We had one of the bigger bull runs that we've seen. The other thing that I want to touch on here is when it comes to where we're at currently and the psychological phase of what was the market cycle, I feel like we've learned a lot. We were just talking about this on the pre show. It's like we've been through all of the psychological phases right now, having euphoria, doubt in the grieving process. I think we're now at kind of the tail end of what could potentially be this market cycle. So when will the next one start up? We will see, time will tell. But as always, dollar cost average in to the bitcoins and Ethereums and you can't go wrong. One thing I want to emphasize here is that these are the personal opinions of each panelist. This is not financial advice as always and these are not any way, shape or form Sponsored content from Cointelegraph so thank you Marcel for sharing your insights for today. Don't forget. Go ahead Marcel. Last thought.

Wrong again said on chat, Marcel is always bearish. That's not true. I've been bearish for the past couple of months. I assume that. I will say that even sold a little bit of my position when bitcoin was at $47,000. But really small part, a tiny part, but I've been bearish for the past couple of months. But I do think that, as Sam said, by the end of the year, September, October, November, we're going to see, after the Fed has raised up the interest rates, people will start thinking, well, what can I do with my money? I have some money left. Because I think that I thought that the markets were going to crash and it did not happen. And I think that, yes, some of that money, maybe 1%, 2%, 5%, will be allocated into bitcoin. And then we were going to see a rally.

100K, here we come. We are well on our way. I see the chat is getting quite geopolitical right now. Let's keep this crypto. Let's keep it fun out there today, all right? We appreciate everyone that's been tuning in, but if you haven't liked, subscribe, go ahead and do so now. $50 into the show for the CT swag shop. Drop your Twitter handle in the chat for your chance to win. Next things next. How are we going to survive this bear market? We heard Marcel about what he's doing for his plan of action, but now I want to get into. What are y' all doing? Actually, we have the market news segment next. That's my bad. Market news. Which one do you guys want to talk about? We got a congress. We got Bukele holding 44, you know, world leaders in El Salvador. Does that seem like a good one? We want to talk about that one today. What do you think about this? Bukele, president of El Salvador, is hosting 40 different other leaders from around the globe. Is this big news? What does this mean for the adoption of bitcoin? Sam, I'll let you jump in here first.

Well, I'd have to look at, you know, how many of these countries I've actually heard of before. You know, that's the first. That's the first question I want to ask. They're not exactly, you know, big geopolitical players, right? So. No, I mean, look, I think it's positive. You know, I think you're going to start to see more countries adopt the bitcoin standard in some capacity. And even if we get a few more, that's always positive news. I think we were a bit underwhelmed with the bitcoin Miami news, though, when it comes to adoption, that didn't really live up to the hype, in my opinion. But I think the fact that you have dozens of countries coalescing in the, you know, bitcoin capital of the world, so to speak, to discuss potentially integrating the new asset class, I think is very positive. We'll see what. What comes out of it in the next, you know, few years.

And I'll let Jordan chime in next, but Danilo, if you wouldn't mind just pulling up my screen real quick. I do want to show all the countries, and it was talking about the article central bankers from certain countries. So this here orange countries, a lot of countries in Africa, South America. That tells me that these. These countries are looking to. To obviously adopt this technology and integrate it in. In what. What better places where they need it the most? And I think this is really cool to see that countries from around the globe are starting to really pick up on this. I'd love to see some more European countries in Asia and, you know, North America jump on board, but in due time, I guess. Go ahead, Jordan.

Yeah, back I remember, like, especially in 2017, you kept hearing this theme of, like, it's a transference of wealth. Transference of wealth. But I kind of got this different. My own unique perspective on it and how, like, so now, especially with these countries starting to rise up, my theory was that they're gonna really promote bitcoin, especially to poorer countries, so that they can accumulate it at a lower price. Then they'll pump it out to, like, the. The wealthier countries, thus transferring some of their wealth to those poor countries who already accumulated it on the low. And this just kind of fits more in line with that. Like, if they can get countries like, I know people actually ragging on the fact that it's less wealthy countries that keep wanting to adopt bitcoin, like, that's a good shine. By I'm like, that just lines up what I'm thinking, like, how can we actually distribute the wealth of the planet to all the more. All the countries more evenly if they can start getting in on bitcoin early. And then all the other wealthy countries pump the price up after they're already in by. By necessary. That works out by inflating their treasuries. So in. In my, like, from that perspective and that theory of mine, this kind of aligned with it. It's a way for poorer countries to kind of get in ahead of bigger countries and increase their wealth just because they buy Something like a bitcoin before the rest of the world gets on it. So that's just kind of lines up with that. I do think over long term, maybe bitcoin will become the kind of global settlement currency if all these countries start adopting it, maybe we're on that path. I don't know. It's curious to see. I'm still hoping for maybe one more blow off top this year. Because everybody's talking about we're in the dumps for the next like five years. I'm like, yeah, blow up top. Come on, we still gotta blow up top.

But Jordan, even if, I don't know, El Salvador buys bitcoin and it goes from $30,000 to $200,000. Why would the country, or how would the country distribute this money? The government would probably use that, I don't know, for its own good or whatever the government thinks is right. I think what should be done, what would be interesting is if the population start to accumulate. So even if it's 10,000 satoshis, even if it's small quantity, but if the population starts to accumulate and what we've seen over the last research or pools that have been done in El Salvador is that the minority of the population is accumulating. Yes. Like 20% of them are, are using the coins every day, but they're not accumulating.

Yeah, My original thought was that it was the people needed to be the ones accumulating it. But just in my, like watching the crypto news, mainstream news, and how they've attacked crypto over the last five years, I can understand why no retail people are buying it. They've effectively kept people, they've convinced people stay out of the market. So it's the only way to kind of move this along again. 70 of people won't do anything that the authority of their, their land tells them to do. So when, when we start seeing governments actually adopt it, the people will be like, oh, it's safe now. That's just the way human psychology works. It's sad. Like, I really wish it was the people accumulating it because then the people would be getting the wealth. But we're like as, as a mass, we're not that intelligent. It's, it's sad to say individuals are really smart, but you put us in a clump, we turn stupid and that's just the way it's gone. So it's going to take the, the bosses, the people, the people that we've placed on a pedestal telling us that you can buy this now. From the majority of people that buy it, which is sad, but, yeah, the.

Sheep don't be a sheep. You know, it's like all the big governing bodies tell us what to do. Most people don't want to think and wake up. There's an epiphany. There's a revolution happening, folks. It's called bitcoin. Wake up. It's coming. Any other thoughts here on what could come out of this central banking meetup? Is the big deal or not a big deal in the grand scheme of things, Marcel?

Well, I'm not sure in the grand scheme of things. What Sam said about the Federal Reserve is more important. Once there's no more extra liquidity going in the markets, we're gonna see the real price of assets. So is a house in Canada, a small house, a cabin, really worth a million dollars? I don't know. I think there's gonna be a repricing. So I think we should focus on a bigger picture here. And when the tides are down, we're gonna see who is naked or not. I think that's the message we should be interpreting.

I'm just waiting for that petrodollar to be replaced by. By bitcoin one day. So we'll see. All right, folks, moving on here. The chat is electric today. A lot of people are talking about CBDCs. We'll get into that maybe during our next segment on how to survive the bear market. So let's go ahead and do this thing. I just want one quick tip. What are you doing to survive this bear market? Jordan, kick us off.

Realizing that there's more to life than just crypto. Like, I still have a job because I didn't think that I was going to be able to financially free myself on this market. So going out a few years, I will start dollar cost averaging when I feel like it's ready. But other time, I'm just trying to enjoy life, go outside, enjoy the sun. It's getting summer here in the US Having some fun outside, man, because crypto like it. Turn your. See the memes somebody posted like, I've been trading for nine years and they're 29. And it's like this old man, like, yeah, that's crypto. So you got try to find ways to de stress. Do your good research. Oh, sorry, you wanted a short answer? Yeah, de stress, man.

Give us a tip. All right, Sam, quick tips. How to survive the bear market.

Hold, hold.

Bitcoin, Right? Let me listen. Listen and on. You didn't sell, did you? You didn't Sell at the top. So just hold. Okay? It is what it is. Now get ready for the next cycle. In the next few years, probably you're in a hard asset. We're all getting screwed no matter what asset we're in. So have that perspective. Hopefully you haven't invested too much that you actually need that liquidity. If you don't need that liquidity, let it sit because there's nowhere else to put it really right now. So hold your bitcoin and chill, as Jordan said.

Marcel, your thoughts on how to get through this bear market here?

Well, I think that the number one message that I would give to the viewers is there's nothing safe or stable in the world. Even if you buy US Treasuries, you're losing money because they're devaluating the currency by printing more money out there. So yes, you get 2 or 3% yield, but inflation runs at 8 or 10%. So in true, you're losing 7 or 8% every year. So there's nothing stable out there. There's no 100% safe investment. So rethink your strategy. If you think you're playing safe.

Bring up some great points. I think for this particular bear market, just go look at the charts from like six months ago. Like, this is all a, a giant fire sale. And I think when we zoom out one year in the future and we say, oh my gosh, look at the gift that we got for those that survived the 2018 bare market and made it through the 2020 bull run. They were thankful that they were getting into some of these tokens at these prices. Now let's not forget that a lot of these tokens aren't going to be around in another year or two. So stick with the gold standards, the bitcoins, the ethereums and maybe a few other projects that you really, really believe in. The longevity for and dollar cost average your way into these now because you may not see these price levels a year, two year, four years from now. So zoom out hat perspective for this bear market. Mentally, got to stay in the game. So always, always zoom out when it comes to that bear market. We got your back. That's why you got to come here every Tuesday, 12pm Eastern. Drop your Twitter handle in the chat. We're gonna be giving away that $50 at the end of the show to the CT swag shop. Next we got Markets Pro, the two tokens that you should have been watching. Markets Pro has your back in the bull or bear market. So let's go ahead. Danilo and Jump into Our markets Pro2 tokens that you should have been watching. Did you hear that? Did you feel it? That was a newsquake. And newsquakes are the automated alerts that instantly notify users when market moving events happens. This week we had that newsquake with the token YGG Yield Guild Games. Well, despite bearish trends, early this week, news of Yield Guild Games partnership with leading Solana NFT marketplace Magic Eden saw impressive price action. Newsquake alerted Markets Pro subscribers to the partnership on May 11, when the price was at 52 cents. On May 13, that price peaked at 74 cents, a 42 increase. Bear markets, you're going to take that all day. And that was the power of Markets Pro. You would have gotten that alert and been instantly able to action that trade and picked up a quick 42%. Now, the next token for this week is is we're going to take a look at that Vortex score in Sapphire trading under the ticker Sapp for your. If you're not familiar with the Vortex score, it's a comparison between the current market and social conditions of the past. A score of 80 or above is confidently bullish. 30 or below indicates historically bearish conditions. Well, you see the chart here. That vortex score hit 86 and Sapp throughout the week, alerting Markets Pro subscribers of a potential trading opportunity based on the historical conditions. So it turned out to be this week's top gain or defying the entire market. In less than a day, the price shot up from 48 cents to 77 cents. 57% gains. You got you just like this is why you have Markets Pro, especially during a bare market, is because of these two trades. And that's the power of the Vortex score and the news quake. So if you're a subscriber, you're getting in on this action and that's why we love Markets Pro. Now guys, I want to get some closing thoughts from you all today. Start off with Jordan. Give me some closing thoughts here. And then we're Gonna pick our 50 winner for the CT store.

Yeah, the world's not ending. Yeah, crypto market's down. There's still trillion. Like 40 of the money supplies are even higher than that's been printed in the last like four years. Even though they're raising interest rates, all that money is still out there. They haven't taken it out of supply yet. There's a good chance that some of that could still find its way into the crypto market if everything else just kind of goes on, goes to the stock Market keeps collapsing, the bond market stays schizophrenic. Cryptos might be the hat, the haven that we're all hoping for. We might finally see that decoupling from the stock market. So keep the faith. Crypto faithful. Long term, the outlook for crypto is still good. Like I said, try to find a way to enjoy life outside of this. Crypto is volatile. Accept it. Don't say I'm going to be rich in a year. Take a 5 year, 10 year trajectory, accumulate over the years. Don't, don't let the, the ups and downs of the market kind of give you gray hairs and just realize that long term, we're on up, we're on the uptrend. It just, it's a volatile trip.

Jordan, when you say, when you say decoupling, you mean crypto is going up and stock markets continue, continue down or lateral, right? Not the other way around.

Yeah. Fingers crossed. Fingers crossed.

Okay. Yeah.

Sam, any closing thoughts for today's show?

Just know that the extremes don't last forever. You know the extreme downside that we're seeing, it's not going to last forever. Just like the extreme euphoric highs won't last forever, things will eventually recalibrate and you'll be able to better assess where we are in the market cycle. But overall you should have an investment thesis and stick to it over the long term.

Excellent feedback. And Marcel.

Well, Benson, I think my closing thoughts will be nobody knows what's going to happen. We never been in a situation of such negative interest rates or the Fed hiking of the Fed fundraise so much. We've never seen anything similar in the past. And bitcoin did not exist 15 or 20 years ago. So we don't know what's going to happen to the price. But if you believe in the asset, if you believe in bitcoin, if you believe in Ethereum, if you believe in the defi ecosystem, don't miss out the opportunity because the media or the government told you not to invest. Limit your exposure. So if you're comfortable with 10%, go ahead with 10%. If you're comfortable with 30%, go ahead 30%. But don't miss out the opportunity because of the risks. Because if there's risk, there's reward.

Exactly right. Knowing those risks, mitigating those risks, being comfortable with that risk. It's all subjective. But we are here for you. Bear markets or bull markets. And we appreciate everyone for tuning in. Today on the market report. We're going to select our $50 voucher winner to the Cointelegraph store. I'm going to scroll through chat right now. Looks like Erica Hamilton at Erica Paper Hands. You are our winner, winner, chicken dinner. That was the first Twitter handrail I saw today and in the chat. So congratulations. We're going to send you a DM on the Twitters and get you that $50 voucher so that you can get some of that CT swag. Folks, we appreciate you tuning in as always to the market report. We're here on Tuesdays and hopefully there's no more craziness in the market, but we may be popping in for a little special edition. So keep your eyes peeled, don't forget to like and subscribe Cointelegraph on YouTube. Thank you all for joining us Today show. We look forward to seeing you next week. Until next time, over and out.

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