In this video Kamilah Stevenson explains the concept of de‑risking during crypto market sell‑offs and why the resulting capital flows matter for long‑term investors. She describes how, when macro signals such as a collapsed Fed rate‑cut probability and sticky core PCE inflation signal a stagflation regime, professional investors unwind speculative positions in Bitcoin, Ethereum, XRP and other altcoins. Unlike traditional risk‑off moves into Treasuries or gold, a significant portion of the capital in mid‑May 2024 moved into regulated, dollar‑backed stablecoins on public blockchains, effectively parking on the settlement rail while waiting for the next deployment. Stevenson draws a parallel to the 1970s stagflation era, noting that assets like gold and commodities outperformed then, and argues that today’s investors have an expanded toolkit: public‑blockchain infrastructure, tokenized real‑world assets, and regulated stablecoin rails. She advises positioning XRP and other digital assets for a decade‑long horizon, emphasizing tax‑efficient structures such as Roth IRAs via iTrustCapital to avoid capital‑gains tax. The video also promotes her Wealth Architects Inner Circle, one‑on‑one clarity calls, and a coaching community, encouraging viewers to share their riskiest holdings and how they park cash (banks, stablecoins, gold). Throughout, she urges a long‑term perspective, warns against reacting to headlines, and frames fear as a buying opportunity.
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I want to walk you through something that happens when crypto sells off, and it's the concept of de-risking. And I think a lot of people need to kind of understand a little bit better about what happens when there is a de-risking event. And so there are times when Bitcoin will sell off, Ethereum will sell off, other altcoins, XRP, all of them will sell off. And the financial press, they'll run with a story that everyone expected, which is that crypto is risky. Crypto sells off together, crypto behaves like a single risk asset, and you should treat it accordingly. But underneath the price action, the flow data is going to sometimes tell a different story. And it's a story that you need to understand, uh, if you wanna know what the next decade looks like for digital assets, right? So you don't wanna listen to every single thing that the headlines is saying that pushes you away from future infrastructure or digital commodities that you should be positioning yourself in, especially with the economy and the environment that we're in. And sometimes when you see events where speculative positioning is being unwound, it doesn't mean that capital is going to flee back into legacy banking systems. Maybe the capital flow back into regulated dollar-backed stablecoins on the public blockchain, and then it just sits there. So just understand that sometimes when it happened, capital is still parking inside of a settlement rail during maybe a stress event., and maybe that capital is not looking for an upside. It is capital that has decided where it wants to live, even when it is not betting on anything. Okay, now I'm Kamilah Stevenson, and around here we talk wealth. Go ahead and like the video and subscribe if you have not already. I'm going to continue to drop videos to update you on what's going on, and you need to know what's happening in our economy so you can stay positioned and, uh, make sure that you are investing in assets., right? Because it's going to hedge you from inflation. And don't be scared every time, you know, something comes out and say, oh, someone pulled money out of this digital asset, or this institution pulled money out of that asset. Don't think that always means that there's a problem with the particular asset. There are a lot of things that happen. There are the rebalancing of books. There are, again, sometimes institutions will rotate money into stablecoins. Sometimes they might even diversify. But stay the course, understand what's happening and what assets will thrive in the next decade. This is not a day-to-day thing, right? This is not even a month-to-month thing. We are trying to set ourselves up for the next decade. And institutions think in decades. They don't think in days and months, and they're not short-term minded. You have to give yourself a time horizon for what is taking place. Hey, fellow investors, Kamilah Stevenson here. Quick heads up for all you smart investors watching this. If you're serious about investing and growing a digital asset portfolio that brings you financial freedom and you like how I've been breaking down crypto, but you want more than just free content, I'm putting together something really special. For the first time ever, on June 13th, I'm opening the Wealth Architects Inner Circle where I'll be working with just 15 investors on a much deeper level. This is for investors who want structure, a deep understanding of crypto beyond what I share on YouTube, and a personalized wealth plan built specifically for you, not just more random information. So if that sounds like you, click the first link in the description to join the Inner Circle waitlist now. Spots will be limited once enrollment opens, and the waitlist members get first priority. So be sure to check the first link in the description and put your name on it.. It doesn't mean that we're not going to prosper before that point. It just means we got a long road ahead, a great road if you make the right decision. All right, so drop in the chat. I want to know from you, what do you feel like is your riskiest asset right now that you're holding right now? Like maybe the one that you're most worried about in this market. I just kind of want to see where you are with this and gather some information. I think we all want to know, right? I've told you guys that I've been invested in like you know, certain coins that are pretty risky because I position myself in it, you know, maybe a couple of years ago, and I don't want to sell in a bear market. So I do have quite a few risky assets. I'm in an asset called Near, N-E-A-R, protocol. I don't know how well it's going to do. I haven't even really followed the project, to be honest. Um, it was like a gamble for me when I got in, but it was a small risk position I wouldn't care if I lost it all. That's how low risk that I positioned myself in there. But at the same time, I wasn't going to sell in a bear market. And, um, if I decided I wanted to de-risk, that's fine too, right? Let me just explain what de-risking means before I go further, because it is a term that is used in financial media, and I don't want to assume that you understand what it is. So de-risking is what happens when professional investors decide the macro environment is too uncertain to hold speculative assets. So they unwind their riskiest positions. They pull capital out of high volatility assets and they move that capital somewhere considered safer until the uncertainty clears. In a traditional risk-off event, the capital usually moves into like US Treasuries or into the dollar or into gold. What was different about our last de-risking moment, which was like mid-May, is that a significant portion of the capital did not go into any of those places. It actually moved into regulated stablecoins on public blockchains, and it stayed there. So that behavior tells you the financial system itself is changing, uh, because capital is now treating the public blockchain settlement rail as a legitimate place to wait, uh, not just a place to speculate. So the trigger for the de-risking event was, again, in mid-May, was a stack of macro signals that all hit the same window. So June Federal Reserve rate cut odds collapsed below 1% that morning, which means that the rate cut that everybody expected was effectively off the table. And then core PCE inflation was running above the Federal Reserve's 2% target with the latest print coming in higher than the previous month. And then so that was confirming that inflation is sticky in the service economy and not coming down on the Fed's preferred timeline. And the stagflation regime that economists like Ray Dalio had been warning about all year was being publicly confirmed by traditional financial press, which means even mainstream coverage was admitting that the macro environment is now characterized by inflation above target while growth is slowing. So that combination of signals triggered a broad de-risking across crypto and across crypto trades 24 hours a day. So it took the first wave of liquidations. Okay. Again, I want to explain this because these happen all the time. At that time, Bitcoin, Ethereum, and the major altcoins, they sold off in a correlation fashion. And so that was what was happening because if you see the framework, you can understand it. But you got to know why the de-risking happens. I think that it's time to really search out the matter a little bit more before you just get afraid all of the time. As a matter of fact, I buy fear. I love when fear starts to happen in the market because that's a good time to buy. And, um, when people get greedy, it's time to sell, right? And so here's what a lot of people don't get. Regulated dollar-backed stablecoins expanded, uh, their on-chain market cap during that same window in which speculative positions were getting liquidated. So the same investors who were unwinding their volatility exposure were simultaneously increasing their stablecoin holdings on steal the public blockchain. That is not the behavior you see when capital is exiting crypto entirely. Okay, I need you to understand that because people get scared, like, oh, the money is moving, everybody's moving their money out. No, um, that is the behavior you see when, again, capital is reorganizing within crypto, moving from high volatility layer down to the settlement layer and parking there while it waits for the next deployment. So the lesson is that the public blockchain has crossed a threshold of trust where capital is now willing to sit on the rail itself, not just bet on the assets above it. That is not how the system behaved in 2018. That's not how it behaved in 2021. It is behaving that way now because the rails are mature enough that capital trusts them even when it does not want the volatile asset sitting on top of them. So if you want to understand what comes next, you have to understand what happened the last time the United States went through a regime like this one, because we have actually been here before. In the 1970s, the United States entered the most severe stagflation period of the modern era. Inflation ran above the policy rate for years. The dollar lost purchasing power every single year, decade over decade. The traditional 64 portfolio of stocks and bonds failed for an extended stretch, and an entire generation of investors watched their savings get quietly devalued without ever understanding why. But the people who paid attention to where capital was reorganizing made a fortune. Gold went up $35 an ounce to over $800 across that decade. Commodities outperformed, hard assets outperformed. The lesson from the 1970s was not that the financial system collapsed. The lesson was that capital reorganized itself around the assets and the structures that worked in the new regime, and the people who recognized the pattern early ended up on the right side of it. So the exact same thing is happening right now, but with one significant difference. The toolkit available to investors in this regime includes something that did not exist in the 1970s. Public blockchain settlement infrastructure, tokenized real-world assets, regulated stablecoin rails. The capital parking inside those rails, um, during even that event is telling you exactly how it expects the next decade to be wired. And you're watching the early stage of that reorganization unfold in real time. So let me bring it back to you because the lesson— I don't know if it was like around May 18th or so, Uh, but it wasn't that crypto sold off. The lesson was about how capital is reorganizing around new public blockchain infrastructure in the early stage of a stagflation regime. And you have to pay attention to, uh, whether you're positioning your XRP correctly for the regime change. And that is now visibly underway as we are seeing. So one thing I often talk about is holding your XRP in a way where if you do trigger capital gains, then you will give away a lot of your gains to the IRS because they are coming for your money. You do have to pay taxes on capital gain, and there is an account available where you can have that appreciation and not have to pay taxes. And listen, the institutions are not making this mistake. They are placing their digital asset exposure inside structures designed to protect the growth from the same tax system that is contributing to the dollar erosion in the first place. So the retail equivalent of that structure protection is a Roth IRA. iTrustCapital is the platform that opens that door. That is where I hold a portion of my digital assets in their account. I hold several digital assets in that account along with silver and gold. And I know that as it appreciates and we see that movement in the direction that we know it's going, which is up, I will be able to keep all of the appreciation of that, and I will not have to give any money back to the government. So that is an option that you have so that you can keep the upside of your funds. Now, if you do have your selling points, just again understand that you have to plan for taxes, but that is why it is smart to have an account that you don't have to pay taxes on because because why are you giving all of your capital gains to the IRS? It doesn't make any sense to me. Okay, so I know what I'm doing with my accounts, and I am sharing that information with you. And also, if you do decide, there is a $100 free funding bonus when you fund the account. So the link is in the description for that. Go ahead and get your account funded. Do not procrastinate any longer because the year is moving forward fast, and you do have a cap for how much you can put in that account.. And any smart investor will let you know that you should max out that account, okay? Because again, you have more money to keep for yourself. And the problem is not that people don't know how to make money, it's just they don't know how to keep money. They don't know how to put the structures in place that allow them to keep what they grow. Now, if you do want a custom plan that maps out your specific situation and what you own and where it lives and what needs to move in what order and how to protect it and how to you know, put structure around it. That is what my one-on-one clarity calls are for. Go ahead and book for that if you do want clarity on a game plan, the actions that you need to take to make sure that you're moving in the right direction. And then you will be provided all the resources. Okay, so we go from uncertain, unclear, maybe there's some anxiety there about what to do and in what order to do it, and we bring you to a clear path. Okay, that is what the clarity call is for. And then my coaching community is also there for you to have weekly support, live coaching, and we're all moving with a game plan in mind, a unique game plan for our own lives, right? And we're doing it together in a room where everybody has the same value. And I'm telling you, people are just— man, they're killing it when it comes to planning for their financial future. There's going to be, at the end of this, I always say it, winners and losers. And, um, not by identity, okay? Not losing by identity, but losing by how much either gain or loss that you're going to have during this wealth transfer. You know, some will absorb some of that wealth and others will lose it. Actually, you're going to pass it on to people who are already probably wealthy if you don't get your structure in place. So again, all links are in the description. And let me know in the comments, where are you parking the money that you're not actively investing right now? Are you big on banks, or are you into stablecoins, or are you into gold? I just want to see how you're thinking about it. I do like to leave some of my cash in stablecoins at this point. I like parking it there as well. And so that is kind of like where I park it when I'm not yet buying into digital assets. Again, maybe I'm biased on that because I do like RLUSD. I do have some USDC also. And so I like to know what you are doing, but just understand that the Fed has already told you what they expect. And the rails are already being built, and the architecture is here. So position accordingly. And as always, I want you to stay wise, stay wealthy, and I'll see you in the next video.
