What is up investors and welcome back to the everything crypto show where we bring you the latest and most important news move in the crypto markets every single day and we are back today with a very important episode as we have begun to see the early phases of a decoupling between the stock and the crypto Market as the stock market has been plummeting on some very poorly received Tech earnings while the crypto Market has been absolutely pumping and we’re gonna break down.
What I think this means for the future of crypto then we gotta talk about Quant which is still well on its way to that 12 000 price Target that we have outlined on the channel and we’re gonna let you guys know exactly how long I think it will take for Quant to get there and then last but not least we gotta wrap this up talking about crypto.com.
That has sealed some new major expansion in a key Market as well as a big game fight partnership that they have just announced all within the past couple of days so without further Ado it is time to sit back relax grab that morning cup of Joe and enjoy the show happy.
Thursday everyone if you you’ve not yet at that sub like and notification button please consider doing so and joining the everything crypto Squad and I love and appreciate you all and now we’re gonna hop right in here with the question of the day.
Today’s question is are you invested heavier into the stock market or the crypto market and why let me know in the YouTube comments down below and obviously this is going to be up through personal preference it does depend on a lot of things like age risk tolerance as well as your knowledge on both of these different investment vehicles but I am asking.
This question because we made a pretty big move about a month ago in regards to our portfolio our portfolio waiting and uh we’re gonna talk about that in a little bit after we break down some of the news this week but first we are going to hop into the charts starting off with Bitcoin which is still sustaining its move above 20K in fact.
We have just seen yet another nice green candle here and we are now approaching that 21 000 level so being back above 20 000 is definitely important for Market sentiment as that is the 28 18 all-time high but as I have said on the channel previously I don’t think we are even close to being bullish on bitcoin until we can actually get above the 200 week moving average.
Which is currently sitting at 23.7 K and that would require another move of about 15 to the upside here for Bitcoin now generally speaking 15 move on bitcoin is something it can do no sweat it can do that in a matter of 30 minutes if it wants to but do keep in mind that we have a very big level of resistance here at 22.3 K and that level of resistance is a lot easier to actually pinpoint.
When we move to a daily and you can actually see here that back in 2020 this was effectively the last level of support that Bitcoin springed off of before it really made this monster move all the way up to those all-time highs of 69k so I definitely do think it will act as a strong level of resistance here.
Just like it did act as a strong level of support in the previous bull market and that is the next level that we are keeping our eye on when it does come to Bitcoin now taking a look at ethereum here as well this is one that we told you guys we were keeping a closer eye on as it was primed for an explosive move and it did in fact make that move over 1400 so previously.
We were trading in this very tight wedge between the 2018 all-time high of 1.4 K and the 200-week moving average sitting at 1300 and you can see that we finally saw that explosive move back above 1400 and eth is currently sitting at 15.75 so given the fact that we have seen this clean breakout.
We can definitely see a move here up to 1730 and if you did hop into this long that we called out on the channel from that 14 500 breakout and assuming we do make our way up to that 17 30 level that makes for a swing of about 20 percent and at current prices the swing trade is up about 12 and a half percent.
So if that is something you did take on congratulations to you and with that we’re gonna hop right into the news here starting off with the week ahead which is said to be a very volatile one indeed and we did cover this yesterday but keep in mind that we have very big days I would say the most important days for the market.
Actually coming up today so we have the ECB rate decision rate hike decision rather and the estimate is coming in at 75 basis points so if we do see a hundred basis points that is going to be disastrous for the markets I think that will cause a complete sell-off probably erase all of the gains that we have seen.
So far but based on what we did see from the Bank of Canada yesterday in the form of a 50 basis point hike so actually less than the 75 bips expected I do think the us is going to fall in line with estimates at 75 basis points I think a 100 basis points is way too aggressive.
I think they’ve already been far too aggressive with these hikes in the first place which just goes to show you the kind of people that are handling our money okay we saw them go through aggressive and over excessive quantitative easing with that money printer back in 2020 and 2021 and now they are catching a lot of slack for the inflation that they caused and they’re pretty much being overly aggressive with the quantitative tightening now to sort of prove a point and show people.
That they do have this money system under control but I think that the past two years more than anything should show us they have no idea what they’re doing and that is why I see crypto as a major out to this flawed monetary system that is currently in place but what I think is more important here is the actual reason that the Bank of Canada is only hiking by 50 basis points or rather.
Why they did and they say here that the effects of recent policy rate increases by the bank are becoming evident in interest sensitive areas of the economy housing activity has retreated sharply and spending is softening so this is a sign that the basis point and the interest rate hikes that have been going on are doing what they were intended to do and as a result of this.
I do hope that governments begin to ease off a little bit and hopefully that was the worst of the hikes I hope that’s already kind of out of the way at this point because any more than that and they pretty much are going to force us into not just a technical recession but probably into a more serious one in my opinion and then besides the rate hike decision in terms of important events we did see the meta earnings yesterday and those.
Yeah we’re going to talk about those and today we actually do have the apple and Amazon earnings coming out obviously two very big Tech and consumer staple companies I think both of these companies do really do show a very good reflection of what is happening in the overall economy so those are two earnings that I definitely will be keeping an eye on after the Bell now we gotta talk some meta here as they announce their earnings after hours and they are currently down 15.27 percent you can see here that they were already down five percent on the day and now they are down another 18 after hours so pretty much another 25 Wipeout on meta here.
Which is supposed to be a quote unquote Blue Chip here for the market and this is not the first double-digit decline for meta that we have seen this year based on earnings in fact back here on February 3rd this was the first earnings report that they did it dropped in 2022 and they actually cratered here from 327 dollars all the way down to 237 that was a decline of 26 percent and it does look like they are primed to make a very similar decline Tomorrow based on being down five percent on the day and then another 18.75 percent after hours.
Meta is now trading cheaper than it was at the depths of the 2018 crash as well as the 2020 crash if you had invested in meta exactly five years ago today you would be down 27 on this stock which was at one point considered to be one of the easiest Buy eyes in the entire stock market So based on this earnings report I would just like to actually thank the SEC for protecting people from crypto which is too volatile and dangerous but allowing them to trade stocks which are so much safer look at this.
You can actually see and Google was not able to capture this but tradingview caught it so after after hours here basically when meta reported their earnings they actually Wicked all the way up from 132 up to 143 originally and then I guess the true numbers came out and boom they Wicked all the way down from 143 down to 119 and they just continue to trickle down into the close and now sitting at 105. and you know what the sad thing is is that majority of investors cannot do anything about.
This as they don’t have access to after hours trading now that is why the crypto Market is open 24 7 to be fair to everyone and the stock market is clearly designed to favor institutions and the small majority that do actually have access to this after hours trading so if you are a holder of meta without that access to stocks outside of regular trading hours then you cannot do anything about this right.
Now so tell me how that is any safer than the crypto Market that at least creates the opportunity for everybody to sell on the market 24 7 right like to me it just makes no sense and really this the the big decline here on earnings I can’t even say it was unwarranted because they were ugly So Meta posted a third quarter earnings of 4.39 billion down from 9.2 billion a year earlier that is actually a decline of 49 year over year and then in terms of that.
Revenue it came in at 27.17 billion down from 29 billion a year ago that is a decline of four percent and their cost or their operating costs and expenses are actually up 19 they have lost nearly 50 billion dollars in market cap over the past 24 hours alone so yes a very ugly earnings report here Google and Microsoft kind of started this move to the downside that is why their meta was down five percent on the day and
Then meta did extend this move and honestly I’m not expecting too many more impressive numbers from Apple or Amazon either and the reason that we do look at this generally on the channel is because there was previously a very big correlation between these tech stocks and crypto with the general correlation here being that crypto did trade in line with these big tech stocks previously being viewed as a risk on asset and it was at about a two to one beta so yesterday was a perfect example of this relationship previously as the NASDAQ was down 1.75 percent on big Tech earnings from Google and Microsoft.
Which would normally result in Bitcoin being down about four to five percent but look at what happened yesterday instead we had the stock market down on the day while crypto was up on the day and this leads me to believe that we are in the very early phases of a larger decoupling between stocks and the crypto Market this is something that I have been hypothesizing on the channel for a very long time and I think it only makes sense because the matter of fact is is that stocks trade in line with the market.
Which is overall a reflection of the economy of the traditional monetary system that is in place whereas crypto is essentially something that is meant to fix the current monetary system and therefore I don’t think that it should play by those rules now because of this sort of thesis I actually did make a very big change to my portfolio back in early October and for those of you that have been with the channel for a while you know that we discussed this for for quite a long time.
When we made this move but I’m just going to Briefly summarize for those of you that may have missed this so as of October 3rd 2022 I actually cashed out all of my stock investments in my tax sheltered account and shipped in my allocation to 40 Bitcoin and 60 ethereum spot ETFs that is because in Canada you are actually able to purchase Bitcoin and ethereum spot ETFs and place them in a tax deferred account this 60 40 waiting does not include my real crypto portfolio including my all coins and I did outline a bunch of reasons for why I did this but really the big one here is that.
The past two years have revealed the true flaws with our infinite supply of Fiat dollars crypto is one of the only ways to escape this in my opinion I believe that more people will come to recognize this and shift from viewing crypto as risky to necessary essentially I am betting on crypto outperforming stocks here until at least 2030 but I actually want to just show you guys how this plan has worked out so far so what we’re going to do is go here to the.
Home page and just type in spy and uh we’re gonna probably try and update you guys on this once a month just in just in really the the spirit of transparency and letting you guys know exactly what I have been doing with my portfolio so you can see here that in the past month the s p is up 4.2 percent let’s see how much the triple cues are up which is the NASDAQ and that is up in the past month let’s see October 3rd that’s up 1.61 now in the past month so since we’ve actually or just since October 3rd since.
We haven’t done this we can see that Bitcoin is up 5.29 and then let’s take a look at ethereum here since October 3rd which is in fact up where’s October 3rd there it is ethereum is up 17.6 since October 3rd so in the first you know three weeks since we did make this move the crypto portfolio in our tax free savings account has outperformed what would have been the stock portfolio and I do expect this out performance to continue moving forward that is why I did ask that question at the beginning of the video.
Because I personally only see a much bigger opportunity in crypto over the next five to ten years and I am not one to believe in diversification for the sake of it if I see some very juicy risk reward in the market which is what I saw with at Bitcoin around 19k and ethereum around twelve hundred dollars then I am going to take that oversized move and really just Place those bets on my research and so far it has paid off but obviously this is more of a long-term play for me and I am going to keep you guys updated on.
How this is going moving forward but if you guys just want to know exactly what I’m talking about when I say that crypto specifically Bitcoin and ethereum are the really just the solutions to these broken monetary system just take a look at the inflation rate of Bitcoin for the last 13 years so you can see here that when Bitcoin was created these the Bitcoin rewards for miners were at 50 Bitcoin per block mined and then here comes the first having in 2012 and boom it dropped all the way from 50 down to 25 and then again in 2016 it dropped from 25 Bitcoin per block reward down to 12.5.
Then the most recent having it back in 2020 saw a drop from 12.5 down to 6.25 and then as of early October or sorry early 2024 we are going to see the having once again occur which will make this block mining reward go down from 6.25 percent all the way down to 3.125 percent and that is why Bitcoin is literally computer generated money that is made it is programmed to gain value over time as the inflation rate Falls making this asset more scarce with a fixed supply of only 21 million.
That nobody else can print more out of thin air I will remind you that Bitcoin was in fact made in response to the financial crisis back in 08 so there that’s the Bitcoin inflation chart over the past 13 years now look at U.S inflation over the past 10 years case in point and then ethereum here is once again in my opinion a very strong play on a crypto or just any alternative currency or asset class that is really generated to hold its value over time and then ethereum.
Here is another example of an asset class that I think is perfectly demonstrating how something is intended to hold its value over time and not only hold its value but actually gain value over time and I think that the transition to proof of stake is what sort of like implemented this final step for eth to truly become a deflationary asset in the long run before eth was inflationary but people kind of let it slide because it was pretty much the backbone of defy and the whole thesis there was that the demand would outpace the inflation rate now.
That is no longer a part of the thesis really because the inflation rate is down to a measly half a percent a year and in fact you can see here that we are about to flip deflationary since the transition to proof of stake so while Bitcoin maintains its value through having a fixed supply of 21 million and pretty much lowering the inflation rate every couple of years in the terms of those Bitcoin havings events ethereum here actually holds its value by being deflationary.
When network activity is high and that is perfectly demonstrated on this chart here so you can see that since the transition to proof of stake on October 8th we actually peaked out at just over 13 000 new ethereum being minted post merge and this is because we are in a bear Market Gas fees were low so therefore there was more eth being minted than there was being burned through EIP 1559.
Now we can see the way meter is up here at 40 which means that eath is well on track to be deflationary as 15.4 is the magic number for the gas meter in which there is actually going to be more eth being burnt than is being brought back into the float to reward the staking validators and you can actually see here that I think we are going to flip deflationary in the next couple of days on the eat Supply meaning that we will actually have gone negative on ethereum issuance since the merge and this.
Now creates a very interesting Loop for Eve that we did discuss on Twitter we pretty much tweeted eth going up and price leads to more on-chain activity which results in more Eid being burned by EIP 1559 which leads to more price increases which leads to more chain activity etc etc it’s basically an infinite Loop here where price goes up on-chain activity increases more eat is burned which then makes the price go up more as it does become more scarce and additionally.
Here’s something else that I tweeted in regards to the ethereum tokenomics is essentially that there is no layer 1 with better tokenomics than eat at the moment staking rewards are a payment for network validators and ethereum has the largest validator set with the lowest issuance in fact a negative issuance at the moment as the on-train activity basically he cancels all validated rewards VIP via EIP 1559 yes eth is still the king and you can actually see that reflected here perfectly on this these three little meters down.
Here so really these main two in the middle and right we’re gonna focus on because you can see that there has actually been an issuance or there is a projected issuance of 600 and 603 000 eat on the year yet the supply growth is in the negatives at 0.07 percent so why is that because let’s just say for example to break this down in more simple terms let’s say that every single day of 10 ethereum is being handed out to these stakers as these validator rewards obviously it’s way more than that but then let’s also say in the same respect that 12 ethereum is being burnt every single day you are effectively creating an ecosystem here where these stakers are still being rewarded for validating the network but because of the on-chain activity because of all the ethereum being burnt through EIP 1559 more ethereum is being burnt then brought back into the float so it is a very interesting ecosystem here that the ethereum foundation has created with this transition to proof of stake effectively making it so that ethereum validators are being rewarded fairly while eth does remain a deflationary not inflationary diluting the current ethereum holders I think it was very intentional on the ethereum foundation’s behalf with this transition to proof of stake and I still am a big believer that Eve is going to be one of the best performers in the next bull market I think that people are not ready for how deflationary eat is gonna flip at a very rapid Pace once we see that sustained on-chain activity pick up like keep in mind this is happening right now in a bear Market when network activity is low just think about what happens when we are back in a bull run I think that is going to be very very juicy now because we have seen such big moves in both Bitcoin and ethereum in the past two days we’ve actually seen 315 million of Bitcoin shorts liquidated in the last four hours and then in terms of ethereum we’ve actually seen the biggest short liquidation ever coming in here at about I want to say 280 million dollars so you can definitely see shorts got a little bit too confident here they piled in a little bit too hard on that price and this is the only thing that I will sort of caution you guys with when it does come to the charts is keep in mind this could definitely just be shorts getting squeezed out and not actual buying pressure on spot so just something to keep in mind but long term our strategy Remains the Same dollar cost average then dollar cost average even more on those juicier dips and wait for the bull market to resume because it may not seem like it rained now but trust me guys it is going to come back and crypto in the next bull market is going to be a lot more dominant than it was in the previous one just like has happened with every previous bull cycle before so now we’re gonna hop into my two favorite all coins on the channel and that is both Quant and Crow and we’re going to start off with Quant here as once again I mean it’s just playing off these technical lines that we have had on the chart here for a while now we did say that on the break below 200 that I was looking for it to hold this up trending channel here as a level of support and it has so far we’ve actually just been grinding upwards very slowly on this level so we could just see a move here where Quan just kind of grinds its way back up to 200 and that is where I’m really going to be looking for Quant to make a decisive move one way or the other similarly to how we did say that eth was primed for an explosive move I also believe that Quant is I think this one is just going to take a little bit of patience so what I’m looking for here at 200 is either a break above in which case we go up to 280 and that would actually make for a move of 40 off of that breakout level and then to the downside if we actually say rejection at 200 I could see a scenario where Quant does pull back to that 150 level which could make for a move to the downside of 24 but honestly guys as we have been discussing on this channel I think that any short-term price movements right now on quad are going to seem very insignificant in the long run that is why obviously if you were buying with us back in in May June July in that double-digit territory yes you are already up a substantial amount congratulations to you but I am personally looking for a much higher price targets here on Quant in the future and again this does all come down to your timeline to how long you obviously do have to be invested in this project as well as what you see for the future of Quant but personally I am looking at a price Target here of five figures of over ten thousand dollars and a lot of people do tend to think that sounds ridiculous but I guarantee that anybody who just kind of shuns Quan like that and says that that is not realistic or calls you like a moon boy for saying that has not done the research to understand why that is incredibly realistic not for starters here I want to actually go over to coin market cap and I’m sure that if you have been with the channel for a while you already know exactly what we’re going to talk about first and that is the tokenomics so we talk about how Bitcoin has 19 mil circulating and 21 mil total well check out Quant here this is actually incorrect they have over 13.6 mil circulating with 14.6 million total so 33 percent less uh Quant on the market than there actually is Bitcoin so now if we go to the coin perspective here and this is a very handy website where you can effectively compare market caps and we’re going to go over to Quant and see what would happen if Quan had the market cap of Bitcoin one Quant would be worth 27.4 K if it had the current market cap of Bitcoin at 398.9 billion so that just shows you the power of these tokenomics and that is why I think the 10 000 is a very achievable price target for a Quant now we have legit crypto nerd here this is a Quant OG he has been holding Quant since a dollar and 50 cents so he definitely has been bullish on this project for a long time and the fact that he has not sold any of his Quant I mean maybe he has but the fact that he’s still holding and waiting for five figures from a dollar fifty that just shows you this guy has guts of Steel and what you can basically see here is he’s showing you the parallels between the 2018 bear market and the bear Market that is happening right now and what you can actually see okay so because Quan was actually made in in late 2018 it actually was not a part of that first blow off top however what you can see is that it did go through its own at 90 percent draw down here in 2019 and it came all the way down from I want to say that’s about 25 dollars down to two dollars so a 90 Decline and then boom and this previous Bull Run we rallied from that level 28 420 all the way up to that previous all-time high of 420 dollars and then what do we do we corrected yet again at 90 from 420 down to about 43 to 40 24 dollars and that was where Quant was sitting in June just this year alone now effectively what he’s showing us here is that if Quant was to once again imitate the same 28 420 percent move to the upside that would put Quant at exactly a 12 000 price Target off of those June lows so if Quant was just simply to copy the move that it did make in the first and quant’s first bull run at least then yes that would give us a twelve thousand dollar price Target now one thing that I do want to mention here is obviously diminishing returns are a thing so let’s say that diminishing returns actually cause Quant uh to not go up to twelve thousand let’s say that the gains are reduced by 20 percent guess what that’s the once you had a price target of ten thousand per coin and that is why I say when I say 10 000 I feel like that’s a very like modest a very conservative price Target and that is exactly why I am so bullish on this project for the long term we have talked so much about the Partnerships they have made on this channel if you want to learn more about that definitely check it out but as always Qantas continues to really put themselves at the heart of interoperability and centralization both of which are going to be very key themes in the next bull market in my opinion and sticking on this tune of centralization we’re going to talk about crypto.com here to wrap things up as they have signed an mou with the city of besan effectively a memory a memorandum of understanding to collectively Advance the blockchain industry and what they’re going to do here as a part of this strategic partnership is to leverage their Partnerships resources and expertise to advance innovation technology Education and Research with the goal of advancing the city of bassan’s blockchain ecosystem and digital assets exchange project percent is a city within Korea and they are also looking to establish a Workforce presence within bassan they will in fact also be sponsoring and participating in the bassan blockchain week so they say here that the city of bassan is making great strides in becoming a global hub for Innovation and we are excited to partner and support these efforts you can also see here that this is following their registration in Korea not to mention the fact that they just announced a new Paris Regional headquarters as well as their UK expansion which is also looking to become a global crypto Hub so crypto.com is really taking a unique approach here when compared to these other centralized exchanges by really targeting that regulatory approval and infrastructure globally okay they’ve targeted a year drop they’ve already in the UK now they’re targeting Korea they’ve already targeted North America like they’re just trying to get all over the map and really get them get themselves to be known as a global brand that is why I think they will be very successful in the next Bull Run and therefore I think that Pro will really appreciate in price as more and more people are onboarded to the platform now additionally we did also see them announce a partnership with act games a game studio and they can see that they are leveraging the Kronos chain and Chronos play SDK to support their web 3 ambition as online in this announcement here so act games is to promote business collaboration on a blockchain based games and they are in fact uh dropping zoids of wild nft Arena on the Chrono chain so signing a partnership here with the gaming studio as well as pretty much signing them on to launch all their games on the Chronos chain a very effective strategy that crypto.com has been deploying effectively onboarding new partners whether it be through a mutual agreement or through funding in exchange for this talent to build out on the Kronos chain that is why I am a big fan of crypto.com really having a grip on the Chronos chain regardless of how other people feel about it or not clearly they have the balance sheet and they have the connections to bring Talent over to Chronos and that is what I want to see from this chain so so the chronal chain will be powering this new nft Trading Card Game incorporating world famous zoids wild and zoid’s wild zero media franchises and blockchain Technology enabling players to purchase upgrade and trade cards as actual owners so you guys may know of hearthstone that’s like a very popular Mobile card game right now but guess what if you play Hearthstone or if your kids play that game they don’t own any of the cards on that device this is giving people an opportunity to actually own their cards and just how you may have traded baseball cards or Pokemon cards back in the day this is effectively the new generation of car trading through digital nfts and crypto.com is also to provide crypto.com pay as a payment solution and the crypto.com defy wallet as a self-custodial crypto wallet for ACT games blockchain based projects so you can effectively directly pay for things in game using crypto.com pay as well as store the cards otherwise known as nfts that you would receive from these packs in the crypto.com D5 wallet tons of vertical integration here through multiple different crypto.com platforms that is the business model that I really see them pursuing and I think it is going to be very successful in the long run making them your One Stop Shop for all of your crypto needs so on that note I hope you guys did enjoy the content in today’s video you know what to do if you made it all the way to the end you are an absolute Champion let me know in the YouTube comments down below also go ahead and let me know your your answer to the question at the beginning of the video I hope you’re all having an amazing Thursday and I hope to catch you in the next one peace out for now