¶ Intro
Hey, everybody, Welcome into the Thinking Crypto podcast. You're home for cryptocurrency news and interviews. I'm your host, Tony Edward. On your way in. Please at that subscribe button as well as the thumbs up button and leave a comment below. If you're listening on a podcast platform such as Spotify or Apple, please leave a five star rating and review. Okay, folks,
¶ Bitcoin and Altcoin analysis
it's the day after the massive flash crash that we had yesterday, of course, and it was all triggered by President Trump announcing one hundred percent tariff on China. In addition to other things, the stock market and the crypto market all dumped, and of course, in yesterday's podcast we talked about, you know, letting the dust settle. I do believe we're still in a bull market because the macro support levels and structure is still intact. This is based
on the data. If there was in validation, I would be here saying guys, it's over pack it up, right, And that would be very hard to do because I have skin in the game. I am my crypto portfolio. I have some stocks and I want to see them go higher, of course, and make profits. But we have to be realistic, you know, One of the things I highlight yesterdays is that Bitcoin wicked to that two hundred
day moving average. You can see the green line on my screen, and I've often stated when we are above that two hundred day moving average, we are in a bull market. When we are below it, we are in a bear market. Now, time does play a factor because we've seen in this bullmarket, bitcoin has gone below the two hundred day moving average, but then it bounces right up right it recovers, because if it stays down there
and keeps going down, that's a bear market. You can look at this on the stock market s and P five hundred as well. If you're below this moving average and you're in a down trend, it's bear market territory. But if you are above it and holding strong, it's bull market territory. So we're still above it, and the art assign the daily chart it is currently hitting I believe about let me move myself out of the way here at about thirty seven, so we know anything near thirty
and below it is in the oversoul zone. So we're headed there. So we could see a little bit more downside for bitcoin as well as all coins before we bounce because markets are cyclical. We don't stay in the oversoul zone like we don't stay in the overbond zone for a long time. It's like a pendulum swinging back and forth. Now, on the monthly chart, if you look at the red candle from you know what happened yesterday, nothing, guys, it's not even registering in some major correction because it's
really nothing. The severity of course with the leverage being flushed, I think that has hurt more people, you know, and a lot of people are crying and we're going to talk about leverage and so forth. But it's not even registering on the monthly because these things have happened in bullmarkets.
And if you saw what happened earlier this year with the big tariff settle off, that was huge because it was that initial shock, right, a true blacks one, and this is kind of a pseudo blacks one event because we didn't see Trump announcing on a Friday, you know, after Morgan Stanley said their opening up crypto that he's a launch He's going to launch this against China, and the things are getting worse than all the YadA YadA, right, But on the monthly, guys, bulls are in control of
the RSI, not overheated like the levels we've seen in the past. So the structure is still there, folks, and the fear and greed index is in the fear zone. So what we could see there's a couple of scenarios here, is that next week or the week after we start seeing a V shape recovering. But it could take longer. So I want to make sure you guys are prepared for multiple scenarios because as educated investors, you got to look at multiple scenarios and then look at which one
has the higher probability of playing out. Because we don't have a crystal ball. This is a concept that's hard for many people. They need certainty, they need to know, oh, this is what exactly is going to happen, But no one can do that. We can only put out our thesis and give the different scenarios. And this is how people who are educated about markets and understand the ins and outs operate, guys. So I'm trying to share that educational aspect. That is something I had to learn because
I didn't. I was like many people, you know, just moving around with the emotional roller coaster of the market. Now I look at the data and I leave my emotions to the door. So with the RSI for Bitcoin near that over soul zoned, if the fear and greed index in fear and the macrostructure is still intact, I expect the reversal. But if this recovery takes a little bit longer, maybe it goes out a month. Right, let's just say argue for argument's sake, it goes out a month.
What does that mean for the blow off top? We could see that be pushed into Q one twenty twenty six, because the timeline keeps getting pushed back, just like it was pushed back based on the big tariff sell off that we saw at the beginning of the year. Right, we saw guys a rally into July and August, which we usually don't see in summer. It's the selling may go away, right, But we actually hit a new all
time high in August. So you can see how the timeline has been adjusted because of a block swan event like the teriffs. So I hope you understand that, right. You have to take that into account. So would this additional tower delay and roadblock this could push us into Q one, So keep that in the back of your mind that this could be pushing to q on or the market quickly recovers. In November December, we see the
blow off top. Those are my two scenarios how I'm planning because like I said, I have crypto, I have skin in the game. I'm looking to take profits. Right, many of you know that. So we got to be prepared for both scenarios. And we have to see how long this recovery takes. But it doesn't mean we're not in a bull market now, guys, you know we should
¶ Inverse Cramer strikes again
have known this move was coming. Why remember when I shared on September twenty ninth that Jim Kramer posted a tweet saying by crypto, and then the same week he went on CB see Fast Money with Andrew Ross, Sorkin and so forth, And I said, he's usually not on those shows, right, he has his own show. He was on there talking about how crypto is great and so forth. We should have known because bitcoin has started its small move move upwards. And then after he said that the
market pumped all the way to one twenty six. Well, if Kramer is bullish, you know you got to inverse him. And of course lo and behold massive dump right, It never fails inverse Kramer. Now, the silver lining the good news here is that he's been posting bearers stuff. I shared it in yesterday's podcast. So maybe the recovery is coming for the stock market in crypto sooner than expect it because he's so bearished, you know, saying all these things.
So we should have known, guys, the warning sign was there. Even though the market rallied. We should have known. Wait a minute, don't trust this pump. Don't trust this rally because inverse Kramer was playing out here. Man, this guy doesn't miss I swear now you got you know, bigcoin and all coins all pulling back, and a lot of different analysts are highlighting on the charts that this once again doesn't break the macro structure, doesn't invalidate the bull market.
In fact, some of it is actually very good with regards to read tests of support, and for example, crypto Wizard says, here's or there's the retests. Our bears heading for another trap from the bottom. I projected a breakout on eight followed by a retest, just like we saw in twenty twenty. Well, it's just retested whether the storm.
It's not over yet. Macro investor Ralph Pale shared the total crypto market cap excluding Bitcoin, etherorem and stable coins, and he says the total crypto market cap barely registered the wild moves yesterday. Now this is on the zoom that one week chart. The large wedge pattern remains fully intact and the larger move of an accelerated break of one trillion dollars still lies ahead as liquidity continues to
flow into the markets to roll the debts. So you got to zoom out here, right, He's very much zoomed out here on the chart, because if you're looking at the hourly, the daily, and very you know, only within the past three months or so, you're not going to see good things. But when you zoom out, you see the macro structures still intacked. That's what I'm trying to
share with you guys. So the charts are showing us, the global liquidity is showing us the bitcoin whale on chain data is showing us still in a bull market. And here's what legendary trader Peter Brandt had to say. Many of you may recall I had him on the podcast last year and he shares a lot of great chart analysis. The man who's been doing this since the seventies, right, trading commodities and much more. Now he's trading crypto. He says, a final few posts for the weekend, and I will
leave you youngsters with your dreams. He shared charts for XRP and other assets and here's his notes. XRP just a minor reaction in the bigger theme of things. Again, a zoomed out macro chart. Here's what he's showing. He says, for Bitcoin Bowl still alive and well Xlm'm talking about Stellar, a bull waking from a nap. He says, Eth is ready to rock and roll. So he shared all the charts here, guys, all of it the macro view again, no invalidation of the structures. So this is not an
emotional take, guys. This is just the data. If you go study the charts and look at the patterns, it's all there, right. What's interesting and this is a sign of things that come. Many of you may know this, but z cash, the privacy coin that has been pumping, and it held up. It didn't it almost didn't get affected by this pullback, and it's like this anomaly. But it's a sign, guys, because things like this don't happen
in a bear market. Every when a bear market, everything's going down, right, nothing's pumping after a flash crash like it like this, right. So z cash, I think is kind of the rotational liquidity from B and B which has been going nuts. If you look at you know, z cash on the chart, even on the seven day, this thing didn't even register to pullback like we saw any other all coins. It's wild, man. Even if you look at it's weekly chart and so forth, it's crazy.
So again, these little breadcrumbs are showing us bull market's still intact. Now. I shared some thoughts today which I
¶ Crypto investing tips
think are very important, you know, a reminder for many of us who have been in the market, but also for the new people. It's important to know because you see a lot of people crying today because and it's not the spotholders, it is the leverage players. I keep telling you guys, don't use leverage. Buy the blood on the streets, buy the bear market bottoms in spot and hoddle, and then sell the blow off euphoric phase. That is
the best way to make money in this market. Yes, you can swing trade, because swing trade, I've often told you guys, when you see swings right in the market based on the ebbs and flows, you're still using Spot and even if it doesn't work out the same way that you're thinking, you can still just hold that asset. You're not getting liquidated. So I said, here some perspective on this flash crash. If you didn't use leverage, you
didn't get liquidated or lose your shirt. If you're holding SPOT positions and bought during the bear market lows and dips, your portfolio is up on the higher timeframes, but down in the short term. So obviously with yesterday's pull back, everybody portfolios down. But if you zoom out, you know, based on where your entry price was, you're up. I said here, when markets experience severe pullbacks and corrections like this,
that's the time to buy. Many people make the mistake of buying into pumps or at the resistance levels, where you know they're not looking at the charts just seeing, oh, everything's pumping, let me go buy. That's the wrong time to buy now. If you're new to crypto, I want to caveat this and this is your first time coming in.
I understand you may want to get a position before you miss out, but you have to understand if you're buying into greed and pumps, the likelihood that the market's going to roll over in the short term or even a macro top is there. So you have to figure out where are we in the cycle. So that's why it's very important to be a contrarian to what's happening in the mainstream and much more and buy when everybody's fearful and buying the dips like the flash crash. That
is a gift. You have to look at it as a gift to be able to enter the market at these prices because we know the top is not in based on the data. So it's hard, but you have to unlearn the mainstream programming from the likes of Jim Kramer and CNBC Fast Money Right and things like that. You've got to be able to learn some of these market cycles and signals and data points and charts. You don't have to be a Wall Street expert. That's not
what we're doing here. But we need to know enough so that we're not fooled and we don't become dumb money. We want to be smart. We want to be on the side of smart money. So you know I said, learn to buy when there's blood in the streets. Of course, always do your own research and only invest what you're willing to lose. I also added the following, let this flash crash be a reminder of the following. A bear
market will come after this bull market tops. Markets are cyclical, and narratives such as utility institutions are here, buying is two zero two to two two or whatever number is out there are fed now, and this and that don't matter. They're just narratives. The game is liquidity. Markets follow global liquidity. You have to play the cycles by buying the blood on the streets and selling the EU four degree tops. So, time and time again, the people who are screaming utility
and this and that narrative. Right when the market pulls back and everything pulls back due to different factors or cyclic cyclicality or quantitative tightening, and the FED and the essential banks, you know, sucking out the liquidity, everything corrects. People forget that and they get caught up in the narrative because the narrative is the shiny thing that makes you think it's gonna go up forever, right, But markets
don't go up forever. They're cyclical. Now, if you're looking at a fifty year timeframe, of course it just looks like this incline. But we don't live by fifty year time frames, so many of us are on more short term three, four years, even one year, right, So we need to understand the cyclical pattern. Take our profits accordingly, buy the blood on the streets accordingly, and rinse and repeats. Right. So this is something that keep in mind, guys, So
important to keep in mind. Now. I know there's the outliers, the people who are saying, hey, man, Tony, I'm holding for ten plus years. Yes, but you're an outlier. The majority of us, including myself, need to, you know, take some profits because we have we have life to live, we got family, we got debt to eliminate, we got to spend. Some of you want to buy a house, Some of you want to do upgrades to your house. I want to do upgrades in my house. Right, So
it depends on your financial situation. But the majority, obviously, we have to ride the cyclical patterns. So don't get blinded by narratives. People sell you all types of fairy tales. The important thing is that data and markets are driven by Global Liquidity. Folks, this episode is brought to you by Propy. Property is leading to charge. We're putting real estate on chain. I am a Propy token holder. I
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¶ Galaxy Digital Bitcoin Miner AI
firm raises four hundred and sixty million to transform Texas bitcoin mine into an AI data center. So what we're seeing is that these bitcoin minors are now expanding to AI data centers to offer compute because I think that's a big business as well. So it's smart that they're doing that and diversifying their revenue. So interesting move here by Mike Novogratz. Let me give you some more details.
So they secured that four hundred and sixty million dollars private investment from one of the world's largest asset managers to accelerate the transformation of its former bitcoin mining site in Texas into an AI data center. The deal involves the purchase of twelve point seven seven million Class A shares at thirty six dollars per share, with the proceeds earmarked for general corporate use and the expansion of its helios. Campos expected to deliver one hundred and thirty three megawatts
of IT capacity. In early twenty twenty six, the company announced sobriety. So expect to see more bitcoin miners doing these things, guys, because AI, of course is another technology is running in parallel with blockchain, and they complement each other. And not to mention Robonic, even the solar energy movement, and then you've got space exploration. There's there's so much happening, guys. So very interesting news here. Look at this Trump mull's
¶ Trump to pardon CZ Binance
pardon of Binance founder Chang Peng Zau known as Cizi, amid concerns over optics. So at some point I feel like he's going to pardon Czi. Look, Trump is very transactional. We've seen him part in some people, some very controversial folks and some of who I don't agree with, but hey,
it is what it is. So discussions with the White House are heating up concerning the possibility of President Trump partning Binance co founder cz In the wake of the report, the likelihood of it happening increased significantly on the prediction platform Calshi. So the prediction markets are saying it's going to happen. It looks like it will, but I think CZ. Look in the first place, I don't think CZ should
have went to jail. Look, there was the wild wild West of the crypto days, and they should they have fined binance. Sure, and they did, right, I mean the CFTC find them and so forth. I don't think Caz had to go to jail. I think he went to jail for like thirty days though. And I think this is one of those optics things like we need to show these that you know, crypto must have Buie by the rolls go to jail for thirty days CZ and that type of thing. Right, But come on, right, So
let's see, let's see what happens here. Final news item
¶ Judy Shelton Gold backed digital currency
here Judy Shelton, who's a monetary economist, and I believe she worked with the first Trump administration, maybe even the Biden administration, but she was recently interviewed and she says that she envisions a gold backed stable coin called solidus. If I'm saying that right, a modern digital currency partially backed by gold convertible treasury, a nod to the ancient Roman coin that stood for strength and trust. This idea
could fuse blockchain transparency with sound money integrity. Imagine a US issue. You digital dollar tied to gold, not by decree but by convertibility, restoring faith in money, red harnessing technology to enable faster borderalless transactions. Yesterday's podcast, I told you guys about massive amounts of countries, the big ones like US, UK and much more. We're working on a staple coin that is pooled together based on the G
seven countries' currencies. So what we've seen over the past five years or so is central banks have been hoarding gold. So what Judy's highlighting here feels like the setup is there, right, and notice she said it will be partially backed by gold. So I think they will of course pool their currencies together, use gold, maybe crypto bitcoin, right, we'll see what they use. But the a seated direction things are heading in the use of blockchain technology. There's people who say this is
all a scam. They don't realize what the hell is happening. But that's the nature of markets. They will be the laggards, would they would be the late comers, and they will miss out on the gains and the opportunity. Right, So this is why you want to educate yourself, stay up to date with what's happening because there's a huge opportunity here. But the government's guys, maybe this solves the fiat problem.
I don't know, but maybe does you know where we go back to a hard money standard and if currencies are on the blockchain, you know, governments, I think they will have to print, so to speak, right, issue more of the stable coins or the digital currency, but they can easily burn it, and they can be very surgical
with it. So if a certain section of the economy needs or has issues, they can maybe program the digital currency to do certain things, but they don't have to print as much, you know, kind of blanket spread liquidity all over the place, which causes inflation in the basement, right, But maybe they're a bit more surgical with it, and maybe when things are getting overheated, they can easily withdraw that liquidity and they don't have to do quantitative tightening
from a macro standpoint. But once again, surgical. Okay, this state or this region is seeing high inflation, let's start sucking out liquidity there. I'm just spitballing, right. The things that they can do and control and see real time will happen because of blockchain, right, So let's see where this all goes. It's very interesting, very fascinating what's happening.
And this is why we want to look at not only what Wall Street is doing, but the governments, what the major financial institutions are doing, what entrepreneurs and innovators are building. This way we get a full view of the market. But clearly, blockchain tech guys, like I've been saying, will power the economies, the markets, and the governments. That's the future. Your digital identity on the blockchain, you're banking, your data, and much more. It's all going to be
power by blockchain folks. If you appreciate the content, please please be sure to subscribe to my free email newsletter. It is one hundred percent free. I will be putting out a write up tomorrow. I held off on the write up today because I wanted to see how to dust settle with the market, so I give you guys a decent analysis. So I will be putting out the
write up tomorrow, So make sure you are subscribed. It's free, doesn't cost you anything, and I only put it out once per week so you don't get spammed and that type of thing. Also check out my book on Amazon is available in paperback in digital and my course at Mycrypto course dot com. Folks, thank you so much for watching and listening. I appreciate you all, and I'll talk to you all later
