Bitcoin Holders: This Week's Important Events

[00:00:00]What's going on guys? Aaron here.

[00:00:01]Welcome to the video. So, there's a lot going on this week that I want to cover.

[00:00:06]I'm recording this very late Sunday night. So, good morning. It's a new day.

[00:00:10]It's a new week. We are seeing oil up a ton because there's an escalation in the Middle East. So, that's what's going on with that. I'll cover that in just a moment. We're seeing the Korean stock market down a ton today. It's down 30% from the all-time high around 2 weeks ago. And this could have a ripple effect in US equities as well. Bitcoin chilling $65,000 or so, plus or minus a few hundred bucks. I want to talk about the Fed's expanding balance sheet and also everything going on this week as well that affects crypto. Before I dive into all that, let's touch on what's going on with the Middle East. So, as of a few hours ago, this post was put up on X.

[00:00:58]I'm recording this Sunday night. Says the US Central Command successfully completed the ninth consecutive evening of strikes against Iran. CENTCOM assets targeted Iranian military command centers, air defense, and coastal surveillance sites. And these strikes were designed to further degrade Iran's ability to threaten commercial shipping in the strait and swiftly punish Islamic Revolutionary Guard Corps who launched attacks against American service members in Jordan last night where I believe a few US service members died. So, there's a retaliation and there's just an escalation, the ninth consecutive night, okay? And what this is doing is it's driving oil up even higher.

[00:01:43]A little earlier today, it was 84. Now, it's $83.

[00:01:47]I'm hoping we don't get super duper high like we saw a few months ago in April.

[00:01:52]We could. I mean, that's something that I am very aware of and that's something that would not be great. Now, ironically, Bitcoin did very well when the war started. So, it's not like oil rising means Bitcoin down. Bitcoin actually did incredibly well when the Iran war started. And you can see that right here. So, the Iran war started around here. We were at 67, then we rallied to $80,000 when the war was still in full effect, right? We've since come down, of course. With other assets, we saw more of a correlation, but over time, increased oil prices means higher inflation, which means we're not going to be cutting rates, which means risk assets like Bitcoin and crypto and altcoins will not get the liquidity they need to really rally. So, over time, it's not a great thing for the markets. And taking a look right here, this is all connected, US inflation has now been above the Fed's target level for 64 consecutive months, averaging 4% per year since 2019. So, why is the Fed expanding its balance sheet again? They should be doing the exact opposite. This is what Charlie thinks over on X.

[00:02:59]They should be hiking rates and shrinking their balance sheet. So, yes, the US Federal Reserve total assets has been going up a ton, and we can see this is end of 2025.

[00:03:12]So, it was around 6.5 trillion dollars. Now, it's 6.7 trillion dollars.

[00:03:20]It's been going up 4% per year since 2019. Now, there are few ways that the balance sheet can go down, but that's not going to happen. I really, really don't think that's going to happen, and that leads me to again holding assets like Bitcoin, where there is a fixed amount. You're expanding the money supply, right? And you are basically pricing an asset like Bitcoin that has a fixed supply against an asset that has an unlimited supply, which are US dollars, right? So, holding great assets over time is a very, very good idea. And right here, key events this week. The big ones I want to cover are the earnings reports for some massive companies, Tesla, Alphabet, Google.

[00:04:03]Their earnings reports will come in. And this has an effect, right? If we're seeing the broader stock market, massive companies like Tesla and Google just have really poor earnings, this can lead to a lot. This can lead to investors feeling like they should invest money in the economy. This could lead to investors thinking they need to pull out and just be in cash. This does have an effect, right? This does have an effect.

[00:04:27]So, hoping for good reports from Tesla and Google. And also the initial jobless claims data. This also has a direct correlation to interest rates as well.

[00:04:37]Basically, what the Fed will do with this data. Before I go, I saw this review for Ledn on their X account saying that the efficiency of the loan process is unmatched and the simplicity makes it very easy to use. And that's been my experience as well. You guys know I have a Bitcoin back loan right here. And I took out a $2,500 loan a few months ago. I have that money to redeploy into Bitcoin if I would like to do that. Basically, I give them Bitcoin, they give me dollars sent to my bank account the next day. It was super, super easy. Ledn's been around for a very long time through many, many bear markets. If this makes sense for you, if you want to use your Bitcoin as collateral, and check out Ledn, do your due diligence into Ledn. I'll include a link below. And again, this is where I personally have a Bitcoin backed loan.

[00:05:27]All right, guys. So, that is it for the video. Just wanted to make a really quick one for you to get the week started. So, we have some earnings reports for some very, very large companies, which can make an impact in the market. We have the an escalation in Iran, which is what it is. There's nothing we can do about it. Oil is going up, which can absolutely have an effect on the entire equity market and also crypto and Bitcoin as well. And yeah, we'll just see what happens with everything, guys. Hope you guys are doing well. Till next time, talk with you soon and bye for now.