WHY IS CRYPTO DUMPING RIGHT NOW?! JEROME POWELL QUIT!!!

Added: 2026-05-19

[00:00:00]The crypto market is dumping right now, and the simplest answer as to what exactly is happening is that the S&P went for an absolute crazy surge over the past couple of weeks, leading us from 6,350 to 7,500 dollars over just a span of like a month. This was one of the craziest rises we have ever seen in S&P history. That was also then followed by a pretty crazy drop.

[00:00:28]Apparently, this was one of the biggest drops we've seen in a pretty time because even though the candle start to look small, it's basically a 2% drawdown or something like that that we saw on the S&P, on Nasdaq, on basically any of these major indices, which also makes it logical that we saw some sort of drop for our main coins, for our Bitcoin, for our ETH, for our XRP. Matter of fact, I'd say it's quite interesting here that it didn't drop more. I'm just a messenger here, but I'm telling you guys right now honestly from the heart, I kind of really expected the crypto market to drop more on a minus 2% or so day for the S&P, but that brings into question. Whenever the S&P is going up, Bitcoin doesn't really go up too much.

[00:01:10]It lags a bit, but it does at the end.

[00:01:12]Whenever the S&P goes down, especially goes down hard, Bitcoin and all the alts are slashing. However, on normal times, if the S&P were to drop this much, Bitcoin and at all would basically be down a pretty good penny. Right now, it's down like 1%, 2%. So in reality, in comparison to what we've seen in the recent history, this is not too bad. Now before I move on, if you guys have not done it yet, make sure you check out my most recent video on the channel that is called how to connect Claude to TradingView or just click the entire channel called AI Unlocked. It's basically this new channel that I made that purely talks about AI, and the reason I'm talking about it so much right now about this AI stuff is because I really think the next major wave for the crypto market is going to be connected to either AI developments or is going to be these AI agents who are using crypto sort of tokens to just take it out of control the amount of usage that we've got. And this is something that I do not think is worth looking over, all right? It's worth very much investing some time into. But another reason I talk about it so much in the recent history is because you can now in just plain English put exactly what you're thinking of in some sort of trading way. For example, if you want to try out some new sort of strategy like, "Hey, I wanted to trade every single time the EMA goes above this, that, this, that. Put a stop loss at 2.5%.

[00:02:32]Take profit at this percentage. An RSI at this point, that's what I want to take the trade, etc., etc., etc." I can now just type it into plain English like I did here and it will show up in one of my TradingView charts. Again, the potential with this is absolutely crazy.

[00:02:47]And the biggest reason I'm talking about it right now is because right now as it stands over on Blofin, an absolutely massive $5 million crypto trading campaign is going to start that also be rewarding people who are trading using AI. And so I want to make you guys a strong at that because I of course want to win as a team. And all you got to do to join is just use the link down below, which you can join from probably every single country in the world. If not, use a VPN as there's no KYC required. And you also get some very nice bonuses just for signing up. So, check it out. Link is down below. But really, on that note, I've been playing around more and more and more with these different TradingView strategies. Like for example, one of the ones we crafted earlier that would have resulted in a couple month time span to be about 10% up where Bitcoin would actually be down 22%. The whole funniest thing is when it comes to crypto trading strategies, right? A very big part of it is back testing. Just seeing exactly how good a strategy would have done over time. Hey, perhaps you're curious. Would it have been better to buy every single day? Or would it have been better to stack it up, you know, make some small purchases every single time it dropped below or above the EMA. You know, what what would have been better? You can actually try out and test out these strategies. Well, I just explained them in plain English now. It's so beautiful because I was also thinking, you know, what exactly is that correlation between Bitcoin and the S&P? And by that logic then, would it have been smart every single time to sell the moment we saw something red in the S&P and and back and forth? And now, if you wanted to, we could actually just insert that into plain English and let the AI take care of it for us and see over time how profitable it would have been because it can backtest it. Now, again, if you want more tutorials of these sorts, make sure you comment it down below. I'm already working on a few though, so just just just keep on the watch for it. Now, a couple more things that were really quite interesting to note. Apparently, Bill and Melinda Gates just fully exited their Microsoft stock holdings worth over 3.2 billion. To me, that's quite peculiar, the fact that they went for such an action. Like, why why did these guys go ahead and do that?

[00:04:46]I mean, it's not like he was not slowly just disinvolving himself from situation by stepping down as CEO in 2000, resigned from being a chairman in 2014, and left the board of directors in 2020.

[00:04:57]Also leaving the board of directors at Berkshire Hathaway in 2020. Now, this could be a way smarter longer-term play though, or it could be him shifting over to some new companies, or just shifting over to being an old man and and and done. But basically, the one holding where he was holding a significant amount of of of stock in has now fully been done. And the question that becomes or that that came up for a lot of people is is it because Microsoft is not winning it in the AI race, or is it just because he wants to be done with the company, or more importantly, why did this come exactly after the the the new Nvidia boom came out and a lot of people are wondering if Nvidia is basically the winner of it all and should be all in? I could talk about it for hours, but I think what's more important for today, and probably the main reason the market actually went down, is Jerome Powell stepping down. So, this was by far the biggest highlight of the day Of the last 24 hours, Jerome Powell officially stepping down after eight years of serving as the Federal Reserve Chair.

[00:05:56]Now, even though many people wanted him gone, over the past couple of days I've started to realize, or actually the past couple of hours I should say, just how loved he was to a lot of people and how, well, just like we saw with Gary Gensler with regards to the crypto I guess crypto part of the SEC, it's really only a matter of time before we see if the next one in place is actually going to be doing a any real better job.

[00:06:19]Now, a couple of interesting pieces to note still were apparently that the US and China have agreed to lower tariffs on some unspecified products to promote bilateral trade for China's Commerce Ministry. The statement confirmed China's plan to purchase US planes and it said China would address US concerns on agricultural import. Now, even though I could talk a lot about some of the news that's going on right now in terms of stocks, for example, one pretty major thing is that Nvidia is almost at six trillion dollars, which is absolutely phenomenal. And really, when we're talking about the the the beautiful things coming up in the world of trade, like for example, Trump meeting with Xi and saying, "We've made some fantastic trade deals. Great for both for both countries." Yeah, it makes us quite excited. So, why does the market then drop on a day like that? Partially, of course, manipulation. Partially, of course, like you can logically see because Jerome Powell quit. And even though he was seen as a bad actor, it could take the markets by surprise ever so slightly. It says right here, "Everything just got hit at once. A trillion wiped from markets since the US open as Bitcoin stocks and tech all slid together." And of course, we saw the rates look pretty beautiful. The 10 US year, or actually US 10-year note yields has officially broken above 4.55% its highest level since about a year, May of 2025. And this really makes you realize, throughout time, all you really had to do was just be in the markets.

[00:07:43]Either the stock market, either crypto, or either just any sort of yield bearing instrument and it would have really served you quite well. Just think about how much the results would be of getting like 5.11% or so every single year on your money.

[00:07:58]It's It's actually really quite crazy.

[00:08:00]That's like the baseline that people are holding and I've been spending so much time just playing around with these different strategies. Here, for example, another strategy I just let it quickly generate for me 80 trades. You can see the uh the drawdown here 11% slightly different. You can see the course of how it's been doing over the past couple of uh months right here. And that's a cool thing, right? You can now, just in your head in plain English or by by typing it out or by saying it out loud, tell the chart exactly what you want to see in that, right? And that's what it's going to be doing. So, this one would have resulted in about 10% profit or so over quite a long time span, but more importantly is actually how it would have resulted versus Bitcoin. Doesn't matter though, I've got a ton of these strategies. I've been testing out a ton of them, too. Many of them not to share with you guys necessarily. It's not that they're good strategies. It's to prove how you can tweak these different things to a certain way that you'd want. For example, here's one thing, right? 118 trades over this time period, 3.5k profit, profit factor 1. Let's say 1.4-ish, win rate about 36%. People think a win rate of like 10% is bad, but it's not. Depends on how big your wins are if you make them. Max drawdown 22.9%, which is huge, but the max run up was 36.8%. Sharp 0.58, Sortino 1.16, and buy and hold in the same window would have resulted in minus 16.75. Is this a good strategy in the future? No, most likely not because it took some very big dips and made a good amount of profit over that time period, meaning it won't most likely fit over, you know, future data. It's to prove that if you've got something in your head, you can make it now. That's the beauty of these AI strategies. That's the beauty of of of connecting your cloud or connecting any sort of AI to TradingView if you're a person that trades and eventually also your exchange. I can show you guys in a video super easy how to do that. But just in this time where information moves so fast, theoretically speaking, right? You can now set up a system in a such an easy fashion. The moment I get a tweet from Brian Armstrong coming in and it it has this and that part, my AI that has for example been completely personalized to know exactly what I think is important, what is not, and because of history of every single Brian Armstrong tweet because it's been trained on that, knows whether or not this would up or lower the price. Again, potentially, this is not financial advice. I can now easily spin off a strategy or actually spin off trades based on certain things. And before, this used to be quite a lot of effort, you know, where you had to automate things in a certain way. Right now, it's just like 10 different freaking text prompts. It takes me probably 5 minutes to automate this. And that's some of the cool stuff that I've been able to uh get going here. Obviously, a lot of people are way further in all this, but I just also like to do what I do on this channel all the time. Like to share wherever I'm at in my progress. And so, this is a little update that I've got for you guys. This is such such such cool interesting things. And that's also why I made the second channel, which is go check it out if you want to. If you don't, no worries at all. Maybe it's not for you. Maybe you just like news and you don't like to use the news for actual trading. Hey, completely fine as well. But I'll be spinning up some more very cool tutorials with all this stuff in the next couple of days because I personally find it fascinating. Just absolutely astonishing, especially in these boring times as we're waiting for the market to pick up. And that's about it. Like I said, the main reason I'm doing this is because of a massive AI trading competition coming up over on Blofin, which I obviously want to take part in. So, if you want to join as well, link is down below for that. And I'll see you guys again in another crypto video somewhere, probably tomorrow.