Crypto Alert: Sentiment Is Turning

[00:00:00]Hey guys, this is market update. There's definitely a change in sentiment, isn't there? Everyone in crypto can feel that and that's because the AI trade, yeah, a lot of the hot names have just collapsed, right? Uh that's not to say AI the whole entire thing's going to collapse. I don't believe that, but the hot money is out of those trades now.

[00:00:16]And then people come back to Bitcoin and like, wait, this thing's at the 200 week moving average.

[00:00:21]Bitcoin's going up, we know that.

[00:00:23]That's it. It's going up and it's a great price cuz it's near the 200 week.

[00:00:27]But there's a lot of positivity starting to come through and you can just feel that the hot money is starting to say, wait, Bitcoin's actually a really good trade at this point because look at where it is compared to all of these ultra hot AI names which are all coming off. The hot money's coming out of those. Wait, we have to go somewhere else. Oh yeah, Bitcoin's obviously at a great price right now.

[00:00:46]So look, the Clarity Act looks like all hurdles are being, you know, taken out. So this is good news.

[00:00:54]It's fantastic news for crypto, certainly and Bitcoin. But look, look at what they're doing.

[00:01:00]How How How is this not going to go through?

[00:01:03]JP Morgan, BlackRock, you're seeing tokenization just absolutely proliferate.

[00:01:09]It's hard to think that they're going to do all of this whilst expecting no legislation to pass.

[00:01:15]So let's be hopeful on this one. Um maybe it'll go through by the end of the year, I believe, but look, all of the hurdles are being taken out. So that's good news.

[00:01:26]Tokenization is real. There will be a few blockchain winners and Bitcoin, obviously, is it we already won. We won a long time back. We already won.

[00:01:36]And you get tested with the price, but that doesn't matter. Bitcoin as an asset has won.

[00:01:41]Whenever it sells off and becomes quite cheap in relation to the trend, people say, oh yeah, Bitcoin, like we need to go back into that.

[00:01:47]People aren't going to give up on this thing. This is the best money. It's as simple as that.

[00:01:51]And you have to see a few bull markets and bear markets through, right, if you're real. If you're a real investor, I think that's that's actually part of the the fun of it as well, to be honest. If you do trade crypto, Bitcoin, trade fiat assets, anything else, you can trade them all on Bybit as well. Um click the link in the description, they'll give you a deposit bonus to trade with as a new user. No one can trade.

[00:02:10]Not even Saylor. This is absolutely hilarious.

[00:02:13]Saylor is one of the worst out there. He was aping 2 billion clips at the highest. Now he's uh stacking USD at the bottom.

[00:02:20]>> [laughter] >> Literally bought the high and sold the low. He's stacking USD at the bottom.

[00:02:26]Absolutely hilarious. It's It's the way it goes because he has more opportunity to sell stock during highs cuz people are excited. So, it's just the way it goes. It's absolutely hilarious.

[00:02:36]Top buy capitulation. This is how some people behave. Absolutely beyond comprehension. You buy the top and then sell the bottom. That's just not how it should work, right? You have to believe in a long-term growth rate of something and buy it consistently. It's the only way.

[00:02:53]A lot of the data shows that active managers do not outperform the index. We're talking about like the S&P and like uh fund managers here. Active managers, 80 or 90% of them over a 10-year period don't outperform the index. Cuz you're always going to get some who just outperform it through luck.

[00:03:08]So, basically, you can't outperform the index. And that's because eventually, over a 10-year period, you're going to go into something and lose all your money and make the wrong decision. So, the actually what we're doing here is saving value over time and waiting for humanity to increase the amount of goods and services. That's what investing is. People think they're making money. You're not making money.

[00:03:28]Okay, you're valuing the stock market in dollars. That's not That's not reality.

[00:03:32]Dollars are fake. They're made up. You don't They're not The stock market's not going up in value. These companies do not make money. They do not make money.

[00:03:39]Fiat currency is not money. What they do is make goods and services. So, what you can What you need is when you work and you gain some remuneration for that, you need to just hold that value and wait for other people to just make loads of stuff over time. That's why long-term time horizons are necessary because what you're doing is waiting every day for those people to work and produce the abundance. So, what you need is a store of value. You need something to hold your value over time where you work for it, you got it, and then you actually wait for invention to occur so that goods and services, the unit price of those can come down over time. That's what you're doing when you're investing.

[00:04:15]You're not making money. Fiat currency is not money. It's not value. It's a joke. So, all the the S&P goes up 12%.

[00:04:22]Nope, it didn't. It didn't go up 12%.

[00:04:24]It's literally just staying flat in dollar terms. Now, you're outperforming people that hold dollars.

[00:04:29]Who holds dollars though? Everyone.

[00:04:31]Everyone knows that dollars are worthless, right? It's not going up in value. You're just holding that value over time and waiting for abundance to occur. That's why I hold Bitcoin. Oh, AI, it's great. They're going to make loads of money. What is money? They're not making money. They're making fiat.

[00:04:47]And if they want to debase the unit cost of goods and services, good for them.

[00:04:52]Got nothing to do with me. I'll hold my Bitcoin and wait for the unit price of everything to come down. Then when I spend it in the future, I will have more abundance. That's how it works.

[00:05:01]Percentage supply in profit. We are in a bear market. This is a great time to buy money. Do you want to buy money during a very soft period in prices in relation to the trend? I think so, right? I think it's pretty obvious and the sentiment eventually gets to a point where people say, "Do you know what? I don't care about the price. This is a fantastic price. I'm just going to buy it. I don't care about fad narratives or anything else. This is the best money, so we're going to buy it." And then when everyone else when the confidence starts to come in, when the buyer of last resort just says, "Right, we're stepping in here."

[00:05:31]Then everyone else says, "Ah, okay.

[00:05:33]Well, I'll take a risk as well." And that's when you get a bull market. I hope the bull market doesn't come anytime soon. Genuinely, I wish the price stays down here, stays soft for as long as possible. The two points I want to make is that nothing is actually going up in value. That's impossible.

[00:05:46]Nature doesn't create currency, we do.

[00:05:49]What we can create in nature is things, goods and services for an amount of energy.

[00:05:54]Wealth is making those things for less energy.

[00:05:58]And that's abundance. And poverty is when you get less productive, and you have less items, or those items take more energy, or more costly energy, right?

[00:06:08]There's a scarcity of energy in the UK, so industry can't work there.

[00:06:12]That's an issue, right? It's about energy, not currency. The currency has to be printed, but these things aren't going up in value. Right, the S&P went sideways against the Fed's balance sheet.

[00:06:22]And what does that tell you? Well, the S&P don't make money. They make goods and services.

[00:06:27]So, they can't make more money, can they?

[00:06:30]If you print 10% more, and the S&P makes 10% more, they've actually made nothing more, right?

[00:06:36]Is the amount of goods and services they made increased or decreased?

[00:06:40]Well, considering that a lot of manufacturing has gone offshore, maybe maybe it's actually worse. Maybe you're worse off.

[00:06:46]Right, it's not about the money, it's about the actual amount of goods and services that you create.

[00:06:50]If we want like if I hold Bitcoin, and then the AI trade has collapsed, and maybe Anthropic and OpenAI don't make as much money because the intelligent models are being open-sourced, how does that affect me holding Bitcoin?

[00:07:04]Uh well, they've just made abundance.

[00:07:06]They've used energy and intelligence to create more stuff for me.

[00:07:10]Didn't affect me at all. I just hold my Bitcoin.

[00:07:14]Right?

[00:07:15]And so, I've benefited from that.

[00:07:18]Everything should be free. The sun does not charge you money to rise in the morning. I can just wait for this to play out. Right? And yeah, you can buy the Nasdaq index because they're going to monopolize the distribution of products and services because they make a lot of the printed cash. They use some of that cash to lobby for regulations, right? And get in the good graces of powerful people that entrench monopolies.

[00:07:40]So, they'll make they'll they'll make a percentage of whatever currency gets printed continually.

[00:07:45]So you can preserve value in that.

[00:07:46]You're not making money. All right. The other thing is you can't day trade this.

[00:07:51]You just can't day trade this, right?

[00:07:52]It's impossible. 80 to 90% of active fund managers don't outperform the index. The other 10% get lucky. It's something like that. Look it up on Google, right? So you can't you can't day trade this. It's too volatile. It's crazy. But we know that all of these pumped up trades are terrible value. And you we know that, right? You and me because we saw Bitcoin get bad value as well when it's very popular in 2020.

[00:08:15]Just crazy. In fact, if you look at 2020 here, this price 5 years later almost 6 years later is the same. So you haven't got good forward returns from there. It was too high, right? It's just way too high above the my red line. This is my analysis. For me, anything below the red line is fine.

[00:08:34]I'm a long-term investor. I'll buy some higher, buy some lower. It's fine.

[00:08:37]Anything above the red line, you're really saying to yourself, "Look, man, this is this is not not the best value.

[00:08:42]It's crazy. It's pumped up. Maybe let some go, right?" But then what would you buy, right? I mean, everything else going to be pumped up at the same price.

[00:08:49]So any hot trade in the media is inherently bad value.

[00:08:55]And all you have to do is make sure that you have the best store of value money.

[00:09:00]Could be the S&P, the Nasdaq, it's up to you. I think it's Bitcoin. I can just wait for all of this to happen.

[00:09:07]For all of this competition to drive down costs and I can benefit in Bitcoin because Bitcoin is money and it's solid. It's scarce and it will price in actual goods and service creation. This money thing is something else. It's power and control and trying to manipulate behavior to get outcomes. That's that's different. I'm out of that. I don't want that. All right, I'm in Bitcoin. So look, hot trade SpaceX don't trade things that are crazily priced.

[00:09:37]$2 trillion valuation. Great company, but it's a it's a shitcoin, right? It's a low float high FDV shitcoin. JP Morgan brought it in, the most untrustworthy outfit in all of finance, right? Pumped it up, get everything out in the news, get everyone riled up about it. Get all the money in.

[00:09:56]Yeah. Right?

[00:09:58]So, that's it. Don't buy hyped-up stuff, but buy great things when everyone else is scared or out of them. So, now at 120, below the IPO price, was it 40% off the high?

[00:10:14]47% off the high. I mean, look.

[00:10:17]Much better value here if you're a long-term investor. But, maybe just buy the Nasdaq. Let the Nasdaq algorithm sort it out. What do you care, right? All we're doing is just saving our money and waiting for these people to produce abundance.

[00:10:31]I think Bitcoin is just the perfect money for that. But, I get the Nasdaq as well. I own both. If you trade Bitcoin, Nasdaq, you can trade perpetual assets on Bybit as well. If you click the link in the description, sign up as a new user, make a deposit, they'll give you a deposit bonus to trade with. I'm James and this is Money Z GG. Thanks for watching and I'll see you in the next one.