I don’t think there is a single
word that captures the essence of what manifested over this past week. And I’m not even going to take
a stab at it. So you guys let me know what word you would use to
describe it in the comments below. Hello, I’m Crypto Casey, and welcome
to another episode of Last Week Crypto. Every Sunday, we review the performance of
the largest cryptocurrencies, top gainers, as well as the latest global news stories
affecting the crypto markets this past week. This week we will discuss the effects of
the new US government administration on our crypto portfolios, how retail investors
are fomo-ing into the market in droves, how institutions are fomo-ing
into the market in droves, and the importance of taking profits
periodically throughout this bull cycle. To check out the links to all of the articles we
discuss, go to CryptoCasey.com/Last-Week-Crypto. This week’s episode is
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for some weekly live content soon. Awesome. It’s time for Last Week Crypto. Looking at the top cryptocurrencies by
market cap, Bitcoin up an epic 39.1%, ETH an absolute beast up 68.3% XRP in recovery mode, up 37.4%,
and Litcoin up 36.3%. Amazing. Looking at the top gainers this week: Nano, oldie but goodie, out of nowhere
ripping upwards by 265.6% Maker making moves, up 141.4%, Stellar up 131.7% And Loopring, up 124.9%.
Each week, bitcoin is still
effortlessly reaching new all-time highs, and just completely locking
down positions above resistant lines. Speaking of locking down, maybe Bitcoin
should give the Capitol some pointers on locking things down as this seems to be the extent to which the Capital was locking
things down on January 6th at 2pm. Savage Sven Henrich makes a solid
point about the matter in this tweet: History never repeats but sometimes it rhymes. Rom, in the year 455 versus
Washington DC, in 2021. Not stark resemblance, indeed. Following that historic debacle, Trump
finally concedes Biden will become president. The United States now has a democratic House
of Representatives, a democratic executive department, and this week Democrats take control
of the Senate with twin Georgia victories.
Politics aside, in fact I’m extremely apolitical, all that is important for us and our crypto
community in the midst of a year that will prove to be THE most historic year for crypto ever,
is how does this affect our crypto portfolios. My outlook: BULLISH. Incredibly
bullish for cryptocurrency. Why? First of all, Biden is preparing a $3 Trillion
Dollar Stimulus Package that will take the stock market and, especially Bitcoin,
to insane levels already in February… And here’s: Why Joe Biden’s $3 Trillion Dollar
Stimulus Package Could Add Fuel to Bitcoin’s Rally The new fiscal stimulus is
expected to boost inflation, weaken the U.S. dollar and bring more buyers
for scare assets such as bitcoin and gold.
The leading cryptocurrency is
already in a strong bull market, courtesy of the inflation-boosting
measures adopted by the Federal Reserve and the U.S. government over the past 10 months
to counter the coronavirus-induced slowdown. These measures have pushed institutions to seek
investments that offer a hedge against inflation. The Biden stimulus may add an
extra jolt to bitcoin’s price, but nothing more than pushing
along a barreling freight train. And tons of people are now clamoring to hop aboard
the barreling freight train that is bitcoin, as you can see here in the recent spike of the
search term “bitcoin” on Google search trends, a spike we haven’t seen since the
last bull run in December 2017. And for those new to bitcoin,
here is some history of its price. All of you bitcoin veterans, bear with
me for a minute while we break this down. Bitcoin hit a $30 All Time High in June 2011,
from $0.30 in Jan 2011 (100x in 6 months-ish).
Then "crashed" 90% to $3 (which was still a 10x of before). Then took just about 2 years
to recover back to $30 in Feb 2013. Look familiar? Then… 2 months later, in Apr 2013, Bitcoin hit a new Aall time
high of $213 (which is a 7x). Check how big the previous
$30 All time high looks. There was also a "crash" to $70 from $213 during 2013. Then a recovery back to over $200
in Oct 2013. (which was a small 1 year cycle) Then 2 months later, by Dec 2013, bitcoin hit another All time high at
(which is a 5x in 2 months.) There was another "crash" from $1000 to $200, and took about 3 years to recover
back to $1000 in Feb 2017. This is the cycle when CZ entered.
Sold his house to buy bitcoin at $600 in early 2014. Felt he was way late. It dropped
to $200. Had to endure 2 years for it to recover. Of course, many of you know what happens
next. 10 months later, in Dec 2017, bitcoin hit the "famous" All time
high of $20,000. (a 20x in 10 months) Most of us know that bitcoin died many times in
the last 3 years. It "Crashed" to $3000. But 3 years later, almost to the day, bitcoin recovered
to $19,700. And we emerged from winter finally. And now. What's going to happen next? I donno. You tell me? It doesn’t take a sophisticated background in
finance or technology to see what’s going on. The writing is on the wall as RETAIL FOMO IS HERE!!!
Trending on Twitter and Google Searches!!!! HOLY MOTHER OF PUMP IS UPON US!!!! And it’s important to understand
that most retail investors are not here for long term investing.
They are here to make a quick buck.
I mean, look at this: $YFI currently
has a smaller market cap than $DOGE… Let that sink in. See you guys at $120k. And for those of you who don’t
know, YFI, stands for Yearn.Finance which an extremely complex ecosystem
of decentralized financial applications that is currently providing a wealth
of useful products and services, while Doge coin was created
as a joke based on a dog meme, that is occasionally pumped by Elon Musk in his
true troll fashion and Tik Tok influencers that harken their audiences to pump the price
of Doge to $1 so they can all get richhhh. I’m not kidding, check this out: DOGE Rant video Hype City, USA right there Lol. And it’s
not just retail investors that are hyped. Institutions FOMO into crypto as much
as retail they just use different words. And different approaches. Boom! Morgan Stanley just filed an
SEC form declaring they now own 792,627 shares (10.9%) of MicroStrategy. They've increased their position by 360%, adding almost 650,000 shares since
Q3 2020. Even the banks want Bitcoin. So instead of some institutions buying
bitcoin directly and holding it themselves, they are opting to indirectly
getting price exposure to bitcoin by buying stocks of companies that have
cryptocurrency on their balance sheets.
And the impending Coinbase initial public offering will give institutions another
indirect proxy to invest in bitcoin. So for any of y’all that own
a publicly traded company, here’s a letter for you Dear CEOs, Stagnant share
price? Easy! Just add crypto to the balance sheet! The SEC has made it insanely hard to buy
BTC and ETH, so investors are desperate! And the Fed keeps minting you money. What else are you going to do with it?
ACT NOW while crypto prices are low! Institutional adoption has been on
the rise and is ever increasing, especially as favorable
regulations continue to develop. Check it out, this week from
the: Top US Banking Regulator: Banks Are Authorized to Use
Public Blockchains and Stablecoins This is fantastic news for the
cryptocurrency industry, because, at the end of the day, DeFi, or decentralized
finance will be used by ALL banks. Why? Because look at this. A whopping $22.58
billion dollars is currently locked into a massive, global, efficient, seamless financial
ecosystem that is providing value like lending, borrowing, liquidity, trading
platforms, payment networks, asset management, derivatives
marketplaces, and much much more.
Banks will not be able to build their own private or public markets to compete with
this huge, active, global market. If they want to stay competitive, they
will absolutely have to build on these existing DeFi platforms like Maker,
Aave, Compound, Synthetic, etcetera. It’s 100% inevitable. All lending,
real estate, mortgages, loans, retail, simply everything will be on
DeFi in the non so distant future. And no asinine laws in any country on this planet can stop an indomitable
technological revolution such as this. So if you want to learn more
about DeFi and what it is, check out my video guide for beginners
explaining what decentralized finance is and its implications for the future of our global
finance system by clicking on the link above.
But basically in a nutshell: this is ETH
versus centralized exchanges, stock brokers, insurance companies, clearing houses, SWIFT,
banks, payment companies, and investment banks. Ethereum is absolutely killing it. With all of these new regulations allowing
traditional financial institutions to use public blockchain technology
to provide financial services, the government will not ban
bitcoin or cryptocurrency at large. At this point, if they tried, their big monetary
interests would not stand for it. Because, we all know corporate America and financial institutions
are the puppet masters running the show. Politicians are just the puppets.
Big business runs the United States. They just buy the politicians to push
their agendas through legislation. Nice. Well with all of this bullish news
from the week, here’s something we all need to be aware of and stay mindful of
throughout this parabolic bull cycle. I'm waving the yellow flag… Large jump in
coins sent to exchanges. Highest unrealised profits since Dec 2017. Spike in total number
of coins on exchanges.
Pullback coming. As we discussed in previous
episodes, you shouldn’t invest in cryptocurrencies like traditional stocks, where your buying lows and selling highs,
as these are assets at market saturation. With this technology gaining adoption, do as Venture Capitalists do. Their strategy
is to buy successive rounds of shares, or in our case digital assets, at ever increasing
highs. They don't invest in down rounds. This technology will continue to develop, evolve, gain adoption, and is
on an upward trajectory overall.
So the best strategy is to buy and hold. However, in this bull market, you need
to periodically take profits. The volatility of bull markets create massive investment opportunities to grow the
value of your portfolio and generate profits. This week we see Bitcoin price
volatility spikes as BTC whales sell each new high. Data suggest
Bitcoin’s price drops at each new all-time high are the result of
“mega whales” selling into liquidity. Whales will take profit throughout this bull
cycle. And following the bull cycle, many of these financial institutions may not hold crypto
during the bear cycle to the next bull market. At first people underestimate crypto bull runs then they overestimate them.
We’re still in the first part. In fact, taking a look at the Wall St.
Cheat Sheet Psychology of a Market Cycle, I think we are currently, at the Optimism
phase, where everyone agrees this rally is real. We may even be breaching into the belief phase, where people think it’s
time to get fully invested.
So just a word of caution. If this price
rally continues to move quickly at a steep incline with no pull back, we could launch
straight to the top here to the Euphoria phase, where everyone is like “I’m a
genius! We’re all going to be rich!” Which would prematurely
spiral us into a bear market. That wouldn’t be good. However,
all-in-all, more likely it will take another 12 months or so before we hit the
euphoria phase and start a descent from there.
So we shall see. Either way Be prepared for ETH
to hit 10k this year & be prepared if it doesn’t At the end of the day: Join the winning
team, buy and hodl bitcoin. It’s that simple. And once you have bitcoin and other
cryptos, make sure you are transferring it off of the exchange to hold long term
on a cold storage hardware wallet, pronto. The best time to get a cold storage
hardware wallet was yesterday, the next best time is today, so scroll
down to the description area below to access the correct and official sites
of my recommended hardware wallets. BC Vault is my personal favorite, another option is the Ledger backup
Scroll down and check them out. And once your crypto is secure and protected,
you also need to protect your ability to generate income, and there are a ton of opportunities
currently available in the cryptocurrency and blockchain tech space, and the opportunities
will continue to exponentially increase. So if you are interested in learning how to become
a developer in the industry or learn more about the advanced technical concepts of blockchain
technology, check out Ivan on Tech’s academy. Using the link in the description area, you can access the academy at a discounted
price, so scroll down and check it out. Awesome. Well that was Last Week
Crypto, with me Crypto Casey. If you enjoyed the episode, please
make sure to like this video and subscribe to my channel for more crypto content. To check out the links to all of the articles we
discussed, go to CryptoCasey.com/Last-Week-Crypto.
So what did you think about this crazy week? Have people started coming out of the woodwork,
asking you about bitcoin and crypto yet? How significant will this pullback
be? If we even see one any time soon. Let me know in the comments below. Be safe out there..