Crypto Market Update: What’s Next For BITCOIN & Altcoins?!

Over the last year BTC has more than Tripled in price and has just hit a new All-time high this rally has been driven Primarily by the speculation around and The subsequent approval of spot Bitcoin ETFs and it's left everyone wondering How high BTC will go and whether Altcoins will follow that's why today We're going to explain exactly what's Been going on in the crypto Market Including where we are in the crypto Cycle when altcoins will follow BTC and Why this time could be different this Could be something completely different My name is guy and if you hold crypto or Are considering it then this is a video You need to Watch understanding what's going on in The crypto market and where it's headed Fundamentally involves understanding who Is doing the buying and selling and why For the purposes of this video there are Three kinds of crypto investors you need To know about out trafi whales crypto Whales and Retail now traditional Finance AKA trafi whales are wealthy Individuals and institutions who invest Most of their money into traditional Assets like stocks and bonds hence the Term Trafi although some trafi whales have Been investing in crypto for a long time Most of them were not able to invest Until very recently this is basically

Because there are regulations in place Which prevent certain types of Institutions from investing in Risky Assets such as crypto these include Banks Pension funds and certain asset Managers while these regulations don't Exist everywhere they do in the United States where most trafi money is managed As you might have guessed these Limitations were removed when the US Securities and Exchange Commission or SEC approved approved all the pending Spot Bitcoin ETF applications now for Context a spot ETF trades like a stock And is backed by the asset whose price It's designed to mirror that means every Time someone buys a share in a spot Bitcoin ETF actual BTC is bought Obviously the Practical effect of ETF Buys is that btc's price goes up and the Result is what I mentioned in the Introduction BTC 's price essentially Going up only since the ETF approvals in Early January believe it or not but BTC Could continue to go up only Indefinitely and this is for three Reasons the first is that it takes time For tradire whales to begin offering the Spot Bitcoin ETFs to their clients for Example Bank of America and Wells Fargo Only began offering the spot Bitcoin ETFs to their clients last week I'll Quickly note here that it's the clients Of these institutions who are buying not

The institutions themselves regardless It's probably going to take a few months For most trafi institutions in the United States to offer the spot Bitcoin ETFs to their clients the consequence of This is that there will be a constant Growing stream of capital entering these ETFs for the foreseeable future and of Course that will be positive for BTC and this ties into the second reason Why BTC could continue to go up only and That's passive Flows now if you've been keeping up with Our weekly crypto reviews you'll know That most trafi investing is done in a Passive manner put simply trafi Institutions will automatically buy Assets as part of their allocations as Such it's likely that some trafi Institutions will include the spot Bitcoin ETFs as part of their automated Allocations now that they're available Even though these allocations are likely To be small in percentage terms in Dollar terms they could be enough to Perpetually push up btc's price that's Because of the third reason why BTC Could continue to go up only and that's The restrictions around its Supply According to Glass node only around 11% Of btc's Supply is current ly on Exchanges to all intents and purposes That's the only tradable BTC available The rest is being huddled in wallets

That stands for holding on for dear life By the way now consider that the spot Bitcoin ETFs have gobbled up 1 million BTC in Just 2 months even when you Factor in the BTC being produced every Day by Bitcoin miners there is a chronic Shortage of BTC that's available to buy As basic economics dictate less Supply With the same or more demand equals moon Or something like that in all Seriousness there's been speculation That the spot Bitcoin ETFs will soon run Out of BTC to buy and that btc's price Will go exponentially higher as a result Now this is certainly possible but it's Objectively unlikely for many reasons For starters the US government still Holds a around 200,000 BTC worth $14 Billion for reference the US government Recently sold around $1 billion worth of BTC and it is likely that it will Continue to sell if prices continue to Rise there also seem to be other sources Of sell pressure in the short term such As bankrupt crypto entities selling Large amounts of BTC to repay creditors Even so there's a point at which all of This BTC will be sold once that happens Btc's price could literally go vertical And by the way if you're enjoying the Video so far be sure to smash that like Button to give it a boost And subscribe To the channel and ping that Notification Bell so you don't miss the

Next one now you'd be forgiven for Thinking that the crypto story ends with These trafi investors however everyone Seems to forget that there are other Potentially larger forces at play Within The crypto Market crypto whales are the Elephants in the room in this regard and They've been playing A peculiar role Recently like trafi whales crypto whales Spend most of their time pumping and Dumping on irrational retail investors For a massive profit what's funny is That some crypto whales appear to have Pumped and dumped on all the trafi Whales that have been rushing in to buy The spot Bitcoin ETFs for those unaware Large crypto entities such as binance And te have been propping up crypto Prices for at least a year in binance's Case former CEO Chang Pang Xiao Announced last March that the exchange Would quote convert billions of dollars Of its buusd stablecoin into other Cryptocurrencies logically this likely Had the effect of supporting the prices Of the cryptos that were purchased There's also onchain evidence which Suggests that binance could have done The same with some of its usdc Holdings It appears that binance is usdc Holdings Declined significantly shortly after the B USD conversion whatever the case with Binance it's also clear that tether has Been playing a role in propping up the

Crypto Market too this is because the Stable coin issuer explicitly stated That it would be using a portion of the Profits on its usdt reserves to buy BTC Every month last may now the exact Amount that's been bought has not been Disclosed still it's likely that Tether's BTC purchases have amounted to Hundreds of millions if not billions of Dollars given that usdt currently has a Supply of over 100 billion and its Reserves are earning as much as 5% quick Maths tells you that's as much as $5 Billion per year in basically passive Income not too shabby but that is just The pump part of the crypto whale Equation on the dump part there was a Quote brick wall of sell pressure on Major exchanges at the 52k level Particularly on bitfinex FYI bitfinex is A crypto exchange that's popular with Bitcoin Wales and it also happens to be Tether's sister company as you can see This brick wall of selling pressure Didn't stay up for too long eventually The buying pressure from trafi whales Broke through this level it appears that There was a similar brick wall around 64k and at the time of shooting BTC is Retracing after briefly breaking above Its previous high of just over 69k so This begs the question of how much BTC Crypto Wales have left to sell and when They will sell it well the honest answer

Is nobody knows for what it's worth Though the order books on binance Suggest that there is a massive cell Wall from 69k all the way up to 76k Which could be btc's short-term price Target and that reminds me you need to Remember the role that leveraged trading Plays in btc's price action as most of You will know leverage trading Effectively involves borrowing money to Bet on whether an asset's price will go Up or down as a fun fact most trading in Crypto involves leverage when Traders Bet that btc's price will go down but it Goes up instead this causes a short Squeeze which involves these BTC Traders Being forced to buy BTC with the assets They put up as margin AKA collateral Usually usdt this causes more traders to Get short squeezed driving btc's price Higher and so on on the flip side when Traders bet that btc's price will go up But it instead goes down this causes Cascading liquidations which involve These BTC Traders being forced to sell BTC this causes more traders to get Liquidated driving btc's price lower and So on this is why BTC can be so volatile Around key levels what some of you may Not know however is that there is a Third factor to leverage trading that Can trigger a short squeeze or a Cascading liquidation this factor is Funding rates which can be easily

Understood as the cost to hold a long or Short position as funding rates rise Leverage becomes more expensive ensive And this eventually causes some traders To close their positions at a loss Against their will which can in turn Trigger a short squeeze or a liquidation Depending on whether the funding rate is Expensive for shorts or Longs Respectively funding rates are currently Expensive for Longs which risks Cascading liquidations on that note if You happen to be a current or aspiring Crypto Trader then you need to check out The coin Bureau deals page it's got Trading fee discount of up to 60% and Sign up bonuses of up to $50,000 on the best crypto exchanges These deals are only available to coin Bureau viewers and won't be around Forever so take advantage of them using The link in the description ASAP now This relates to retail investors Historically crypto Wales have used Their BTC profits to buy altcoins so They can pump and dump on all the new Retail investors flooding into the Market allegedly This time around however there seems to Be a lack of rotation and this is for Two reasons the first is that the buying Pressure from the spot Bitcoin ETFs Could have taken the crypto whales by Surprise leaving them with profits they

Weren't expecting the second is that Retail investors haven't really started Paying attention yet at least not those Who aren't already heavily involved in Crypto now the first reason could have Crypto Wales wondering if it might be More prudent to rein invest into BTC as Opposed to altcoins and keep riding the Waves caused by trafi whales especially When you factor in the second reason News flash but no new retail investors Means that it's hard to pump and dump Altcoins this is why it's possible that The recent mcoin rally was orchestrated By crypto Wales by stimulating the most Speculative part of the crypto Market it Temps more retail investors into the Crypto Waters Remember that Robin Hood made most of Its crypto trading profits from Doge Trading so far this seems to have been An effective strategy and we're slowly Starting to see retail related metrics Tick up these include the popularity of Crypto trading apps on App Stores the Number of Google searches for memecoins And even the number of views we're Getting on this channel welcome by the Way to all viewers joining us for the First Time now the question is whether the Sparks of the mcoin rally will be enough To create an altcoin fire or rather will It be enough to bring in new retail

Speculation to the crypto Market the Answer is complicated because retail Investors don't seem to be in the best Shape these days the combination of high Inflation and high interest rates has Taken a toll on retail investors around The world in the United States for Example household debt and credit card Debt are at record Rec highs this is Significant considering that most of the Retail Capital flowing into crypto comes From the United States come to think of It the recent mem coin craze could be Due to the financial state that most Retail investors are in if you watched Our video about how to analyze meme Coins you'll know that they're analogous To lottery tickets gambling like Behavior tends to increase when people Are financially stretched after all What's the point of making a strategic Investment when you only have a few Hundred to invest better perhaps to just YOLO into some mem coin and hope at 100 X's so you can pay back some of your Debts for many people even a 2x on a few Hundred would go a long way towards Making ends meet this fact is easily Forgotten by the retail investors who Are already heavily involved in crypto Most of whom are financially better off Than retail tourists statistically Speaking per our summaries of related Reports veteran retail crypto investors

Tend to be young educated and upper Middle class men anyway statistics aside The fact of the matter is that there has Been a lack of rotation into altcoins at Least at first glance upon closer Inspection though you realize that it's Not so much that altcoins have been Underperforming rather it's BTC that's Been outperforming due to the steady Spot Bitcoin ETF inflows as many Analysts have pointed out out the Capital going into the spot Bitcoin ETFs Probably isn't going to find its way Into altcoins the caveat to that though Is something I mentioned a few moments Ago and that's that crypto Wales still Exist put differently you haven't taken Anything away from the crypto Market all You've done is add an additional Category of whales which are for the Time being directing their crypto Related Capital to BTC and this has Probably left crypto whales in an Awkward position and it's possible that It's also tempting retail investors to Just ride the trafi waves with BTC Instead of altcoins this wouldn't be Surprising given that the SEC has been Actively going after many altcoins it Stands to reason that informed retail Investors would steer clear of altcoins Purely because they don't know which Ones the SEC will go after next a fact That's easily forgotten by less informed

Retail investors speaking of which it's Easy for everyone to forget the Regulations around crypto exchanges have Changed significantly since the last Bull market as well it is no longer Possible for investors in places like The US and UK to access the offshore Crypto exchanges where the most Speculative altcoins are traded if You've been keeping up with our coverage Of crypto regulations you'll know there Have also been moves to restrict defi Access in these places some defi Protocols have already blocked us users From interacting with their front end And many crypto projects have restricted Them from airdrops as well thankfully There are still promising altcoins out There which is why we created the coin Bureau Club every week we do reviews of Small cap altcoins that our members Voted for members also get to see our Personal crypto portfolios and our watch Lists they even get daily crypto Market Updates and Analysis so if you don't Have the time to do all of this stuff Yourself save yourself the hassle and Become a member of the coin Bureau Club Using the link in the description this Brings me to the most important part of The video and that's all the ways that This crypto Market cycle is different From the previous Cycles you'll notice I've just mentioned a few trafi whales

Blowing up btc's price crypto whales Being caught off guard and Retail Investors being apathetic or unavailable The crazy thing is that this is just What's different on the crypto front on The macro front we've got interest rates At multi-decade highs around the world The real inflation rate being much Higher than what's being reported and Geopolitical conflicts emerging and Escalating every other day in theory all Of this should be bearish for the Markets including crypto in practice Though most major stock market indices Have been hitting new all-time highs Including many cryptos the catch is that Most of these markets including BTC have Not actually been hitting alltime highs In real terms to put things into Perspective the US Federal Reserve alone Increased the money supply by roughly 40% between 2020 and 2022 as almost Everyone knows this huge increase in the Money supply was the biggest source of Fuel for the previous Market rally Thanks in large part to the direct Stimulus to retail what this means is That the actual inflation adjusted Prices of most assets again including BTC could be up to 40% lower than what We're all seeing on the screen at the Time of shooting this video this would Put btc's inflation adjusted price Closer to 50K which is where many

Traders believed the local top would be If this is in fact the case then BTC Could see a sizable correction from its Recent highs before the next rally and This would be consistent with btc's Historical price action where Corrections occurred just before or just After the harving in case you missed the Memo by the way the harving is scheduled For sometime in April if this scenario Plays out then the Silver Lining is that It will also apply to btc's top Target For this crypto Market cycle So based on The diminishing returns BTC has seen Over previous Cycles a historical Analysis based on non-inflation adjusted Prices gives you a BTC price of between 120 and 140 4K but if you factor in the 40% inflation that's been caused by all The money printing during the pandemic You end up with a BTC price of almost 200k at the cycle top as with the recent Rally to all-time highs a rally to 200k Would likely take most experienced Crypto investors by surprise be they Wales or retail naturally the same rule Would apply to all the altcoins they Could all surprise to the upside some of Them already have at the end of the day It's the disconnect between btc's price Action and historical cycles that has People thinking this time is different This can be explained by plain old Fiat Inflation in some then it's quite

Possible that the historical 4-year Cycle is still intact there's just one Piece that doesn't fit into this puzzle However and that's the buying by New Trafi Wales those Dynamics are real Regardless of the inflation adjusted Numbers the thing is though that we've Yet to see a proper correction let me Remind you that since the start of the Year it's been up only in crypto and Stocks well not to burst anyone's bubble Here but nothing goes up only eventually There's a correction and it's safe to Say that it's going to be fascinating to See how these tradire investors react When BTC goes down for the first time in Their experience and it's going to be Even more FAS ating to see how btc's Price changes relative to the other Assets out there it's believed that most Tradire investors see BTC as a safe Haven asset but we have yet to see this Fact stress tested it is quite possible That most of them still see BTC as a Risk asset like tech stocks in other Words it's possible that outflows from The spot Bitcoin ETFs will be just as Big as the inflows when the broader Markets turn bearish recall that buying Spot Bitcoin ETFs results in actual BTC Buys behind the scenes well the same is True in reverse and that's something we All need to Remember and that's all for today's

Video so if you found it informative Smash that like button to let us know if You want to stay informed subscribe to The channel and ping that notification Bell if you want to help inform others About what's been going on in the crypto Market then be sure to share this video With them and with all that said thank You all so much for watching and I'll See you in the next [Music] One

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