Crypto News: ETH Rally, Celsius, BTC Miners, Tech Earnings & MORE!

[Music] Welcome to the coin bureau weekly crypto Review here are this week’s top Headlines in the crypto news [Music] Crypto recovery coins and tokens start To rally after over a dozen weeks of Losses Is this the beginning of a short-term Market reversal or just another bull Trap Btc in the green a recent report by mega Bank jp morgan suggests that bitcoin Miners are back to making big profits Could the new break break-even price be The btc bottom Proof-of-stake date ethereum’s Developers confirm a tentative date for The merge causing many ethereum tokens To rally here are the ones to watch Celsius comes out short almost exactly One month after pausing user withdrawals Celsius officially files for bankruptcy Leaving its users in limbo everything You need to know Big tech in trouble As major earnings calls approach many Investors fear that company profits are On the cusp of collapse What does it mean for the crypto market Inflation acceleration the cpi for june Comes in at yet another historic high as Consumers at all income levels start to Feel the squeeze how much higher could

Inflation go And a closer look at last week’s top Performing cryptos and where they’re Headed next all this and more in just a Moment [Music] Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not financial advice you can Find any topics you’re looking for using The timestamps in the video timeline and Now for today’s top stories Last week we saw the first signs of a Crypto market recovery in almost four Months As i mentioned in yesterday’s newsletter Btc’s daily price printed a double Bottom followed by the three white Soldiers candlestick pattern both of Which are signs of trend reversal More importantly the bear flag that was Forming on btc’s weekly chart never Played out and june was also a green Month These are two more signs of a trend Reversal but it begs the obvious Question and that’s whether this Apparent trend reversal will last Well believe it or not it looks like it Might at least until the federal Reserve’s next meeting on the 27th of July when chairman jerome powell will be Announcing how much the fed plans to

Raise interest rates If the rate hike is within investor Expectations the recovery rally could Continue If not then it probably won’t Even if the fed’s rate hike is within Investor expectations the recovery rally Could still be cut short and that’s Because the gross domestic product or Gdp figures for the second quarter of 2022 will be published the very next day On the 28th of july busy couple of days Now if you watched our recent video About whether we’re in a recession You’ll know that the textbook definition Of a recession is two consecutive Quarters of negative gdp growth In case you missed the memo u.s gdp for The first quarter was negative and the Second quarter could see the same print As crazy as it sounds news of a Recession could actually be bullish for The crypto market and that’s because the Fed could respond by pausing its Interest rate hikes or even dropping Interest rates again Conversely it could cause the crypto Market to crash even harder than it has Especially since there’s lots of Uncertainty about how crypto will handle Its first economic recession Which way the cookie crumbles ultimately Depends on how the fed reacts and how The fed reacts depends on employment and

Inflation figures Right now employment remains strong at Least on paper and that has given the Fed the leeway it needs to continue Raising interest rates regardless of the Damage to markets including crypto However a recession would almost Certainly do damage to employment which Could Cause the fed to pivot As for inflation it remains at near Record highs and is showing no signs of Slowing down which means the fed is Unlikely to ease off However if inflation comes down over the Summer be it because of a recession or Otherwise the fed could pivot when it Comes back from its summer break in September Yes you heard that right the fed will be Out of office from late july to late September and this could actually Prolong the current crypto recovery as There will be no fed around to raise Rates This again assumes that the crypto Market will survive the next two macro Factors which isn’t guaranteed You can find out what other macro Factors are moving the crypto market Using the link in the description Anyways another factor that’s been Fueling the crypto markets recently Relates to bitcoin mining which i also

Covered in a recent video If you watch that video you’ll know that There was a big fear that bitcoin miners Were on the brink of going bankrupt Because of the billions of dollars of Debt they had taken on These debts combined with a decline in Btc’s price were forcing many miners to Sell their btc to continue their Operations and keep paying down said Debts now based on my admittedly amateur Calculations the lowest price btc could Go before most bitcoin miners start to Struggle is somewhere around 8k a figure Consistent with what was noted to Bloomberg by crypto analysis firm arcane Research the other week Oddly enough this figure is Significantly below what jpmorgan now Estimates to be the cost of creating one Btc According to analysts at the mega bank It’s currently costing most bitcoin Miners around 13k to create one btc a Significant drop compared with the Previous month when one bcc cost over 20k to create I suspect this discrepancy has to do With jp morgan’s focus on publicly Traded bitcoin mining companies and the Recent decline in bitcoin difficulty In any case these numbers are important Because a bigger profit margin for Bitcoin miners means existing ones will

Remain solvent and it could even Incentivize additional miners to come Online These prices are also where many Investors expect the bottom of btc to be During this crypto bear market Funnily enough jp morgan’s btc creation Cost is consistent with the 10 to 14k Btc bottom we calculated in a recent Video that will of course be in the Description if you’re interested Now given that btc prices are well above These levels and we’re at the beginning Of what appears to be a recovery rally You might be wondering whether we will Drop down to the 10k range at all and The answer is that it’s still very Possible If not likely That’s simply because all the other Macro factors weighing on the crypto Market such as supply chain issues Energy costs new pandemic waves and the Ongoing war in ukraine are still around And probably won’t be going away anytime Soon Because of these and other factors many Investors expect the end of this year to Be brutal for the markets and this Timeline is once again consistent with When the bottom of the current crypto Bear market could be More about that in the description too Anyhow another crypto specific factor

That’s been contributing to the recent Rally is the news that ethereum Developers have decided on a tentative Date for when ethereum will transition From proof of work to proof of stake The merge is now scheduled to occur at The end of september with some Developers suggesting the specific date Of monday the 19th of september Make no mistake this is a huge deal for The entire crypto market not just eth That’s because many major altcoins exist As erc20 tokens on the ethereum Blockchain including stable coins like Tethers usdt and circles usdc Ethereum is also the largest blockchain By total value locked and its tvl is Even bigger when you include all the Layer twos and side chains that rely on Ethereum for security Not only that most of the largest nft Metaverse and even blockchain gaming Projects exist on or derive their Security from ethereum As such it’s quite possible that the Setting of a tentative date for the Merge is one of if not the primary Factor behind the recent crypto market Pump This makes sense given that eth was one Of the biggest gainers last week it Would also explain why ethereum classics Etc coin and lido finance’s ldo token Were among the other moonshots

If you watched our video about ethereum Classic you’ll know that many investors Are expecting etc to benefit from all The mining machines that will be left Behind by ethereum miners when ethereum Transitions to proof of stake If you watched our video about lido Finance then you’ll know that the Protocol is the single largest staker of Eth on ethereum’s beacon chain and many Holders of lido finance’s st eth token Were starting to become concerned about When exactly the merge would occur So-called ethereum killers like Avalanche and solana also seem to be Benefiting from news of the merge and That’s probably because many investors Are probably starting to hedge their Crypto portfolios by diversifying into Other ethereum competitors in case the Merge goes horribly wrong Meanwhile institutional investors have Started accumulating eth in anticipation Of the merge and it seems that even Ethereum nfts are starting to pop off as Environmentally conscious investors will Feel comfortable buying collections on a Proof-of-stake blockchain This is somewhat unfortunate given that Proof-of-work isn’t nearly as bad for The environment as many media outlets And activist organizations would have You believe You can get the facts about crypto

Mining and the climate using the link in The description Anywho another headline that has crypto Holders talking is the news that celsius Has officially filed for bankruptcy If you watched our video about celsius’s Collapse you’ll know that we speculated That celsius was engaging in some High-risk behavior behind the scenes to Continue paying out high yields to its Users well celsius’s bankruptcy filings Have confirmed these speculations with The crypto platform having 4.3 billion Dollars in assets versus 5.5 billion Dollars in liabilities i.e debt this Means that celsius is 1.2 billion Dollars in the whole hence its Bankruptcy filing It’s important to note that celsius has Filed for chapter 11 bankruptcy this Means its crypto platform will continue To operate while the company Restructures but it also means that Celsius users are unlikely to get their Crypto back anytime soon if at all That’s because chapter 11 bankruptcy Confirms that celsius is the owner of All the assets on its platform and that Means the company can sell off these Assets to plug the 1.2 billion hole it Created Note that this was apparently in Celsius’s terms and conditions all along To add insult to injury celsius has not

Provided any dates for when users will Be able to withdraw In celsius’s defense though the chapter 11 proceedings are set to begin today so They’re not just buying time when they Say they don’t know they literally don’t Know Now for what it’s worth celsius noted on Twitter that quote the vast majority of Our creditors are our customers which Seems to suggest that celsius users Could eventually get some of their Crypto back but the question is when As many news outlets have pointed out Celsius users could be in for a mount Gox type scenario for reference mount Gox was a cryptocurrency exchange that Went down way back in 2014 and users are Still in the process of getting their Btc back eight years later Now before you get too upset take a Second to consider that many Institutional investors that are bullish On btc actually offered to buy the btc Claim of mount gox users for cash at a Discount For example in 2021 fortress investments Offered mount gox users 80 of the value Of their lost btc if they sold their Claim And i expect to see similar offers by Institutional investors for claims on Btc eth and other major altcoins that Are stuck on celsius it goes without

Saying that what these institutions are Likely to be offering will be less than Ideal but it will offer an exit to those Celsius users who need it the most I’ll be doing another video about Celsius’s bankruptcy filing and what it Means for the crypto market sometime Next week once the dust has settled and More details have come out so stay tuned For that Now it’s not just crypto companies that Are in crisis these days tech giants Have been in trouble too and that’s bad News for both stocks and crypto It’s bad news for stocks because tech Companies make up a substantial chunk of Benchmark investment indices like the s P 500 so if they perform poorly they’re Likely to drag down the rest of the Stock market too Similarly the crypto market is highly Correlated to tech stocks specifically The nasdaq 100. it should come as no Surprise then that the nasdaq also saw a Nice recovery late last week Just like the crypto market recovery However the recovery in tech stocks is Unlikely to last for long Although tech giants like apple and Amazon are still doing all right last Week google announced that it won’t be Hiring as many people going forward due To the quote uncertain economic outlook And microsoft went as far as to announce

That it would be laying off quote less Than one percent of its workforce As reported by the guardian netflix meta Google twitter and tesla will all be Releasing their q2 earnings over the Coming weeks and the cracks forming at Google and microsoft suggest that these Earnings will come in below investor Expectations Case in point meta ceo mark zuckerberg Recently stated that quote this might be One of the worst downturns that we’ve Seen in recent history and that the Company would be hiring 30 Fewer software engineers as a result Now to be fair this news from meta isn’t All that surprising given that the idea Of a centralized metaverse owned and Operated by a company that’s known for Censorship isn’t all that appealing to Anyone with half a brain Even so it’s clearly a sign of a bigger Trend that’s only just beginning and With most tech companies having profit To earnings ratios that remain Astronomically high It’s likely that we will see many of Their stocks slide in the second half of The year This is once again consistent with the Projection that the crypto market will See its bottom sometime in the autumn And it could mean that the bottom for Crypto will be even more brutal than

Many investors are expecting The caveat is that big tech companies And other market movers in the s p 500 Still have record levels of cash in Their reserves According to the wall street journal the Largest u.s companies still have a Whopping 8.3 trillion dollars in cash or Cash equivalents thanks to the federal Reserve’s money printing Many analysts believe this could give Companies enough runway to survive the Recession when it inevitably comes Assuming we’re not in one already who Knows maybe some of this massive money Pile will find its way into crypto Because of all the inflation going on This brings me back to the elephant in The room which is of course inflation Last week the cpi for june was released And it came in at a staggering 9.1 Percent significantly higher than the 8.8 percent investors were expecting As you might have guessed this is what Caused that sharp dip in the markets on Wednesday and it seems the only reason The markets recovered was because Consumer sentiment is somehow on the Rise according to the university of Michigan As you can see however this apparent Recovery is barely visible on the Long-term consumer sentiment index it Rose to 51.1 from 50 in june which was

Actually the lowest level consumer Sentiment had ever been since the index Was created This is not all that surprising given That consumers are being financially Crushed on all fronts and costs only Continue to rise I reckon the only reason why we saw this Small recovery is because people are Happy to be out and about after being Locked down for two years That said another contributing factor to The market recovery was something that Almost everyone overlooked and that’s The 900 billion dollar military spending Package that was passed by the us house Of representatives on thursday As with many massive bills the military Spending package contains a few critical Clauses such as a 4.6 pay rise for u.s Military personnel and an official Raising of the minimum wage for public Workers to 15 an hour the harsh reality Is however that these two clauses are Likely to contribute to inflation since More money chasing the same amount of Goods means prices go up This just goes to show you that the Monetary policy of central banks is just A part of the inflation equation The fiscal policy of governments plays a Role as well and some have argued that It plays an even bigger role than Monetary policy

At the same time you have all the supply Side pressures that can’t be solved by Governments or central banks this is why I think inflation is likely to continue For the foreseeable future and why i’ll Be doing a video about how to keep up With and even beat inflation sometime Next week In the interim you can check out my Recent video about all the unprecedented Disruptions to food processing Facilities using the link in the Description Now i know we looked at bitcoin’s charts Earlier but i wanted to bring your Attention to the wyckoff pattern that Appears to be forming on btc’s daily Price chart If you watched our video about the Wyckoff method you’ll know that it’s Basically used by institutions to trick Retail investors into buying and selling At the worst possible time The wyckoff method we seem to be seeing Now is accumulation and if so we could See one more sharp drop to the 18k level Before snapping higher as per the spring If this does happen i bet it will be Around the fed’s meeting and the release Of the gdp figures for q2 this year so Just keep that in mind Last week’s top performing cryptos were Lido finance’s ldo token polygons matic Token r weaves ar coin ethereum classics

Etc coin and quant network’s qnt token As i mentioned earlier lido finance’s Ldo token is rallying on the news that Ethereum developers have set a tentative Date for the merge Ldo’s long-term price history suggests It’s likely to see lots of resistance Around these levels but if it can break Higher the next stop will be 2.50 to 3 Close to a 2x gain at the time of Shooting Next we have polygons matic token which Is rallying on the news that the project Had been selected to participate in Disney’s accelerator program Polygon is also ethereum’s leading Scaling solution so matic likely got Some extra momentum from the tentative Merge date Like ldo matic faces a lot of resistance Around these levels but could rise as High as a dollar if it can break through The 80 cent barrier full disclosure i Hold matic as part of my personal Portfolio and you can find out what else I hold by signing up to my newsletter in The description below As for arweave its ar coin appears to be Rallying on the news that the project Had partnered with one of the front ends For arvei’s decentralized social media Platform lens protocol more about ave in The description Like ldo and matic ar has a lot of

Resistance around the 15 level with some Luck it’ll manage to reclaim the 25 mark In the coming weeks where the next level Of resistance awaits When it comes to ethereum classics etc Coin this is also something i covered Earlier etc is rallying because many Investors believe it will stand to Benefit when ethereum transitions to Proof of stake I rather wonder just how much etc could Rally though because the ethereum Classic twitter account hasn’t posted Anything since late april This leads me to believe that what we’re Seeing now has less to do with Fundamentals and more to do with Speculation be vigilant Last but not least we have quant Network’s qnt token and i honestly Couldn’t identify the origin of its most Recent pump my best guess is the news That 1900 people had signed up for the Crypto projects course about its over Ledger protocol at king’s college here In london Qnt is actually looking quite strong on The daily and if we see another bull Flag play out it could rally as high as 120 dollars in the coming weeks If you want to learn how to do this kind Of basic technical analysis check out Our technical analysis tutorial using of Course the link in the description

And that is all for today’s coin bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and bell icon too If you’re looking to maximize your gains During the bear market the coin bureau Deals page is where you should go You can find the link to that resource And many others in the description below Thank you so much for watching and i’ll See you all in next week’s episode [Music]