CHINA JUST CRASHED BITCOIN (CRYPTOCURRENCY HODLERS BE WARNED) - YouTube

all right welcome back everybody to altcoin  daily where you subscribe because we demystify  

this cryptocurrency market one video at a time  my name's austin in today's video i want to  

update you on ethereum on the latest altcoin news  and of course explain our top story of the day  

why is bitcoin crashing who's causing it what's  happening and me as a crypto holder should i be  

worried i want to encourage you right now to hit  the bell notification for altcoin daily as we  

cross a million subscribers which is only going  to happen once altcoin daily will be popping up  

going live you are going to want to be on that  stream so hit the bell notification right now  

and let's jump in first piece of news out of  five today so like always check the time stamps  

but first piece of news bitcoin is crashing due  to the us stock market crashing and the us stock  

market is crashing due to china's economy  stock market housing market really crashing  

let me explain wall street sinks amid china's ever  grand contagion fears also u.s debt politics so  

evergrand is a publicly traded company in china  they're huge and they're going down at the moment  

here's what's happening u.s stocks plunged on  monday with major indices tumbling over two  

percent during the afternoon session an outrageous  number for the stock market as investors nervously  

eyed the potential ripple effects of the default  of a major chinese real estate company as well  

as the ongoing debate in washington over this  debt ceiling for the u.s so what is evergrand  

what is this problem in china well shares of the  china evergrand group plunged by more than 10  

percent on the hong kong stock exchange  as fears mounted that the chinese real  

estate juggernaut would collapse under a major  debt burden impacting shareholders bondholders  

and potentially triggering turmoil  elsewhere across global markets  

and because of this because one major chinese  real estate company is potentially going down  

because of this the specter of a broader crackdown  by the chinese government on hong kong's real  

estate sector further added to concerns if this  still sounds confusing i totally understand let  

me share with you a clip on cnbc today of  jim cramer explaining the situation saying  

the writing has been on the wall for months watch  this i mean this one we suddenly decided that this  

project this problem this 300 billion dollar debt  is is an issue it has been an issue for months but  

we always felt that the prc the government would  bail them out and david what this seems to be is a  

recognition that when the the nation's richest  man which is the person who owned evergreen  

is under is in trouble we no longer expect the  chinese communist government to bail them out yeah  

i mean it's part of what has been happening there  in in the last i don't know what you call six  

months to a year over a year now that's why it's  a slow motion train wreck but it's been gorgeous  

because it's not as though we haven't talked  about an overheated property market in china  

for many years and i mean there have been so many  times that we have so this one company tanking is  

a sign that the housing market real estate market  in general is overheated bringing all global  

markets down and that's why bitcoin is crashing  also here is cryptocurrency investor mark yusko  

explaining the situation as well the evergrand  story the equity of evergrand is worthless  

right it is going to zero the rumor now is that  bondholders are gonna get 25 cents on the dollar  

it's probably what they deserve and  they're going to have to unwind a lot of  

uh bad debt i guess i mean it was it was never  good debt to begin sort of call bad debt now is  

kind of funny right it was never a good idea  it was always uh basically handouts to the  

super rich part of the politburo the senators  and and now and this cycle happens right in  

2005 this happened uh they had to bail out the  banks uh just like we bailed our banks out in  

2009 and i'm not sure it'll go that far this time  it it might it might it's not as dire as it seems  

but it's certainly something that that could could  to your very astute point have contagion effects  

good clip good good clip give me your thoughts  down below and that brings us to our next obvious  

question austin shouldn't bitcoin be a hedge why  if everything else tanks a market that's supposed  

to be uncorrelated cryptocurrency bitcoin why  would it tank with it and in my opinion it's  

important to remember that because bitcoin is  so small compared to the rest of global markets  

because cryptocurrency is such a nascent space  at the moment smaller time frames we are very  

much correlated larger time frames big picture we  are beginning to see the signs of a decoupling of  

uncorrelation and remember during the 08 housing  crisis everything tanked the stock market the  

housing markets tanked and guess what the most  uncorrelated traditional asset gold tanked right  

along with it and then what happened next as  the recovery started those uncorrelated hedge  

assets recovered first gold recovered harder and  faster so do not be fooled and keep this in mind  

the s p right now is teetering threatening a large  sell-off spectators are selling down in risk-off  

mode but meanwhile investors on chain for bitcoin  have been in strong accumulation so the on-chain  

data does show us that accumulation right now for  bitcoin is still happening that's still bullish  

but if traditional markets keep selling off i  would expect in the short term bitcoin to keep  

selling off in the short term and think about  last time we saw something like this the last  

significant equities crash we saw was during the  pandemic bitcoin also showed strong accumulation  

during that time i remember everybody saying  that bitcoin was a failed uncorrelated asset  

a failed safe haven that was until the supply  squeeze from that accumulation took hold later  

that year we know that bitcoin went from 3k over  the next 6 7 months 3k to 65k because the on chain  

accumulation was happening and let me give you  an example the country of el salvador bought the  

dip we just bought the dip says the president  150 new coins el salvador now holds 700 coins  

do not take this for granted this is the first  time in history that nation states as well as  

publicly traded companies as well as individuals  like you like me are buying the dip so that's why  

bitcoin is crashing i'm going to keep looking  at the data as i get more information i will  

keep you updated i do encourage you to give me  your thoughts down below in the comments section  

and before i share with you the latest news  involving solana i do want to give a 60 second  

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more bitcoin back check it out link down below  let's keep moving and let's talk about ethereum  

fortune the magazine has just launched a  philanthropic fund for journalism on ethereum  

so this is pretty cool american business magazine  fortune has just launched a new decentralized  

donations fund alongside non-fungible token  artist people pleaser with proceeds earmarked for  

independent journalists and programs that foster  journalistic integrity and to do this they are  

choosing to use ethereum the new fortune  journalism pleaser fund was launched on the  

ethereum blockchain through endowment a charity  focused dao de centralized autonomous organization  

and so far the fund has been allocated over 214  ethereum worth roughly 660 000 at current prices  

all for journalism journalism charities so big  news for ethereum this is a big fundamental green  

flag and if you like ethereum you like this  and next up big news for altcoins in germany  

then eck to offer tron solana and polkadot etns  exchange-traded products essentially although etns  

in germany and they're doing this because they're  seeing the demand their clients want from them  

their clients are saying we want exposure to these  vanek is now offering tron solana and polka dot  

etns in germany as a way to allow investors to  capture the momentum of layer 1 alternatives to  

ethereum in recent months now we know that  vanakk is heavily respected in the us they  

are a mutual fund manager they're also trying to  get a bitcoin etf approved here in the states but  

because the states are are waiting they're going  to germany and they're offering altcoin products  

the idea that you could get 50 000 transactions  per second which would rival nasdaq opens up  

the potential to just securitize any number of  existing assets tokenize them and trade them in  

parallel using the solana network interesting  very interesting to see what is being accepted  

what customers are asking for in the rest of the  world if you're from germany give me your thoughts  

on this down below but that is the video my  name is austin like always see you tomorrow