Okay folks, so as we go through this everything crisis, the crypto sector has been one of the biggest victims. The Big Dog. Bitcoin is down almost 70 percent Ethereum down 77 percent Cordano down 84, Dogecoin down 90. And this is despite recent support from the Muskmeister.

And do not get me started on crypto miners. Moral Lovely. Mara, which I believe is the best Krypto miner and is my favorite, has been decimated. Completely decimated as the crypto market has took a turn for the worst.

Same thing with Hud 8 Riot. Also, not doing so pretty. And crypto companies slash broker slash exchanges aren't doing too hot either. Coinbase down 84 Voyager Digital down 97 Just this month, in June alone, crypto companies have announced 1700 layoffs.

Crypto.com just laid off five percent of their workforce, and I think a lot more are going to be laid off over the upcoming months. Block Fight Just laid off 20 of their employees. Coinbase announced their laying off 18 of their workers and it just came out that founders of a 10 billion dollar crypto hedge fund have basically gone and ghosted their investors. Now that we're in a crypto winter, with Vice reporting that the co-founders are now missing in action, I for one, hope that these hedge fund guys at least took their clients out for dinner before they screwed them and ghosted them.

Meanwhile, ad spending by big crypto firms has plunged 90 after Bitcoin's all-time high 90. We went from Matt Damon telling us that fortune favors the brave at Bitcoin 68k to Matt Damon on the street today at Bitcoin 20k Crypto companies were more than happy to add to the euphoria by spending tons and tons of money on ad campaigns to get more people to trade with them during the bull trend. But now that there's no interest in the niche, everybody's starting to cut back on advertising, making everything so much more worse. The total cryptocurrency market cap has gone from just under 2.9 trillion in November of 2021 to now less than a trillion.

The crypto market is in full on meltdown mode and everybody's getting burnt. and with that, there are sadly no shortages of disaster stories where you have these people who essentially went all in 100 in a few different cryptocurrencies usually old coins and invested their life savings borrowed from credit cards and then used all of that and on top of it, traded on margin with their broker. And they use that to buy cryptos at heights and unfortunately have now just been destroyed. And a study from the student Loan report showed that one in five college students with student loan debt used a part of their loans for cryptocurrency investments that doesn't H2.

Well, when you've taken out loans that were met for living expenses at your school and all of a sudden now they're down 80 percent, but you still owe the money on your loan. That said, the crypto market is infamous for having massive massive uptrends and then massive massive downtrends. It's infamous for these massive neck breaking cycles in both directions, and the real and responsible crypto enthusiasts and crypto investors would tell you that, hey, wait a second. Hey, Crypto is a roller coaster and you gotta ride it through the depths of hell in order to get all the way back up to the moon.

The thing is to just buy things that you have conviction in over time. However, times are pretty bad and people are wondering, well is now the time to abandon Crypto before it gets much, much worse. and everything else in the broader economy just completely tanks as well. And so in this violent video, I'm going to give you the three reasons that Crypto is taking so hard right now and then After we've explained the why, we're going to explain the what what should you do about it Does it make sense to abandon Crypto or should you take advantage on the dip? Obviously, the answer to that question is very nuanced based on your own personality, your risk tolerance, and your goals, and on your own hypothesis on where the industry's going over the next five 10, 15 years.

But I'll give you my thoughts and the four crucial critical questions to ask yourself before you make any decision to either buy the dip or to abandon the crypto that you already have time stamps below. Let's get right into it. Also, this video is sponsored by the fourth of July sale on Ziptraderu putting in coupon Code America50 will get you 50 off our one-time fee for unlimited access to our step-by-step lessons, private chat, daily morning briefings, full price target list, and all of our other resources that we offer with the program. Some recent examples of trade ideas from our daily morning briefings include this morning's B Hat, which we briefed on at about 1 30 a share and it ended up more than doubling to Highs up 168 percent from our briefing price.

I think this was actually one of the biggest runners in the overall market today. And of course another recent example was Rev, which we started briefing on last week when it was at only around 230ish a share and it ran up to 989 at highs yesterday, which is like a 4x now. Obviously, not everything runs and not everything is meant to run. Sometimes you have long plays, sometimes you have short plays.

You have certain criteria, but at the end of the day it all comes down to narrowing down the plays that have potential, having a clear plan, and then managing your risk on that plan if things well don't go according to plan. anyways. link below Coupon Code America 50. Okay, let's go ahead and start with the three reasons that Crypto is completely tanking right now: Number one: Collapse of trust in the system.

So in order for people to buy an asset class or a category of assets, they have to a trust it or b be blindsided by the potential for instant returns. That trust is irrelevant. Well, the latter of those two dynamics has completely evaporated. So it's all about the trust factor.

Now, it's all about how much conviction they have in the asset and how much trust they have in the structure of where their asset is being held. Tara Luna and its stable coin was one of the early straws at really breaking the camel's back here. People saw the widespread crowd belief in these assets count for basically nothing overnight. As they melted down and this sent out shock waves throughout the entire crypto market.

people started thinking if these could collapse overnight when everybody loved them the day before. Well, what if this happens to my cryptos too? People have run to sell assets in pretty much every space, not just the crypto market, but everywhere. But as people have rushed to sell out of cryptos, it has revealed a lot of liquidity issues and structural problems with the companies that they were holding their cryptos in. Look at the Celsius story and for the record, I've always preferred Fahrenheit, but they were able to take in over 20 billion in assets and promise to pay out interest rates as high as 18, which was substantially higher than savings account rates.

So you had a million people trust in their savings. with this company loving the returns they were getting and then all of a sudden boom. they can't take their money out as things got scary in the macro environment. What did customers want to do? They wanted to withdraw.

presumably that was too much for the system. And then on June 12th, the company announced that they were halting withdrawals. Now, this is the story of Celsius. But you think about what kind of message, what kind of signal that sends out to all of the other people who are holding crypto on different companies or different exchanges? Well, that's a disaster.

People are like, oh, no, these people can't get their money out. What if I'm next, even if the company you're holding it with has no problem whatsoever, Well, you're still thinking in the back your mind, well, what if this gets substantially worse and all of a sudden I'm stuck like those guys. The celsius example is just one very recent example. But if you go on Google, you can see a lot of companies are having some form of liquidity issues.

Some have implemented rotating and temporary pauses, some have implemented withdrawal limits, some are saying nothing, but they're just waiting weeks before they allow you to withdraw. So if you're somebody who has crypto in any sort of company right now, you got to be looking at this and saying shite. I may like crypto, but I don't trust it in this kind of environment. With all these companies that I might not even be able to withdraw from, I better pull out while I can.

and while I'm at it, sell out of Crypto entirely a much smaller portion of crypto enthusiasts who are in it because they like the technology and they really understand the industry and the product are like, okay, well, we're just going to go ahead and move over to a cold wallet and move everything off the exchanges so that risk isn't a thing. But if you're somebody who's not completely yoked on the whole crypto thing, you're probably holding your stuff on these exchanges or with these companies. And if you are somebody that's looking to get into crypto, you're looking at all these headlines and you're thinking, oh sweet baby Jesus, none of these crypto companies can be trusted, so I don't want to mess with this. Meanwhile, if you're a new investor, pretty much everything you read these days is negative about crypto.

Prices keep going down. You have brokers again that are completely collapsing, you have sec crackdowns, and you have speculation that everything's going to get far, far worse. Meanwhile, you're already seeing an economy on a broader scale that's flimsy at best. So unless you're somebody who's like the yolk of the yolk and you really watch this stuff, you're probably like, you know, maybe I don't need to invest in crypto right now.

Maybe that's not my top priority. And I think this is a big reversal from last year. When times are tough, you ask yourself, well, what am I really holding And with the crypto market, I think a lot of people are looking at what they're holding and they're like, i don't really understand what this is. They may have bought it just because the prices were going up and now they're confused on what to do.

In the aftermath of the 08 crash, it was very, very difficult to sell people houses, but but at least people can conceptualize the idea of a house. When it comes to digital currency, it's a lot harder for somebody to understand other than oh, everybody's buying it and it's going to be a transactional coin. So you have this market where all of a sudden you have no new interested people buying people that already did all of a sudden are questioning everything because their entire trust in the system was placed on number one, the price going up, number two, their friends buying it and doing well, number three, confirmation bias from everybody saying positive things about it all the time, and number four, probably some fomo induced by ad campaigns from different brokers, exchanges and companies, but all of a sudden ad spending is down, people are losing tons of money, companies are laying people off, and things look a lot shinier. The second big issue are regulatory problems, and this has always been an issue for the space, but when you see this kind of abrupt obliteration of investor capital, it creates this dynamic that almost guarantees huge regulatory intervention and oversight increases.

For example, the Sec has recently been scrutinizing quite a bit crypto products with promises they say are too good to be true, many of which have offered insanely high interest rates that were done through insanely crazy and risk-on practices. And you've also had a former Sec lawyer come out in the wake of this Celsius Network thing and bluntly say that new crypto regulations are likely to come out of this. And while a certain amount of regulation is certainly needed and would provide some more confidence in the overall system, well, people who are holding are like, well, maybe we should just wait considering everything else that's going on. And then the third reason, and really, the biggest reason here is the reason that everything is tanking the bucket.

That includes inflation. Jerome Powell and the Federal Reserve. I like to think of the big, vast sea of asset classes as a lake. and a lake has different levels of depth, right? We'll say crypto is on the higher end, and perhaps blue chip companies are on the lower end, right? And as you fill up the lake, the water extends out to higher and higher levels.

When you get an abundance of water, eventually you get to the riskier assets cryptocurrencies at the top, and then before you know it, the entire lake is overflowing with water. But when you start draining the lake, the assets, on the highest levels of the lake dry up first and fastest and then it works its way down to the safer ones. And that's what people are trying to price in as the fed drains liquidity. So the third reason is just the overall draining of the lake.

When the lake goes down, the first things to get exposed and then dry up or at the very top levels and then it works its way down. But anyways, in conclusion, to the question of whether or not it makes sense to abandon crypto, I can't help but think of this famous meme. There's this meme where everyone is lining up for Bitcoin at 69 and 420 000, but no one lined up for it at 3 100 after the previous crypto winter. And it's like, well, that's crowd psychology for you people want to buy something not because of the price, not because what it is, but they want to buy it because they see other people buying it and similar.

they want to sell it because they see other people selling it. This is all fine and dandy if you're a momentum trader, but when you're talking about conviction and something that you want to buy and hold for a long time, it doesn't make a lot of sense for other people's decisions to be the deciding factor for you. And then there's the people that kind of sit outside of the crowd watching, pointing and laughing. They think they're so much better because they're not part of the crowd.

But a lot of these people make a mistake as well. They say every single cycle when people are following in and buying things up to newer and higher and higher highs. Oh, I'm going to wait for the next big dip. When the dip inevitably comes, they come up with a list of about 15 different points of why this time is different and why this time it's never going to come back.

And the truth is that every time is different. every market condition, every scenario, every catalyst is different. But if you pick the right assets and the right members of an asset class and you diversify appropriately, you should do very, very well over the long run. And so these are the questions that I want to leave you with to ask yourself if you're considering selling everything.

Number One is the type of asset I am holding slash dip buying going to be around and powerful after the recession. In this case, the asset we're talking about is crypto. So is crypto going to be around and powerful in the years and decades after this recession? If you believe it's going to be a growing industry for the next 10 to 15 years at minimum, I would say the answer to this question is obvious: Number Two: does the item in the asset class have a track record of surviving several previous pushbacks and coming back swinging. So in this case, when I'm saying item, I'm saying the individual Crypto Ask yourself if an individual crypto that you're holding has the track record of being able to survive a really drawn out dip in the overall crypto space and has it had a record of bouncing back to new all-time highs when the rest of the market did.

For example, Bitcoin and Ethereum have a track record of surviving massive dip after massive dip and coming back to newer and newer highs each time. So that is what I would call a track record if you believe that the entire crypto market is going to grow over the next 10 to 15 years, and you believe that your individual asset in that overall market is going to be a leader that has also shown proof of concept with a track record. While it makes it more likely that yours is going to benefit from that overall growth, right? And then third, is there a structural reason that the asset may cease to exist? There are certain currencies out there I don't want to name names, but there are certain currencies that are certainly open to question as to whether or not the structural difficulties in them are going to allow them to survive a massive liquidity crunch. Even more than we've seen, there are others that are under open investigation from the Sec for being securities or being a massive pyramid scheme.

There's also companies and platforms that you can hold your cryptos on that, quite frankly may not be able to survive much longer. And then fourth is, could this money be better used elsewhere in a world that's not going to be short? Any sort of good deals, you may ask yourself, Why buy a digital currency? If I could buy shares of a productive company like Apple or Microsoft or Alphabet, that could be down Not just 25 like they are now, but 30, 40, 50, or perhaps even 60 at certain points in time, depending on how aggressive the Fed gets. And that's really a personal question that you have to ask yourself. If I sell out of this, what am I going to put it into? Is my allocation appropriate? Some people that I've talked to have said, oh, I only do crypto only Crypto Charlie, I do 100 of Krypto.

Nothing else other people are like, yeah, I really do think that crypto has a lot of potential, but I wouldn't want to do more than five to ten percent of my portfolio. or maybe even one to three percent. It really just depends on your own perspective, your own tolerance, your own goals, and of course, your own passion. I believe that you should be investing in things that you're passionate enough to know like the back of your hand.

This side for me, I do believe in the cryptocurrency industry over the long run. I'm also very confident in Bitcoin and Ethereum. They also have a proven track record. There's some smaller ones that I like, like Cardano.

I do think that as prices go down, they're going to look very, very juicy as strategic buys for a long-term hold. But I'm also not a crypto head. I'm much more passionate about buying shares of companies that I really believe in over the long run and can create some sort of innovative product to better the lives of consumers and hopefully make a lot of moolah. And I do think to a certain extent I have more passion for the overall cryptocurrency industry than I do for the individual coins, which is one of the reasons why I'm not super blatant about oh, I like this one over the other.

I like a couple of the leaders. That's about it. I'm watching to see if there's other opportunities, but at the end of the day, it's just one of the industries that I'm excited about. And there's a lot of other industries that are mostly traded via the stock market that quite frankly appeal to me at least the same amount, if not more.

And that's just my perspective. Anyways, folks that caps off today's video, make sure to hit that subscribe button, make sure to sign up with Moomoo and get your 10 free stocks plus a share with Lucid with our link down below. If you're looking to get up to 50 off lifetime access to Ziptraderu, I'll put a link to that down below Coupon code: America50 Have a good one folks and I'll see you in the next video.