Weekend Flash Crash📉Crypto Market Update

A massive sell-off has swept across the broader crypto market, with Bitcoin and altcoins crashing, leading to more than $1.7 billion in liquidations. 

~This Episode is sponsored by SALT~
Borrow on SALT Now! ➜https://bit.ly/pbnsalt

00:00 Intro
00:10 Sponsor: SALT 
00:55 Current conditions
01:50 Liquidations
02:15 Fear & Greed
02:45 Should Trump pardon CZ?
04:25 Dotcom bubble indicators
05:25 Move away from real-estate
06:00 Raoul Pal & Jamie Coots: Is this the top?
08:00 Dip buyers
09:20 Tom Lee loads up
10:50 Avalanche treasury
12:00 Anthony Scaramucci: Explains AVAX to boomers
13:45 Market mover
15:25 Outro

#Crypto #ethereum #Bitcoin
~Weekend Flash Crash📉Crypto Market Update~
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Episode Transcript

Speaker 1 (00:00):
The flash crash is here today. We'll break it down
for you try to figure out why all this is happening.
Namespaubara will come back into the show. I want to
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Speaker 2 (00:41):
And I know that's what a lot.

Speaker 1 (00:42):
Of people are concerned about when they do take loans
on a crypto, but this is the way that you
don't take profits. Guys, take loans, work against that on
long term holding. That's a way to build wealth. Check
out our link. It does help the channel. Let's go
over and lead off with what's happening in the market.
This is where it gets a little fusing because there's
a lot of different directions here. Stocks are rising, like

(01:04):
the US economy is soaring, we know it's not. Oil
prices are falling like we're entering a recession. We think
that might be happening. Gold is rising like the FED
is cutting rates to inflation. Yeah, well that might be happening.
Bitcoin is falling like FED rates are postponed. That's not
necessarily the case. And you can kind of see what
we're dealing with is a lot of different angles here

(01:27):
around many of the markets in general. But we are
definitely entering a new monetary policy now. I think that
will be the lead out going forward. Most people were
just saying, why is this happening? Most likely it looks
like a lot of this was based on leverage. Many
people will get frothy, the market likes to retrace those
and I think that's essentially what's been going on. If

(01:48):
you look at this right here, a billion of worth
of crypto lungs were liquidated just in the past thirty
and this happened on the twenty second and early in
the day, so people were moving overnight on this. We
look at just in general, now we've got a lot
of tether starting to be minted. So are we in
a position where people are prepping to go in and
start to purchase, Well, some of them have already started

(02:10):
to purchase as of today. And if you look at
just the all coin season and the fear and greed
side of things, you can kind of see right there,
fear reed holding in at neutral right now, even though
the market is still significantly up overall, but holding at
neutral right now. If you look at the CNN fear
and greed, this is on traditional markets. Greed is still

(02:32):
on top, and of course that's in alignment with what
traditional assets are doing out there. From the treasury side
of things. Other things I want to hit on is
this right here, BnB smashes a record. This of course
is building around CZ's political lifeline. And this all comes
from the potential of Donald Trump doing something a little
bit unusual, and that is could we.

Speaker 2 (02:53):
See a pardon for CZ?

Speaker 1 (02:56):
Now, there is a lot of interesting connections to c
B and B and we're a liberty finance and that's
something that you have to pay attention to because we're
a liberty five as now, they're the single largest asset
within the finance ecosystem, largely due to a two billion
dollar investment routed through Trump's USD one stable coin. And

(03:19):
remember B and B or Binance got in trouble for
this working on the tether side of things. So take
it for what it is, understand where these things are going,
and then step back and kind of understand why the
markets are moving in that direction, and you start to
kind of open your.

Speaker 2 (03:34):
Eyes a little bit.

Speaker 1 (03:35):
If you look at the polymarket on this will Trump
pardon CZ, it's kind of trending down. I think this
might be wrong. I think he might pull it off
and actually do one. If he does, this is the
potential of who gets a pardon, even though the percentage
is based on that. You have Roger verin their Steve Bannon,
Santos is in there, Eric Adams, etc. But point being

(03:58):
is that I'm surprised Bankman freed seven percent on that one.
I don't think that would be a different one. But
CZ forty two percent, even though the overall piece is
trending down. Let me know what you guys think of
we're LIBERTYFI in the comments. I'm just kind of curious
on your input. This looks a little sketchy and when
you see sketch, sometimes you just have to call it

(04:20):
out for what it is. Other things you have to
look at right now is where the market is starting
to trend to Warren Buffett's indicator hits two hundred and
twenty percent for the first time in history. Stock market
topped at one hundred and ninety during the dot Com bomb,
and I think that's an interesting point to look at now. Granted,
everybody will say, well, that was a different time, Paul, Yes,

(04:42):
timing was a little different. Yes, you could look at
inflationary capture as being a part of how the market
is up. And yes, that would be a you know,
maybe a comparison there, because many people would look at
where we are right now, it's maybe like nineteen ninety
six ninety seven, which was where we were just getting started,
which would go to a very frothy, over the top

(05:03):
market that ended in two thousands.

Speaker 2 (05:05):
So that I do agree with.

Speaker 1 (05:07):
The Other thing that gets a little scary is the
US housing market now has reached its most unaffordable level
in history. And Guys, this is the first time. I
think I say this a lot on my X account,
but I'm gonna say it here as well. And I
think that it is time to move away from real estate.
I don't know that this is unless we see a

(05:29):
major retracement in the market to at least get back
to housing prices that were somewhat affordable. I just don't
know how you could buy the top here in any
store of value and look at real estate. I think
digital assets are the only way, and for the young
people that are under forty. Not financial advice, but I
think this is the only route is digital assets. Buying

(05:50):
a home is definitely not going to be in the
cards until we see a reset of the market. Now
that's very possible that it could happen. I want to
go to a clip real quick because this clip will
get into whether or not this is the top. This
is Rabul Paul and Hit one of his research team
take a lot.

Speaker 2 (06:06):
There's so much fear in the space, and I guess
we start at top level. Where the hell are we?

Speaker 3 (06:12):
It just feels like the scars issue from the last cycle,
which we all felt is manifesting in a lot of
the commentary that's coming through at the moment. It's a
four year cycle. This is when it has to end. Therefore,
it will you know, last cycle it was like to
the moon forever.

Speaker 2 (06:28):
So even I failed in the last cycle because I
thought there was another leg to go.

Speaker 3 (06:32):
You know that there are frameworks out there that are
credible that should say that you know, this is you
know time when things start to get you know, pikish.
But we haven't had the typical business cycle. There is
definitely definitely trend exhaustion signals in the bitcoin chart, but

(06:52):
I think that's a function more of the transition into
higher beta crypto through eighth high quality alts, not you know,
a dash for trash sort of market that we saw
in twenty twenty one when people are getting stimulus checks,
but a high quality alt season run at the moment.

(07:12):
So that's kind of where I'm at all right, And
I would.

Speaker 1 (07:15):
Say that is similar to our theory is that the
high quality alts are most likely going to be the
winners here. Now, there's going to be a handful of
rare tokens out there that are going to see ten
x moves, twenty x, fifty x moves. Yeah, there are
those always. But the problem is is back in twenty
twenty one, there was a lot of those that you
could win on. In fact, you could almost throw a

(07:37):
kind of a pin the tail on a docking type
of thing and hit on a lot of these. We
had a whole slew of those Dejon tokens. I don't
necessarily see that being the case this time around. I
think we will see more structured capital coming in that's
going to stay on the high end of where we
see the market watch these blue chips, those are the
ones to pay attention to. Sailor, of course, is buying

(07:58):
the dip right now, and he buys eight hundred and
fifty bit coin worth another ninety six million. You look
over here, Meta Planet buying another four and nineteen bitcoin
worth six hundred and thirty three million, out doing Sailor
there on that purchase.

Speaker 2 (08:12):
So you can.

Speaker 1 (08:13):
See there are people out there that are going after
this dip because these dips don't necessarily come often, and
this is an opportunity, especially if you're brand new to crypto,
maybe today is the good day to enter. Anytime you
see red in the market like this and you're brand
new to something, don't assume that that's a bad thing.

Speaker 2 (08:31):
It might actually be a good thing.

Speaker 1 (08:32):
And we're setting in a position right now where you
could start to grab up a lot of these high
quality alts and start to position overall for the next
leg up. Eth of course faces its biggest liquidation. This
was a cascade since twenty twenty one. A couple of
points within this if you look at just what people
are doing when ETH is dipping down at this point,

(08:55):
I think a lot of people are now starting to
look at ethereum as a definite possibility of a retracement up.
And I think this is the key right here, because
remember last week we actually showed a couple of tweets
of Tom Lee and his research team and they were
talking about this issue of around forty two hundred being
the potential of where we could see a retracement to.

(09:17):
Is that what we're seeing right now as we start
to lead into ethereum going to its next level. If
you look at the strategic reserve, what I've done here
is I've just popped this out on the chart, and
that big orange bubble right there, well, that's Tom Lee
and Bitminor going in and grabbing a whole ton of it.
You can kind of see it right there. Two in
sixty four thousand in ethereum just in the past week.

(09:40):
So continuing to stack tokens. And if you look at
this right now, Bitmin's Ethereum holdings now top two percent
of the supply with two point four million eighth and
they're trying to get to five percent of the supply,
which would be unbelievable in terms of value overall. And
I think this is something to keep a close eye on,
which is why I think we'll see these high quality

(10:02):
alts continue to run. Ethereum does it see its way
into seven k or even a ten K position toward
the end of the year. Tom Lee is pointing at
an over two hundred k bitcoin by end of year.
It's still early, guys, it's still September. We haven't seen
quarter four start, so this is just a lull in
the market.

Speaker 2 (10:22):
Get ready.

Speaker 1 (10:22):
I think we're going to see some moves. Stocks just
saw and here's one reason. Stocks just saw its largest
weekly infull inflow all year from retail investment. So we
do see retail starting to rotate in and as we
start to see all time highs on the S and
P five hundred, once we see replacement on that and
profits are taken, they'll be looking for risk markets. That

(10:44):
is where you might start to see some of these
mid caps which kind of correlate to all coins going forward.
Another big news item was this right here, and this
was Agriforce. This is basically they're launching as a Avalanche
focus company for a dat so a digital asset treasury.
The interesting point behind this this is all led by

(11:06):
not only Scaramucci, but it's also led by KKR, JP, Morgan, Chase, Apollo.
And remember you've got a lot going on here because
there is a lot of connection. If I go further
in the article right here, fifty institutional crypto native investors
including Parafig, Galaxy, DCG, Crack, and CIDE for I mean,

(11:28):
you see the list right there. The point being is
that Anthony Scaramucci is in a position right now with
Skybridge to potentially line up.

Speaker 2 (11:36):
To a huge move for Avalanche.

Speaker 1 (11:39):
This could be the biggest one ever and maybe this
is the one that actually starts to win on the
secondary ETFs and also on the secondary digital asset treasuries.
I'm watching Avalanche in a big way because maybe finally
we're starting to see some movements here. I want to
go to the clip that Anthony Scaramucci talks about Avalanche

(12:00):
trying to explain it listen to what.

Speaker 2 (12:02):
He had to say. Avax one.

Speaker 3 (12:04):
That's a company aiming to maximize ownership of avax, which
is a native token of avalanches to confuse you a
little more of the blockchain used by black Rock and Visa.

Speaker 4 (12:14):
And we're going to have a digital asset treasury for Avalanche.
It's a smaller token in terms of market capital.

Speaker 2 (12:20):
Letter to the bigger ones, but lots.

Speaker 4 (12:22):
Of big corporate CTOs andrew are picking up Avalanche as
part of their story to tokenize their funds. They have
something called subnets so that you can do some customization
on the chain through the contract layering.

Speaker 3 (12:37):
They've fallen a bit, but obviously they were on a
run also.

Speaker 4 (12:40):
Yeah, listen, September is the worst typically the worst month
for the cryptocurrency businesses. Some of it has to do
with tax selling. You'll see November into December I think
being good buying periods and still a tremendous amount of
demand for the assets. Remember you guys were kind enough
to bring me on the show in October twenty twenty
where we made our first bitcoin investment, and it was

(13:02):
around twenty thousand, and people ambased us and said that
it was Internet magic money.

Speaker 1 (13:09):
All right, So one thing that you'll notice, you know,
his performance on bitcoin very good. They didn't necessarily get
in line with what was happening with Slanna, But I
think he might be onto something here with Avalanche because
he's opening up a new market that hasn't existed and
that's kind of the uniqueness here for Skybridge. So that
could be a very positive thing for a lot of
investors starting to go into this. So let me know

(13:29):
in the comments what you guys would do. How would
you play this out? Would you go into a digital
asset treasure company like this one? Would you go after
the token, go after you know, chasing yields? How would
you create a strategy? Other things that could start to
move the market is this speech right here. Even though
that datement or that date is a few days ago,
this is actually happening tomorrow.

Speaker 2 (13:50):
So when j.

Speaker 1 (13:52):
Powell delivers his speech, there's two things that could happen here, guys.

Speaker 2 (13:56):
He could get a little bit.

Speaker 1 (13:57):
More hawkish, or he could come in and say, you know,
I'm feeling pretty good. The market is in a position
where I think we're ready. And if that happens, meaning
he's more dubbish on the potential of us seeing more
rate cuts which would solidify October. Then this would move markets,
and maybe that is the kind of thing that we

(14:17):
will see to help spin this around at least in
the short term. All right, So just think about that, guys,
because we are dealing with a lot of variables in
the market. I think Powell is going to position. We
are also looking at all time high on gold, all
time high on S and P. This is going to
see some rotation and I think we're in for a
last leg. So let's just see how this plays out

(14:40):
in through the end of September. Is October really the
month where we could see unbelievable gains? And then how
would you play that? I think that's the question mark
that everybody has is how do you play this out
toward the end of the year.

Speaker 2 (14:53):
When do you take profits? Let me know in the comments.

Speaker 1 (14:55):
If you guys are not part of the Diamond Circle,
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I also give you some insights, ask to how I'm
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(15:16):
right here on The Paul Baron Show.