Everyone Bet Against It. They Just Lost $3 Billion in One Day (Here's What Happens Next)

A short squeeze wiping out $3 billion in just one  day. Joining us today is Joel Peterson with the   crypto code to talk about this historic rally in  Bitcoin. Joel, there has been a very quiet summer   in Bitcoin where not a lot has been happening  except a very down market and then all of a sudden   we have this massive runup and this historic short  squeeze. Really the largest short squeeze we've   ever seen in Bitcoin history. Let's talk about  it. Yeah, it's a pretty pretty interesting. For   eight weeks, we've been coiled up um going pretty  much chopping sideways in Bitcoin. So, we were   either going to break up or down. We went up and  a huge huge short squeeze. Um these happen every   so often, about once a year, once about every nine  months or so in Bitcoin, you get some squeeze like   this, either up or down. And this one decided  to go up. Let's talk about how it compares. So,   everyone remembers when Bitcoin kind of crashed.  That was back in October. And let's talk about   how this one compares to what we saw last year um  and even what we've seen historically in Bitcoin.   Yeah, initially when this first started squeezing,  you know, we thought, okay, it's going to be a   little less than last October. It was actually  larger, a larger liquidation, and that just means   a lot of the shorts got hit out of the market,  over 3 billion, which is one of the largest,   if not the largest in Bitcoin's history. That's  a pretty significant amount. And it also means   that a lot of people who trade spot, you know,  just our regular traders who are on Coinbase or   some of these other exchanges, they're probably  sidelined right now. They probably been waiting   like a lot of people do traditional investors  kind of wait for it to unfortunately till it gets   to the top when it's pumping high at new highs  before they want to buy. They are not interested   at the bottoms. And uh that's what we've been at.  We've been forming a bottom here on Bitcoin. And I   think this is a very very good sign that we're  either at the trend change or close to. Well,   we have a lot to cover in this video today. Joel  is the crypto expert, but he's also going to talk   about some of the crypto stocks in the market,  too, and what strategies investors should be   looking at when it comes to Bitcoin and any stocks  related to Bitcoin in the market. So, we're going   to cover all of that in this video yet today. I  think the first point to start out talking about,   Juel, is just what caused this rally on Wednesday.  And it wasn't just Bitcoin. There are also other   major coins out there that saw a huge rally on  Wednesday. What caused this? You know, normal   market markets do what market's going to do. When  you have um Bitcoin coiling up for like 8 weeks,   consolidating, going boring, nobody's interested,  crypto's a scam. You've you've heard it all,   right? You know, this is the bottom. It's going  to go to zero. Everyone's saying it's going to   40 50k. Usually when that happens, something gets  ready. And then yesterday, the Treasury announced   that they were doubling their buybacks on bonds  and that caused all markets to quickly pump up,   including gold. If you notice, I had like a 4% to  rally yesterday and continuing up today. I just   kind of looking at that. But Ethereum, which is  like the silver to Bitcoin, had an enormous pump   um 17 plus% in one day. And that's actually  really important for the whole crypto space.   I think you're going to see if not many a few of  these select altcoins, which is anything that's   not Bitcoin as an altcoin. You're going to see  some bottoms and some things that have started to   pump up. And you know, in the long term, some of  these will be uh be good uh get some good gainers   in the future if you play the altcoins. Yeah, I  want to talk about those gains a little bit more   for investors who've been on the sidelines or who  are maybe in crypto right now, too. The rally was   a a great rally. Again, really impacted that that  short squeeze sector the most. The dollar numbers   there are a little wild, but let's talk about uh  where this rally got us to in both Bitcoin and   Ethereum. It was a really nice rally, but nowhere  near a recovery to the highs that we were seeing,   you know, uh a couple of years ago in this crypto  space. How much further of a runup do you think   we could have? Will this be just the start of  a longer runup or could we see some volatility   pullbacks again? What is your prediction  on where the crypto market could be heading   uh based on what you've seen historically?  So, Bitcoin trades in cycles like any asset   will trade in a cycle and Bitcoin's on about a  4-year cycle. If you look historically at Bitcoin,   we have our runups and we have our uh declines. Um  and they're pretty volatile. you know, we'll have   declines as much as 85 78%. This ones we've had  over just a little bit over 50%. But what you'll   see in Bitcoin is we have these times where we get  into this discount zone. You can see here we get   into kind of like these golden zones where this is  the value area. This is the discount. This is when   nobody wants to buy, but this is where it's a good  time to start considering dollar cost averaging   into this asset because you never know how much  longer you're going to have to buy in these golden   zones. If you look at historically, we have had  times back in 2018, we just had a brief amount of   time, brief amount of time, run up one more time  during the COVID crash and that was it. The last   cycle here, same thing. We kind of had everything  you can see in the in the the golden zones there   is the time to start dollar cost averaging in  there. Then we get our last call signals and   then we're we're off to the races and then we do  it again. And you can see right now we're kind   of in this cycle window between now and probably  January where we'll have these opportunities for   these discount zones and and could this have been  the bottom? This definitely could have been the   bottom. I think the government showing that they  are ready to manipulate the markets again to try   to save the economy with these buybacks. It's a  smaller amount, but it's showing that liquidity is   going to be they're going to they're going to put  liquidity back into the market. Stealth QE looks   to be back and that will we know what happened  last time that happened. We had a tremendous run   up in the crypto markets. uh clearly you are so  well-versed on the crypto markets and I know that   there are plenty of areas of the stock market that  are also affected by crypto. So if you're not in   crypto at all and you just care about the actual  market and and the stocks that it might impact,   we're going to talk about that too and we've got  some specific names to cover in this video yet   today. But if you uh have been avoiding crypto  or have just been worried about being in that   volatile market and you're learning about it for  the first time or want to improve your knowledge   on crypto, clearly Joel is a great person to learn  from who has been in this market for a very long   time and doing very well playing these different  crypto cycles. If you want to learn from him,   he is offering a free workshop for our market beat  viewers. So you can scan the QR code or click the   link in the description to check out that free  workshop today. Hey, there's a few different free   gifts you'll get for going through that workshop,  too. If you want to check that out, again,   we've got that link in the description for you to  check out that free workshop with Joel. All right,   Joel, let's move on to a little bit of you've  given us what you can expect in the cycle for   Bitcoin and and where you expect this to go. Let's  talk about more of that broader market impact,   too. You already kind of covered a little bit of  those economic factors and how that can play into   crypto. How can crypto and what's happening  there play into the rest of the market? If   you're looking at the stock market and look  at any cryptoreated company that's actually   doing something that's creating revenue, that's  creating value, many of these should do fairly   well during this uh this next crypto bull run. And  remember, bull runs are started at the bottoms,   not at the tops. And so look at these companies,  these value companies that are actually creating   value. I I mentioned circle here just a moment.  This isn't a this isn't a buy signal or anything,   but USDC is a stable coin which is pegged to the  dollar. And you notice that the US government has   starting to really embrace crypto. Uh the stable  coin act um is going to be a big part of our   society. You'll see that many people will start  transacting in stable coins. Just like you think   of like Venmo, when you pay for things, you'll  have this time where you get to to spend stable   coins and then throughout the world, people will  start interacting with these stable coins, USDC,   USDT. They'll be able to spend dollars, and that's  what the US wants. They want the rest of the world   to hold dollars and spend dollars. So companies  backing these stable coins, my opinion, have a   tremendous upgrowth over the future. Yeah. Let's  look at CRCL and their chart a little bit too with   the rally that we saw in Bitcoin yesterday and  in the whole crypto market yesterday. Clearly,   this stock is also having a really good week. It  was uh it's up about 16% in the last five days,   but it seems to be rallying really well.  Clearly, it's still very far off of its highs,   though. So I I love what you said about these uh  crypto rallies start at a bottom. They don't start   at a top. Do you think that we are still very  close to the bottom where if you believe that a   rally is coming now would be a good time to get  in or is this too volatile of a time after this   big rally we saw yesterday for investors to think  about getting in right now? Yeah, I think that uh   we're at the beginning right now and this is the  time to look at crypto tickers as companies and   invest in only the ones that are actually creating  value to the network. I talked about Ethereum and   Ethereum creates value. It actually does things uh  things like Salana, some of these other companies,   they're actually backing these cryptos. It's not  just some speculative meme coin like Dogecoin or   something. Although some of those do, you know,  pump up quite as well if you want to play that   game. But for the long term, dollar cost averaging  into these Ethereum and Salana and some of these   others that have the potential, which we've  already seen historically, to have some pretty   great runs. Ethereum is one example. Huge pump up  yesterday. It's actually turned green on our cycle   pro chart. If I were going to say we can come back  here in three years, I think Ethereum is going to   be one of the biggest winners this this crypto  cycle. The charts are just looking prime for it.   That's a big call for sure talking about this as  being your your big winner in this next cycle. I I   want to talk a little bit more about those cycles  before we get back to those stock tickers, too.   We have a lot of naysayers in the market who say  crypto is going to go to zero. This is going to   be nothing. Um, and is that something that we've  heard over these four-year cycles? Anytime you see   it getting close to that bottom where people are  completely uh losing faith that there could ever   be a future in crypto. Have you been hearing a  lot of that, Joel? Yes. And we love hearing that   because that lets us know that that's when we're  close to the bottoms. I'll tell you a story. I   had a family member last month called me and  said, "Hey, I think I'm thinking of selling all   my Ethereum and buying back lower." And when he  said that, I went, "That's it. That's it." This is   the kind of sentiment we get when it's down. And  people have to really change their emotions. And   this involves in any kind of trading and investing  is buy when you don't want to buy, sell when you   don't want to sell. And we have to work against  our emotions and just look at the charts and look   at the data and look at the the sentiment in the  market and uh realize that uh this is a long-term   plan, a long-term gain. we're at those areas  between now and the next 6 months where there's   going to be some great opportunity and then uh  you know fast forward 3 months from there that's   when a lot of the FOMO will start people will be  kicking themselves saying man I didn't get started   I wish I would have got started and then we repeat  the cycle again yeah it's all based on those   emotions for sure is the headlines that we saw  on Wednesday enough to create that FOMO frenzy at   least a little bit in the short term are we We've  been seeing that Thursday morning a little bit.   Do you expect that to last the next few days or  weeks or will it really take a few months before   we get to that super high crypto level again where  everybody is feeling like they they missed out?   It'll it'll take some time. Nothing goes up in a  straight line. So, these kinds of short squeezes,   these kinds of upward momentum and then we'll have  something pull back. We could definitely pull back   into the mid60s, maybe even the high50s or not.  Maybe that was the bottom. Maybe we hit the bottom   and but we'll chop around sideways. These will  take a while. Um and then you'll start to see   these moves onward and upward and then that's  when the FOMO starts to kind of kick in, but it   takes a while. It's not going to be overnight, but  it's something to start paying attention. We are   in these value zones, these discount zones, and  in the long term, some of these are going to do,   my personal opinion, from my experience, going  to do extremely well. So, we'll see. If the   stock market uh tanks later this year, that could  definitely um affect the crypto markets and you'll   see a you'll see a retracement downward. But in  historically looking at the numbers, uh we're   primed for uh some good dollar cost averaging  areas in some of your your favorite assets. Yeah,   let's get back to talking about for those who  would rather invest in crypto. Uh looking at   the traditional market and buying some of those  stocks that are very closely tied to crypto.   We're getting back to one that you mentioned as  a recommendation. You talked about looking for   stocks in the market tied to crypto markets, tied  to Bitcoin that are actually producing some value   and one you mentioned is Circle. Why does this one  stand out to you as a better option in the market   at looking to invest in the cryptocurrency market  but staying in the traditional stock market? Yeah,   Circle's a US-based company with a stable coin  called USDC and stable coins are going to get   bigger and bigger. Um, the US is embracing them.  We passed laws about these already. It's a way   to get the dollar out there throughout the world.  It's easier to transact to send stable coins than   it is to do like a wire transfer. Um, a transfer  is a way to move money a lot faster. You're going   to start seeing throughout the world, people will  be using these stable coins. You're going to go   around just like you see these little Venmo, you  know, QR codes. People will start paying in these   stable coins. So the companies behind these stable  coins, I think they've got a lot of movement like   I said and Circle is down at the bottoms and there  are uh I think there's a lot of upward momentum   potential in companies like this when nobody is  paying attention. That's one example. I think   circle I think it has some promising uh movements  in it in for the future as it as it starts to grow   and stable coins get bigger and bigger. I think  when you look at some of the traditional metrics   uh that a lot of investors will look at for  stocks, you can see the um I don't want to   say misunderstanding, but the the hesitancy in  the market, especially you look at what analysts   are saying. There's a decent amount of analyst  coverage on this stock, but the price targets of   what the value of the stock is are really all  over the place. Even here in August and July,   you've got price targets of $37 and price targets  of $130. So you've got analysts in the same week   saying very different things about what the value  of this stock actually is right now. Does that   surprise you at all that we're seeing that kind of  mixed reviews from the analyst community of trying   to understand where is the actual value of the  stock? Yeah, it doesn't surprise me at all. And I   would treat Circle as anything a very speculative  type asset. Um if you're going to be investing in   the stock in that that would be definitely where  you want to take some more your higher risk type   of an asset. But no, it doesn't surprise me at  all because it's the same thing. What are people   saying about Bitcoin? Oh, Bitcoin is going to go  to zero. And they've been saying that uh since it   came out. But I do think that if you look at these  companies that actually have value behind them,   that are actually creating revenue that have  the backing and support of the US government   because they want the dollar to go out there  and USDC, stable coins, USDT, there are way to   get the dollar out there. and I can see it only  growing bigger and bigger over time. So, I think   uh speculative asset, but it may be worth nibbling  at it. All right, let's move on to another stock   ticker again for those who would rather invest in  what's happening in crypto in the market. There's   the very obvious ticker and that's Micro Strategy.  What are your thoughts about that stock? Yeah,   Micro Strategy is an interesting thing. Usually,  you'll see Micro Strategy run up before Bitcoin   does or about the same time. It kind of stays in  line. It kind of trades around with Bitcoin. So,   I think we're going to see the same thing again  this cycle. I think that uh Micro Strategy will   probably have a nice uh run up again just like it  did this last time. Probably top before Bitcoin   tops as well. Again, like anything, I would look  at the charts. I would take a look at where we're   at. And then obviously, like anything, it's  a high-risk asset. Dollar cost average in if   you feel that it's right for you at the specific  levels. And what I always tell people is uh look   at those charts. Uh buy when you when buy when  you don't feel like buying and sell when you   don't want to sell. Yeah. Let's look at you're  talking about profitable companies too. Looking   at the earnings report especially the most recent  one here at the end of July. Uh not so great news   for Micro Strategy looking at those earnings but  we know that this this company really is all about   uh the value of Bitcoin and all about the value  of the crypto market. And so it's trading right   alongside that. know if the value of the Bitcoin  market does recover does that also mean that   Micro Strategy becomes a profitable company again?  Yeah, absolutely. They've Micro Strategy's taken   a walloping in the news in the media. Um because  Michael Sailor, you know, the whole thing was like   never sell your Bitcoin, never sell your Bitcoin.  And what did Micro Strategy do? They sold some   of the Bitcoin and they had just proved to the  shareholders that they would do that. Um but uh   like any company they took a lot of negative press  for that because of you know statements that said   never sell your Bitcoin and they've sold their  Bitcoin. They're a smart company. They're you   don't you're not a billionaire because you create  stupid things. Let's just say that. I think that   uh I think that they have some great products. I  think that you're going to see some staying power   and then as you see Bitcoin go back to go back up  everyone will be happy and hooper and hollering   again and you'll see these go up. And like I said,  Micro Strategy I think is going to be around for   for the long run and it'll it's like I said, it's  got its down times, but look for look for those   for opportunities. I do think Micro Strategy will  turn around and that'll be the time when everyone   starts FOMOing in. Yeah, the FOMO is real and we  we've seen that time and time again with Bitcoin.   Um, but we have also seen people getting burned  and I want to talk about that a little bit. I   don't know if the naysayers out there on crypto  have watched this far. if you're still here,   thanks for sticking with this conversation. Um, I  think one thing to talk about is maybe someone is   anti- crypto markets, anti- Micro Strategy because  they've been burned badly before. Uh, they've   bought during that FOMO stage and have lost a  significant amount of capital from buying during   those stages. I What do you say to those people  um who are investing in a in a kind of currency   that maybe a market they don't understand or just  something they've been burned by before and are   now afraid to get back into it? What I would say  is that it's most likely in those cases you've   traded on emotions and you it's a timing thing  and so you really need to look at these charts   and look at the data and look at the the timing  of these charts rather than just buying on emotion   buying just because somebody says they think it's  going to go up. You really need to look at the   charts and look at the data and that'll actually  tell you. I look at assets as a chart. I don't   really I never get emotionally tied to anything  even Bitcoin. I just trade the charts in front of   me. And once I've learned to do that and become  emotionally detached from any asset, doesn't   matter if it's Nvidia, you know, Microsoft,  anything, I just look at the charts and I   look for these these buy opportunities and that's  when I buy. And that's usually when the opposite   of what the crowd is thinking. Um, we can see so  many examples of that in stocks just recently.   You know, no, it's down and no one's excited and  then all a sudden, you know, Microsoft pumps up   42% in one day. It's all about reading the charts.  So, that's what I'd say. If you've been burned,   it's mostly likely because you've been trading  on emotion and not using the data in the charts.   Always good advice to to not let your emotions  in on something. And I think that one area where   emotions can come into play is in some of these  altcoins, some of these more like meme coins that   come out there have maybe burned a few investors  too who get really excited about the quick moves   that happen there or somebody's talking about one  of these altcoins and then all of a sudden that   crashes very very quickly. So let's talk about  that market in particular. I call altcoins if   you like to go down to Las Vegas and take a little  of your money and throw it away on in Vegas and   sometimes you win when you go to Vegas. That's  what I would say. Don't ever spend any money on   on meme coins unless you it's like Vegas money.  But for regular altcoins, there definitely are   some good ones backed by real companies that are  creating revenue. And those are the ones that I   would focus on the long-term ones. You want  to play in the Vegas world, you can do that,   you'll lose. Uh some of you might get lucky and  win a little bit. The one thing about altcoins,   I I will say this is you don't there's a thing in  crypto called hodddle hold. Never ever huddle or   hold an altcoin cuz you'll see these huge 85%  pullbacks, 98%. Um, altcoins are for trading,   not for holding. And so, same thing, um, look  at the chart. The data is in the charts. Don't   go on your emotions, and don't trust anything that  anyone just says. Verify it by looking at a chart,   looking at the data, and looking at the companies  behind them. I think that's a solid advice for any   kind of investing, including all of the videos you  watch on our channel here. Anytime somebody talks   about a stock, don't just trust what they have  to say. Verify the information and go look for   yourself. That's such important advice for  everyone. Joel, thank you so much for your   time today and diving into what is happening in  the crypto market after a very quiet last eight   weeks or so. It's nice to see some new headlines  on Bitcoin. If you want to hear more from Joel,   we did have him on u in the middle of that quiet  8week period talking about making sure you buy at   the bottom. And again, if you want to hear more  about his theories on how to invest in crypto to   get the biggest gains and the biggest benefits,  watch that other full interview with Joel