LATEST CRYPTO NEWS! WHY CRYPTO IS DOWN TODAY AND WHAT YOU CAN DO TO PROTECT YOURSELF!

Austin Hilton

17 Jun 202405:32

Summary

TLDRIn this video, Austin discusses the current downturn in the crypto market, with a market cap drop to $2.38 trillion, down 2%. He attributes the decline to macroeconomic factors and Federal Reserve policies, particularly regarding inflation and interest rates. Despite Bitcoin's drop to around $65,000, Austin advises viewers to stay calm and not let emotions dictate their actions, emphasizing that this volatility was expected and part of the market's natural cycle. He predicts Bitcoin could reach $60,000 but will likely fluctuate between $60,000 and $70,000, suggesting a strategic approach to navigating these market conditions.

Takeaways

📉 Crypto market is down, with market capitalization at $2.38 trillion, a 2% drop from $2.5 trillion.
🔻 Bitcoin is now in the $65,000 range, and it might drop below $65,000 soon.
💼 The ongoing narrative for the market downturn is due to macroeconomic factors and Federal Reserve policies.
🏦 Inflation and Federal Reserve's decisions on interest rates continue to impact the crypto market negatively.
📊 The market has experienced a 20% drop in crypto market capitalization recently.
🕒 Historically, the market tends to struggle for five to six months after a Bitcoin halving, and we're in the middle of that period.
📅 August is expected to show improvement, with better times anticipated in September and October.
💡 Advice: Don't panic, stick to your plan, and avoid making emotional decisions.
🔒 If you have long positions, understand that temporary losses are part of the market cycle.
🌐 Invest in blue-chip cryptocurrencies and meme coins with a long-term perspective.

Q & A

What is the current state of the cryptocurrency market according to the video?
-The cryptocurrency market is currently experiencing a downturn, with the market capitalization at around 2 trillion 380 billion, down 2% from a few days prior when it was over 2 trillion 500 billion.
What is the role of the Federal Reserve in the current state of the crypto market?
-The Federal Reserve's policies, particularly regarding interest rates and inflation, are significant factors contributing to the downward trend in the crypto market.
What does the speaker predict for the crypto market in the coming months?
-The speaker predicts that the market may dip further into the 2 trillion 100 billion range and that the situation will start to improve after August, with September and October being particularly promising.
What advice does the speaker give to those who are worried about the current state of the crypto market?
-The speaker advises not to panic and to stick to one's investment plan, acknowledging that the current volatility was expected and is part of the market cycle.
What is the speaker's view on Bitcoin's potential price movement?
-The speaker believes that Bitcoin could drop to 60,000 and then fluctuate between 60,000 and 70,000, with the current price being in the middle of that range.
What historical pattern is mentioned in the video that might affect the crypto market?
-The historical pattern mentioned is the post-Bitcoin halving effect, which typically sees a market downturn about five to six months after the event, which happened in April.
What is the speaker's strategy for dealing with the current market conditions?
-The speaker's strategy includes having a plan, not letting emotions drive decisions, and diversifying the portfolio with blue-chip cryptocurrencies.
What does the speaker suggest doing during the current market downturn?
-The speaker suggests taking the time to step away from crypto and focus on other activities, while staying aware that the current downturn is part of the expected market cycle.
What is the significance of the consumer price index (CPI) report mentioned in the video?
-The CPI report is significant as it provides insights into inflation, which is a key factor influencing the Federal Reserve's policies and, by extension, the crypto market.
What is the speaker's opinion on the role of macroeconomic data in the crypto market's performance?
-The speaker believes that macroeconomic data and Federal Reserve policies are the ongoing narrative and main reasons for the crypto market's performance.
What is the speaker's view on meme coins and their potential future performance?
-The speaker is not worried about meme coins despite their current downturn, as they believe these coins will recover and go back up based on fundamental market beliefs.

Outlines

00:00

📉 Crypto Market Downturn Analysis

In this video, the host, Austin, addresses the current decline in the cryptocurrency market, offering specific reasons for the downturn. He begins by thanking viewers for their time and encouraging engagement through likes and subscriptions. Austin discusses the market capitalization, noting a drop to $2.38 trillion, a 2% decrease, and a significant loss of market value compared to recent days. He emphasizes that while Bitcoin has fallen to the $65,000 range, he is not overly concerned, as this trend has been anticipated for months. Austin attributes the decline to macroeconomic factors and Federal Reserve policies, particularly concerning inflation and interest rates. He predicts further dips but reassures viewers that this is part of the expected market cycle, advising them not to panic and to stick to their investment plans.

05:00

🤔 Maintaining Perspective Amidst Crypto Volatility

The second paragraph continues the discussion on the crypto market's volatility, with Austin expressing confidence in his investment strategy despite the downturn. He reassures viewers that he is not worried about his holdings, which include a variety of blue-chip cryptocurrencies like Bitcoin, Ethereum, Cardano, and others. Austin emphasizes the importance of having a plan and not letting emotions dictate investment decisions. He acknowledges the expected nature of this volatility and advises viewers to stay the course, suggesting that the market will recover and that current challenges are temporary. The host concludes by encouraging viewers to stay informed and make money, promising to see them in the next video.

Mindmap

Keywords

💡crypto

Crypto refers to cryptocurrencies, which are digital or virtual currencies that use cryptography for security and operate independently of a central bank. In the video's context, the term is used to describe the overall market of digital currencies, which is currently experiencing a downturn. The script mentions 'crypto' multiple times to emphasize the subject of the video, which is to discuss the reasons behind the decline in the cryptocurrency market.

💡market capitalization

Market capitalization is the total market value of a company or, in the context of this video, the total value of all cryptocurrencies in the market. It is calculated by multiplying the current market price of a cryptocurrency by the total number of coins in circulation. The script discusses the decrease in market capitalization from over 2.5 trillion to 2.38 trillion, indicating a significant loss in the total value of the crypto market.

💡Bitcoin

Bitcoin is the first and most well-known cryptocurrency, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. It is often used as a benchmark for the performance of the entire cryptocurrency market. The video mentions Bitcoin's price dropping to the 65,000 range, highlighting its influence on the overall market sentiment.

💡Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for implementing monetary policy. In the video, the Fed's policies, particularly regarding interest rates, are cited as a factor affecting the performance of the cryptocurrency market. The script suggests that the Fed's decisions are a 'tired narrative' but still relevant to the current market downturn.

💡inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the context of the video, inflation is discussed as an ongoing economic issue that may be impacting the value and performance of cryptocurrencies. The script mentions the 'inflation thing' as a continuing factor in the crypto market's decline.

💡CPI

CPI stands for Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The script refers to the CPI report, indicating that despite some positive news, it has not been sufficient to change the Federal Reserve's stance on interest rates, which in turn affects the crypto market.

💡interest rate

An interest rate is the percentage of an amount loaned that a lender charges as interest to the borrower. In the video, the Federal Reserve's decision not to reduce the interest rate is mentioned as a contributing factor to the decline in the crypto market. The script implies that interest rate policies can influence investor behavior and market trends in the crypto space.

💡Bitcoin halving

Bitcoin halving is an event that occurs approximately every four years, where the reward for mining new blocks is cut in half. This reduces the rate at which new bitcoins are created, which can impact the supply and demand dynamics of the cryptocurrency. The video script refers to the 'Bitcoin halving' as a historical event that has previously influenced market trends, suggesting that the current downturn may be part of a post-halving cycle.

💡volatility

Volatility refers to the degree of variation of a trading price series over time. In the context of the video, the term is used to describe the unpredictability and rapid fluctuations in the prices of cryptocurrencies. The script mentions that the current period of market downturn is expected to be volatile, and viewers are advised not to let emotions drive their investment decisions.

💡meme coins

Meme coins are cryptocurrencies that are created as a joke or for fun, often based on internet memes or trends. They can sometimes gain significant value due to social media hype. The video script mentions that the speaker bought some meme coins recently, which have since declined in value, but the speaker is not worried as they believe they will recover, showing the speculative nature of these types of cryptocurrencies.

💡portfolio

A portfolio is a collection of financial assets such as stocks, bonds, cryptocurrencies, and other securities. In the video, the speaker talks about the potential impact of the crypto market downturn on one's portfolio, suggesting that viewers should not panic but instead stick to their investment plan. The script uses the term to emphasize the importance of having a diversified and well-thought-out investment strategy.

Highlights

Introduction to the video discussing the reasons behind the decline in cryptocurrency prices.

Request for viewers to like and subscribe to the channel for daily crypto updates.

Current market capitalization of cryptocurrencies is at 2 trillion 380 billion, down 2%.

Market capitalization has dropped from over 2.5 trillion, indicating a significant market loss.

Bitcoin is currently in the 65,000 range, with a potential to drop below this mark.

The presenter is not worried about the current market downturn, as it was expected.

A 20% drop in the crypto market has occurred, with hundreds of billions of dollars leaving the market.

Macroeconomic data and Federal Reserve policies are the ongoing reasons for the crypto market decline.

Inflation concerns and Federal Reserve's interest rate decisions are impacting the market.

Despite positive CPI news, the Federal Reserve is not reducing interest rates, affecting the market.

Expectations of a potential dip in market capitalization to around 2 trillion 100 billion.

Historical patterns with Bitcoin halvings and their impact on market performance over time.

The presenter's belief that the market will start to improve after the summer months.

Advice for viewers to not panic and to stick to their investment plans despite market volatility.

The presenter's personal stance on holding long positions and not being affected by short-term volatility.

Recommendation to diversify investments and not let emotions drive investment decisions.

Closing remarks encouraging viewers to stay informed and make money in the crypto market.