Boy, oh boy, have we had multiple fears and endless fud in crypto tara luna's collapse was devastating as it opened the door to substantially more regulation likely delayed etfs for bitcoin and ethereum, and ultimately we now have a substantially more uncertain market, leading to more fear, which Leads to more selling less purchasing and more pain for the cryptocurrency market. The collapse of stable coins, like tara luna by the way, was something that i've warned against since december of 2020, again in january 2021, and in a video i'll link down below march 17 2021. I've discussed that the rapid collapse of bitcoin for any reason, because bitcoin has had these large drawdowns in the past that we could see liquidity fall, fear, increase and cracks that would lead to stable coin breakage and that we have already started to see. Now.

We've got even more problems, though, because listen to this not only has crypto fallen under a total combined market cap of one trillion dollars. We saw a brief d peg in tether this morning around 7 a.m, which did recover, though, but could be a sign that some of those underlying assets over a tether are starting to need to get liquidated, to increase those cash balances and with treasury yields rising. And us not knowing entirely where all the securities are behind tether. We know this is tetherfud.

Obviously you know questions still arise. Okay, what's gon na happen to tether as btc approaches now it's 200 week, moving average of about 22 000, but folks listen to this. What i'm about to show? You has never happened before it still hasn't happened, but it's about to happen and it's a bad thing. The low! Let's put it this way, let's put up the chart on screen here and what's important for you to look at is when you see a low after the first halving you end up having another 83 percent to fall to get to the previous high.

That's a really big spread between the previous high and the low after the next halving, which is a good thing, because if it basically, it draws an increasing time frame of rising bitcoin prices after each having the same thing was true after the second halving. So when we hit a high after the first halving the second halving's low was still 64 away from the top of the prior cycle. This is super important because no matter when you bought bitcoin in the past, all you really had to do was wait. A max of four years, and even if you bought at the very tippy top peak as long as you just huddled you'd, still be making a substantial amount of money.

But we're seeing a crack. Because this rule might break. Take a look at the right side of the chart. We are now within 17 of the 19 000 peak that we had in the prior having cycle.

If we break nineteen thousand dollars, we will, for the first time in bitcoin's history, be breaking the rule that we don't pass the prior halvings peak on the way down that we always bottom above it. That would be a bearish signal for bitcoin and right now we're wondering is bitcoin just temporarily selling off we're still above that level. So we're good right now, but is it just temporarily selling off because of what just happened to one of the biggest lenders in crypto i'll talk about them in just a moment after i mentioned that this video is brought to you by ftx the link in the Description down below you can find more information about ftx you sign up online. You can check out their trading views integrated trading platform with the xt ftx platform by going to medkevin.com ftx they've got over 6 million users worldwide, they're in 200 different countries and folks, if you sign up using the link in the description down below, you will get 20 and completely free crypto, as long as you trade, your first 150 dollars, it's a great platform to use and if you download their app by going to metkevin.com fdx while on a mobile device, make sure you put in code meet kev when you sign up.

So you get that reward okay folks. So what happened this morning to one of the biggest lenders in crypto well celsius, the platform that offers yields as high as 17 halted, the platform accelerating the entire crypto markets, sell-off high yields over at celsius, of course, offering 17, and this is something i've warned of. As being unsustainable, because of the amount of counterparty risk that you undertake, which i've interviewed the ceos of voyager digital of hud-8 mining, i've interviewed many people block fine executives. I've interviewed many people from counterparty risk and i've got nothing but arcane answers because of the fact that nobody really knows how much counterparty risk there is.

As long as we're aware of that, we can then realize that when a platform's offering 17, it might be too good to be true, because celsius, it may appear had relied on high yields that they could only pay because of a flow of new money. Coming in effectively a ponzi, and so when celsius this morning halted, withdrawals or swaps between accounts celsius, coin dropped 53, but the entire crypto sell-off was accelerated. We saw similar hits to maple and compound, and the celsius network wrote that they are pausing all withdrawals on swap and transfers between account acting in the priority of the community or the interest of the community. They say that quote due to extreme market conditions.

Today, we're announcing that celsius is causing all withdrawals, swaps and transfers between accounts. We're taking this action today put to put celsius in a better position to honor over time. It's withdrawals. Now.

This is really odd because, five days ago we got a message that celsius continues to process withdrawals without delays. We have not had any issues meeting our withdrawal requests celsius, honors all withdrawals as quickly as possible and works hard to support customers and when there are delays, celsius has the reserves and more than enough ethereum to meet obligations as dictated by our comprehensive liquidity. Risk management framework wow interesting so five days ago, you have a comprehensive liquidity risk management framework boy, oh boy, is that a whole load of nothing crap and all of a sudden, you violate your customers by freezing their ability to withdraw their money, not only that they're Still issuing loans to try to attract more deposits because they lend at a 25 ltv loan to value ratio. This is because they're still trying to attract deposits so that people who do deposit money can help fund those who are trying to get out.

This does not look like they have sufficient reserves to actually stay liquid; in other words, they could be going straight to bankruptcy. In fact, on a comment on the celsius post, somebody wrote lol. I just deposited twelve hundred dollars to close a loan and they blocked me right after they got the money and then locked the person out. This is the kind of stuff that happens, and what does celsius say? Well quote: our terms of use will allow for this process to take place.

Celsius has valuable assets and we're working diligently to meet our obligations. So five days ago, you have more than enough eth because of your liquidity framework, bullcrap and now, all of a sudden you don't. This is quite interesting. There's also a comment about protecting their community, but apparently celsius liquidated about 3500 bitcoin on ftx right after locking their customers withdrawals and dumping their token on markets.

No schedule has been given yet in terms of when we're actually going to see an unlock or an unfreeze, but boy, oh boy. This is exactly how trust is lost in the cryptocurrency community. This is exactly how bankruptcy begin and liquidations skyrocket, which they already have been all of this combined with market turmoil, leads to a lot of disinterest in risk assets. This is why we're seeing a lot of folks move to cash or even potentially sell bonds to move to cash, because they feel that even bonds have become risky, while the federal reserve tries to stamp out inflation and nobody trusts that they can do it.

But i will tell you as much as cryptocurrency and the cryptocurrency community wants to get away from centralized finance, which of course, celsius still is a centralized finance platform. There are times like these when your money gets frozen up, that you certainly wish you had sipc insurance or fdic deposit insurance. So it's unfortunate that we don't anyway good luck to anyone at celsius. Fingers crossed for the future and fingers crossed that we do not break that 19 000 level, because it will lead to a lot more fear, uncertainty and doubt thanks for watching check out ftx link down below check out the programs.

I'm building your wealth link down below and folks, we'll see the next one thanks bye.