What's up, graham, it's guys here, so i'm interrupting today's scheduled video to bring you a breaking news, update, i'm actually wearing pants today, because in the last 24 hours, 600 billion dollars with white from the cryptocurrency market, the price of bitcoin quickly fell below 30 000. In a flash crash, ethereum temporarily dropped below 1900 dogecoin dipped to a low of 24 cents and all of a sudden, the sentiment changed from enthusiasm and excitement for making money to the fear that maybe things could get a whole lot worse before they get better. That's because china recently placed a ban on financial institutions against cryptocurrency, there's also the fear that mining operations would need to shift towards sustainable energy before they could be embraced on a wide scale and volatility is going to shake a lot of people out of the markets Until things start turning around - and this is absolutely something we need to address - so let's talk about exactly what's going on, what's causing this the issues i see with what's happening, whether or not i'm buying in and then most importantly, what you could do with this information To make money, but before we go into that, i got ta say a huge. Thank you to the sponsor of today's video, the like button they're, a totally free button that appears right below the video and best of all you're able to smash it for the low cost of absolutely nothing just hear what other people have to say about it.

I smashed it and my investments immediately went up in value i'll smash it. If you give me a hundred bucks all right i'll, do it wait? What do you want me to say so? Thank you guys so much and with that said, let's begin the video all right. So as some background, these last few months have been incredibly eventful for cryptocurrency after rallying to its previous 2017 all-time high of 20 thousand dollars in december of 2020. It continued building momentum reaching 40 000 on the expectation that it was driven by institutional investors using it as a store of value.

This essentially gave the endorsement that bitcoin was not something to be skeptical about the more mainstream investors began, adopting it the more it was seen as a store of value and hedge against inflation, but all of that skyrocketed on february 8th when tesla announced that they had Bought one and a half billion dollars with a bitcoin with a portion of their cash reserves, along with the announcement that they would begin accepting bitcoin as payment for their cars within 48 hours of that announcement, the price of bitcoin rallied another 20 and by mid april, As other tech companies began following suit and embracing bitcoin, combined with an influx of retail investors concerned about the impacts of another multi-trillion dollar stimulus package, the price of bitcoin reached a high of nearly 64 000, but just as quickly as things started, going back up, they Started going back down by late april, the excitement for bitcoin began wearing off, some investors started taking profits, and the price naturally fell to a low of forty eight thousand dollars, which many would say is a normal correction. In fact, many people saw it as a buying opportunity driving up the price back to sixty thousand dollars, but then this tweet hit, which let the fuse for bitcoin to begin selling off first elon musk, announced that tesla would no longer be accepting bitcoin as payment due To environmental concerns, and they would be looking for other possible alternatives that are more energy efficient for the economy. Well, as you would expect from any elon musk's tweet, the market violently reacted and immediately began selling off on fears that other companies would soon follow the second. From there things just got worse.

China came out with a statement banning financial institutions from conducting business with cryptocurrency and warning investors against speculative trading. Now, as of right now, this ban is only on financial institutions and not on individuals, but even so, their markets have not always gone smoothly. Like in september of 2017, china was the first to ban initial coin offerings, otherwise known as icos, while several exchanges were forced to shut down which, by the way back then the price of bitcoin sunk, all the way down to 4 241. But then, in june of 2019, the people's bank of china issued a statement saying it would block access to all domestic and foreign cryptocurrency exchanges and initial coin, offering websites further clamping down on trading.

This new ban, however, reinforces a lot of the same sentiments. They've said before, but now it's expanded across businesses, because it's infringing on the safety of people's property and disrupting the normal economic and financial order. Well from there, as you would expect, prices quickly fell falling below 30 thousand dollars the first time since december of 2020., and if you thought that would be the perfect time to go and buy in well good luck. You couldn't because coinbase, along with several other exchanges, were temporarily down with reduced performance due to all the demand, so that, of course leaves us with today on a roller coaster.

Ride of cryptocurrency that changes direction by the minute and the biggest question of all is yet to be answered. Where do we go from here? Could the price keep falling lower and, most importantly, have you gotten your free stock, yet worth all the way up to 50 dollars, using the link down below in the description, because that's pretty much like free money? Well as right now, at the time of making this video prices are down about 40 percent from their peak in april, which, if you just started, investing over the last 30 days. That doesn't look so good. But once you zoom out you'll, see that just this year alone, we're still up 30 and when you zoom out even further a year ago, we're still 300 higher from where it used to be.

Now that doesn't mean it can't fall lower, and it could certainly happen depending on the upcoming news. But to me this is really not something out of the ordinary and, with all things cryptocurrency, you should almost expect that 90 swings in either direction are not impossible and should really be something you prepare for now. On the positive side, there are plenty of people and businesses who have taken advantage of this as a time to buy in, for example, the crypto bull mike novogratz, who said he would buy bitcoin around the 40 000 range. We also have micro strategies, michael saylor, who recently announced that they had bought 10 million more bitcoin for an average price of 43 663, which seems like an insurmountable number until you realize they already have 4 billion worth of bitcoin, and an extra 10 million dollars is Only one quarter of one percent of their bitcoin holding, then we have a blast from the past tom from myspace who posted on twitter that he was buying the dip and kathy wood.

As usual reiterated her stance. That bitcoin will one day be worth five hundred thousand dollars in a scenario where all institutional asset managers allocate five percent of their portfolio into the cryptocurrency. However, institutional buyers are not immune from these sort of price declines, either with square now sitting on a 20 million dollar loss while announcing that they have no future plans to buy any more bitcoin. Tesla is also seeing a decline in their stock price, since bitcoin's profit and loss is going to be showing up on their balance sheet, impacting their net profit at the end of the quarter, for example, they were recently profitable due to a combination of selling regulatory tax Credits and profit from bitcoin, but just as those gains were factored in last month's profit, these losses will also need to be taken into consideration, which could very much impact their bottom line.

Now the same thing could also be said about any company who holds their reserves and bitcoins, making things artificially look a lot better when the price is going up and artificially a lot worse when the price is going down now in terms of my own thoughts on This, i have a lot to say, but let's start off with bitcoin in the beginning of the year, i told everybody that i would be placing one percent in my entire portfolio between a 60 40 split of bitcoin and ethereum, because i would rather take the 1 Risk and be in it than the 1 risk and be out of it, and i did just that then from there due to a combination of that going up in price, along with some dollar cost averaging that one percent quickly grew to three percent and recently my Goal has been to increase my position in bitcoin and ethereum to five percent of my entire portfolio by the end of the year, and i'm sticking with that now. I've been very fortunate that, thanks to the forty percent allocation to ethereum back when it was eleven hundred and fifty dollars, i'm still sitting on a decent amount of profit and overall with bitcoin, i'm pretty much just break even right now, although i've seen this as a Good opportunity to go and buy the bitcoin dip, and this morning i was able to buy in a little more at 33, 000 after waiting 20 minutes for coinbase to load anyway. All of this is to say, i'm continuing to buy into bitcoin just like i would any other stock. I'm using this as an opportunity to increase my position, and my goal is still by the end of the year, to allocate five percent of my entire portfolio between a 60 40 split to bitcoin and ethereum, regardless of where it's trading at.

This is a number that i've carefully thought about. It's an amount that i'm willing to risk, and this recent sell-off makes absolutely no difference to my investment over the next few years. The biggest concern that i see from all of this is that too many people are using bitcoin and ethereum is their ticket to strike it rich, instead of using it as a sensible way to further diversify an already thorough portfolio which, in my opinion, is really what It should be used for right now, because the reality is during a 30 to 90 percent drop. Those same people are most likely going to panic, sell, lose a lot of money and then be discouraged from ever getting involved again.

Being a good investor is all about. Analyzing the risk, knowing the volatility and understanding the importance of diversification, so a 50 drop doesn't phase you and you can continue moving on without emotion, clouding your judgment, i'm going to take the stance that, yes, you can safely invest in cryptocurrencies. They can be a part of a blossoming portfolio and long term. I believe in them just like.

I would any stock, but you should not go all in you, shouldn't be investing more than you're willing to lose and during a time like this, if you're panicking over the drop, that's a sign that you've invested more than you're comfortable with, and i would seriously consider Dialing it back, so you don't lose any sleep. For me, that amount was five percent of my entire portfolio and if it drops 90 percent well that would suck and no one likes losing money, but it wouldn't affect my quality of life. It's more important instead to craft a portfolio around as many different asset classes as possible, so that way over the next few decades, you're nearly guaranteed success without the chance of losing everything through a series of poorly timed buy-ins. I also want to take this opportunity to say one more thing.

You should be extremely suspicious any time you see someone boasting about a new coin, going up in price. Literally every day, i see people pumping up these ridiculous coins with screenshots of their profits with the disclaimer that it's not financial advice, while suddenly hinting that you should buy in otherwise you're going to miss out to me, milf is a perfect example of this, and yes, This is a real thing, and this last week it made its rounds on social media for what appears to be paid advertisements trying to boost the price high enough for the original buyers to sell out to unsuspecting people who are about to lose a lot of money. And you guessed it today, it's down 75 and i just have a little rule when it comes to this nonsense. Chances are by the time you see a screenshot of someone's profit, that's not financial advice, most likely it's too late to buy in.

I would also be extremely weary of any coin being mentioned in the comment section or anybody asking me to review a coin that you've never heard of i've. Seen several of them using like bots to push the comment to the top, hoping that people will see it and want to buy in now. I know i sound like a karen right now trying to dampen the party, but i say this because i'm seeing 99.99 of these coins as nothing but a money grab that serve absolutely no purpose and that does a disservice to the authentic legitimate coins that just don't Get the attention they deserve. It's also a good idea not to trade based on the tweets of elon musk, both positive or negative, because even though he does influence the price, those movements are only temporary and really any trading from that is just pure gambling from here.

On out, though, it's still unclear where it's heading and there's very much a chance. It might continue, dropping lower and testing the previous psychological barrier of 30 000, at which point we'll see where it stabilizes. But, like i said if this volatility worries you, then i would take that as a sign that you should reevaluate your position and realize that perhaps you have more money invested than you're comfortable with the problem with. That is that when you get that sudden panic you're more likely to trade emotionally and make quick decisions that you otherwise wouldn't have made, it's a lot better to be able to trade with less so that you could think objectively realize that there are risks with investing In cryptocurrency it's still relatively new and that just comes with the territory, and you should invest your money accordingly.

When it comes to myself, i'm not selling anything, i'm buying more bitcoin. If it drops around thirty thousand dollars, i'll buy more ethereum if it drops below. Two thousand dollars, but until then i have a position right now that i'm happy with and i'm keeping it as is as a part of my portfolio and then from there. Well, i'm just holding it anyway, followed andre, dick and moved it all over to block fi.

Where they're at least paying you anywhere from two to six percent interest on your money. So if you want to do the same and get up to 250 with the free bitcoin in the process, feel free to use my link down below in the description. Because the way i see it, i may as well just make some extra money holding on to something that i was planning to hold on to anyway, and it pays you a lot better than what i'm getting in a savings account. So long story short.

Yes, i do think cryptocurrency can be a strong part of your portfolio. I wouldn't be concerned over any fluctuations in price and i would expect to see a lot more volatility over the coming few months. But if you've invested more money than you're comfortable with losing and this recent volatility has spooked you out, it might be worth it to take a more balanced approach. Instead, this shouldn't be seen as a way to strike it rich.

You should not be trading based on someone's tweets and you should not be buying anything from someone posting their profits, while getting bottle service at the club instead come up with a plan ahead of time, only invest a small amount and, most importantly, above all of this, Make sure to get your free stock worth all the way up to 50 down below in the description. So with that said, you guys thank you so much for watching. I really appreciate it as always make sure to destroy the like button subscribe button and notification bell. Also feel free to add me on instagram, i post pretty much daily.

So if you want to be a part of it, there feel free to add me there. As of my second channel, the graham stefan show i post there every single day. I'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that.

And lastly, like i mentioned, you can get that free stock with all the way up to 50 down below in the description and public is a totally free stock trading platform that i am posting all of my own stock trades on. So if you want to be a part of it feel free to follow me there at public.com gram. Thank you so much again for watching and until next time.