Welcome back to the channel everyone today i want to talk about why crypto is crashing and how it could be because of amc. I want to talk about the impact on amc and whether this is a good thing, so stay tuned and let's make some money, and now i want to dive straight in with the key information. So trey's trade started by tweeting are the standard unusual, random and unexplainable crypto sell-off right on schedule, astro replied, saying: there's an extreme inverse relationship between crypto and amc and gamestop, i'm very very excited for monday. Now i don't want to give it a specific time deadline for monday, as i still think this could take another week or two to potentially play out, but i'll explain exactly what i think is going to happen in a little while jeremy also replied saying in january 2021 crypto dumped and the following week, meme stocks ran upwards on may 20th, crypto dumped again and two weeks later, meme stocks ran upwards again december.

3Rd crypto has dumped unexpectedly, but i wonder what's to come to be continued. So why is crypto dumping right now and how does that tie in with the wider market and how does it tie in with what's happening or potentially going to happen with amc and gamestop over the next week or two well joshua tweeted saying this crypto bleed is Definitely to cover margin, calls on monday no way you can convince me. Otherwise, if you haven't already seen the price of bitcoin, it dropped around 23, almost instantaneously at midnight last night. So what exactly is going on with bitcoin here and why is it crashing so heavily? I thought bitcoin was supposed to go up when the stock market was going down, because bitcoin was supposed to be a good hedge against the recession.

Well, i think back in 2017, 2018 2019, most of the people invested in crypto were regular everyday investors and many banks and institutions were straying away from crypto. Therefore, back at that time, i do think that bitcoin would have been an excellent hedge against the recession, because, as stocks started, to go down, many hedge funds and institutions and banks would have been pulling their money out of stocks and would have started investing into crypto. As a hedge - but i think especially over the last year or two tons and tons and tons of banks and institutions and hedge funds have all been jumping into crypto as well and they've been doing so with a lot of leverage. Obviously, i've spoken in my last few videos about how margin levels at institutions is an all-time high and there's so much more leveraged trading available with bitcoin and other cryptocurrencies.

Not only can you just be leveraged 6.8 times like citadel are with stocks, but with bitcoin. Obviously, you can be leveraged up to 100 times, maybe even higher, on some platforms, and therefore i do think that right now, there's many many institutions that are investing in bitcoin and other cryptocurrencies and are also very very heavily leveraged. Therefore, when they get liquidated or need to take cash out, it makes a massive massive impact on the price. If you didn't already know, mumu are currently holding their biggest ever promotion.

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Now you might say tom, why would institutions need to sell off their bitcoin if they're, making so much from their investments? Why wouldn't they just leave the money in there and keep on adding more money? Well, obviously, it was a very red day in the markets. On friday and therefore there may be some institutions out there that got margin called on friday and needed to find cash to meet that collateral. Now, you might say tom: surely they can use bitcoin to meet their collateral margin requirements because bitcoin is a very, very safe asset uh. Well, actually, it probably doesn't classify as a safe asset like a bond or treasury or cash, and therefore they cannot use bitcoin to meet those margin requirements.

Therefore, they actually have to sell off their bitcoin to meet those margin, requirements that were issued to them. On a friday and obviously they have to meet those margin requirements, probably either by friday at midnight or by monday morning. As marge simpson is saying here, don't forget: crypto can't be used as collateral, so you're going to have to sell it to get that cash and the reason why bitcoin dropped so dramatically is because so many of these institutions have been investing into bitcoin over the last Year or two, and doing so with a lot of leverage and a lot of margin, therefore, when they wanted to sell their bitcoin to get the cash back out, they had to sell a lot of bitcoin, therefore causing such a dramatic drop in price and obviously on Top of that, if you've got an institution, that's selling off, say a hundred billion dollars worth of bitcoin. It's gon na drop the price very dramatically, which is gon na cause a lot of liquidations as well, because many other institutions and retail traders are trading bitcoin with such heavy leverage, not just two times leverage or three times leverage but 20, 25 50.

Even a hundred times leverage to put into perspective 100 times, leverage actually means. It means that if bitcoin falls by one percent, you lose a hundred percent of your original investment, therefore being liquidated, and if you can't read that it says right there that bitcoin dropped by 23 yesterday night. Therefore, if you are using a hundred times, leverage 50 times, leverage 20 25 times leverage whatever it might be, you would be liquidated unless you are using less than five times leverage coin. Member has actually got the specific figures.

Saying don't be sad if you got liquidated because it wasn't just you in one hour there was 5.89 million dollars worth of bitcoin long trades that were liquidated in four hours: 108 million dollars in 12 hours, 1.79 billion dollars and in 24 hours, 2.53 billion dollars of Bitcoin was liquidated or 2.53 billion dollars of bitcoin long trades were liquidated, and in the past 24 hours, 401 000 traders were liquidated and the largest single liquidation order happened on bitfinex, with a value of 27 million dollars, nearly 28 million dollars. Now that trade was placed with leverage in order to be liquidated and it was placed with a leverage or a margin of over five times, but still that means that's at least five million dollars of original cash invested. That's just disappeared now, so how exactly is bitcoin amc linked? Well, obviously, back in january we had this bitcoin crash here and a week later, amc and gamestop ran up back in may. We had again this very large bitcoin drop and then two weeks later again.

Obviously, amc and gamestop ran up mostly at amc this time and now here in december. Obviously, amc has been falling for the last week or two and bitcoin had a very dramatic drop over the last day or two. So, what's potentially gon na happen over the next week or two weeks or three weeks? Well, potentially, amc is going to run up again now. You may say tom back in january, bitcoin fell and amc ran up, but amc didn't really fall while bitcoin was falling same in june, bitcoin fell and amc ran up, but while bitcoin was falling, amc kind of traded flat and didn't really fall.

So why? This time round is amc falling so heavily, and i think it goes back to something i said earlier in the video back in 2017, 18 and 19 bitcoin was being traded by and invested into by regular everyday people and not many institutions. Back in january, amc was largely being invested into and traded by, regular people and not many institutions. The same can also be said for may and june. We didn't see many many institutions flooding into amc until their quarter three and quarter.

Four thirteen f filings. There's a chart i was trying to look for, but i can't exactly find it, but it basically shows amc institutional investors back in 2019 being down here in quarter one of 2021. It was very, very low again quarter, two was fairly low, but in quarter three and quarter four, it really shot up. There's been so many institutional investors that have been investing into amc over the last two quarters, but not many of them were invested back in 2020.

2019 and early 2021, and therefore i think because the wider market is starting to trend downwards many institutional investors right now are having to sell off their amc to meet these margin, calls and are now having to sell off their bitcoin also to meet these margin calls. But obviously, when a very heavy sell-off of bitcoin occurs, it's largely because institutions are trying to meet these margin calls and they may not be able to meet these margin, calls and get liquidated and forced to cover their shorts, obviously pushing the amc price upwards and causing The mother of all short squeezes now something i found very, very interesting, which potentially proves my theory of bitcoin not being an excellent hedge against the recession, is comparing the price of bitcoin over the last few days to the price of gold over the last few days. Obviously, we know that bitcoin has fallen from its highs of around sixty nine thousand dollars all the way to a one point around forty six thousand dollars, but the price of gold hasn't really fallen so far, it's fallen from around one 1850 to around 1 800. That's obviously a much smaller full, a much less drastic fall.

So, interestingly, it does seem like actually bitcoin may not be an excellent hedge against the recession, but gold likely still is now something interesting. I also found is that goldman's basket of non-profitable tech stocks just posted the worst week since march of 2020.. I wonder whether this is a sign that the recession or the market crash is starting. You can see here this batch of tech stocks back in march of 2020 performed at about negative 16 negative 15 and a half percent this week they performed at negative 14.95 percent that is pretty much lower than every single week over the last two years.

Obviously, some weeks we saw them perform exceptionally well up nearly 20 on the week, but obviously some weeks they were performing at negative five percent negative ten percent, but none really ever close to negative fifteen percent, especially as these tech stocks have also been performing at negative. Five percent to negative eight percent over the previous two weeks as well. I think it'll be very, very interesting to see what happens next week to the s p 500 and to the vix, where the vix continues trending upwards and when the s p, 500 continues. Trending downwards for another week, i think if the s p, 500 does continue.

Trending downwards, we're gon na see even more institutions being margin called and being forced to sell off their bitcoin, their cryptocurrency holdings to get more cash to meet those margin calls nice. I wanted to talk about wall street, deploying its dirty tricks, playbook against whistleblowers and how they've been doing it for decades and now how the secrets are spilling out for more than two decades, the general councils of wall street's mega banks have been meeting together secretly once A year at ritzy, hotels and resorts around the world, this would firstly appear to be a clear violation of antitrust law, but since wall street's revolving door has compromised the us department of justice over much of this time span, there's been no pushback from the justice department To shut down these clandestine meetings, because obviously many people that work for the sec or the department of justice do have the intention and the desire to go and work at some of wall, street's biggest banks, maybe a year or two in the future. So they tend to avoid sticking their noses into anything wall street insiders say that among the top agenda items at this annual confab are strategy sessions on how to keep congress from enacting legislation that would bring an end to wall. Street's privatized justice system called mandatory arbitration.

This system allows the most serially corrupt industry in america to effectively lock the nation's courthouse doors to claims of fraud from its workers and customers. This private justice system also keeps the details of many of wall street's systemic crimes out of the press, just like what's happening right now, with ken griffin citadel wall, street's justice system is just one element of a fully loaded, dirty tricks, playbook that wall street uses to Crush an honest worker who is intent on holding the firm accountable. The playbook includes gaslighting, which we've seen a lot of with amc, a campaign of ordered ostra sizing by co-workers again, like we've, seen of amc, demotion, an internal investigation with a pre-ordinated outcome to malign the reputation of the whistleblower blackballing in the industry and frequently the ultimate Humiliation of being escorted out of the building by security guards as the dirty campaign unfolds in front of colleagues, it achieves the intended additional goal of silencing any additional co-workers who might be thinking about reporting illegal activities, basically stopping whistleblowers from whistleblowing following this psychological warfare inside The wall street firm again a where we've heard all too much over the last few months: psychological warfare, the honest whistleblower, will be met with the next chapter of the sociopathic playbook wall, street's star chamber tribunals if he or she attempts to get compensated for damages, lost Compensation and so forth the wall street firms frequently bring current employees, who are friends with the fired whistleblower to testify to outrageous lies about the honest worker in an effort to inflict more emotional damage. To ensure this individual will look for future employment anywhere, but wall street.

The article then gives examples of actual employees that have been discredited or attempted to be discredited by their firms, whether it was jp, morgan or goldman sachs, but how they use tape recordings in order to justify and prove their whistle blowing. I personally think it's absolutely crazy, but it doesn't surprise me that this actually goes on in wall street firms in order to curtail whistleblowers, to try and prevent them from blowing the whistle guys be sure to. Let me know down in the comments below what you think about the crypto crash and whether you think this is tied to amc and whether amc could run up in the next two or three weeks. Also guys, if you wanted to stay up to date with my latest stock and crypto picks or if you just wanted some help with amc and gamestop, be sure to check out the patreon and the private discord linked in the description below and become part of the Team, and as always guys if you enjoyed this video, be sure to check out some of my others.

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