Massive exchange has just been liquidated and i think this could trigger the collapse of of ftx. The collapse of crypto and the collapse of the stock market causing the squeeze. So stay tuned. And let's make some money and i want to dive straight.

In with the key information. So forbes just reported that crypto broker voyager digital has just filed for chapter 11 bankruptcy. It says. According to the filing.

Voyagers estimated assets are between 1 billion and 10 billion with between 1 billion dollars and 10 billion in estimated liabilities as well. The toronto based firm. Estimates that it has more than 100 000. Creditors or a hundred thousand people that it owes money to voyager.

Said. They had approximately 137 million dollars in cash and owned crypto assets on hand as of june 24th the following monday. The firm revealed it used 75 million dollars of our maida's loan to facilitate customer orders and withdrawals and engaged investment bank moles and company as financial advisors sources. Familiar with the mata.

Said our maida ventures. Ak. Ftx or sam bankman. Free does not expect to recoup that capital and it also says other crypto companies that had lent cash to three arrows capital are also struggling to stay afloat goldman sachs is looking to raise two billion dollars from investors to buy up distressed assets.

I'm sure a discount from celsius on july 1st ftx and crypto lender blockfire entered into an agreement that would give ftx an option to purchase blockfy for what was described as a variable price that could go as high as only 240 million dollars. Aka. A 95 drop from block. 5's previous valuation at around 5 billion.

But the reason why i think this is so disastrous and why it could cause the collapse of ftx. The collapse of crypto and the collapse of the stock market is because 30 year old. Billionaire. Sam bank.

And freed had extended loans to voyager totaling 485 million dollars in cash and bitcoin. So that's 485 million dollars. The ftx and sam embankment. Freed aren't going to see a single penny in return on as watchaguru has reported the ftx ceo has been noted among the unsecured creditors that basically means that when voyager digital is liquidated any cash that's left over or that's recuperated from its debtors will be used to pay the secure creditors and not the unsecured creditors.

Any mortgages or secured loans that voyager digital has will be paid first and unsecured creditors such as ftx won't be seeing a penny. So that's 485 million dollars in cash and bitcoin that's completely disappeared and completely vanished from sam batman freed's account and from ftx that's obviously a giant amount of cash to lose and if other crypto exchanges like block fi end up also failing in the coming weeks. That'll be another 500 million or another billion that fdx end up losing. But not only that obviously as more and more crypto exchanges are failing.

And more. And more hedge funds are failing. This is going to cause investors to panic and withdraw their cash not only from block fi. But also from ftx as well obviously don't forget ftx is a crypto exchange.

No different from binance no different from coinbase no different from blockfi and no different from voyager digital as well so obviously as more and more customers are getting panicked and more and more customers are either exiting. The crypto market entirely or taking their coins off exchange. This is more money. That's going to be removed from ftx as well so ftx are basically taking losses from both angles.

Their investments are disappearing and being wiped out and their own consumer cash or their own customer cash is also dwindling as well maybe this alone will cause ftx to fail or maybe. We need to see another high profile failure like block fi. Coinbase binance or many others. Before fdx ends up failing.

As well and obviously when a giant exchange like ftx or binance does end up failing. It will wipe out the crypto market causing further crashes in the stock market as jonathan tweeted. He said. Voyager digital has filed for bankruptcy protection with more than a hundred thousand creditors and billions of dollars in liabilities.

And it's gone and francis has also tweeted saying do you want to know why all these crypto lenders are suspending withdrawals and why all of these exchanges are going bankrupt. She said. This is why this photo says the only real dollars in the cryptocurrency industry are those paid in by new entrants when they make their first cryptocurrency purchases for example a lot of times when people are trading crypto. They're only trading back and forth between overstable coins and bitcoin or between bitcoin and other altcoins.

That's obviously generating additional value and causing the market cap of these coins to increase. But no actual real dollars are entering the market and obviously one of the main problems is the fact that crypto market isn't backstopped by the federal reserve obviously if tons and tons of people started withdrawing money from the us stock exchange. The fed can just print. More whereas.

They can't really print more dollars into the crypto universe other than printing more stable coins. Which isn't the same as direct us dollars. She said. The rest of the dollar liquidity on crypto markets is provided by dollar pegged stable coins.

She said these fall into two groups those that have actual dollars and or dollar denominated safe liquid assets backing them and those that don't she said there aren't enough of the former ak stable coins pegged by genuine us dollars to enable everyone to cash out into real dollars and she said. There's no guarantee that the latter can actually be cashed out into real dollars at all obviously for the stable coins. That aren't fully pegged with genuine us dollars. They likely won't have enough dollars to pay out everybody with drawing and the main problem with that is the fact the fed don't print more dollars for the crypto market they only print more dollars for the stock market.

She said. There's now a race to exchange cryptocurrencies for the few real dollars still available as is always the case in unregulated markets. Because obviously crypto is unregulated and doesn't have the fed to print additional dollars into the crypto market. There's only a set amount of dollars that were put into the market that can be withdrawn and this is where we're seeing more and more people getting spooked and withdrawing their money off exchanges either exiting crypto completely or moving their coins to cold wallets and that's why it's effectively a race and the last one to the door will be the loser.

And that's why more and more exchanges are being liquidated because they don't have the fed to print additional dollars for them. These crypto exchanges. Obviously aren't being bailed out like big banks were back in 2008. And that's why we're seeing so many exchanges going under.

And why more and more exchanges will likely fail as well this article. Says wall street says a recession is coming. But consumers are saying. It's already here.

The article says the recession calls are getting louder on wall street. But for many of the households and businesses who make up the world economy. The downturn is already here many of these genuine businesses in america those mum and pop owned restaurants. All those small business owners are seeing less and less customers and less and less consumers.

Because genuine. People don't have the cash for these expenses. Anymore. Because inflation has gone up so high because energy oil and rent is so expensive.

People don't have the money. Nowadays to go out and enjoy themselves at local restaurants or local mum and pop owned businesses. So even though major banks are already calling for a recession in the future. Many genuine businesses around the world not just in the us.

But in the uk as well are already seeing the signs of the recession and as mack 10 tweeted. He said. Rising prices are hiding final demand actually collapsing at the fastest pace since 2020 and 2008. The fake inflation narrative aka the increasing of prices has given policymakers.

The mistaken illusion of a strong economy. You may think that rising prices equates to strong demand. But actually as a result of inflation prices are increasing. But demand is actually collapsing so far inflation is hiding the recession and investors will pay the final price for it this chart shows real personal consumption expenditures.

Absolutely collapsing at the fastest rate seen since before 2008 interestingly jpmorgan has said while some may argue the us is already in a recession. They said. It's inconceivable for a labour market that's generated close to 500 000 average monthly gains for the past six months. But as crash wandering and pt gamer replied they said the labor market is a lagging indicator.

Jpmorgan should be smart enough to know this the layoffs are already beginning i spoke yesterday about how there's been tons and tons of tech layoffs not just in the crypto industry. But basically in all startup tech companies and most tech companies now as a whole pt gamer said. They are smart enough to realize. It's a lagging indicator.

But they're betting on the fact that retail is not smart enough 2008. All over again. Fortunately i have been warning you of the coming recession and the coming stock market crash or the current stock market crash for some time now and therefore. We know the us is already in a recession.

But there's something very interesting that was recently pointed out by jeff wi. He said don't look now but we have a rally in china. He said. One theory is first in first out because china was the first to enter the bear market maybe they're the first ones to climb out china actually.

Peaked all the way back in february of. 2021 whereas obviously the us. Stock market didn't peak until december of 2021. The china recession.

Lasted from february 2021. Until around march april of. 2022 so around 12 or 13 months because the us. Stock market peaked in november december.

It's likely that in december or maybe january of 2023 that's when the market will bottom out. But that also means we likely have another six months of the s p 500. Continuing to fall before we hit that bottom point looking at china's market. While it peaked in february 2021.

It did actually fall past those previous march 2020 lows and therefore. It's likely to see the s p 500 continuing to fall potentially past those pandemic lows and we may see the s p 500 falling below 2 500 points and below 2 000. Points and therefore it's likely we still have a long way to go for the stock market to continue falling before the recession is over. But guys be sure to let me know what you think down in the comments.

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