a number of exchanges and hedge funds are about to be liquidated over the next few weeks this is going to have a massive impact not only on the crypto market but also on the stock market as well and on that amc squeeze so stay tuned and let's make some money and i want to dive straight in with the key information so forbes crypto tweeted seeing exclusive after throwing lifelines to troubled digital currency platforms block fi and voyager digital sam the 30 year old billionaire founder of ftx warns that some crypto exchanges and hedge funds will soon fail the title of this article says bankman freed warns some crypto exchanges and hedge funds are already secretly insolvent it says the question on everybody's mind in the crypto world and in the stock market is whether we've reached the market bottom nearly two trillion dollars in crypto market value has evaporated since november in terms of the stock market i think that figure is now between five to ten trillion dollars a number of major crypto companies exchanges and lending platforms and also many hedge funds in the stock market have been struggling obviously bitcoin fell below twenty thousand dollars and fell below twenty thousand dollars again today and the stock market seems to have resumed its fall as well so far ftx has invested into voyager digital into block fight into robin hood and into three arrows capital and sam knows full well that his own fortune depends on its healthy rebound and growth ftx coinbase kraken and binance are giants among digital asset exchanges but outside of these whales there are more than 600 crypto exchanges around the world operating in a largely unregulated frontier and he said right now there are companies that are basically already too far gone and he said it's not practical to backstop them for a number of reasons like a substantial hole in the balance sheet regulatory issues or because there's just not much of a business left to be saved and batman freely is worried about continued failures because during the euphoria of rising crypto prices exchanges kept upping the ante to attract customers with generous yields for deposits block five voyager and a number of other companies were promising yields of up to 12 per year and that had to be paid for by either charging at least that much in interest to borrowers or more likely by putting that money to work in decentralized finance d5 applications obviously one such d5 application celsius has just paused withdrawals holding around 11.8 billion dollars of investor cash now it's not just lending platforms and exchanges like blockfi or voyager that had exposure to celsius it's likely that a number of other hedge funds also had similar exposure obviously three arrows capital did have exposure to celsius but i'd also bet my bottom dollar that they're not the only front i think over the next few weeks as bitcoin continues to fall and more and more d5 platforms end up exploding more and more hedge funds are going to end up feeling this wrath if we do start seeing more failures like block fight and like voyager we could soon see ftx come crashing down as well and taking out most of the crypto market alongside and obviously as more funds are going bankrupt that's not just going to impact on the crypto market but also impact on the stock market as well recently bitcoin has been very heavily correlated to the nasdaq and to the s p 500 and that's because many of these funds that are investing into bitcoin also invest into a number of tech companies and obviously when that fund like three arrows capital ends up imploding not only do they lose all the money that they had invested into crypto and are forced to sell off their crypto assets but they're also forced to sell off their long tech stocks as well also from moomoo's latest customer agreement they officially state they do not benefit from your order flow and don't sell your order flow they don't sell your order flow to market makers like citadel or to clearing houses like apex clearing they have their own clearing firm future incorporated which does not sell your order flow and if you sign up to moomoo right now using the link in the description below you can currently get a whopping 10 free stocks worth up to a total of 25 000 and a free share of lucid on top of that and the block has just reported that the three arrows capital liquidation has just been ordered by a court in the bvi it says the advisory firm to neo has been appointed by a bvi court to handle the liquidation of three arrows capital it says the court order placed three arrows capital into liquidation on june 27th but so far 3ac haven't responded to comments just yet it says as a liquidation handler to neo's main job is to protect the assets of three arrows capital and understand who its creditors are usually tweaked is saying that an asset sale process will take place over the coming days and the coming weeks and it says it will be planned with potential buyers interested in three arrows remaining holdings such as tokens or equity stakes in crypto startups so therefore three areas capital is going to be selling off its remaining tokens remaining equity stakes and remaining long tech stocks as well but as i said i don't think it's just going to be 3ac that ends up being hit by this as 3ac is selling off its remaining bitcoin and its remaining tokens it's likely the price of bitcoin will fall further and obviously if bitcoin falls further a number of other companies and a number of other funds like microstrategy for example will end up also being liquidated and obviously as more and more hedge funds end up being liquidated it's only going to cause the stock market to fall further and further fully into that crash territory and zero hedges tweeted saying that jp morgan also expects the market to continue falling as jpmorgan has just taken the axe to tech jp morgan have just cut tons and tons of their price targets on companies like alphabet or google amazon facebook netflix snapchat pinterest and tons of other companies like ebay fiverr and many others cutting targets on a giant scale like this with pretty much every single tech company experience a price target cut just shows that jp morgan do expect the market to continue falling they know the market collapse isn't over they know more hedge funds are going to go bankrupt they know more exchanges are going to fail and they know the market is going to crash more heavily causing more and more coming liquidations and obviously as this liquidation of three arrows capital takes place over the next few weeks and more and more crypto and more and more bitcoin is sold off i do expect the price of bitcoin and the stock market to fall further but on top of that walter bloomberg has also tweeted saying that williams has just said the next fed meeting will mostly be discussing a 50 basis point hike or a 75 basis point hike there's also many comments suggesting that a 100 basis point hike is needed but i do think the majority of the debate will be between a further 75 basis point hike again continuing to raise rates in this manner while the stock market is crashing will only cause the market to crash further and the bitcoin account has tweeted an excellent meme of the banks bailing out the government who are bailing out the banks who are bailing out the government obviously the government is selling and issuing bonds to these major banks and major hedge funds to generate cash so they can bail out these banks later and obviously the banks are receiving this bailout money so they can buy more issued bonds from the government effectively it's just a cycle that goes round and round in a circle creating more debt every single time and simon ray has also tweeted an excellent graph of u.s average real income growth each time the real income growth bottoms and turns negative it's because we're seeing a recession and giant giant inflation the same thing was seen in the late 1970s the early 1980s the early 1990s the mid-2000s and also 2008 during the previous recession and is also happening once again right now in 2022 every single time this real income growth has turned negative and has bottomed we've seen a recession but yet for some reason the fed thinks this time will be different and this time we'll see a soft landing so far we're basically already seeing this negative three percent real income growth and it wouldn't surprise me if it continues to fall further to negative four percent or even negative five percent obviously i do not think that we will have a soft landing i do think the market will continue crashing and will likely experience another recession the final quarter one gdp figures were just announced today as well with a negative 1.6 reduction in the us gdp that exceeded the expectation of negative 1.5 reduction and it won't be long until we start seeing quarter two figures being released as well and obviously if again we see negative gdp growth in quarter two then we are officially in a recession something interesting i did want to talk about though in relation to amc and gamestop is the cost to borrow compared to the number of failed delivers now you may say tom ftds don't really mean much but right now we're seeing the highest level of ftds fail to delivers since back in june so the first thing we're seeing for amc is this massive skyrocketing in the cost of borrowed fee since around mid-may this has increased from around one percent so far up to a whopping 30 percent we're also seeing the number of failed delivers skyrocketing to over one million fpds in a single day we did see this for one day back in august of 2021 but before that the last time we saw failed to deliver numbers this high was back in june and july i do think it'll be interesting to see this ftd number increasing over 2 million and potentially over 3 million in the next few weeks i do think these hedge funds are massively struggling with this high borrowing fee or high borrowing rate and also with a sheer number of shorts or sheer number of shares on loan so far all the data is pointing to amc running up once again we've got 100 utilization we've got a new record of shares on loan a new record of percentage of short interest we're seeing these giant ftds once again and we're seeing a new record in costa borrow i think it'll be very important over the next few weeks to keep an eye on these fpd numbers until we start seeing them spike and skyrocket over two million fdds once again i think that'll be a telltale sign that these hedge funds are losing control over amc and are struggling to hold it down i think when we see these ftds peaking once again that's when we'll see the next amc run up but guys be sure to let me know what you think down in the comments below and as always guys be sure to ding that notification bell because that way you'll be alerted when i upload a new video cheers.