So earlier today Bitcoin and the crypto markets took another huge hit and we've seen one of the most hardest crashes throughout this bear. Market Well in this video, I'll be giving you a quick rundown of the five reasons why the crypto markets have tanked and towards the end of the video, I'll be sharing with you exactly why I Decided to buy more crypto on a day like this. Well, everyone's running around like headless chickens. Let me tell you, it's moments like this where if you've stumbled across this video, I'm gonna give you the truth on why.

you need to ignore the fear and keep pressing on. Currently Bitcoin is down around 10 to 11 percent with Ethereum also following soon at the 1400 level down about nine percent. Now there are still some cryptos actually within the green, but if we flip it around, there's a lot more in the red today with Stacks down 32 percent, a lot of the all coins averaging a 10 to 30 percent decrease. So one of the reasons why Crypto decided to crash was because Silvergate Bank, which is one of the largest crypto focused us lenders, had announced plans to start winding down on their operations and liquidate the bank in light of recent industry and Regulatory developments.

Now, This announcement came after the Crypto Friendly Bank had suffered one billion dollars worth of losses in the last quarter of 2022 as a direct consequence of the collapse of the Crypto Exchange FTX where they were one of Silvergate's main clients. Now, Silvergate is also within the stock market and their price is now tanked 82 Since the beginning of March Now days before this announcement had actually come public, there have been a ton of other crypto companies that is officially cut ties with the bank. After accusations at Silvergate was even more deeply involved with the collapse of FTX got Loose. This includes Coinbase Galaxy Digital Gemini Paxos and even bit stamped.

If you go ahead and take a look at the chart on your screen, you'll see an immediate drop in Bitcoin's price on March 3rd when Silvergate decided to suspend at their crypto payments Network and when these crypto companies decided to cut ties with the bank. Now, the reason why Silvergade not having the best news impacted Bitcoin directly is the fact that a huge number of market makers and different exchanges relied on the bank to process instinct crypto Fiat transactions because Silvergate was actually one of the very few regulated financial institutions providing banking services to crypto companies. and U.S Exchanges Don't forget about Microstrategy, which was also the largest corporate holder of Bitcoin that also had exposure to Silvergate Bank. Since then, Microstrategy has gone ahead and addressed the concerns regarding their relationship with Silvergate, but it hasn't seemed to have slowed down the tumble that we've seen happen within the market.

The good news though out of a story like this is that Silvergate Bank isn't filing for bankruptcy or anything close to that, and it doesn't seem like they have a massive hole in their balance sheet like FTX did right now. They're just not in the best position with regards to how the market is done and what the relationship with some of these other companies have looked like. But it looks like they do a plan on paying back that full amount to their depositors. Now, the second reason why the crypto Market has gone down is because the Biden Administration has been attacking the crypto Community President Joe Biden had stated in a recent conference that he wants to double capital gains and clamp down on Crypto wash sales.

Now, now, this here would be included in an upcoming budget proposal where they would double the capital gains tax for certain crypto investors from 20 all the way up to 39.6 On top of that, it looks like they're trying to eliminate crypto wash sales for tax loss harvesting. And for those who aren't aware of that, crypto wash sales just a strategy in which a crypto Trader sells their assets at a loss for tax purposes and then repurchases the same asset immediately after on paper. you would realize those losses and you could carry those Capital losses over year after year, which would decrease the amount of taxes that you would have to pay on any gains that you would make. Since digital assets have not been classified as Securities and crypto is currently not under the same rules, it looks like President Joe Biden is currently trying to propose a way that this little loophole would not exist for other investors.

It's not just that though, but it looks like President Joe Biden is looking to propose a new bill that enacts a 30 tax on electricity use for all Crypto miners within the US. Now his idea behind this is that reducing mining activity would lessen the environmental impact it would have on our earth. Now those two reasons definitely have not helped the Crypto Market But I believe this one is one of the primary reasons why cryptos decided to take another tumble. and that's because Federal Chairman Jerome Powell has gone ahead and testified on Capitol Hill about policy and the future of this economy.

On Tuesday he went ahead and had his first part of his two-day semi-annual monetary policy testimony where he had talked about how a half Point hike is here back on the table and after getting some additional data from the labor markets and consumer spending, it looks like things are not yet over for the economy. Drone Palette quoted the latest economic data which has come in stronger than expected, suggests that the ultimate level of interest rates is likely to be higher than previously expected. He also said if the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes. Combine that with a semi-viral clip of Senator Elizabeth Warren pressing Powell about 2 million more lost jobs from an unemployment rate Rising which naturally tends to happen when interest rates go up.

This type of news doesn't really help Wall Street to stay confident and it doesn't help the mass public either. It looks like out of all this news, what people are worried about the most is that the Federal government is most likely going to raise the rates Again by another half a point in May and then a quarter point in June and another quarter point in July to Total That up, it's going to be another entire point and a half more from what we have now. and instead of stopping the interest rates from peaking around 5.5 percent, it would actually be more like six to six point, Two five percent. Now History has also shown that in order to reduce inflation by at least two percent, unemployment had to go up 3.6 with the current inflation rate at 6.4 percent and the unemployment rate at 3.4 percent.

If we take a look at history in order to get inflation from 6.4 to 4.4 percent, the unemployment rate is gonna have to rise seven percent based on history. So if we're talking about more people getting laid off, this is going to confirm the fact that we may not have been in the worst part of the recession yet, and that deep deep recession might be coming up soon. If that's the case, more people are going to be losing jobs, more people are going to be going hungry, and that is not going to be helping any type of investment markets, especially like crypto stocks. I Also want you guys to take a note that it wasn't just crypto getting wiped off, but stocks have been taken a tumble too.

So any type of news that we ever get on inflation, interest rates, or the broader economy usually the stock market is going to Tumble first. and then we see the crypto markets following suit after. So those are two additional points. and to make up the fifth point on why the crypto markets have been going down well, the New York State Attorney General Latita James Announced that she has officially decided to sue Kucoin, claiming that the crypto exchange is offering unregistered Securities and it lacks the formal registration required to operate and more.

The different cryptocurrencies that were mentioned by name in this lawsuit were Ethereum Luna and USC. Now, this action is one of the first times a regulator is actually claiming in court that Ethereum, one of the largest cryptocurrencies available, is also security. Now you gotta keep in mind that a lot of this is kind of still fun. It's not really official news which would justify these huge price tips, but you also have to realize that Kucoin was a major player within the space.

They were one of the exchanges that allowed most regular people to buy a lot of these different all coins. Now out of the Sea of red news though, here's the: Silver Lining On a day like this, I actually decided to buy even more crypto which I posted in our private Discord membership group now I don't have have a crystal ball I Don't know what's gonna happen tomorrow, but I have a feeling that markets are going to eventually come back. This is because a lot of the news that we're getting is the same consistent wording that we've expected to happen. and I don't think even right now that the markets would turn around in a split second.

but anytime the Federal government decides to change their stance and Jerome Powell goes from a little hawkish to a little bit Dove like a little dove flying in the air, we see the markets take a little bit of a rebound and we see even in just those moments where like last few weeks Bitcoin is at 25 000 right now it's down five thousand dollars you can find at different moments to still keep building up those positions and even building stronger portfolios. Where out of this recession you're gonna be thankful that you did end up buying the dip even throughout this bear. Market We're gonna run into smaller cycles of where the market gets spooked Even more, we get a sell-off from a mass majority of people and then we see another small rally following suit after. At this point it's like clockwork and if you take a look at historical price data, you'll notice that this is exactly what's been happening over the past few months and even for the last year of 2022, we've been on a downward trajectory.

But anytime we go into like 15, 20, 000 range, it'll sit there for a little bit, but we eventually start rallying up a bit more. and then if it decides to go down more, that's where you decide to take those profits And that's how you can make money within a bear market now. I Want to remind you guys too. I Also made a full video just talking about step by step, what you need to do in order to get rich in this recession.

and one of those steps that I mentioned in that video was to invest. With that in mind, all you have to do is just pull yourself together. You want to consider buying up the dip averaging slowly because the days when things go up will come. Now guys, this is just another day within the crypto markets.

I'd be more surprised and worried if Crypto decided to actually go up in price when everything seems to be going down. So I just see this as another great buying opportunity amidst these times. Now if you do want to start building up your portfolio too, one platform that I've been using is Weeble I actually went ahead and made a large purchase at the beginning of the year and I have about thirty thousand dollars worth of Ethereum here on my phone up about 17 percent today. If you guys want to open your own free account, you can also get up to 12 free stocks where you can trade both stocks and crypto.

On top of that, if you guys want to go ahead and join our Crypto newsletter down below, we're not posting too much right there right now and there's no crazy offer, but we got a newsletter and when we do start posting at a time I'm not sure yet because we're so busy here with the YouTube stuff, you guys are going to be hit with some additional amazing news there. like the usual. If you guys haven't watched some of our other videos on how to take full advantage of what's happening within this recession, make sure you do that too. In the meantime, put your chin up, stay strong.

Everything's gonna be okay. Shoot me a follow over on Twitter and Instagram and I'll see you all soon! Peace.