In a video, Sam discusses the market, the economy and the importance of having some amount of cryptocurrency. The crypto market has seen some movement, with Bitcoin racing up to its previous resistance level, but the S&P 500 is facing resistance at a trend line, causing concern for some investors. The news that crypto lender Genesis has filed for chapter 11 bankruptcy is also causing some ripple effects. The economy is struggling as Google, Amazon and Microsoft all announce layoffs and home sales continue to decline while credit card debt rises. The national debt of the US is over $31.5 trillion, with a debt to GDP ratio of 121.5%.
In today’s video, we have three main things to cover. Firstly, let’s take a look at what’s happening in the market. At the time of recording, both the NASDAQ and cryptos are up. However, it is important to note that cryptos are currently fluctuating between 20,500 and 21,500. While this may seem like a big move after months of stagnation, it is relatively small in the grand scheme of things.
BTC has been racing up over the last few hours, reaching previous resistance levels. If we manage to break through these key resistances, we could see a big move. Similarly, the S&P 500 is facing resistance as we’ve been rejected time and time again at the trend line.
The Importance of Crypto
Secondly, the economy is starting to crumble, and this is where crypto comes in. It is essential to have some amount of crypto right now. The government is doing things behind the scenes, demonstrating again why there is so much value in a trustless system. Remember to look at the long-term outlook for crypto, and even if bad news continues to come, it might have already been priced into the market.
Crypto Lender Genesis Files for Chapter 11 Bankruptcy
Lastly, we need to discuss why you need to have crypto. It is crucial to consider matters such as Genesis, a crypto lender that has filed for Chapter 11 Bankruptcy. The firm has estimated liabilities of 1 to 10 billion in assets, and the derivative spot trading broker-dealer and custody businesses of Genesis are not part of the Chapter 11 proceedings and will continue operations. It will be interesting to see how they figure out who owes how much money and how they’ll pay them. DCG is scrambling because they still owe a lot of money to Genesis, and they try to sell off some of their assets on the open market.
The State of the Economy
Moving on to the state of the economy, we have seen Google, Microsoft, Amazon, and many other big tech companies announce layoffs. Existing home sales are falling, and the annualized rate of 4.02 million units is the slowest pace since November 2010. Credit card debt is also racing up, standing at 1.2 trillion, while personal saving rates are at 2.4%, down from the 20s during covid-19. The average rate on credit cards is around 19, indicating that the average household is having a harder and harder time.
In conclusion, it’s crucial to keep an eye on what’s happening in the market and the world. Having some amount of crypto is becoming more and more important as the economy continues to crumble. It is also important to remember that we should be looking at things in the long-term outlook. Always look for new information and updates, and keep track of your investments.