. Well folks, i hope you are having a fantastic day wherever you are and in today's video. I want to spend some time to not only dive into a really unique correlation that we're, seeing across the board in most asset classes, also what makes each asset different in this correlation, pe, along with that, diving into the importance of digitizing currencies taking traditional fiat currencies. Tokenizing them and being able to utilize those tokenized currencies in unique ways and how this is becoming more and more of a reality for the next coming years. All right, so we've got a lot of things to discuss right after our quick sponsor our sponsor for today's video is cybervane. Cybervane is a new age blockchain that allows companies and users to store and manage enormous amounts of data never available beforehand. In previous decentralized storage solutions, cyberman's target goal is to build a wide range of powerful enterprise ready services and, as of recent they've, not only been aiming to help medical workers in the fight against the coven 19 pandemic, but have seen significant growth in 2020. to learn More about cyber veins, long term goals, as well as their current progress and project philosophy, check out the link below in the description for more information, alrighty everyone, so let's go ahead and dive straight into taking a look at cryptocurrency markets, as you can see here over The last 24 hours, the vast majority of cryptocurrencies, are in the red following about a three to five percent dip in bitcoin's price.
Now, if you're taking it really over the last uh per se, you know 48 hours starting to cut in a little bit into uh. Yesterday'S time as well uh, we actually had a pretty stark dip actually right after we made the video and stuff. So what happened was that we actually it didn't end up breaking resistance, so we'll spend some time diving it to the individual ta on bitcoin. I know i don't want to talk about it. It'Ll come up next, but i want to go ahead and just dive right into this topic that i alluded to talking about. You know the correlation that we're, seeing across a variety of asset classes, and i think this is very important to just visualize it. So i took the time this morning to kind of put everything together, and we wanted to talk about this for the last few days and what's really interesting here is to see how bitcoin itself right. We know that bitcoin has been performing quite nicely over the last two months ever since it set in those lows back in early march. I remember when i was in new york and that sell off was happening. It was crazy. It was the second worst cell day for bitcoin in history, it's the worst sell off day for ethereum's price, and now we have a little bit of time to reflect because not only has bitcoin risen back up, but we've also seen. Hedges such as golds and silver.
Do quite nicely as well in the exact same period of time. In fact, what you see here is you see a very strong correlation. You know with a two to three day: divergence in this case between different assets of when the bottom was set. Bitcoin set the earliest bottom, we had gold that came in second and then silver that came in third, but not really trying to you know, put a you know a rat race to this. In this regard, you know again, they all bombed. In generally, the same period of time and all three of them have had really stellar uptrends we've had bitcoin up about 121, and this is on the line chart. So if you're taking it into the candle chart, you're taking the bottom of the wicks, then in this case you're probably going to get a much better percentage return for bitcoin. We can see your bitcoin up around 121 percent silver up, almost 48 percent and also gold up nearly 22, so really good returns here across the board in these assets, and it makes sense that these assets would move the way that they have because they're hedges in This case there's something that can hedge against the current macro environment, they're, not tied to any specific government they're, not correlated assets in that matter, and along with that, these things can actually, through their actual properties of limitation, they're able to hedge against excessive central bank, printing And no doubt that they would start to move to relative highs here in this case that we haven't seen in a little while with the century bank monetary policy coming into play.
So i think that these have a lot more room to move, but i want to bring up one interesting thing that is still holding true one that has even shocked me a bit as much as i expected. It would at least hold up to a decent degree, and that is the performance and equities. Now you can look at a lot of different indices for uh different. You know stock parts of the stock market. You could look at the s. P. 500. Take a look at the dow jones, the nasdaq, the nasdaq is going to give you a slightly more exacerbated return of about 37 Pa 38 percent. I think the dow jones uh is probably around the same ballpark, if not a little bit less but give or take the s. P 500 is usually a very good neutral and non biased approach to how the equity markets perform. You'Ve got your outpacing sectors, which you usually tech, and then your underperforming sectors which are manufacturing or uh, for example, uh consumer uh, basically standard consumer goods that people are buying i'm trying to get the actual term right now so um, but basically it's, basically cyclical goods. That people are buying 24 7., the procter gambles of the world, the johnson johnson's right. So right now we have equities performing 35 from their bottom and, interestingly enough, they had set a bottom l. They were the last of the four asset classes to set a bottom, pe, roughly speaking, has performed quite nicely in fact, it's actually outpaced gold in this short term window time now.
Gold is outpaced equities here in the broader sense. If we take a look back here right, gold just came back down to its lows. The s p 500 is still well below where gold was setting its load, that it revisited back over here in november. So again, equities have been the worst performing right now, if you take the broader yearly or two year time frame, uh we've been seeing gold and silver and the ratios that we talked about outpacing the s, p 500. You can take a look at it for yourself. You can type in gold forward, slash spx or silver forward. Slash, spx and you'll, see it firsthand we've been setting higher lows and higher highs. But what does this tell us? In the broader sense all these assets move to correlation. It means that even equities, you know right even equities in a market where it's probably a lot more of a bearish tone. Now they will react to central bank monetary policy. The fed over these past couple of you know really just last two months over these last two months, the fed has increased the money supply faster than it ever has in history. It has injected mass amounts of capital, both physically through physical dollars through printing and also digitally whether it's been its actions in repo markets. Whether it's been the the junk bonds that they've been buying up. You know pretty much saying that any risk taking is completely accepted.
Now because you know, if they're buying junk bonds and they're lowering rates as low as they have they're, probably going to start buying up equities soon right. So, of course, all this centrified policy is going to help support equities, and this is a big point that i always try to draw. Why i never talk about shorting equity markets, it's, a fool's game in a world where central banks can print unlimited amounts of money. What you're, probably better doing, is asking a more important question: what market is leading, and i don't mean to to the same horn time and time again here, but the key market here guys is bitcoin along with that as well. Silver right you don't, want to be too biased to say i put it all in one asset. No, i don't want to tell you guys what to do and, along with that it's silly to just have yourself exposed to one specific asset. You should have a broadened portfolio that's. What most financial advisors will tell you right, that's, just my personal take you have to determine for yourself. You can determine how much risk you want to take if you want to put it on one asset. I know myself. I'M. Mainly exposed to the cryptocurrencies and it's for this reason here, because when the tough times hit, when markets start to correct and start to rebound from the liquidity crisis, as all markets got hit by when we had the major pullback in equity markets really weighed down all Global markets, when we got the rebound after the fed monetary policy, i want to see who's the fastest horse in the race that's, exactly what paul tudor jones said and if you take a look of these last 45 50 days, i guess in the case of equity, It'S only been 43 days since we set the bottom, which one's performing best, and this is bitcoin we're – not even talking about some altcoins that have probably in the same period of time, beating up bitcoin, 20, 30, 50, maybe even 100.
Some have done really well so again, very very fascinating stuff. I think this is important to keep in mind and again follow what's, leading the markets. Put your biases aside and focus on who's outperforming things anyways going on here to the ta side of things. Bitcoin is going through a little bit of a pullback to be completely fair with you guys from yesterday was it's ironic. Sometimes the timing is just like it's like spot on. I feel like the market's going against me. Sometimes, but no i mean, for the most part, we've been actually pretty pretty good on. You know calling the general uptrend here, i think, that's something where we can have a little bit of confidence that i said to not fight the trend, as we were going up into the having event and we did good. We went up to our target range of like the upper 9 000 range. In fact, we went all the way up to 10 000, but we've been experiencing some resistance with that key line of resistance, we've discussed on the channel and avoiding you know focusing too much on the same topic time and time again, i want to actually talk a Little bit on a shorter time frame and discuss about this pullback here, we're at a price range. We need to see hold here in my opinion, because if you take a look here right at the last couple days, we can even take it here just to simplify to the four hour right.
If we don't hold around this range of around 9 200 Pa 9 300, where we're, currently testing right now, the next series price range is down here where we went to on the having event around 8 500.. It wouldn't be the end of the uh, but i would say to set that higher low at a support range that we've seen tested in the past, and also it was previous resistance, would be really key to provide a signal in price that we're going to break. Above the long term wedge, and if we can get that we're, probably going to 11 000., if we can't hold here within the next 24 hours, it's, probably that we're going to break through and come down here for an even more dramatic sell off it wouldn't, be The end of the worlds again, you know if you take it from 10 000 right you're, only taking about 1500 off price right, it's, not it's, not the end of the world, that's a 15 pullback right so again, wouldn't be the end of the world, but uh It might be that we have to come down and retest that i think we have a good chance of holding up here. We'Ll see what happens over the next few days, but you can generally watch it. If you want to set your stops or trades, i don't really care i'm, not adjusting my positions, guys it's. Just for me. I like to look here and see if i can estimate how price is going to hold out here over the next few minutes.
So we can see here, yeah cell side pressure is picking up, we'll see if we can get a rebound, maybe we'll check it at the end of the video just to see where it's at and i'll provide some intake in case we expect that we might get The 8500 level all right, so i want to dive into a little bit of a discussion here. You know, as we talked about with the the assets that have been outperforming this market. I want to talk about the thing that's also going to provide a major bolster to cryptocurrency markets, and i think it's going to be a major on ramp into the cryptocurrency space as well. To be able to buy bitcoin, to be able to buy ethereum. To be able to buy a wide range of erc20 tokens and other cryptocurrencies, and that is the digitization of currency – and this is not just true for the dollar, where it's been most predominant in the form of stable coins, but it's also going to become a reality. Through central bank, digital currency for other types of currencies, the euro, probably the japanese yen in the coming months, we already know that the chinese yuan is being digitized by the people's bank of china and uh the uh, the agricultural bank of china right there's. A lot of people who are now starting to work towards building these systems in the back end and a lot of them, especially china's, is starting to look like it's coming to fruition here within the next year.
This is going to set massive ramifications and, as one country joins in, it is going to knock more countries into the trend. So why would digitized dollars be a beneficial thing? You know what what's so revolutionary about it don't. We already have digital dollars to a degree. Well, i would say in a sense: yes, we do have digital dollars through centralized databases, so when, for example, i'm sending money from you know, bank of america to jpmorgan, in that case, we're doing a digital, ach transfer or we're doing a wire transfer of some sort. Over the swift network right, so these traditional payment networks, they can do their job but they're highly inefficient, so they're not good at getting liquidity out in a timely manner and, along with that they're very, very expensive right. These are our cake systems. The swift network has been around since the 70s and it hasn't seen a dramatic shift in change, or at least in the sense of its improvement in speed and cost effectiveness. So what happens here right? We go from a system like that. That is still prevalent, and i know many businesses who have to pay these crazy wire transfer costs in order to actually be able to send funds to other businesses or other individuals. You go to something like usdc, whereas when you digitize that dollar after the first time, it's on the ethereum blockchain and no matter if i'm, sending one dollar or if i'm, sending 100 million dollars, i can send it at a matter of less than 30 seconds.
And i can pay somewhere as little, even during a time right now, where ethereum hasn't even fully scaled out on chain. I can send a transaction for a matter of anywhere on cheap days, around 1 Pa 2 cents to more expensive days around 8 Pa 10 cents. How incredible is that? How much of a dramatic shift is that, from the 25 Pa 45 dollar, wire transfer fees that you and i probably have to pay at our bank? If we want to wire money to japan, i can do the exact same thing from one cryptocurrency wallet to another in a matter of seconds: there's, no permission required it's digital dollars, it's the sense of the word itself outside of the pure element that there's still a Lack of privacy on public chains – and there is some form of traceability which needs to be improved generally speaking, right, there's, a sense of anonymity, and along with that, i can exchange it to someone, no matter who they are where they are. I can send it across the world and this is really going to call on central banks to build better systems, and this is why even people like jay powell again, i know we haven't done too much in the article. I recommend you guys read through this it's. Actually, a really good piece by alex al. Alright, sorry axelrod. Sorry from cointelegraph really talks about some of the good updates in this space and you can read you know i have close contacts who have been watching a lot of the public, webinars and stuff that the bank of england and the ecb have been doing and talking About digitizing currency and it's a reality it's coming sooner than you think guys.
This has been talked about since 2015.. It was the first post in the uh, the international bank of settlements, the central bank of central banks, where someone put this proposal together of a central bank, digital currency, and it looks like it's finally becoming reality. So it's going to be interesting to see you know what's going to happen with you know: central bank digital currencies, which i'm actually not too negative on so long as they keep to a certain set of principles. It needs to act like a digital dollar and honestly, if you have the tried and true you know issuance in this case from the central bank, it might even be more trustworthy than having to trust someone like coinbase or so, and so you know in order to Have uh one to one backing with physical dollars or digital dollars compared to your crypto tokens that you're generating uh? The in this case would be a one to one backed ratio, so anyways it's an interesting topic. I ramble on about it forever, but i really got prompted to talk about this because my good friend alex sanders and stuff who talked about this with a really interesting individual. So he did an interview here with brent johnson who's not only been on real vision. He'S been around the block and stuff, and talking about the kind of liquidity crisis. That'S still persisting right now around the world, dollars are in massive shortage right now, it's certainly been a little bit uh it's, starting to become a little bit alleviated as the fed has continuously injected more qe programs.
But this has been a point that i've talked about. Not only in the sense that the fed and other central banks are still going to be printing mass amounts of money, there's still a huge gap here, uh trillions of dollars that need to be made up for with what what happened in regards to the uh, the The you know the pullback we had in equities and, along with that, what's likely going to become a depression if we don't move quick enough in monetary policy, but also if you overstep monetary policy, that can cause the issues as well. And i really think this was an interesting conversation alex brought up something that i've yet to see anyone bring up that i've been honestly. I thought i was going crazy, just kind of thinking about it to myself and i've been meaning to talk about it it's. This idea of what he calls the digital thick shake theory, which is a modification of the dollar milkshake theory that uh brent johnson brought up and it's. This idea, where stable coins and digital cryptocurrency tokens that are pegged to world currencies issued either by central banks or companies like coinbase and circle in the case of usdc or even bitfinex, when it comes to tether that they are going to help fill this void. Of the liquidity crisis in the world – and i think it's a really interesting question uh could you know? Could this be the solution here because, as alex brings up – and this is what i've been thinking about a lot it's, this idea where you can send these digital dollars a matter of seconds it doesn't matter? How much you want to send everything is permissionless on chain on ethereum or on other blockchain networks that have stable coins.
I think it's a truly incredible question and i can tell you all right now, as i've probably alluded to time and time again, i am working on something that definitely plays a massive role in all of this uh, but i have to say again, i'm very happy To see that other people are thinking like i'm really proud of alex bringing this up and talking about this with with brent and the cool thing is brent, being such a respected name in the space alongside you know, alex of course you know. What'S interesting is not only does alex present this in a really. You know plausible way. It actually makes sense, but brent actually agrees no matter if it's going to be something like usdc or usd tether, or if it's going to be a government central bank, digital currency. But in this case you know no matter what it is. Digital currencies are here to stay, so i think it's a very fascinating topic here. Europe, as well as asia, seem to be really leading the way here. We'Ll see what happens over the next few months, but it will tell you all the best way to get involved in it. Right now is to first get some exposure to cryptocurrency assets. To move out of your bank like get get out of the banking system. Go out you can basically with the current environment. Now you can get eth. You can buy bitcoin, whatever trade it out for stable coins.
You can even, for example, like through eth. You could go out and get usdc through decentralized exchanges and in this case one of the best places i think for a lot of people in europe. More specifically, the topic is one of our partners here at the channel bitpanda. You can actually go through on their exchange, whether you're using bitpatter pro or just panda, get some eve in this case, and you can basically go through and you can go out and merge in all these different stable coins out there it's a really interesting market. So i just wanted to mention. I think bitprint is a good example what you could use in europe. A lot of people refer to them as the european coinbase, and also, if you're you know, in the united states and stuff, you can use a variety of other exchanges if you're different geographical regions, there's plenty of exchanges out there. That will give you that exposure to ethereum that you really need to go out there and merge into a variety of other erc 20 tokens that are, you know, dollar stable coins, so they also have uh there's a few euro projects as well uh. I think uh stasis is one of them um, but yeah really it's mainly dollars, there's, even a crypto swiss token that was created by the bitcoin swiss team lots of interesting different players out there, but all in all guys that's it for the video today.
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