Bitcoin & Ethereum are about to Explode | MARK THIS.

hey everyone kevin here this video is

sponsored by masterworks but more on

them in a moment first we've got to talk

about how the federal reserve and what

the fed just said today in my opinion

gives us the license to see bitcoin hit

120k

and 10k ethereum i'm going to explain

exactly why in this video let's get

right into that

first

i believe based on surveys that i've

done and research that i've done that at

least 40 to potentially 55 of

individuals who invest in

cryptocurrencies or cryptocurrency

assets do so because they see

cryptocurrencies as a hedge against

inflation they see real estate out of

reach which is a traditional hedge

against inflation

at least leveraged real estate is and

they see that

fiat or just holding dollars is

obviously not something that is going to

hedge you at all against inflation if

anything you are most exposed to

inflation holding on to dollars in fact

you're more protected from inflation in

the stock market than you are holding

cash obviously cash is nice for

opportunities but hey

why not instead of hold cash or holding

cash hold cryptocurrencies which are

also extremely liquid that you could use

for opportunities as they present

themselves for example if you're going

to hold cash to go buy stocks on the dip

you may as well hold money in

cryptocurrencies and then buy certain

stocks if they dip after earnings or

whatever

if you wanted to preserve your wealth

your cash wealth and protect it from

inflation while at the same time having

the liquidity to go purchase something

in the event that there's a dip

obviously that works well unless of

course bitcoin or ethereum or all of a

sudden plummeting which entirely could

happen but that's the benefit of bitcoin

or ethereum is because there's

volatility the goal is that you would

make money and be protected more from

inflation but what did the federal

reserve just say

that actually gives us a license to see

bitcoin and ethereum run substantially

well it is actually

a wind behind what i've been talking

about all year and that is that i think

2022 is going to be the year that

cryptocurrencies really take off i think

that's when we're really going to see

a push for a real bitcoin etf not a

futuristic etf i think that's where

we're going to get actual stablecoin

regulation which will be bullish for the

market in my opinion because it should

help us limit excesses of leverage which

i understand the traditional banking

system has lots of leverage as well i

get that

but we want to make sure that we're not

like 10 times as leveraged as the

regular market because then we could be

really building cryptocurrency

valuations on uh you know sort of

toothpick foundations and i don't like

investing in things that are on

toothpick foundations i like companies

or assets that have really solid

foundations and then fluctuate and

hopefully in the long term go up in

price right but anyway that philosophy

aside the federal reserve is essentially

telling us a few things one they told us

that inflation is not under control they

said that we're working to get inflation

under control so in other words italics

right now inflation is not under control

which many of us already knew that but

it actually was uttered by the fed today

that inflation is not under control they

also say that they expect inflation to

last until q2 and q3 of 2022

that means anywhere between april and

september of 2023 or sorry 2022 is when

we would expect to continue to see

inflation until

and my expectations are that even when

inflation starts ticking down we're

still going to have higher wages and

higher rents that are going to have this

sort of lagging inflationary impact

pushing inflation up even more now we

could potentially see crypto do really

well the first nine months of 2022 and

i'm bullish about that i do think that

it's possible crypto markets are going

to start trying to price that in

starting even this month or december of

this year trying to price that

expectation in but we could potentially

see a downward catalyst for

cryptocurrencies when that inflation

starts inflecting down as individuals

potentially see less of a reason to be

in cryptocurrency at least those

individuals were using it as an

inflation hedge obviously if somebody's

in something because of an inflation

hedge or their goal is to hedge against

inflation and inflation goes away then

it would make sense that they would be

sellers of something that's otherwise

their inflation hedge right like when

inflation goes away maybe you dump gold

and you take it and you go buy some

other assets like tech stocks or

whatever you want to do so while i do

think we'll have that that shift

i do think it's going to take long not

only going to take longer but when that

shift starts coming i think that shift

is not going to be a dramatic drop in

inflation i think we're going to see a

little bit more of kind of a slow bleed

out of inflation because of the lagging

impact of wages still going up and of

rents still going up the next part of

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for sponsoring today's video so what's a

strategy for investing around all of

this well in my opinion here's my

strategy my goal is to be about eight to

ten percent crypto as a tool where i

park money either when i'm saving for

taxes or i'm i can't find any goods uh

stock deals so for example if there's no

good stock that i can see that's selling

for a big discount park eight to ten

percent of my money in cash but rather

than it actually being in us dollars

i'll have that in crypto so that'll be

bitcoin ethereum and cardano those are

the big three that i'm parking money in

i do own some smaller amounts of

different altcoins but these will be my

big core positions so like 95 plus

percent will be these core positions

then what we'll do is as i see the

inflation potentially start inflecting

down i'm going to really want to pay

attention to have we hit some new highs

and are there going to be opportunities

to potentially take profits so that way

let's say i put 10 percent of my stock

trading portfolio or let's say i put

three million dollars aside for

cryptocurrency uh cash that i have

sitting on the side and for

opportunities where i'll sell the crypto

and buy stocks when opportunities come

up if that crypto becomes more valuable

let's say it goes up by 30 and all of a

sudden i have 3.9 million dollars i'm

going to probably shave that extra 900k

once we start seeing inflation turn

and then only when i start seeing

inflation turn will actually move that

extra crypto to cash but i'll only start

shaving

well if as long as i'm not on margin if

i'm on margin that's different for me

margin is like get rid of borrowed money

like be out of margin but i have no

margin right now so the rest will go

into crypto until i see inflation

starting to rotate down until that

happens it's going to make sense to in

my opinion continue to focus on the

larger core cryptos for the bulk of your

portfolio bitcoin ethereum cardano maybe

solana even uh and the rationale behind

that is as much as it's fun to trade

some of the smaller tokens i wouldn't

put a large portion of my portfolio in

i'd probably put somewhere around that

same thing i could do with stocks five

to ten percent into shorter term trades

and hey if you hit it really hard and

you double or triple you take that money

out then take maybe half of that or

three quarters of that gain start

throwing it into that bitcoin ethereum

cardano solana pie that way you're

diversifying and then go play again it's

kind of like going to the park hopefully

you win big bring back load up your

other core positions and then go back

into the market and try to go shopping

again for that opportunity kind of a

strategy i have but in my opinion this

move by the federal reserve to

essentially admit that inflation is out

of control right now that they expect it

to go down in between q2 and q3 but in

the meantime they're going to continue

to print money until probably june of

2022 when the taper completes and

they're not even certain they're going

to raise rates at that point it's all

gonna have to do with what inflation

does at that point well it's possible in

my opinion that cryptocurrencies just

continue to do well up until that point

now no guarantees because the market

likes to try to anticipate inflation

going down and in that moment when we

see inflation start trending back down

again we'll probably see a little bit of

anchoring on the price of cryptocurrency

so my opinion a lot of crypto price

right now is not going to be related to

stock to flow but in the short term it's

going to be related to inflation and we

do have cpi data coming out soon so

let's see cpi data release

and let's look at expectations as well

for this i think that'd be good so the

next cpi data release is actually pretty

soon it's coming out november 10th

that's going to be cpi data for october

remember they always report one month

behind

so november 10th that's next week uh

wednesday actually is when it comes out

so one week from today

and then we're gonna get a report on

what inflation is like for october we

know that inflation came in a little

hotter in september but we did also have

more coveted shutdowns we have seen some

costs start coming down like used autos

have come down a little bit but they've

also been kind of fluctuating back up we

have seen lumber push back up but that

shows up in things like the producer

price index and not in the consumer

price index

which is just another thing that kind of

adds to a little bit of confusion

because you do have these different

measures of inflation i really think

they try to almost confuse us on

inflation which is kind of annoying but

anyway uh let's uh let's go ahead and

look at the expectation so if you have

not yet marked your calendar november

10th is the day that you want to mark

your calendar if we get a big beat on

inflation numbers

i'll probably buy crypto like my goal is

going to be to sit there right at 5 30

when that inflation report comes out and

then buy or sell crypto based on what i

see happen that moment so i'm going to

be sitting here with my coinbase and i'm

going to be ready to go all right so

10th cpi month over month the survey is

showing an expectation for a 0.6 percent

increase increase that's up from point

four percent last year a point six

percent increase if we hit that

expectation that's a seven point two

percent annualized inflation rate that's

very high this expectation is that this

inflation report is going to come in

high and if it does come in high

i think that's going to be a bullish

scenario for crypto even if it misses

the expectation is this high it would

have to miss dramatically

but anyway

cpi uh at uh 5.8 percent year over year

uh is the expectation that's not the

annualized month-over-month version

and then it looks like we're expecting

uh cpi without food and energy to be at

4.3 these are all increases

of around 8

from last

month

so the expectations are very high for

inflation uh for the october report uh i

don't we're not gonna get any inflection

point this year on inflation it doesn't

look like and jerome powell himself said

we're not going to see

you know real moderating of inflation

until the middle of next year in my

opinion bullish for crypto bullish sign

for crypto so we'll see what happens uh

very interested to to track what happens

as well over the next few days as we

lead into that inflation report but

right now the expectations are

definitely high

so these are my thoughts on why the

federal reserve has kind of given a

license for cryptocurrencies to do very

very well over the next year and folks

we'll see the next one thanks again

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