Bitcoin Just Got FLUSHED Before Rate Hike Transcript, AI Summary & Key Points

00:03 Welcome back to Cryptos are Us. I am George. We're all George. Welcome to another market open stream. Today is a big day. Today is the Fed decision day. So, what is the Fed going to do? And plus, today is the day after that big failed vote of the Clarity Act. So, let's talk about these two things. Let's also talk about how Bitcoin got flushed yesterday ahead of this.

00:37 So, let's talk about that as well. All right, let's do it, guys. Let's do it. Welcome, welcome, welcome. So, unfortunately, we're starting out a day a little bit lower than yesterday. Bitcoin is at 757, but you could argue we are still going sideways. We are a little bit lower than the last week or so, but you could see that yeah, we're basically at the same point as right here, like you know, early August or something like that.

01:15 We're still going sideways, but the a little bit lower within this channel. Some of the alts have fallen drastically like XRP is down like 10% 11% today you know it's a big drop for XRP and then you have like ETH down about 3% sold down about 3% right and this is part of that flushing out I just mentioned today however uh is a big Fed day the US market is still right now in the green which is a surprise guys.

01:49 Usually you get a lot of volatility. Like yesterday was just a big big sell-off. Okay. And we're expected to get a rate hike today. Not a cut, a hike. First time in three years. You may be wondering what is going on. This guy right here, Walsh, was hired specifically to cut rates. That's why he was handpicked. But now he's forced to hike because we have a lot of issues going on especially with inflation which is ticking up and is forcing him and the other governors to take action.

02:49 But this is happening during a bad time. Why? Well, look at our Treasury yields. Okay, treasury yields have been skyrocketing. 10-year was above five yesterday. It fell down a little bit today, but it's at like a 20 plus year uh high. 30-year, same thing. Our Treasury yield is going up. People are losing faith in the dollar. People are really scared that the deficit and the irresponsible spending will continue.

03:26 and their money is going to become worthless and the US government won't be able to pay back, right? Also, demand for housing is now down because interest rate on mortgages are up. It's at like 7%. So, and obviously jobs isn't terrific either. And a rate hike is not going to help. It's probably gonna shoot the mortgage interest up. Uh Treasury yield might go up even more.

04:05 All these things are happening and that's why Wars, you know, he's uh he's stuck between a rock and a hard place right now. All right. He was he was hired to cut rates, but now forced to raise rates. and it may have dire repercussions because the economy, to be frank, ain't doing that well right now. Uh there may be something that that drastically happens today, but it's unlikely.

04:38 It's not just him. There's like 12 to 14 other governors, I don't know the exact number, that will be voting today. They started a meeting yesterday. They will vote. I think around 1:30 is when um the announcement will be made and then 2:30 2:30 Eastern I think. Yeah, 2:30 Eastern is when the press conference starts. Right now anticipated there is a 93% chance that there will be a rate hike.

05:16 very very very unlikely that we will get a hold. Even though one of the governors, Waller, last week hinted that maybe we could get a hold. He would be okay with a hold, but now it's looking like it's impossible. But who knows? Maybe we get some kind of surprise. Maybe it's like a 5050 so they don't hike. Maybe they'll declare that next meeting they'll do a 50 basis point, but this one they're gonna hold.

05:48 I don't I don't know. Maybe something drastic happens, but unlikely. So, yeah, that is that is what's coming up. You know, it's what what kind of caused Bitcoin and crypto to have a mini flush yesterday. And on top of that, we had also the Clarity Act uh vote being uh failed, I guess. Yeah. Kind of to be expected. Uh yesterday we had a minus 450 million day outflow.

06:28 Bad outflow day. Very bad. ETH had 141 million. Soul had oh plus 1 million. XRP plus 50 million. Whoa. Where did that come from? No idea. But yeah, Bitcoin and ETH saw some massive outflows yesterday. Okay. Some of it due to the volatility, some of it due to anticipated rate hike, some of it is due to clarity act failing. A lot of people were watching the vote and stuff.

07:04 Uh basically it didn't get done. It did not get done. That's why you had a lot of selling yesterday, right? We watched it like basically the vote was was not good. We didn't get anywhere close to what we wanted. So it didn't pass. So now you know everyone this this is what I've been saying. Even yesterday I said I don't think it's going to pass. I don't think those those Democrats that that voted no before were going to change their mind.

07:44 But honestly, it does not matter. Okay. And I'm I'm seeing other people like Brian Armstrong, CEO of of Coinbase say the same thing now, right? The SEC and CFTC, they're the two governing bodies of the US. They're both in line with pro- crypto innovations. They are all we need really. You don't need the Clarity Act to be passed for new innovations or new regulations or favorable ones.

08:16 We already have it. We already have the Genius bill that passed. We have the CFTC and SEC that are both making clear rules and new frameworks for us to follow. So I mean even though it would be nice to have the cleric act passed, it's not really necessary. Okay. It's almost like a symbol, but at this point I think it's become a a distraction really.

08:51 So now everyone is kind of agreeing with me. Bernstein says, "Yeah, we need aggressive and swift SEC and CFTC rulemaking to compensate for clarity act failure." Sailor is saying, "I expect the SEC, CFTC, and Treasury to advance rules under existing law, banks to expand crypto custody and move capital to favor Bitcoin." That's going to happen. even the Treasury.

09:18 Our Treasury Secretary Scott Bass is a fan of Bitcoin, fan of crypto. He was urging for the Clarity Act to be passed as well. So, I mean, we got all the bodies we need to move forward with again clear regulations, frameworks, usher in a new era of innovation, right? We got all that. We don't really need to clear the act. But, you know, they're go they're going to try to figure out a way to keep this alive and and try to revote again.

09:54 I don't know the the certain procedure, but honestly, I I don't think we really need it. I mean, I I just don't see what what we need from it right now, right? But you know what it is what it is. It's what's caused, you know, this this outflow yesterday, right? Uh, also from liquidity standpoint, minus half a billion in one day. A lot of people got scared and a lot of people got flushed out.

10:35 644 million worth of liquidations. Almost all of that on the long side. 521 million. And you can see all this red. It's all longs being liquidated. Bitcoin, ETH, XRP, Soul, Hype, and others. No good. Too much too much liquidation. We need to go on the opposite side. Okay? We need short squeezes, not long squeezes. But you know what? It tends tends to happen when there's too many people that are playing with very high leverage, which is what I've been saying is bad.

11:16 even low leverage, you know, I still have some two, three X's open. They're not looking very pretty right now, right? But like for people to get liquidated like this, they have to be throwing their 50x, 100x, 150x, 200x, okay, to be liquidated this much every single day, it's better to just buy and hold. But anywh who, outside of these short-term distractions, we're moving in line with with what what has happened before, right?

12:03 Uh this one you can see it's actually kind of similar to this distraction that we had around the COVID time right before a pretty nice run up. Okay. It's like a mini It's like a mini mini crypto winter. It's not the full one, right? And we have begotten recovery already. But you know what? Better days are coming. Better days are coming. According to Matthew here believes that we'll be seeing 90k soon.

12:51 So a lot of indicators, metrics, patterns, whatever you want to look at is looking pretty pretty good. Pretty good despite short-term distractions. And yeah, that this one right here is going to be going to be a big one. Going to be a big one for today. Uh outside of these really really not not all that much uh still a lot of talk about AI regulation.

13:23 I wait until the end to talk about it. Uh Salesforce have had some kind of conference and all the AI leaders were there. Nvidia Jensen you know you you could say I I don't know if he truly believes everything he's saying. I mean he interviewed with Jim Kramer. He was also at Salesforce conference. He was at the all-in conference recently talking about AI safety and he's like, "No, we don't need more regulations.

13:49 We just need companies to do better." Okay? They need to come out with better systems to measure safety. If you have unsafe product, don't release it. It's really that simple. You don't need to call upon the government and beg them to regulate you, which I agree with, right? But he's also on the side that we we should not be worried about AI at all, that they're not going to destroy humans and uh they're, you know, they're quite safe.

14:20 I'm I'm not so sure that is, you know, that is the case, but he's in the business of selling chips, so he has to be very pro so that everyone continues to buy Nvidia GPUs. So, I I kind of get that. Uh Mark Zuckerberg also sides with him and just basically says you need to companies just need to do better with their safety systems and develop better systems to prevent their models from causing harm.

14:50 Right? So going against what Daario and Sam and and Elon has been saying, but Elon also he said it, but he didn't seem very concerned about it. So I don't know. And he's the one that's making killer robots. Well, not killer, but robots. So, uh, if anything, if we really do have a Terminator moment, it's probably going to come from Elon's creation. But despite all this, they're all still trying to raise.

15:24 They're all still trying to go IPO. So, Anthropic is still trying to IPO this year, I'm hearing trying to value themselves at two trillion and OpenAI is not far away. They're trying to have a new round at that puts them somewhere between 1 to 1.5 trillion. So, um, these guys, despite the leaders coming out saying that, well, we need to slow down. Well, they don't want to slow down the funding.

15:55 They don't want to slow down their growth. So, it's kind of counterintuitive to what they're doing. Um, yeah. Yeah, that's it. That is it. Uh, NASDAQ is still green today. Very surprising. Very very surprising. I guess people don't care that there w there will be a rate hike or it's already been priced in. I don't know. But it's very shocking that NASDAQ is up right now and several companies like like Dell continues to go higher even higher than yesterday.

16:38 SpaceX doing very well plus 4% today. SpaceX has been holding about 150. So, a lot of people want to get into SpaceX. Seems like they have bottomed out 150, but they're they're already like two trillion in market cap. So, maybe hard for them to move a lot short term. Uh AMD up about 3%, Intel up about 5%. Coinbase about flat, but yesterday had a big down day.

17:12 Micro Strategy about flat and Bitcoin is holding right under $76,000. All right, let's do some Q&A. When robots start shooting guns, we are effed. And you know that's inevitable. Uh it will I mean for sure they're they're programming that. In China they already have robotic like Olympics where they show uh the robots like running and stuff. They're already running at like superhuman speed.

18:39 Now they still have their problems. They can't always do it and they fall and they break and stuff, but they're they're already making some crazy robots, right? And those of you guys that have seen um Oh, what's that show on Netflix? Shoot. Oh, I'm drawing him. Oh, Black Mirror on um on Netflix. The one with that robotic dog, the the security dog. It's gonna be like that.

19:13 You don't you don't even need human androids. You don't need human robots to do it to do, you know, to fight battles and go into war with. Worst do security. You have like robot dogs, robot, you know, things that with guns on top of them. They'll be quite capable. Same thing with drones. They already have attack drones. By the way, the other day has nothing to do with anything, but I watched the movie Back Rooms on Amazon since you could rent it.

20:27 What a horrible movie. Such an interesting premise and uh the ending, the explanation, all that. It's utterly nonsense. They completely ruined such an interesting concept for a movie. I'm I'm assuming it's based off some book or whatever, right? Some some psychological like nonsense book. Um, yeah. Anyways, very very disappointed. Very disappointed in that movie.

21:04 They could have done much better job with that movie. was created by a YouTuber. Well, then that makes sense because the ending sucked. It It was a complete utter waste of my time. Do I still have a Cybert truck? Yes. Yes, I do. Obsession is wild. Must see it. Yeah, I I was go watch it the other day, but I I have my kids with me. I'm thinking they probably shouldn't see it.

22:08 Inappropriate for them, but I guess I guess the premise is this guy had some wishing thing and wished a girl to love him and that's how she became obsessive. I didn't know that. I think it would have been more I think it would have made more sense. I didn't watch it, but I think it would have made more sense if you just had some crazy girl that's obsessed rather than some magical stick that made her that way.

22:33 Um, that probably would have been better, but I'll probably watch that. They're going to raise the rates to fund the war. I I don't think that's why they're raising. They're raising because inflation is up and they have to do something about it. There's only two things that the Fed worries about, right? If you break it down, there's only two things.

23:10 One is to stabilize inflation. Okay? Bring it down to their mandate of two to three%. That's it. That's their biggest mission. Second mission is to prevent banks, other banks from collapsing. Okay? So during recessions, what do they do? They cut rates and they buy junk bonds. That's it. And in really good times when they want to slow things down, they raise rates and they sell off their bonds.

23:43 That's the only two things the Fed does. Um, so it it's it's like a band-aid because they can't really do anything about the cause of inflation and they've been really good at dodging that and answering that. So back in 2020 after COVID, the US government printed 30% more money. 30% more money. the overall supply went up by 30% and inflation was skyhigh and you know Paul had to pretend like he didn't know that pretended like oh it's transtory oh it's just supply chain issues it's going to go away like he can't talk

24:32 about it he can't talk about well if you increase the money supply by 30% you're gonna get at least 30% inflation like he can't say that and he can't stop it either right so like the Fed is just it's just a band-aid. A band-aid for a a broken system. Um, that's all it is. And all central banks arguably same thing. What would be a cool story of Earth, Mars were at war with each other in the ancient past and we won?

25:23 Yeah. I don't know. I don't know. There seemed to be a lot of things going on the moon. I don't know if you guys have been paying attention. Seems like, forget Mars, there's something going on on the moon, on the dark side of the moon. We don't really have any good footage or pictures. Everything that we have is on the the light side of the moon. Somehow the moon doesn't like rotate to the other side.

25:50 It's like fixed. It it circles around, but it's fixed facing the earth. So, they have a dark side. And a lot of people are like shooting their cameras up there. And you can see like these ships that are moving around like all this crazy alien stuff is happening on the moon. And uh I don't I don't know if we should be concerned more concerned about that or not.

26:19 All these like hidden Apollo missions. Maybe Elon knows about it. That's why he wants to create moon bases up there. I don't know. Maybe he wants to get up there. Can you briefly discuss the process you do to code these Clash video games you have created? They're impressive. Thank you. I appreciate that. I mean, just I utilize AI a lot. I I vibe code seriously like 14 16 hours a day.

27:02 I get very little sleep. It's my passion. and I love it. But I'm slowing things down a little bit. But yeah, I just have ideas. I look at what other people do. Some of the games that I like or I played in the past and just come out with them. Uh I am working on something that's not a game. I am working on two things still. One is a game. It's going to be a very big one that people I think will really love and you could play it for hours and hours and hours.

27:28 Um, so there's there's that one game that I'm working on that's left and then uh there's another project that is not game but will be the next phase of clash project. So we already have we already have you know our gaming hub and I made front line really I upgrade front line yesterday. So if you do play now, it's much faster, much more fun. It's a team based thing now.

28:02 Um, so we got the gaming hub now. We have Ask Clash, obviously the AI intelligence hub. We have Clash Pix, which is the prediction markets hub. They're all connected together with one login with P Clash, with Clash, the leaderboard. There's going to be a fourth thing that comes out and a lot of you guys very cryptoreated a lot of you guys will love it especially the dgens and I will say clash holders and leaderboard people will really benefit uh benefit short term and long term is something even better that's coming.

28:43 So, I'll just say that that is my next thing for Clash and it's going to be it's going to be awesome. I'll release about the end of the week. I'm doing security hardenings right now. It looks great. It's basically done. It's going to be it's going to be fantastic. So, get that class score up. Get your clash holdings up and get some soul. I'll put it that way.

29:19 Get some soul, too. Get Get all of it up. You're going to need it. Clash Jam is fun. Clash card is fun. Anger crypto is fun. I mean, you could argue all front line is really good, too. They're all really good. I spent a lot of time on all these. I don't believe War wants to go down a history as a guy who shatter illusion of the Fed being independent.

30:12 It doesn't matter even War wanted to like it would not matter because you need the entire governors to vote on it. Even if he voted no, I want to hold everyone vote votes hike. You still have to hike. But yeah, I think he still wants to stay independent, have that illusion of staying independent. How will all these projects be connected to Clashcoin?

31:07 The revenues are used to buy Clash. That's that's really that's all you need to care about. They're all connected. They're all connected. Subs, the fees from Clash Pix, you know, subscription from Ask Clash and the games and this new project, the fees collected will all be used to buy Clash for the Treasury. Can we make sure our clash points and score reflect what we hold on exchange?

31:56 Um, unless you're connected, we can't be for sure. Through soul scan, we could see all the we could see all the people that are holding, but you got to go into your account on Clash Project and connect their wallet. Otherwise, we can't verify who you are, right? So, if you go into Clash Project and connect your wallets and you can connect multiple wallets, then you know the score will be tallied up.

32:23 But until then, we can't we can't accurately assign a score without verifying who you are. I mean, we could still assign a score to a random wallet, which we do, but we we won't be able to associate that to your account. Someone asked, "What's the deal with Arbitrum?" I don't know. I don't know. Robin Hood, you know, Robin Hood has been doing well. They're on Arbitrum.

33:30 They brought a lot of enthusiasm to it. There's a new launcher called Pond on Arbitum I think that's doing very well. So could be the reason why. It seems like Zcash is also doing very well today. Yeah, George and Machine, I'm not going to be doing that. No, you guys are not idiots. You're not an idiot. I'm not going to create a how-to video on how to use the market cap or how to use the token screener or how to pull up a FOMC page to show the rate decision.

34:31 Okay? You guys are not 5-year-olds. You don't need that. You could simply click through and see what each one does and that's it. Do I still des? No, I do not. I da into the big caps like soul. Pretty much just Bitcoin and soul. Some clash. That's it. I don't really DCA into a lot right now. No, I I'm not I don't even DC into ETH. I sold off all my ETH a long time ago.

35:29 I have very little now, but I maintain that souls go eat into souls go eat into ETH dominance and overtake them someday. They already have from a metric standpoint, they already have more volume, more revenue, more everything. Um the only thing they don't They don't have as much as TVL right now, but everything else they already beat Ethereum. And so I still think there's going to be a flipping at some point.

36:12 Maybe not anytime soon, but it's going to happen. I mean, if you look at how the the market is now, the fact that we're in green right now and tech is going up kind of gives you a a clue of what's going to happen after FOMC meeting. Unless something drastically comes out that's different than what people think. and everyone already thinks we're going to get a 25 basis point hike and it's locked in.

37:10 So unless something comes out, they do like something more drastic like we're gonna do a 50 basis point or WH announces something stupid like the next three meetings we're going to raise, you know, 25 basis point and we're going to have a full one percentage point higher by January or something like that. You know, unless say like he just says something really stupid or hawkish.

37:38 people are anticipating. Okay, we're gonna get Ray hike. Let's move forward. Let's not miss out on anything. So, that's what it's looking like right now. Normally, this doesn't happen. Normally, during FOMC day, you have a big sell-off. So, guess investors just really don't care at this point. But, who knows? Who knows? Paula has done a lot of press conferences that has gone against conventional wisdom.

38:05 I guess said a lot of things that he should not have and caused a lot of volatility when he didn't need to. So I I don't know if Wars is going to do that. Hopefully not. All right, that's it. That's it, guys. Have a good one. We'll see what happens during Apple MC meeting. Got like what? Four hours four hours to go until that press conference. We'll see.

38:43 Right now, even though we did have a flush, we're still doing okay. We're doing okay. And the and the tech industry is doing okay today, too. So, that's a big that's a big thing. All right, smash it a like. Subscribe to the channel. Have a good one, guys. Take care.