Worst Crypto News Ever - Bitcoin Holders Just Got Screwed

[00:01] >> There's something very interesting happening right now with crypto. Illinois. People think it's just crypto, just like they think the billionaire tax government can take your private property after you've paid your taxes,

[00:15] garage, we are done for. >> New data that affects you as a crypto investor, as well as Michael Sailor's response, what comes next in the collapse of his preferred stock. Click subscribe for one video per day keeping

[00:30] you informed on crypto. And as we talk about what's being called the most punitive tax on crypto ever, >> that is when the pilot bureau has unlimited capacity to tax and take and do what they want.

[00:43] >> Let's take stock at where we are today because the smart money 12 trillion Charles Schwab continues to sound the alarm. Listen to their analysis on why they believe the Bitcoin bottom is in. We'll talk about what they think, but

[00:58] analysis on what's actually real. >> We've been pretty consistent that we think the 60s is the low. This is the level that we uh found support at back in February and we recently bounced off that again. We did make an intraday low

[01:13] again, but again, the general level seems to be holding. The signal that we look for is the difficulty adjustment. This is a feature of the blockchain that as miners are entering the network to make sure that a block is mined on

[01:28] average every 10 minutes, it makes it more difficult to mine that block so that it doesn't get mined too soon. The same thing happens when miners are leaving the network. If prices are falling and miners are temporarily

[01:42] shutting down operations because it's not as profitable to mine, the difficulty adjustment becomes less difficult. And so what we've seen, >> so just to be clear, and Bitcoin OGs know this, is that Bitcoin's mining is

[01:57] self adjusting. So as more Bitcoin miners hop onto the network, it becomes miners hop onto the network, it becomes harder to mine. Yet as if as less Bitcoin miners leave the network, it becomes easier to mine. This is self

[02:11] adjusting. What we're seeing today is Bitcoin become easier to mine because price went down, it became less profitable. That happens every bull profitable. That happens every bull cycle. We can go back to this is 2021

[02:26] into 2022, right? Same thing happened. It got too expensive. It self- adjusted. Then the miners came back. We see this every cycle. So the end of 2017 in 2018, it became too difficult. Miners had to leave. The difficulty self adjusted and

[02:40] then the miners came back. So understanding this, what's the conclusion today from $12 trillion Charles Schwab? >> Uh earlier this year there was a draw down from the peak of about 20% in uh

[02:54] network difficulty and we're back to these levels today. And so the thing that we really look for to confirm that the bottom is in is the first uh difficulty adjustment higher. So that will come in about 9 days from now and

[03:07] it's expected to increase. And so again, this is a lagging indicator, but it can often confirm that the bottom is in. >> So 9 days is going to be the key to understand are we still adjusting lower or is the bottom forming in difficulty

[03:23] adjustment like we've seen in other Bitcoin bottoms of the past. I will monitor this. Click subscribe to Altcoin Daily if you want an update on this in real time when it happens. And look at this. The good news is that Bitcoin

[03:35] remains above the 200E moving average. That's technically a bullish setup. Yet the line in the sand, this yellow line right here is where the most volume, this yellow line is right in the middle where the most volume trading has taken

[03:50] place. So the point is, let's readjust this. Wait for the readjustment. The point is, you see we bounced off it. That's our resistance level. The next

[04:02] few days will be the determiner. Will the buyers step up, step in, go higher or will the sellers continue to be that resistance level? We are at such a tight range. I will watch this and keep you updated. The Clarity Act update will be

[04:17] a big determiner. We just got an update from digital assets subcommittee chair who's representative Johnson on the timeline and how tight we are with this Clarity Act. Let's assume for a moment that the Senate gets a product out that

[04:32] is agreeable to the House and it really will need to be agreeable to the House. Then the House will take that up within two weeks would be my guess. Now we're gone in August and in October it's an election year and so members in swing

[04:45] seats and both parties will want to be home in October. So that's why before August I mean on one hand you look at July and you think well why are we why close if we're talking about the seventh month of the year and it is because the

[04:58] difficult for us to get a lot done and we cannot count on the lame duck. We too many things that everybody is counting on to get done in the lame packages that people think will get done after the election. Maybe zero will get

[05:14] after the election. Maybe zero will get done. maybe one, most likely one, and then as an outside possibility, two. I think this is too important for us to year. >> So again, clarity may not happen, but if

[05:27] it does happen, it needs to advance in July or else it's probably going to fail or get pushed. My prediction is if the Clarity Act passes, that will mark the Clarity Act passes, that will mark the macro bottom. If the Clarity Act fails,

[05:42] be real with you. Now, there is good news and this is a continuation from what we mentioned what we mentioned in our video yesterday. Michael Sailor, my next plan

[05:54] will shock the world. Bitcoin. Yesterday, we showed you this. Half of this, that's typically a bottoming signal. To add on to that, Bitcoin signal. To add on to that, Bitcoin longterm holders hits a record 79%.

[06:09] Meaning K33 Research, which is a very prominent research firm, says long-term prominent research firm, says long-term holders now control an all-time high of holders now control an all-time high of 79% of Bitcoin supply in circulation.

[06:24] While old coin reactivation has dropped to its lowest level since 2012, meaning less and less OGs are selling. They've stopped selling and sell pressure is stopped selling and sell pressure is drying up. combined with 79% of all

[06:38] Bitcoin supply that's now held by long-term holders. And if you haven't sold yet, if you haven't been shaken out of the market yet, there's a strong next few months. You're going to hold. Of course, one of the bigger monkeys on

[06:51] the crypto markets or Bitcoin community's back right now is Michael Sailor's preferred stock stretch. It it's lo it has lost its par. Supposed to be on par with $100. It goes into the weekend now still under par. Michael

[07:07] Sailor has commented on the preferred stock sell-off. Let's remember first that Michael Sailor in the past has been very clear that he compares his company strategy to the first company that ever went public to build real estate. Except

[07:21] the asset this time is not land or buildings. It's BTC. Let's listen to how >> It's a digital credit vehicle. Think of it as a structured finance company. And we're the first company to begin to securitize this new asset class. Imagine

[07:37] they were the first company to go public and then issue public securities, equity and preferred stocks to build buildings and then their stock and their securities became a way that people could invest in real estate. We have

[07:52] created equity and preferred equities that the public can buy. There are actually five preferred equities that float and then there's one common equity and uh we take the capital that we raise and we buy bitcoin with it.

[08:06] >> Now we're not dependent on the capital markets but but we are in we are powering the capital markets. The the company's idea is pretty simple. It's we simply buy Bitcoin. We hold it forever. >> Now when we sell a preferred stock, we

[08:21] pay a dividend on the preferred. The way we pay the dividend is either we sell equity in the company if it's appreciating faster than than the >> Now, Michael Sailor has responded to the FUD simply by posting this video. It's

[08:36] over 20 minutes long. I've shared this with you before in the past in 2022 when with you before in the past in 2022 when prices were in the toilet. Everybody was saying that his stock Bitcoin is going so much lower. and he gave this epic

[08:49] speech and he says, "Today, when I gave this speech in October of 2022, Bitcoin traded near $20,000. Strategy held 130,000 Bitcoin worth around 2.6 billion and his common stock was about $24 split

[09:07] adjusted. Weeks later, after Bitcoin fell below 16,000, our debt exceeded the combined value of our Bitcoin and cash reserves by $300 million and MSTR fell

[09:21] into the $13 range by year's end. What's the point? What's he saying? He's saying they got out of this. They plowed through. The mission was intact. Nothing had changed fundamentally, and they just had to Dips are in every market, and

[09:34] they just had to go through the dip or the bear. The macro aspect that I actually think caused all this is not Bitcoin going lower because we've been around that $60,000 Bitcoin range for months. The thing that actually changed

[09:47] was Fed Federal Reserve Chair Wars's first meeting where the mainstream media says he's so hawkish he's going to raise rates. The other members of the committee look like they're going to be hawkish. Raise rates and that reprices

[10:01] the value of interest. So, if you can get 4% or more just on cash, the safest get 4% or more just on cash, the safest thing ever, that makes a riskier play to get interest less valuable if you're getting more interest on just pure cash.

[10:15] Now, I personally think Fed chair Worsh, he was actually pretty bullish. I take that as dovish. I mean, as a dove, but something to keep in mind as more Fed meetings happen. And this brings us to maybe the worst crypto news in years.

[10:31] Illinois, which is a United State, will tax crypto transfers at 0.2% starting in 2027. Meaning, if you own Bitcoin and you just

[10:43] your wallet, maybe take it from your wallet, just put it in another one of your wallets, you will be taxed just from moving it, even though it's your property. Illinois is set to implement a groundbreaking 2% transactional tax on

[10:59] crypto effective January 1st, 2027 under its new digital asset tax act SB3019. And while usually you're just taxed if you ever choose to sell, if you ever

[11:11] choose to actually take profits, that's when they tax you. Unlike that, unlike traditional capital gains taxes, this levy applies every time crypto is moved, irrespective of profit. This is going to chill the market in Illinois. And also,

[11:27] this establishes a unique precedent in crypto regulation. If this sticks, and I don't know how you get rid of this, then this is a horrible precedent for personal property because then what stops this from happening

[11:41] with gold, with your stocks, it's just 2%. Right now, it's just crypto holders. But really, they're saying your personal property, anytime you move it, we'll money. Click subscribe for a daily update keeping you informed on crypto.