Bitcoin Rally: Is Leverage Driving the Price? | Daily Crypto IQ

I never knew. Hey hey hey [music] back [music] >> [music] [music] >> I think that we're just holding on to something. [music] I think that we just holding on to something. I think that we're just holding on to something. Just tell me what's on my mind. [music] Heat. Heat. I think that we just holding on to something. I think that we just holding on to something. Just tell me what's Heat. Heat. >> [music] [music] >> All right, let's go. Welcome to the Underground Crypto Deep Dive Show. How's everybody doing tonight? Glad to be back for another episode. Just so everybody knows, there will be [music] a live stream tomorrow for you guys. is I've been doing this announcement at the end of the stream. I should probably do it at the beginning. I will [music] be gone for like

5 days out. It's like five streams. It hurts. It stings a little bit, but I got to do what I got to do. I got to do a little bit of traveling for for the family. So, I hope everybody will bear with me. I hope everybody will be here when I get back. I will be probably more active in the Discord than you're used to me [music] being. So, I highly look forward to being able to connect with everybody in the Discord a little bit. Maybe that'll drum up some more uh what do you want to call it? Some more attention in the Discord for everybody because that's where you're going to be able to find me. And I may do some form of uh quote unquote live stream. This is what I'm thinking. All right. This is what

I'm thinking. I'm probably going to do some form of like a live stream, but I'm going to do it from uh the uh what do you call it? The voice channel. It'll probably be about the same time as long as I'm able to, as long as I have internet. The first two days not going to happen or the first day at least. I'm going to be driving for like 24 hours straight. Anyways, I'm not going to get too hardcore into that. Look at this BTC 4hour chart. Look, we're still above that 200 day moving average, but we are losing the 21 and it is coming down. Today has been a little bit negative of a day for price action, right? You can do short videos, too. Exactly. I'll probably be doing some short videos. The first day that I'm

gone, I don't know how much I'll be able to do because I'll literally be doing a ton of driving. Uh the second, third day, third day definitely. Fourth day definitely. So, play it by ear. If you want updates, join that link in the chat and also in the description to our free Discord and you'll get updates as we go along. Now, let's talk about the crypto recovery test real quick, right? Because we're looking at this 4hour chart here and you can see it's losing the 21 coming down to the 200 on the 4 hour. That red line is the 200 day moving average. But this series this week is all about the crypto test. And I think it's a great time for this series because it is all about how to look at the market and know if we're

actually getting a change in sentiment or if it's just a bounce and we're still continuing to bull market and we're going to go lower, which I think there's a heavy chance that that is what we're looking at. So, we've already examined price structure, right, and institutional demand and where Ethereum can challenge Bitcoin and maybe lead the way. Tonight, we test what's underneath the rally. Okay. Is real capital supporting Bitcoin or is it borrowed money creating a fragile recovery? A lot of these in the form of perpetual futures. So the derivative picture is more balanced than it was earlier this year. Uh Bitcoin perpetuals opened interest declined approximately 10.6% this month. So we have a decline about 10% in perpetual future interest. That's good. Over uh yeah month over month over month. Okay. I have some metrics pulled up in

the background and I'm like trying to read them backwards. Let's see. We've got 29.4 billion, although that remains above long-term averages. That was a little bit messed up. All right, moving on. So, let's do our quote of the day real quick. Only when the tide goes out do you discover who's been swimming naked. And that's actually a quote by Warren Buffett. No, I didn't make that quote up, but it connects to what we're doing today because leverage can make traders look successful when the price is rising. A market decline reveals which positions were built without enough collateral or risk control. Meaning, you hop into a perpetual future trade and it goes up. It looks great. You're not worried about margin, right? You're not worried about collateral. Starts going down, it's a different story. And you may not know this,

but open interest does not tell us whether traders are bullish or bearish. Right? Every future contract requires two sides. One trader is long or one trader is short. If open interest rises, it means more positions are open. But it doesn't reveal which side will win. That is why open interest must combine with price direction, funding rates, spot volume, liquidations, ETF flows. High open interest can support a healthy market or it can create fuel for a violent liquidation cascade. And we all know how that goes. We know about that short squeeze, but do we know about that long squeeze? Because both happen in the market all the time. Let's get over to those crypto bubbles and kick this thing off. How's everybody doing out there? Shout out to all my undergrounders. Thank you very much, Melissa, for the super chat.

It says, "Have a safe trip. Blessing to you and yours." Thank you very much. I'm sure that it'll be a pretty safe drive. I haven't ever driven actually all the way to where I'm going in Maine, but I've rode in that trip as a as a young kid many many many times. Yeah. Let's see. Lvida says short squeeze. Exactly. But what do we know about that long squeeze? Right. When things are dumping, they're very much squeezing longs as well. Whenever things get too hot one direction, we see a pull the other way for liquidations and that's perpetual markets, right? So, let's take a look at these crypto bubbles and see what story it wants to tell us. Toggle that 1 through 1,000 and it is just red. And it's significantly more red than it was when I looked at

it earlier today. Wow. With 5 to 600 by market cap being down 3%. And these are these are by hundred, you know, 100 market cap at a time categories. So there can be some that were big losers and some that held up all right, but they all get kind of grouped in there. So what is up today? Interesting. World Liberty Finance is actually up 10.9%. It was down yesterday, so it's most likely just bouncing from yesterday. Yep. Welcome in. Welcome in. I love to see a new name in the chat. Smash that like button. Think about maybe subscribing. It's personal choice, right, if you want to see our content. And then there's a link to the free Discord in the chat. Beat is uh 15.9% to the upside. Beat is always just literally going to its own beat, right?

And then you can see everything else is pretty red, but it's pretty even, right? No bubbles are really all that much bigger than the other ones. I see one Pi Network down 7%, Dogecoin down five. Let's see what Doge is down to. 069. So, it has fallen under 7 cents. I hate to see that, but that is bare market moves right there. And I believe that we are still moving towards a bottom in the bare market. I don't believe that the bottom is in necessarily. Although, you could see like a double bottom, right? Like I just don't think that the downward action is over yet, but that doesn't necessarily mean that we're going to make a lower low. Just could come down and double bottom. You could triple bottom, right? So, bank is up 17.4%. Bank has been doing

well this week. Look at this thing on the week. It's up 356%. And it even had a nice nice pullback. Looks like a nice golden pocket pullback there. Then you got RIFF, which is roottock infrastructure framework. That's an interesting one to deep dive. Zama, which we've been talking about on this channel since before it ever even had a token. [music] 12.9%. Can you say homorphic encryption? What does that mean? And what does it have in relationship to zero knowledge? Velvet down 29.9%. This thing was getting some good pumps for a while. It's been getting beat up for a while. And build on actually down 23.5%. Build on in the world liberty finance ecosystem. So, with World Liberty Finance getting a 10%, you know, move to the upside. I'm surprised this is still down today, but that they don't always

have to move in unison, right? That's that's not a rule. I have a fan running over here cuz it's hot in here. Is that fan making too much noise? Can somebody tell me if they can hear my fan? I don't know why it's making very odd noises. Dexi just absolutely destroyed. I don't think Daxi has a path back. I don't know what happened. Uh, were there exploits? Like, what happened to this thing? Somebody steal all the money and run off? I don't know what happened, but it's very strange, right? And let's look at it on the week. That'll paint a better picture. I mean, you literally went from like $38, $40 you want to call it, to a$1.74 with like no recovery. Like, there was no bounce either. If you were holding that thing, you got absolutely washed. I

hate to say it. Billions Billions Network though is an outlier. It's up 23%. When the whole market's red, these big green bubbles really stand out. REI and Magma. Magma being in the ecosystem. It's a financial product, right? Magma Finance up 14.9% call it 15%. Let's go ahead and move along here to our price rundown. What do we got going on in the chat? Prime Minister says, "Gm UG GM everyone. GM to you. I saw that you got up. I had to I had to lay down for a minute. I've been running around all day. So, I had to take a quick little siesta before I hopped up and did this live stream or I just don't know if I would have if I would be able to make it through. I would have showed up, but I don't know

how the show would have gone." says, "Looks like lab and hyperlquid." Hyperlid is hyperlid getting washed. I was saying something like that the other day, but I I don't think Hyperlid got destroyed now. Lab meme core had that really hardcore pullback. Now we're seeing Dexi. Uh what was the one before that? Rave Dow. Although I I kind of said the entire time that I was pretty sure Rave Dow was going to rug pull at some point. Bitcoin $64,856. Overall market cap 2.31 trillion. This is where I can kind of see how much money actually flowed out of the entire market. It's only really 1%, but 1% can be pretty dramatic in such a a big, you know, $2 trillion asset class. It's still a lot of money. Blues Guy, thank you for being here. Says, "Gratitude turns what we

have into enough. Gratitude is [music] the healthiest of all human emotions." I like that. Just going to kick back and watch your show. Hey, I appreciate it, man. Hopefully I'm entertaining. Blues Guy says, "No noise. Glad to hear that. I appreciate it." You meant to say DXE. Okay. Yeah, I was saying like, can you imagine if Hyperlid did something like that? People would be really really uh freaking out. But Hyperliquid generates a ton of money in revenue. So, I feel like they'd be able to remedy uh any any problems relatively quickly and easily. Now, we're talking about Ethereum a ton yesterday. Ethereum is $1,866. It is definitely lost at $1,900. We're kind of going to be watching here to see talking about, you know, the relief test that we're talking about this whole series this week when it comes

to the market. How many times does this get close to like 1950 2000 and then pull back without getting above it? That's what I'm going to be paying a lot of attention to. B&B $567. XRP a11. Salana $75.71. Hyperlid $5744. Hyperlid actually down 6.8% in the last 7 days. We got Dogecoin down 06 or it's down almost 5%. It's at almost 7 cents, just barely under seven cents. This is This is what I think is interesting here. Zcash is at $56 and it's down 6%. But Monero, another popular privacy coin, is at $354 and it's actually up about 6%. So, is that like some kind of rotation here? Cuz they're up and down about the same percent, right? about 6% down for Zcash and about 6% up for Monero. Chain Link $842. Cardono 16 high 16 cents there for

Cardono. XLM 18, right? A lot of speculation around XLM. Interesting to see it falling right now. Canton Network 12. Bitcoin [music] Cash about $210. It was performing pretty well for a while and it looks like it's falling down with the rest of the market. gram or toncoin as we always called it a$146. Don't worry, we don't do like the top 100 guys if you're just rolling in. USDG is a Robin Hood stable coin. I'm just going to say that probably for another couple of days. H bar is up about 6.9% with a little bit of a recovery to 7 cents and sweet is 74 cents. After that, I usually go look at memecore $114 down 6.5% and then we're going to go see where Flare is. Is it what's number 85 by market cap? It fell down to 90,

but still in the top 100. Flare ecosystem. Uh, it's got a lot of stuff cooking over there. Very, I would say, kind of very financial, too, right? Very tied into yields and interest and all kinds of different things, but there's a lot being built over there. Shout out to the Blues guy. He loves him some flare. Now, let's go to highlights. Let's take a look at what is trending. And don't forget to smash that like button. So what is trending today in the market now? This is trending. This is not what's pumping. This is what is being heavily searched. Right. ADI. A 81. A 81. ADI. Uh that almost looks like a one. ADI is an interesting project. I like it a lot. It's about regulation. It's about being compliant. It's not just about regulation. It's about being compliant.

Long story short, institutions are heavily here and uh growing in this market. A lot of things are coming out, new projects and stuff that are going to be very much focused on services to soak up that money and get a piece of that money, right? And they're going to want to hire crypto people who can get them regulation who understand the landscape. They're not going to figure it out all the by themselves, right? They're going to hire people. And ADI is looking to take advantage of that. Uh DXE trending for all the wrong reasons. It's down in the last seven days 95%. So if you shorted DXE, you're doing absolutely amazing. Uh Pudgy Penguin, Salana, Uniswap, KDIO or Kaddio, Bit Tensor, Hyperlquid, Pi Network, Near Protocol, Pumpfun, the Black Bull, Anom is a memecoin, Velvet, Core, and Pawns. Pawns

is a new launchpad for the Robin Hood ecosystem. The last launchpads didn't seem to do so well, but it is up 463% in the last 7 days. So, Ponz is doing pretty well. Let's see if they can hold up because every launchpad so far for Robin Hood is kind of just got beat up and disappeared overnight. Speculation for why that may or may not be happening. Let's take a look at that fear and greed index. As I always say, try to keep whatever the fear and greed index is at in the back of your mind. Obviously, a little bit more fear in the market today. So, we pulled back yesterday. We were at 31. 7 days ago, 27. They have a bar graph down here. Or you could go day by day if you wanted to know what we

were like a very specific day. Or you could just kind of generally look at it. Let's look at the last seven days here, right? Very spread out. I prefer the monthly. And you can see it's not been, you know, we don't have like these real high days and real low days and high. It's just been very mid all the way across. But number 28 is still above extreme fear. Can we stay kind of in this fear and neutral range for a while and accumulate and build up? You don't really want to see drastic moves up because that usually signals a drastic move down. Uh let's see. I'm bullish on bell. Okay. Vevel. Yeah, we've looked at a little bit. Don't forget near protocol. Yeah, Near Protocol is definitely positioned themselves really well. I've I've been around long enough that

I remember when Near Protocol was kind of like a completely different I don't know if they I don't know if you can say they're a completely different project, but they were a completely different narrative basically and they've really shaped themselves around AI, which was a smart move. Uh there are good rebrands even though they didn't rebrand. There's good narrative changes and implementation and then there's just people chasing this narrative or that narrative. That's not so good. Now, crypto rank is a little bit different because crypto rank is highly more focused on institutions and hedge funds and venture capitalists, angel investors and that kind of data. But what's good about it is we see a lot of things being launched over here, right? And projects and and companies being launched and you don't really get those over on Coin Gecko,

right? Fire light points soon available. UG and Melissa, you'll be able to convert them points into STXRP. Hey, I'm here for it. I'm I'm happy about that. FBTC days away from being announced on Flare. Yeah, Blues Guy definitely bringing all the information on the Flare ecosystem. Uh we'll probably be doing a lot more of that [music] type of content here pretty soon. Tenor, Tenor Finance. Well, it's got finance after it, so you could pretty much assume what that is. They've raised $2.5 million. Look at that. Coinbase Ventures is behind it. It's a tier one investor. I really wish that they would tell you kind of exactly what their stake is in it, even if they didn't tell you the exact number. The interesting thing to me is there's 2.5 mil and then if you look at how many people

are involved, I don't know how much is from each one, right? like some people putting in 50 bucks I guess I don't know but it's a non-custodial fixed rate lending protocol built on base and Morpho and Midnight very interesting combination there if you know Morpho has been integrated heavily with Coinbase you can now get I don't know if it's available for everybody but it's on mine it does say like select people or something like that right eligible people but it's 6% returns instead of I believe like the 3.54% that you normally would get with something like USDT or sorry USDC. Well, you actually can get more like 6.1% through Morpho. So, that's being integrated as well. Real DeFi stuff is pretty cool, right? So, Tener Finance is a non-custodial fixed rate lending protocol on the base layer 2 network

and directly built on top of Morpho's Midnight infrastructure stack. Now, Midnight is a Cardono, you know, project. It's also very integrated. It's kind of like Midnight is kind of like an ability for Cardono to have privacy like a privacy coin would, right? And it can be integrated into pretty much anything Cardono and it might even be able to, you know, integrate even kind of outside of the Cardano ecosystem. Midnight, a very interesting project to watch there, especially when uh privacy things really pick up anything specifically around Cardano's ecosystem. Midnight is what you want to look at. Swarm base. Castramm Capital as a backer. I don't know that one. Swarm base is a decentralized infrastructure layer for coordinating, verifying, and managing autonomous AI agent swarms. It's been a little bit since we talked heavily about AI, but uh AI in

as far as it pertains to cryptocurrency, right? Because there's a whole other thing about AI you could go into when it comes to like data centers and all that stuff. It ties into uh you know, it ties into crypto, but at the same time, it's not exactly the crypto narrative like agentic networks and AI agents that run on blockchain rails and stuff like that. Anyway, swarm is just kind of the term that we use for instead of one AI agent, think of uh 50 AI agents, right? Say you were trying to accomplish a goal. You could have one AI agent try to accomplish the goal, or you could have a swarm of AI agents all trying to accomplish the goal from different tactics, different ideas, far more likely to come up with an answer or be able to be

successful, whatever your goal is. And uh you can do it in real time a lot faster with multiple AI agents. That's what a swarm is. Anyways, 7 million total raised here. The project function as a swarm intelligence platform enabling groups of AI agents to operate in a coordinated, verified, and decentralized manner. Rather than focusing on individual AI capabilities, it addresses the challenges of making multiple agents work together reliably without central points of failure. Basically, what this saying is like there's enough problems with just AI agent, like just having one, but there's a whole different host of problems and things to be managed when you have a swarm of them. I don't know if we're ready for swarms of AI agents as like a regular retail person. And I I think it's going to be a long time before they

let you use one of before they let you use like a a swarm, right? This is creeps and it looks creepy. They got the the triangle with the eye. If you know, then it's pretty obvious. Uh web 3 gaming and entertainment universe built around Creep's IP ecosystem. I'm not familiar so much with Creep's IP ecosystem, right? Londonbased web3 media company Super Duper or Overlord originally launched in 2022 as a collection of PFP NFTts right on the Ethereum blockchain project has evolved into a multi-layered intellectual property franchise spanning blockchain games animated content. So they're just really branching out and doing something with what they have going on. That's very interesting. I actually if you uh if you know underground crypto then you know that we like some DeFi gaming cuz it breaks up the heavy educational angle that we come

with. Got to relax and play some games and to mix all that up here. We are online and you are being observed. Hello humans proof of lizard like 404 access. This is great. Uh as far as branding, as far as narrative, as far as all that stuff goes, it's it's pretty hilarious. And I've looked at it for about 5 seconds and I can already tell you like this has an angle to it that could do really well. Maybe I should already know about this, right? But I don't. So, what is this? Lizian crack the code. Always sold out shop. They did a good job with this. This very interesting stuff as far as really keeping the brand together and everything. I don't really know what the heck the point of most of this stuff is. They got hats. You

could get a toothbrush. It's very weird that a crypto project wants to sell you a toothbrush, but I guess brush your teeth is what they're trying to tell you. A cult handbooks or cult handbooks. Same thing. This is like a tape dispenser lizard. This looks like honestly looks like a bunch of 3D printed stuff. That That's what I'm thinking it is. Or are these just NFTs? Do these things like actually exist or are these just NFTTS? No, this looks like a uh Well, I don't know. Maybe it is. Not all transformations are reversible. One size fits whoever you need to be. I I don't even know if this is real stuff or if this is just like NFTTS. You would think if this was a real hoodie that they would definitely be giving you uh I could see the

hat being real and stuff, but the hoodie is very interesting. All right. [music] Anyways, I don't know what the heck this project is all about. Aliens Among Us certified reptilians. How many trigger words for YouTube am I saying right now? Verify your reptilian identity. It's pretty funny. Advanced biometric analysis to detect latent reptile ancestry in humans. Yo, this is hilarious. I have no idea if they're serious or not. I would imagine they're probably not serious. Probably very memeified here. Overlord, your hesitation has been logged. Lizard people. Love letters. Hello humans. I have no idea what this is doing. You know, it kind of gives me the vibe of uh ah what is that project? It's not coming to my Pepe. Is it Pepe? One of the meme coins that has like its own like little meta world. All right.

This feels very much like something to kind of deep dive for another day. But this looks really interesting. Looks like they're rolling something out. I could see this doing really well if a token comes out around it, right? What did they raise? Doesn't even say yet. They are in a funding realm and we don't really unserious as a backer. That's hilarious. We got play to earn. We got metaverse. We're going to come back to that at the end of the stream. We're going to see if there's a game actually associated with that at all. Now, we've talked about this one couple of days in a row here. If you're just rolling in, smash that like button for me. Uh let's see. If you go to Spark Deck UG, you'll be able to get your yield from the farming you

doing. Uh, yeah, we'll do that definitely. Doesn't look real. Buy a hoodie and wear it on stream. Lol. For $434, uh, I'm not buying that hoodie. If you want me to buy that hoodie, you better throw me some super chats. Maybe I'll buy that hoodie. I think it's an NFT. I don't even think it's a real hoodie. It's like a one-sizefits-all and they have no pictures of the like actual hoodie. I think that's weird. If you were really selling a hoodie, right? $429 is a lot for a hoodie. I was reading this number and that other number, it just got stuck. $248 million for Augustus. Augustus is a US dollar clearing bank and payment infrastructure for crypto. Not exciting for retail pretty much at all. thought this just again day after day trying to tell you like people are

building stuff for tradi to come into crypto markets right whether it's institutions or banks or whatever doesn't matter it's not just coming it's already it's here it's it's it's being rolled out when things are being rolled out they've been here for a long time and they're ready to reveal and play their hand right this is Notabine. Notabine says privacy and security. Y Combinator is a tier one incubator and they've raised 26.5 million so far. Let's see if that Oh, wow. investors Ripple. So, Ripple is directly invested in this travel rule, an AML compliance platform for virtual asset service providers. This looks interesting. And why would Ripple want this? Where are all my Rippers at out there? What do you guys got to say about this? Says, uh, make sure update your Salvium wallet team made some developments. Okay, I

will definitely do that as well. I know that was meant for Melissa, but I I'll definitely do that. So, the open trust layer for global payments. What is the point of this? connects financial institutions worldwide with instant compliant and secure stable coin payments. Is this going to use Ripple's technology? What's the story here? I got to figure this out. What is the angle here with Ripple? Because isn't that kind of what Ripple already is supposed to be? like you know the narrative crossber payments infrastructure banking not to be the operator of the world's largest open network for regulated onchain transactions today announced a strategic investment from ripple the leading provider of blockchainbased enterprise solutions across traditional and digital finance alongside the investment notabin and ripple will collaborate to expand enterprise stable coins collaboration pretty much means uh they're going

to work hand in hand so they'll benefit each other. Payments to integrate Ripple's RLUSD. So, Notabin here is going to use RLUSD flow and exploring how trusted payment authorization can be complement Ripple's payments. Okay. Notinflow is a B2B banktobank stable coin platform. maybe B2B banktobank that enables payment coordination and authorization capabilities with leverage with leverage and are built upon notabin scaled transaction and authorized networks. I've never heard of this notabins ever before. Maybe they're in like the tradi world and I just don't know about it because I don't live there. by combining Ripple's global enterprise ecosystem and RLUSD stablecoin with notabin's trusted institutional network which today facilitates over 2 trillion annual transaction volume. So Ripple's saying, "Hey, can we get that $2 trillion of annual transaction volume to flow through our RLUSD stable coin because they will be on

top of the stable coin world if that happens, right? That's pretty interesting right there. What's going on in this chat? All right, cool. And I could read this whole thing, right? So, Notabin was founded in 2020. Its headquarters in New York operates the largest open network of regulated onchain transactions, enabling institutions to confirm and verify counterparties in real time, authorized transactions before settlements, and unlock compliant. B2B I'm assuming is banktobank stable coin payments. Notabin serves 280 plus customers across global banks, fintex, custodians and exchanges. We know what Ripple is. Okay, that's very interesting. A regulatory compliance technology platform. So again this is very much aimed around who financial institutions. Remember, financial institutions are pretty much anything in the smart money category. They're not just hedge funds, right? Then we have this cordant. Cordant is a real time command center

for the modern financial infrastructure. Sounds like it would serve institutions, right? Doesn't that sound like it would be uh serving some institutions here? Enterprisegrade financial infrastructure transactional compliance data across fragmented financial systems founded by this person right here. The platform and or the executives of whatever this uh rap city that does sound really familiar platform ingest signals from payment rails bank accounts ledgers risk systems normalizing them into a shared real-time event model. It's taking tons of data and making it organized and nice and neat for them to look at. Makes a lot of sense here. Sounds like it would serve big institutions or smart money raven market. That sounds fun. The node and ripple partnership is a strategic collaboration focused on scaling complement institutional stablecoin payment rails. The primary goal is to integrate Ripple's dollar back stable coin RLUSD

into Notaben flow, which is not bank-tobank stable coin payment. Yeah. How do we feel about that? Because it's kind of like Ripple going and they're going to make uh RLUSD basically what everybody thought XRP was going to be. And if if the stable coin RLUSD winds up being heavily used bankto bank across many then what is the point of XRP? What is the point of the XRP ledger? Like there's a lot of things to uh break down there. So Raven Market up here Raven Market is a decentralized digital options trading protocol on the Canton network. So, what is most noticeable about it is that of course it is on the Canton network. It doesn't say how much money they've raised yet. Developed by the D5 product studio Riviera Money, the platform utilizes automated liquidity pools and uh deep automated

market layer smart contracts I believe or liquidity. Yeah, deep automated market liquidity, smart contracts representing option series and user positions. Hard to keep all those abbreviations straight all the time. Tornado cash trending. Hey, everybody wants to use that tornado cash straight to jail. You go straight to jail, you use tornado cash. Actually, they've been they reversed that. I don't know how any of that works. I have no need to use tornado cash, so honestly, I don't really care. But it's interesting that it's trending or FONQ is an AI powered web3 finance ecosystem focused on delivering real-time financial insights, intelligent analytics, and user centric rewards. Why do we go over all this stuff, guys? Because you'll probably start seeing a lot of this stuff and you'll already know what it is. You'll be way ahead of the game. And in

a market, an ecosystem of crypto asset, whatever you want to call it, that moves so incredibly fast, it is good to be even a couple of days ahead of the rest of the pack can make you gobs of money potentially raise that crypto IQ. 650,000 raised. Not a lot of money in this world of crypto here. AI powered web 3 finance ecosystem focused on delivering real-time financial insight. So, kind of like feeding data, I guess. Not exactly sure what the full angle is here. Let's look at our categories. It's Ethereum. Uh, Launchpad is communic when we had that AI agent craze a while ago. There's a lot of really interesting things that got launched like self-evolving AI agents and stuff like that. I don't know how much of that stuff really actually survived. Thank you Blues Guy for giving

us some information. Appreciate you modding. This gives Ripple an estimated compliance rail to support regulatory frameworks in the EU. Micah right in the US Genesis act not to system verify. Exactly. So I mean when you see compliance compliance institutional compliance it's uh usually a way for Ripple in this particular you know example to position themselves and protect themselves stuff like that and XRP ledger will make sense soon with the global adoption of Flare and I'm here for it. All right, let's start with the problem of the night. A rally can be built with borrowed money. When Bitcoin moves higher, people assume investors are buying and holding it. That's what they assume. They they assume Bitcoin is being bought like on spot. But traders can control large Bitcoin positions using only fractions of the position's total value. And they can

sell it and dump on everybody, right? That leverage increases buying power during the rally. But it also increases force selling when the market reversed and people take profits, right? Especially the higher you pump, the quicker you go, the faster the money comes in, the faster the people take profits. Shift here is that let's examine what is moving the price in in in the first place, right? We need to separate the two sources of demand. You have spot demand which is in my opinion foundational and good good solid demand. Buyers purchase actual Bitcoin without automatic liquidation prices meaning they can't really be liquidated. They hold it for good or for bad. Then you have leverage demand. Traders borrow exposure through futures and perpetual contracts. Usually borrowing money from the centralized exchange itself. A stronger recovery normally contains persistent spot demand

with controlled leverage. Like there's going to be leverage and there's going to be perpetual markets of course, but we want to see that there's actually some real spot demand for the actual asset. Now, the payoff here is recognize fragility before the liquidations take place. By watching open interest, funding, and spot activities, we can determine whether leverage is supporting normal market liquidity creating a short squeeze becoming dangerously crowded already being removed from the market. This does not predict every move, of course, but it shows how vulnerable the market may be. And one thing I want to say about this as well is that um when you have spot buys for like Bitcoin, people generally buy spot when they don't want to have a liquidation risk because they have a lot of money. And when you have a lot of money,

you can make a lot of money with a very small move from Bitcoin. It doesn't really drive so much and you can't be liquidated. Now, on the other side, people with a lot less money usually use way too much leverage and they give people an incentive to liquidate them or move the price drastically up, drastically down because they do the same thing if you're shorting as they do if if a lot of people are longing. it doesn't really matter as far as market makers and stuff go when it comes to liquidating positions. Now, the first thing we want to talk about is what is leverage? Leverage allows a trader to control a position larger than the money they deposited. With $1,000 at 2x leverage, you control $2,000 worth of exposure to the asset. And you can apply whatever X

you want, right? That same $1,000 at 50x leverage gives the trader control of about a $50,000 position even though the trader only has $1,000. But it comes with a price. Higher leverage creates greater potential gains. But smaller uh smaller adver adverse price movements can liquidate. That's a weird way to say it, right? So of course the higher the leverage, the higher the position. If it goes in your direction, you can make a lot of money. But the higher the leverage, the less move you need in the opposite direction or against your position. If you're longing, that would be going down in price action. Or vice versa. If you're shorting, price action going up. It doesn't need to go near as far to liquidate your position and they take your $1,000, right? Spot buying is more stable than force buying.

spot is always going to be far more stable than perpetuals because there's no volatility for liquidating people. A spot buyer owns Bitcoin can generally continuously hold through volatility, no problem. A leverage trader may be automatically removed when losses consume the available collateral, margin, things like that. That makes leverage very temporary. And when we think about the market having a sustained reversal, that's what we need to think about is leverage is temporary. So if you could go to like maybe block works, right, and take a look at some data and you could see how much of the money in the market is actually just propped up leverage. Well, then you would know how quick that money can disappear and change the momentum in the price action, right? A healthier rally usually includes things like increased spot volume, ETF inflows, buyers

defending the pullbacks. We pull back, they buy the dip because it's bullish and you're in a bull run of some sorts or a bull rally. Let's put a let's put it that way. Maybe not a bull run, but a bull rally. Moderate funding rates and leverage growing slower than the price. Open interest measures [music] outstanding positions. Open interest is the total value of future positions that remain open. So like the amount if you can [music] collectively put it all together that is your open interest. When price and open interest rise together new leverage positions are entering the market that can support momentum. But if it bec it becomes dangerous right when spot demand then begins to [music] weaken funding becomes very expensive. Traders crowd into one side of the market. Too many people short, too many people long. Open

interest expands extremely quick. When open interest declines, traders are closing positions or they're just being liquidated. We're up to date on this chat here. All right. Good. Okay. Hope you hopefully you guys were ready for this uh educational topic here. Funding rates show which side is crowded, right? Perpetual futures do not expire. So, exchanges use funding payments to keep their prices near the spot market. If you've ever wondered how a one, if you've ever noticed that a perpetual chart for a certain exchange can vary in [music] both timing of its move and the actual price of BTC as an example. Of course, this this applies to any asset, right? But we're going to use Bitcoin as our main example here. Perpetual futures do not expire. [music] So the exchange uses the funding rate, the funding payment to keep prices

near the spot market so it doesn't get too far off track, right? Be very weird if you went to trade Bitcoin on an exchange and it was say, you know, $3,000 different than spot bitcoin. That would be very odd. So positive funding means longs pay the shorts. So when the this is important in my opinion, especially if you do anything with technical analysis or any of that kind of stuff or if you want to be able to just look at the funding rates and be able to kind of tell what's going on, this is how you would do it. A positive funding rate means the longs are paying the shorts. A negative funding means the shorts are paying the longs. A very high positive funding can signal overcrowded bullish positioning and [music] deeply negative funding can show overcrowded bearish

positioning. Right? You might want to screenshot this. This is good knowledge to have somewhere maybe in a saved folders in a favorites or something like that that you could quickly look at when you're actually looking, you know, refer back to when you're actually looking at a funding rate. Neutral funding suggests that neither side is paying an extreme premium. So it's more neutral or equal or even current reported funding has remained relatively neutral which suggests the market is not yet maximum leveraged driven excitement. So that's kind of positive as we're doing. I don't know why but this fan always like catches my nose here. It drives me absolutely insane. Anyways, short squeezes can look like genuine demand, right? Basically saying when the shorts get squeezed, price action usually pumps pretty volatile and that'll get people very excited. But you have

to realize once those prices reach where they liquidate those shorts. There's not a lot of there's really nothing to hold that price up there, right? Unless there's heavy excitement and they just keep keep shorting, right? And people are like, "Oh, okay. Hey, it pumped so hard. It's got to come down now. And they rush in and then it goes higher and it short and it short squeezes again. Short squeezes can happen multiple times in series and then usually comes down pretty hard. When Bitcoin rises against heavily positioned short traders, their position can be liquidated. A short squeeze. If you're a lifer, you already have heard this a lot of times. Closing shorts requires buying Bitcoin exposure, which pushes the price even higher and liquidates additional shorts. This creates a short squeeze. The move can be powerful, but after the

force buying finishes, ordinary spot buyers must continue supporting price. So once it gets up there and it liquidates your short positions, just regular everyday spot, Bitcoin needs to come in and support it or you're coming right back down. Long liquidations accelerate declines. It's the same thing in the opposite direction. The same process works in reverse. When too many traders use leverage and bet on high prices, Bitcoin falls slightly. Higher leverage low uh longser than liquidated, right? That forces selling pushes Bitcoin's price lower. It's the same thing as a short squeeze in the opposite direction. Right? Today's leverage picture where we're at right now. Current evidence is mixed but not severely overheated. Positive signs are that perpetual open interest cooled month over month. Funding rates remain relatively balanced. [music] Recent pullbacks have removed some excessive positioning and ETF demand has

returned. Bitcoin remains well above its July lows. Remaining concerns. Open interest is still above its long-term average. Earlier research found future leverage [music] filling a gap left by weak spot demand and Bitcoin continues to struggle near resistance. Right, recent resistance. Macronomics and geopolitical developments could trigger rapid drisking. The market is less leveraged than it was, but it still needs strong spot confirmations. What would confirm a healthier rally? We want to look for Bitcoin's price rising with spot volume, ETF inflows continuing, open interest increasing gradually, funding remaining moderate, pullbacks holding higher support, fewer liquidation driven, price spikes, and price continuing higher after short squeeze finish. What would signal a leverage trap? [music] The warning signs in signs include open interest rising much faster than the price. Funding becoming extremely positive, spot buying remaining very weak. Sounds like you could very

much look at the spot buying that's going on, right? Inflows [music] and outflows of spot, not ETF, right? price jumps mainly during short liquidations and uh Bitcoin repetitively fails resistance once one decline trigger usually larger liquidation. So once you get a little bit of a move in one direction it can trigger a bigger move in that direction. The verdict, right? The recovery is using leverage, but the derivative market does not currently appear maximally overheated, which is a good sign. Leverage is cooled, funding is relatively balanced, and some speculative positions have already been removed. However, Bitcoin still holds persistent spot demand to prove that the recovery can survive without derivatives providing the all the momentum. Right. The correct classification would be leverage risk controlled but spot confirmation still needed. Again, leverage risk is very controlled right now, but spot confirmation

or spot buying demand for spot is still really needed to hold up this market. All right, let's take a look at our top gainers, top losers of the day. Facil says lab. What about lab? I mean, I'll pull it up for a half a second for you. What do you What do you want to know about it other than like I don't know, maybe you uh maybe you hold lab. Why'd it go to layer zero? That was weird. Maybe you hold lab and you want to come in here and get me to talk about it because you think everybody's going to buy it and it's going to help you help you get out of the position. Is anything actually going on here? I mean, lab is lab is cooked as of right now. Could it come back? I've seen

crazy stuff happen. So, of course, it could come back. Went from like $17 to now what is it? 13 cents. could look at it more on like a 7day. It might give you a better picture. I don't know what you want to know about lab, but lab is is effectively been cooked. If you look at the max chart, it's probably down like 90. It's down 100. Wait, wait, wait, wait. Okay, that's hilarious because of how low it started. It's basically back to where it started, which is pretty funny. But if you look at it more like on the year, I guess it hasn't been out that long. Anyways, it's cooked. Struggart says, "I'm here just hungry." I'm with you on that one. I've barely eaten anything in the last couple of days except for some some watermelon and like

a egg and bacon sandwich, which is probably what I'm going to have for dinner as well. And some watermelon. Computers slowing. Anyways, that was mostly what I had to cover today. I thought it was a great show. I thought it was uh definitely worth going over. Let's hop over to Chainers. I don't I don't know why it's not loading. I've been having Yeah, Blues Guy says, "Lab did like River. It's cooked." Exactly. Now, what do I want to say here? Uh, I've been having a lot of internet trouble all day. That's what I was starting to say. Luckily, it somehow somehow it all evened itself out prior to uh prior to the stream, couple hours before the stream. I didn't know if I was going to have to cancel the stream and I was getting really bummed about it

because the internet, nothing was working and it was just being I don't know if I'm allowed to say that word. Hopefully, I didn't just offend everybody. But either way, it finally evened itself out. I guess that's what I was getting at. And let's sell for some B&B. We go to B&B. Go all items. This is Chainers. Link in the description. It is an affiliate link. No, I pretty much don't get anything unless you actually spend USDT. If you spend actual USDT in the shop, I will get like some percentage of it. But other than that, I will get absolutely nothing. And I imagine that most people aren't going to do anything, right? I don't I don't know what they're trying to show me here. Oh, that was buy. No, I'm not trying to buy nothing. This must be where

they make like all their money is on these little like season passes cuz they're always doing this season pass. But you can get plenty for free here, right? And you might say, "Oh, well, you get a lot less money if you don't buy a bunch of stuff," which is true. But you also don't go in the hole and have to like get back to break even. All right, you got some legendary peacock food to feed the peacock on the farm. I think we'll be doing that. Here's the rewards. I know. I saw some rewards come in. So you get different items for your farm and then use your farm to get you more money or more items and then you convert those to rather BMBB, Polematic or CFB, the in-game currency. Yeah, Cryptic Quinton says Ravebe Lab [music] Guay

and Dexi. Yeah, that's exactly what it is. Did I hear watermelon? Oh yeah, dude. So much watermelon. I eat at least a half a watermelon every day. Got to stay hydrated. Nothing hydrates you like watermelon. Hit the peacocks fly. Exactly. All right, let's go to the Atom caster where you [music] just collect more free item. Stream went pretty quick. I'm not going to lie. I was a little worried about my internet. I meant to say that at the beginning of the stream. I I meant to tell you guys if the internet suddenly went down uh that I'm sorry, but it's not my fault. I don't control the internet and that I've been having problems. But we made it through the stream and I wanted to get through a little bit quickly because I didn't know if we were going

to be able to keep internet the whole time. And it worked. Where are all of the enemies? Again, when you get to a th00and points here, they basically just give you a free item. You can only play this once every 24 hours. I always seem to play it on stream. Usually whenever I get to this game because I can't look at the chat very well, I usually start getting all positive uh life life coach on everybody mostly because that's that's what I do to myself. So it's what keeps me highly motivated. some gym ran. If you don't like where you are, uh, change it. You're not a tree. Not a tree. Carbonated water will kill you probably. I don't doubt it. But, you know, just remember, we're all slowly dying already. So, [music] everybody worried about dying while they

are they're dying. So, there's that. Hyperfocused on what you can't actually prevent. I'm not saying you should just live unhealthy. Trust me, I'm not hitting the gym and walking three and a half hours a day because I think people should uh live unhealthy most days. It's been a little hectic here lately. a lot of stuff to deal with. Man, what annoys me about this game is how slow it goes. And it's like as soon as you get to a thousand, it like actually really picks up right about here. And you can actually get to a,000 points pretty quickly. It's easier to get to like 10,000 points than it is to get to a thousand just because it takes forever. All right, let's let him take us out. Uh, no, Eugi. Wrong. I disagree. Uh, okay. This this human flesh

body you have is always declining. I don't know. I don't know anybody who's proven differently by living forever in a physical form anyway, other than, you know, maybe God himself. That's about it. And you say you disagree, Blues Guy, but I don't I don't actually know what you're disagreeing with. I just know that you disagree. All right, let's see. Yeah, like I said, that's pretty much the show. We covered everything really, really fast there. I mean, unless you want to go look at like ETF, inflows, outflows, that kind of thing. Otherwise, I'm probably going to wrap the stream up. Was a pretty quick stream. I'll be back. There will be a stream tomorrow. All right. Tomorrow. After the stream, I am leaving to go on a trip. So, and not like a vacation style trip. It's it's taking my

grandmother up north basically. I'm I'm a driver. I am there to drive. It's not a vacation. But anyways, not that there's anything wrong with taking a vacation. But anyways, there will be a stream tomorrow night. I'd like to see all of you there. It's bad for you. You're not doing any good by drinking it. Sure. I agree with you. I guess I don't know. I haven't studied carbonated water as much. If it carbonated water turned out to be bad for you, I would not be surprised even a little bit. Not even a little bit. >> Shrug a heart says hell yeah to carbonated water. Yeah, that's funny. You do you. I have to tell what I know. Yeah, I mean I know carbonated water. I don't know. I haven't studied carbonated water quite as much. Of course, soda is

bad, but that's usually high fructose corn syrup, stuff like that. I'm not drinking a Pepsi. over here. Literally the only ingredients in what I'm drinking is carbonated water, uh, Zvia or sorry, stevia, artificial flavor, and that's it. That's all that's in it. So, is it good? No, it's not good. Is it like a thousand [music] times better than drinking Coca-Cola and Pepsi? Oh, yeah, definitely. said, "I did deep dive it, otherwise I would shut my mouth." No worries. You can tell me all about it when you get here, brother. Um, there's a a million things to coordinate. A lot of times people have their healthy vice. It's like it's like I smoke cigarettes for like a good majority of my life. Started very young. And uh, you know, I don't I don't smoke cigarettes, at least not on a

daily basis. Maybe when I'm hanging out with the bros having a brew or two, you know, maybe I'll bum a cigarette off somebody. But on a day-to-day basis for months and months and months, no cigarettes. Anyways, uh so you know, we can argue that carbon it's like my point here is this. Everybody has some kind of little vice of something that they do that they probably shouldn't do, right? So, and then everybody has their opinion, right? Yeah, no worries, Boo Sky. Ain't no hard feelings. Uh, I'm usually the one telling other people stuff and it's usually poorly received because they don't want to hear the truth about things, but at the end of the day, sometimes we know the truth about stuff and we still choose to do it. Like, you know, one that's probably relatively Wow, they signed

me out. What's up with that? One that's probably very uh pertinent to the conversation would be like nicotine because I just brought it up and uh some people will act like smoking tobacco is not bad for you and it is nicotine. You can argue that nicotine has some positive health effects but the delivery system of smoking the tobacco is is not necessarily good for you. got to pick a better delivery system. Problem is, if you want a better delivery system, then they want to give you synthetic [music] nicotine. So, there's a nuance to everything. Basically, just know your risk, right? [music] Know your risk. Know what you're getting yourself into. Anyways, shout out to Sunflower Land. I actually got my son playing this. He's been loving it. If you want to play Sunflower Land, one of the coolest NFT,

you know, games, like everything is an NFT in this game, even though you may not see it. I actually just recently bought Oh, it's an update. I recently bought the VIP, so now I have like a ton of money and I actually can do stuff on here. It cost me like $10, so I'm all for that. Anyways, this is not my gaming stream. That'll be tomorrow. So, if you like DeFi gaming, come back tomorrow for tonight. I'm going to hop off. I appreciate everybody. I appreciate you being here. And uh as always, I'm glad I did the stream. I love doing the stream even on days when I'm super tired. I was very tired, right? Says, "Bro, nicotine is the only thing that heals all diseases." I don't disagree with you when we're talking about nicotine, right? But what

about the delivery system for nicotine? And what kind of nicotine is the nicotine you you're buying completely non-GMO, completely non-hybrid, completely like there's levels. There's GMO and then there's hybrid, right? Hybridization, which is not horrible, but can still be negative, right? there's GMO [music] and then there's everything else in between from organic to pesticide it, you know, and then of course there's the fact of smoking it is not necessarily all that great for you. Uh if you can get it in your system another way that's good. Did you know that things like I believe broccoli has nicotine in it? Very low amounts, right? There's a lot of leafy greens, hence like nicotine is tobacco is like a plant, right? Anyways, I don't know why we're getting into that, but I'm going to hop off. We could definitely talk about

this in person as Blues Guy is coming to Florida. So, it's going to be a lot of fun. I look forward to it. Much love to all the undergrounders. Hit me up in that Discord. I'm not seeing a lot of activity in the Discord. um which is understandable, but let's try to keep maybe a focus with coming together and actually chatting in the Discord outside of the stream. Stay underground, stay crypto, think long term, and I will see you tomorrow for DeFi Friday. Underground crypto out.