Lark Davis on how to survive the bear market

Transcript

what's up friends welcome to web3 academy a place for entrepreneurs creators and marketers to explore and learn how to use web 3 to transform business models and create thriving communities enjoy this next episode gmgm welcome friends to another episode of web3 academy podcast uh i'm kyle redhead founder of web through academy today we have a very different episode uh for you than our typical content so i wanted to do a quick intro before getting into it first of all jay hamilton my co-host uh my amazing amazing co-host is not here today because he's in new york city at nft nyc meeting many of the members of web 3 academy in the web 3 ecosystem

so hopefully jay you're having a blast over there um but today it's just gonna be myself and lark davis um and we're gonna go rogue on the show today and instead of talking about the things we usually do we are gonna dive deep into the state of crypto markets markets nobody tell jay uh i didn't let him know i'm totally kidding but second i want to welcome the wealth master community to web 3 academy i know many of you subscribe our subscribers to lark's investor report and lark and i are excited to get together and share some long-form content um to add to everything that you're already learning inside of his uh weekly uh wealth mastery investor report for those of you who are not part of wealth mastery i highly recommend you check that out it's in the show notes

below the link to get there um it's pretty incredible but for the newcomers here on web3 academy we don't typically talk about markets or price on the show web3 academy is really on a mission to help guide entrepreneurs businesses and creators into web3 so what we're doing is like exploring the utility of this space right exploring how to use nfts tokens and web3 to unlock new value and create thriving communities and build sustainable business models so if that interests you wealth mastery community i welcome you to subscribe to our newsletter at w3academy.io the link is in the show notes below and join our discord uh our discord

community is where you can meet and network with a bunch of other entrepreneurs and creators who are either experts in web3 uh or are brand new in web3 and again we're all just trying to learn together finally one of the reasons lark and i wanted to this episode um is because in times like this uh people become scared people become angry people become fearful in bear markets when you know we're seeing our portfolios uh just go down and down and we're seeing red in the markets um it's it's tough time and social media gets a little bit crazy uh people start leaving the industry um and i think in times like this it's helpful to sit back you know take a deep breath and reflect on what the space is and what we're actually investing in what's all going on here and so this

episode is an opportunity to sort of zoom out and take a look at what's happening from many different angles i'm talking macro we're talking fundamentals technical analysis so on and so forth right and we're going to just get our head on straight so that we can take advantage of the opportunity that is a bear market right lark and i are both very very bullish on crypto and web 3 becoming widely adopted and you know impactful over the next five to ten years and we want to make sure that people's emotions uh during a time like this are not the thing that's pulling them out of the markets right because that is when you miss the best opportunities as you're going to learn about inside this episode so um just

wanted to welcome everybody to this episode here and just give you some some housekeeping on what's going on um but without further ado here is the episode with lark davis hello friends and welcome back to web3 academy podcast today i have a special guest none other than lark davis and we're going to be talking about the state of the markets in crypto uh hopefully this will be a bit of a bullish session but i don't know it might not be i guess we'll we'll see what what lark has in store for us uh but i'll give a quick intro and then and then i'll let you take things further lurk but uh lurks a long time uh crypto investor um and he's got a passion for helping others so he was in the space for a while was making some good money and

profits in the space and decided hey i want to educate others and help so we started youtube channel twitter channel i think his youtube's at like 500 000 subscribers twitter's at like over a million and he has the wealth mastery investor report which is basically an investor report that covers everything in crypto nfts and web3 um and how to sort of like um i guess how to understand the markets had to understand where to invest and how to sort of play this the space um and it's two newsletters that goes out every single week uh he's got over 40 000 subscribers on there uh it's pretty amazing newsletter um i don't know how when you ever sleep lark because you seem to be doing a lot of things how do you sleep or what's going on

i sleep less with the baby that's for sure and you have a baby and you have a baby crazy crazy world but welcome to the show lurk um i don't know if there's anything else you want to add to to your bother did i cover everything uh no that's a great intro thank you perfect perfect well as i mentioned um we're gonna basically address the wealth mastery community today um so there's over 40 000 subscribers there and uh lark does youtube videos which are usually shorter and then does these newsletters uh and today we wanted to get together and address the community in more of a long-form piece of content to sort of you know kind of release everything that lark's got going on in his brain and what he's thinking of the markets right now uh and so this will go to the wealth

master community but also the web through academy community you guys are lucky you're going to get to learn from the the the great lark davis as well um but let's start off how we do all of our podcasts when we interview a guest uh we start with the web three rabbit hole story so what was it that got you into crypto or web3 or bitcoin or whatever it was can you just sort of walk us through you know what got you into this space yeah absolutely so um it's kind of funny actually it was in a big part it was my mom who kind of uh you know really pushed me towards like hey look you gotta you know you gotta get yourself into this bitcoin thing you gotta check it out i gotta get ice bitcoin right she hadn't actually bought any bitcoin yet but she kind of

want me to research it a bit and then you know tell her about it but um and she started uh pushing me towards uh the steam platform which i'm not even sure is going anymore but uh steam was basically a place where you could post blogs and uh get upvoted and make money it's a pretty cool idea made a few bucks on a few posts um and so i used to post there about different stuff you know from travel and like reviews of vineyards i had been to stuff like this but also a little bit about crypto right how to buy bitcoin etc etc and i noticed something very quickly that all the crypto posts were way more popular than everything else so i started making more of those and eventually i uh said man it's taken a long time to write these crypto posts

all the time they must record a video and i just talk about what i'm thinking about so i started posting those on youtube and then linking them on steam because that's where my head was at like oh yeah i post them on steam and get up votes and i get you know five bucks per post or whatever and then trade that in for bitcoin etc etc sure enough the posts over on youtube started doing way way better than the ones on steam and uh yeah that's kind of how i started all the content creation stuff but the interesting thing is in terms of getting into crypto right it's something i had kind of had on my radar vaguely for you know some years ago the first time i talked about it was back in 2012 in my political studies uh tutor room it's like yeah we're all talking like yeah

bitcoin yeah future money like i should probably buy some of that like but beer money for this weekend do your money went out unfortunately future lark future lark did not appreciate that but that's okay i'm sure it was good at the time so how why did your mom come to you and say look into bitcoin was this like in the middle of the the boom or something or how did she get across how did she get on the bench she yeah she also kind of been keeping an eye on for a while and um she had been listening to some different um you know podcasts and stuff like that sort of more like the the libertarian anarchist uh sort of angle with you know bitcoin as freedom money and stuff like this and people talking about like monero and stuff and that was

kind of like her um interest and it was privacy and freedom and stuff like that which i'm also obviously interested in too and so that's kind of where the spark started right to really start to understand the technology and diving into the technology and what's possible with it and as someone who had been um you know who had studied in uh politics understanding how screw the world is you know it's funny i did a five-year degree got my master's degree in political studies and i learned enough to know that everyone have anything to do with anything related to politics because it's all screwed it's all corrupt it's all terrible and uh then you learn about bitcoin you're like actually there is a there is another way there is another way to central bank insanity there is another way to the international corruption of the dollar and all this stuff and the

political bullying that you see uh the mainstream financial apparatus being used as you know institutions like the world bank and the imf these are criminal gangster organizations and when you realize that there's an alternative out there called bitcoin it's very exciting right and that's one of the things that actually keeps me excited about the space regardless of the price action oh there's lots of money to be made i love making money we all love making money but at the end of the day you can make money doing a whole lot of stuff but if you want to make money building you know being part of the financial revolution bitcoin crypto that's where it's at so you're in it for the tech kind of guy you could say

in it for the tech and the gains we'll stay both in it for the second game perfect i love it well there's not a lot of games to be had at the moment unfortunately we've had a rough a rough go over the last i don't know how long it's been now six months maybe i think november was the last the last top i believe yeah the market really rolled over back in um was april we had that last sort of hurrah as the board ape yacht club land sale happen which drove a lot of interest in the markets in general huge you know hundreds of millions of dollars for nft sales lots of money driven into ethereum et cetera et cetera but after that it was just kind of down from there but it's been on a downtrend yeah since november since we hit the top of 69k obviously and once we

broke the uptrend at 61k things has been downhill from there there's been lots of opportunities amongst that right there's been coins that hit a lot of altcoins hit new all-time highs two three four months after bitcoin hit its all-time high right right so there has been opportunity within this but still everything's been on a downtrend we've had things pump and then dump right nothing is that it's all-time high right now right so before we get into i mean we'll get into the whole space and and you're not just looking at bitcoin you're kind of especially in your newsletter you're diving into all things altcoins mt's everything so i think we will get to that but let's zoom out first and lark i'd love for you to just give us a kind of your overview on the fundamentals of of this space right now

so maybe you want to talk about crypto and the fundamentals there or maybe you want to talk about macro um but what are you seeing just currently like overall why this is all happening and then maybe we'll get into like technical analysis some on chain stuff and all that kind of all those kind of things um but first just give us like the the zoomed out like macro fundamental view of what you're seeing in the space right now right now it's all about really the macro scene right this is what is driving all markets right now and unfortunately uh crypto has not been an exception to that in fact crypto has moved faster and more volatile in many ways than the uh equity markets mean we see tech stocks that are down as much as crypto right so we're trading very much in line with um

sort of indexes like the nasdaq 100 which is a very tech heavy uh index so we're seeing that and of course the fears in the markets right now are that we're entering you know a new great depression this is going to be the recession of recessions the 110 dollar sessions and and if you look at the stats things haven't been this bad in the equity markets for over a hundred years in many ways right we gotta go right back to the great depression to find stats that are this bad you know never has there been a year that uh that started this bad in x amounts of decades has the inflation's highest it's been in decades et cetera et cetera et cetera mortgage rates are

you know uh so the amount of mortgages being taken lowest in like 30 years or something like that people aren't buying properties people aren't buying stocks right now um the bonds yields have inverted which always signals a recession inflation's out of control and the fed um has not been able to rein that in as we see the last uh cpi print in the usa which of course the world's biggest market global reserve currency is why we have to talk about u.s markets right i wish we just talked about new zealand markets all the time but uh u.s markets ruled the world the dollar rules the world at this time inflation did not peak um we had hoped it would in march in march we had 8.5 in april we had 8.3 everybody thought well

that's it inflation's p the fed raising interest rates is getting things under control it's not what happened because in may we had an 8.6 percent inflation meaning inflation has not yet peaked we could have a higher print next month which would be bad for the markets we go from eight point six to like eight point eight nine percent like equity markets are getting smashed again crypto's gonna get smashed again so that's all out there in the macro scene right now i think it's definitely going to be a bit of a journey before things start getting better right the if recession hasn't even officially been declared in the usa you need two quarters of negative growth that's going to happen in like you know 10 15 days something like that they'll officially declare

a recession for u.s markets unless something dramatic happens between now and then so all this stuff is weighing very heavily in the markets people don't want to you know spend a hundred thousand dollars on a picture of a monkey right now people are more hesitant to buy bitcoin right now smart investors know we see that but still people are running away from risk right now but the hard part for investors is not really anywhere to go you go into dollars great i'm sitting in dollars now yeah but then you have to deal with the 8.6 percent inflation this is the thing oh i'm going to run to metals well metals have um you know been lackluster let's say losing their their shine if you will um and uh everything else is just getting

hammered so you know cash is something of a safe haven very short term but long term you get hammered by uh inflation so it's it's a tough environment right now for investors to make money in do you subscribe to this theory that this is kind of the end and this is like as bad as gonna be as bad as the great depression like i understand like all the metrics are pretty bad um but i mean lately anytime that happens the fed just reverses course and you know lowers rates and starts printing money and kind of saves things which camp which is some people are in that camp like hey this is going to be short term volatility fed will change their tune soon enough when they have to they always do and some are like nah this is it they can't figure it out they can't control

inflation this is just it's gonna run away which camp do you subscribe to well historically we have definitely seen the fed step in um but i think right now they have to let markets crash what you're witnessing right now is controlled demolition of the markets and the federal reserve is the one who's crashing it so if you're wondering why your portfolio is down you can thank uh you thank the federal reserve chief because they are on purpose crashing the markets because they want to try and bring inflation down they want people to feel economic pain that's why they're crashing the markets markets did get massively overheated because of record money printing and record you know low interest rates and all that stuff basically free money being handed out and people took that money and speculated like crazy with it and um you know you really start to

wonder when you hear about stuff like the great reset right and we're all going to own nothing and be happy well this is a pretty good way for us to although nothing is to crash the markets force everybody into selling their properties right that they bought at much higher prices for everybody into selling their assets everyone's backs against the wall and you have the mass of that massive asset managers like blackrock step in and buy up everything for pennies on the dollar i would reckon though personally we are going to see um some kind of changing in course once the pain gets bad enough they'll let it bleed out a lot more before it gets better um but we will see them step in reverse course at some point because they're simply going to have to you know but uh if they don't then yeah

worst depression in uh you know long time we could be in a multi-year bear market that is uh unemployment could soar and things could get really really bad before they get any better so let's hope that's not the case because as we've seen for all this century so far the fed always steps in and bolsters markets but the question is what is their ability to do that right now obviously they're raising interest rates hasn't fixed inflation yet so they're gonna have to keep raising hard and frequently and they bought during the covid situation they bought what was a 7 trillion dollars eight trillion dollars worth of uh mortgage-backed securities

and bonds well they're now letting that stuff either expire or actively talking about selling it into the market now they haven't sold it into the market yet but if they start dumping a couple trillion dollars worth of mortgage-backed securities into the equity markets when there's no buyers because they've already crashed the market liquidity's dried up open interest is at record lows pessimism's at record lows that is the the straw that will break the camel's back essentially that the market will not be able to sustain that kind of cell pressure so it's up to the hands of the federal reserve unfortunately i hate to say it as a bitcoin investor how do we get ourselves in a situation where everyone's just waiting to see what the fed's going to do but that's where we are you know it seems like

bitcoin is the thing that fixes all this right yeah it allows us to opt out of that system yet it's still the one thing that's probably well not bitcoin specifically but crypto in general has done worse than everything else at some point that's got to flip right it's got it's got to decouple i guess is what the is what the term is um and uh i don't know when that happens but hopefully that happens sooner than later we're correlated until we're not yeah exactly what about okay so when this happens i mean obviously you see all the headlines of like crypto's dead bitcoin's dead it's all gonna go to zero blah blah blah blah blah um of course i don't subscribe to that of course you don't subscribe to that can you talk about the fundamentals at all i mean like we just saw these crazy crashes in crypto and

pieces of the crypto industry are breaking i wouldn't say it's necessarily crypto itself it's more the centralized organizations um but can you talk about what's just happened over the last like week or two with these crazy liquidations and celsius and what have you seen going on with all this so largely what we are seeing actually is pretty interesting is uh the crypto industry in a large way just self-regulating right we don't have a central bank to bail us out we're not wall street right so when the prices go down they go down when liquidations come in for wales they get liquidated it's on chain right there's no mercy there's no uh it's just emotionless smart contracts executing code can't repay your loan you get you get liquidated for hundreds of millions

of dollars in some cases uh what we've seen with uh centralized lenders um has been market contagion basically um and it's obviously very worrying what's happening with celsius uh it's a frustrating situation it's a very concerning situation um we saw of course the terra ust collapse right an algorithmic-based stable coin that entered into a death spiral unfortunately that had contagion right across crypto where we saw venture capital firms like three hours capital going under we've seen in the last week alone um other centralized lenders uh coming out and having either huge raises i'm getting you know half billion dollar

bailouts essentially from big players like ftx or um just having to stop withdrawals another one i think called babel finance had to do that so it's a rough situation out there right now one thing that we've been talking about in the newsletter uh is just take take control your private keys for a while get get off centralized platforms get off the centralized lenders uh maybe get your money out of d5 for a while and there's still some decent options in d5 but you don't have to be in that right now you can you know still learn about platforms whatever take notes for later but uh we are seeing things breaking right across the crypto space and d5 is holding up pretty damn well right now so that's that's something very encouraging it's largely centralized institutions that are having the most problems because they're at

least transparent with what they're doing with their funds whereas uh d5 platforms you know something like ave or maker dow they're just humming right along they're doing totally fine liquidating whales without a second thought because that's what they're designed to do so we have the tools to make crypto something really really amazing and it is really amazing it is working as intended the problem is is that when you have the prices falling so far when you have these honey pots because that's exactly what they are you have these predatory ruthless cutthroat venture funds and hedge funds out here uh who are playing a very ruthless game right now they know that there's a whale sitting there with 200 million dollars

worth of ethereum with liquidation price at x dollars they're going to hunt that stop because they're going to short the market when we see big players like alameda and others doing this right because they know there's an opportunity there so if they can crash the market enough get that vault liquidated cause a further cascade liquidation of falling prices there's opportunities there for them so we've been seeing this very ruthless game play out for the last couple weeks in crypto and that's i guess easier to do in crypto because it's all open following chain see what's all on chain that's it interesting that's brutal it is i i hate that but i mean i think the nice thing is

this open transparent you know financial system um like you said we don't need bailouts it all works it just kind of does what it does it's basically what we've been building over the last you know however many years i mean it's working it's doing its job and then you have these centralized companies which are are not which is what we've seen back in 2008 and so on and so forth like this is really why this stuff is all getting built out so i guess long term this is sort of bullish defy bullish crypto uh just short term we're kind of impacted by by the macro environment is that sort of what you're seeing uh players that's it that's it the macro environment is dragging everything down and because of certain mechanisms within crypto things are breaking right and when these things

break they have huge ramifications particularly now it's the thing is if any of this stuff broke back in november it would be like you barely even notice it happened but because it's breaking now when the markets are so thin when the trading volume is down over 50 percent from the all-time highs when you have then 100 million dollar ethereum vault getting liquidated that has an impact on the market in a way that it wouldn't have back in the day so you know it's all this stuff is breaking when the markets are at their most vulnerable and their thinnest right which makes the impact even more pronounced when it happens right you were in the bear market of in the

kind of the big dump of 20 i guess 18. um what are you is there similarities here is there a big difference or like what are you seeing when you compare back to what happened back then i mean emotionally it's the same ballet of emotions that we always go through and bowl and bear markets extreme fear everybody gets super afraid at the bottom people capitulate at the bottom all that kind of stuff which is some of the data we've seen on chain we'll get into in a few minutes but essentially this bear market is absolutely nothing like the previous bear market and yet it's the same right because bear markets always have their similar rhythms right of mass capitulation things breaking projects going bankrupt developers

giving up walking away investors giving up and walking away and then you have the builders you have the long-term investors the value investors people who stick around people who know there's still money to be made even during a bear market it's just harder to make money right bull market everyone's genius in the bear market what is it they say when the tide goes out you find out who's been swimming naked something like that well that's what's happening right now uh in the uh the bear market but um you know fundamentally it's just nothing nothing like 2018.

you know back in 2018 we had almost nothing it's actually hard to for people who've been around like crypto for a year and you kind of you're used to seeing all the nfts and the nft marketplaces and the d5 stuff and you have 10 different operational blockchains that you can use that all have cool d5 platforms you can trade you know decentralized exchanges you can do loans without any intermediaries using these pla none of this stuff existed back then or almost none of this stuff existed back then we basically had one blockchain that was doing smart contract stuff that was the theorem well a couple others that had a few applications a couple tokens but they were very very very marginal we had almost no d5 stuff there was a

billion dollars in stable coins back then versus 150 billion now there's so much more money in the market there's so much more stuff working the adoption levels i mean my gosh we've seen adoption absolutely sore in the last 12 to 18 months like unbelievable stuff any one of these stories i've covered in the last year about this bank selling bitcoin to their customers this country's adopting crypto this huge corporations getting into crypto et cetera any of these stories would have just like broke the internet back in 2018. now it's like mundane like oh great another big company is accepting crypto who cares man we've come so far hundreds of millions of people have come in the last few years fundamentals are very strong they've never been better in many ways we have

more stuff working more more options it's just yeah we're in a bear market and the price has come back down crazily to the previous all-time high prices when things were dramatically different meaning to me i feel like we have some good sales going on in the crypto market right now i mean to think 2018 i don't think we had like uniswap we didn't have a way for you to exchange a token one from one token to the other other than using like a centralized exchange we had like we had ether delta ether delta did you have it don't even know that it was it was horrific it was horrific ether delta we even said it's one of those things we made jokes about it at the time because it was so damn bad i mean uni swap was just such a breath of fresh air when it started when it

became operational you could just do these simple easy swaps and of course you could also become a liquidity provider ether delta was a nightmare man it was just it's terrible absolutely terrible well so that's one of the nice things about this bear market is like there's still things you can do right like back then it was just like it was only tokens invested in speculate that's it and i mean the the market is still a lot of speculation of course sure and everything but like you said there are you can take out loans you can do you know yield farming you can um uh you can you know land you can do so many different things right now there's even like games and things that you can do so like there are still users and they're not necessarily leaving as fast as they were back then which i think

um is a bullish not a bullish thing but it's a good thing for the industry at least i think this time around there's not like you know kryptos dead or there's like most people aren't uncertain if this is gonna stick around or not i think we all kind of know like this is the future we just gotta deal with whatever the heck's going on in the in the markets right now so let's let's talk a little bit about the markets in terms of like technical analysis around chain i know you have some charts for us to look at um why don't you kind of walk us through what you're seeing right now uh and then we can dive into some more of the the sectors and and kind of details uh afterwards absolutely let's go ahead and share my screen here so for those on the youtube channel you

can see this uh for those listing on the podcast we will do our best to explain what we're seeing on the screen right now so i'll try to break it down uh here for you so just some really important things i want to highlight and we'll go through those here so hopefully it's a podcast friendly as well so i got the bitcoin us dollar weekly chart open here and there's some incredibly important things that have um happened here first of course we have to talk about is that the price of bitcoin for the first time in its history went under the previous all-time high so we can see right here the previous all-time high for bitcoin got up to around twenty thousand dollars back in late december 2017. then of course just in the last week of trading action we've had a situation where we actually came back

down for the first time to around 17 dollars so two thousand five hundred dollars under the previous all-time high first time in bitcoin's history absolutely unprecedented trading action that we've seen here for crypto which as we've explained earlier in this uh in this conversation is related to the macro scene macros absolutely cooked and this is really showing it we are in unprecedented times for the cryptocurrency industry uncharted waters if you will now at the time of recording this conversation we have started trading back above the previous all-time high but we are still under the 200 week simple moving average that's the blue line on our chart here now the 200 week simple moving average

this is a very very important line in the sand for the markets basically this has in every previous bear market marked the bottom so when we got down to this level when we started trading at or near or just under the 200 week simple moving average that was the time of maximum financial opportunity and i'd like to say that that is the time maximum financial opportunity again but with the macro scene being what it is i think we have to be very very cautious in the markets right now i'm in no rush to do anything personally i have been averaging in i have been buying bitcoin uh over the last week but i'm not deploying all my capital right i think this bear market could

last for quite a while and we could see a lot of unexpected things playing out so i'm not in any rush because normally this stuff would get me super super excited like oh yes this is the time to go all in never go on but with the with the macro scene being the way it is i think a little bit of extra caution is warranted here uh we also see the rsi question for you there typically when it goes down below this 200 um 200 200 week moving average 200 week moving average isn't this very early in terms of like the cycle if you look at last cycles usually it takes i don't know how many days it is but i think we're very early for it to reach this are we not um now we're actually kind of on par

with uh where we would see this happening after a bitcoin having so it's usually okay around this time is when you start to get that bottom if you look back to like uh 2017 or sorry 2018 we got there around a similar time post having to to this particular point but um yeah the question is is uh is that actually the bottom right right which with again so much fear in the macro so many liquidations still outstanding that could happen we must be cautious uh in terms of rushing to make a bottom call right there's no point in chasing clout if you're broke so just take a time be patient and uh yeah anyway so uh the rsi

also hit a record low so this is a good momentum indicator for the markets and basically this is the lowest weekly reading we have ever had in bitcoin's history again a kind of oversold signal that would normally shout like yes this is a fantastic opportunity right and it is a fantastic opportunity which is exactly why i'm buying bitcoin but again not going all in here just because the rsi is low doesn't mean it can't go lower just remember that just remember that okay i also want to point this out see normally when we're looking for uh capitulation in the market a sign that this selling action recently has been a

potential bottoming moment for the market is a huge spike in volume but we have seen that huge spike in volume as you can see on the chart here so this is uh the week that has just closed now it was the third highest volume week in the last few years last time we had bigger volumes was during the may 2021 selloff and the 2020 coved crash so those both had higher volumes than we have right now but that's potentially again a a moment that could really show like well maybe we are seeing a bottom or near bottom coming through for the cryptocurrency markets with such a strong volume coming in in the last week because you gotta remember

for every bitcoin that is panic sold there's a panic buyer on the other end of that trade right so a lot of people out there believing that crypto is not dead because that volume is indicating people were stepping up to the plate as the market was crashing of course we have record low fear and greed sentiment to what extent do you want to give this uh particular indicator importance or not if you look at social media if you look at the comment section on my tweets on my youtube videos sentiment is absolutely in the gutter and it's a funny thing emotionally people tend to get overly bearish in your bottoms overly bullish near tops now i've fallen victim

to uh being overly uh bullish your tops without a doubt but i don't want to become overly bearish near the bottom right so you get down to 17 500 other day and then everyone in the comments section all bitcoins going down to 3 000 bitcoins going to zero it's the same mentality just in reverse right so don't usually these kind of extreme fear times are times of opportunities and again not to rush in take your time cost averaging throughout the bear market pretty winning strategy because i'll tell you what the people who became millionaires in the bull market oh sure there's always the exception of the random dude who bought you know 500 bucks for the ship

and then became a billionaire or or the guy who you know perfectly bought a board ape you know at the right time and then sold it at the perfect time et cetera et cetera but those are the exceptions right the most people who got the most gains out of the bull market were people who bought during the bear market they bought when things were cheap that's the simple rule of investing buy low sell high it's really that easy and cost averaging in to top coins during the bear market is going to be a winning strategy for the next bull market when it comes i also want to point this out i did mention very briefly earlier but we now have 150 times as many stable coins sitting on the market so back in 2017 when bitcoin hit its all-time high there was

only around a billion dollars of stable coins in the market altogether it's just usdt and a little bit of uh was die even available yet okay remember wasn't much available basically now we have 150 times as many stable coins now what that means is that there's just a lot more money in the market that's 150 billion dollars sitting on the sidelines right now that as soon as that money feels like hey things are okay things are better in the market you know i'm going to get back into positions i'm going to go in big we have 150 billion dollars ready to pump the markets at any given time so things can move pretty fast when they start moving that's one of the point out there and especially because the market cap of the entire crypto market is now

below a trillion that 100 billion is actually a very meaningful amount overall exactly exactly exactly very good point that's like you know 15 to 20 of the entire cryptocurrency market sitting in cash right now that's huge and then if you look at realistically probably what a quarter of the market cap of the entire cryptocurrency market is uh sitting in bitcoin that's not moving those are long-term holders people who have literally not touched their bitcoin in years that represents like 12 to 13 million bitcoin long-term holders those guys have no intention of selling anytime soon if ever absolutely they create a very very

powerful floor for bitcoin right so you got to think there's a quarter of the market that's basically a liquid that's counted as the market cap and we have a lot of ethereum huddlers that are going to be doing a relatively similar thing so maybe 30 percent of the crypto market is not even up for sale and then 15 to 20 percent of its cash waiting on the sidelines that can pump the market at any time it's a powder keg right all we need is spark to get it lit now we have seen a big uptick as well in interest in people searching for bitcoin people searching for a theory in the bitcoin search actually the highest has been in uh 12 months i think actually highest spending probably about 18 months or something like that now to be fair some of those bitcoin searches are is bitcoin dead is bitcoin

going to zero but uh people are at least paying attention to bitcoin again so that's good [Laughter] oh it's hilarious now what's interesting um and again if we talk about potential market bottoms capitulations any of this kind of stuff normally you'd want to see massive losses coming in which is a sad thing because again the psychological reality is people buy high and sell low the people who really become millionaires in the markets the ones who buy low and sell high now what we just saw is huge realized losses for crypto so this is bitcoin this is from a few days ago so the realized losses have become even bigger since then uh currently i think we're sitting on around almost 20 billion dollars of realized losses for bitcoin investors

over the last week or so so basically these are people who bought up here you know you bought your bitcoin at forty thousand dollars sold for twenty you bought it at sixty thousand dollars you sold it for twenty that's big losses right there so this kind of capitulation of market participants previously has marked low points in the market as you can see the covid crash we had a huge amount of and this is in dollar value right so in dollar value this is the biggest sell-off of realized losses ever ever but you have to keep mine like back in the coved crash the price was much lower so we probably actually did a similar

amount or if not more bitcoin actually being sold at a realized loss it's just the price was three thousand dollars four thousand dollars so us dollar value terms it was smaller but um we see the us dollar value terms here being absolutely huge so again that's the kind of information that could say well maybe the worst the sell-off's over at least if not a bottom starting to form up at some point in the near future we also do have of course all those wild cards not just the liquidations we were talking about earlier and there's still a lot of large vaults out there worth hundreds of millions of dollars of bitcoin and ethereum in particular as well as big solana wallet that could face potential liquidations one of the things we always want to

watch for too is the miners now right now bitcoin miners have sold around 9 000 bitcoin over the last week or so you know these guys got bills to pay they got investors who are hungry for returns et cetera et cetera they have become forced sellers at a rough time in the market bitcoin miners still hold around 50 000 bitcoin so if we see markets tanking and these guys need cash there's a point there's a price point that these bitcoin miners are going to have on their minds like well if it gets down to x price we have to sell because we have to pay our investors we have to pay our bills we have to buy new mining machines et cetera et cetera so that's a lot of bitcoin wild card wise that could still come into the market 50 000 bitcoins sold

during a market crash not good not good let's just say that and uh final point before i turn the the screen sharing off here is um market mentality can really screw you up you're usually your own worst enemy when it comes to investing because what happens is the buy low sorry buy a high sell low mentality right but really just getting overly emotional about markets because without a doubt when bitcoin was under 20 000 a few days ago people were panicking it's gonna go to zero you have to sell now now the bitcoins back over twenty thousand dollars you have to buy now it's going to a hundred thousand dollars right remove the emotions

the more emotionless you can be as a trader or as an investor the better you're going to do people who get caught up in this emotional wave it's rough it's rough you'll be your own worst enemy time and time again i i think emotions are easily the hardest thing about investing at least that's what i've experienced since getting investing many years ago is like controlling your mind is just so damn difficult i mean it's difficult regardless of investing but it's so difficult in investing it's crazy just just to be watching a market crash and just literally just sitting there on your hands going i'm not gonna sell it's down another ten percent not gonna sell not gonna sell not gonna sell everything i'm an idiot i'm an idiot why

did i buy this scrap all my money's gone i'm not gonna sell and then of course in a couple years time things back to all-time highs and you're genius again right well and i think sorry to interrupt your listening but i just needed to let you know that if you are looking for a job in web 3 or you are looking to hire in web 3 then you are in the right place web3 academy has is curating a talented collective of professionals whether that be developers product managers marketers community managers the list goes on and on and on we are curating a group of talented professionals who are enthusiastic and educated in web3 and we've done this put

them as a group and we are connecting them to companies who are hiring across crypto and web 3. so if you are looking either for a job then what you need to do is head to web3academy.pallet.com talent and you can create a profile basically like building a resume inside of there if you're looking to hire head to the same link and you can subscribe to that collective okay there are literally people joining this every single day and you can subscribe to that collective and reach out individually personally to these people to experienced web 3 professionals that you can find and fill the positions that you need so again just go to the link in the show notes

below and you can find the link to get there but if you're looking for a job or you're looking to hire in web3 we are connecting the best of the best so make sure you get in there and you create your profile or you subscribe if you're hiring thank you and enjoy the rest of this episode you know the the most important thing is conviction like one when you actually understand what's going on and we talked about the very beginning of like why you got into crypto it's like the price is sort of irrelevant if it's up or down because you believe in what's happening anyway i think this is one of the biggest problems i see of people getting crypto is they just buy it because i don't know their friend told them to buy it but they have no idea what they're investing in and i think

just learn what you're investing in you can have that conviction these things don't really matter and you're able to buy when it's low and sell it or hold it when it's high kind of thing 100 100 and that all comes out education you gotta educate yourself and you know what here's here's here's a little secret for everybody who's still listening to us at this point is that uh you are in a bear market and you know what it's going to be pretty boring at times take this time to educate yourself get out there read about bitcoin read about ethereum maybe learn a new skill hate your job go learn coding guess what crypto developers are in massive demand even during bear markets we see companies hiring still the smart companies that

didn't you know blow all their cash during the uh the bull market on for we're all going to a new conference first class seats for everybody whoo and all their money's gone right those guys won't survive the bear market the guys that will survive the bear market were smart with their cash they're hiring right now because they understand now is the time to build now is the time to capture market share when you're when your competitors are all floundering because they don't have the money you build we see buying it buying and hiring two thousand people incredible everyone else is firing people they're hiring because they were smart they didn't take out multi-hundred million dollar sports center deals and stuff like this they save their cash to hire people and so you're in a bear market take the opportunity educate yourself learn new

skills learn you know learn more about charts learn more about trading learn about coding become involved in communities find edge because guess what even during a bear market money will be made it'll be made consistently but not by most people bear markets are times when it's harder to make money bull markets you can you know just throw a dart at a random coin chances are you're gonna do okay not the case now right if you're investing in altcoins it's a much much more dangerous game you got to really take your time what are the tokenomics what are the team does this company actually have the cash on hand to be able to survive a bear market i just saw yesterday i

think immutable x the layer 2 scaling solution for ethereum they just announced a half billion dollar ecosystem fund those guys have money maybe they're hiring like 100 people right now i think that's it that's it guess what my money is on those guys surviving the freaking bear market right so you gotta look at when you're looking at the coins and you're thinking about investing in stuff you know do you really think that uh safe elon doge mars moon coin is going to survive the bear market or is somebody like immutable x going to survive the bear market who just dropped a half billion dollars on their ecosystem fund and is hiring 100 new developers i think those guys are more likely to survive the bear market so now is the time to be smart with your money not to

gamble as much there is definitely opportunity there's great trading opportunities traders make money every single day in this market there are still opportunities to accumulate those fundamentally strong altcoins the ones that will be here in a few years time nft flipping there are still opportunities defy there are still opportunities although i gotta say if you are getting into d5 try to stick with the blue chip protocols your wire and finance your ave stuff like this we are seeing things break and there's nothing wrong with sitting out d5 for a couple of months missing out on a little bit of interest but potentially you know avoiding protocol failures so but there's still opportunities right now in the markets main point absolutely well there's so much activity

there's so much innovation right like yes that's what's going on right now there's just so much happening still even though it seems grim to those who are not really in it can you talk us through wealth mastery investor report so this is something that you put together um to basically help the community help the people who are following on youtube help people who are following on twitter sort of navigate the space because i mean you just dropped like five different sectors and you know there's so much that we could be investing in but it's so much to learn so can you just sort of talk about what wealth mastery investor report is uh and why this might be this might be something that people want to get into if they want to invest in crypto yeah absolutely basically what we do with wealth mastery is try to find

opportunities because we believe there's always opportunities in the market and we we see this consistently without a doubt consistently there's opportunities in this market we just covered a token sale over the last couple weeks it did a 10x on market debut 10x in a bear market all you had to do was deposit some cash in order to take part in that that's an opportunity right nft flipping still making money nft mints still making money right so we focus on all this stuff on where the opportunities are in the market what is the information that you can use as an investor to keep safe and to um find ways to to make gains you know we do we do all kinds of stuff we do

deep dives on altcoins and look our i i love uh jesse he's uh the guy who does our altcoin reviews because he's just absolutely no holds barred no um borderline bitcoin maximalist which is in a weird way the guy you want to have reviewing your altcoins because when he sees the he calls out the and look you know he's not always right but he's right most of the time and time usually proves him right even when i feel skeptical on some of his reviews like really man like oh he said i got really and then six months later damn you were right again so that's you know it's not just always about what to invest in is also what not to invest in right which is what we talk about with our all coin reviews we give no reviews is it good is it not

good what's the value of this coin we do d5 tutorials showing step by step how to get involved in these d5 protocols which is often a big um barrier for most people to get involved right like how do i actually use this damn thing how do i connect my wallet what do i do well we do all that stuff uh as well the hottest nft mints you know there's so many nfts coming to the market right now that it's overwhelming and most of them are absolute garbage most of them are money grabs most of them are scams but there is some good stuff coming out too right and maybe you're not into nfts if that's not your thing that's cool guess what there's a lot of ways to make money encrypted but if you are nfts finding the most promising mints that's where the money's made

right you see like look at like i was a board 8 yacht club i think they minted for um 0.08 ethereum which was like 100 bucks or something at the time and at the height recently two months ago he could trade one for half a million dollars right absolutely insane that's where the money's made you gotta get into the mints you gotta get into the mints that's how you make money on nfts and and so much more in a way break down my portfolio what i'm doing you know week to week to try to you know rebalance my portfolio fine tax efficiencies all this kind of stuff so that much much more it's just we're just skimming the the top of the iceberg here but uh yeah wealth mastery basically we try to find edge in the market and uh share that

with our subscribers so i think one of my i am obviously a subscriber of wealth mastery uh which is why we have lark on the podcast today i think one of my favorite things too is uh you just went through some ta you went through some on-chain stuff and this is often something that you're sharing inside of the newsletter as well which is just really good to kind of make you understand what's going on in these markets and kind of keep you up to date on what's happening so i think i love that it's every single week so it's like and it's multiple times a week too so you're actually just consistently getting uh this kind of information which helps with conviction right it helps you kind of understand and stay stayed not crazy to be honest in these kind of markets so i love that we were

talking uh before the show um about something new that you're releasing as well on the premium side so just for listeners there's a there's a free side to the wealth mastery um which is kind of like takes pieces from the premium side and shares that um so that's great you can check that out if you're not already a free subscriber but there's also the premium side which is a paid service where you get kind of everything that he just talked about and this is where you really get the meat and potatoes of it all you even get like there's a lark's entire portfolio is on there you just see what he invested in i think that's super super useful um but you're releasing something else i think next week um or later this week uh you want to talk about that real quick yeah so we're uh introducing a new

product essentially it's our monthly crypto alpha report so this is kind of reviewing what are the top opportunities we talked about a lot of stuff in the newsletter and um sometimes maybe it's even a bit too much uh we really like to provide a lot of value with our newsletter and um you know there's a lot of different facets of the crypto industry we like to cover right but it can be hard to keep up with all the information to you know sort out the best opportunities from what we already are offering is the best opportunities right so what we've essentially done is um we're making the crypto uh monthly alpha report and this is going to basically cover off what are just what we think are the top opportunities right now for investors to find that edge to make gains during this bear market right so

we look at what are the best nft mints that are coming up right what's like the absolute top ones we cover those every week anyway but what's the top one or two that you should absolutely pay attention to you know what's the top uh d5 opportunity right now what's an altcoin to be paying attention to during the bear market right what's the top on chain indicators that you need to know in terms of what the market conditions are doing and what are the risks in the market right now so that's the kind of information that we're covering in that alpha report basically a nice concise package of what we believe are currently the best opportunities in the market i feel like nowadays this stuff is so important i mean back in 2018 there were 2017 there wasn't a lot you could invest in it was like you know a few things now

there's literally thousands of tokens like i don't know probably hundreds of thousands of nfts um so to kind of have it all in one place uh is is pretty incredible lark as we wrap up here i'm just curious um do you have any final advice for the wealth mastery community who's been following you and has subscribed to your newsletter the web3 academy community who's kind of learning about you now any just final advice for for both communities um as we make our way into the deep depths of a bear market yeah uh stay involved stay consistent um it's probably one of the most simple things is just surviving the bear market right and because this is what a lot of people don't end up doing they they quit they when the when the easy money train

stops a lot of people realize they weren't actually investors they were the short-term speculators but if you're actually an investor and you actually are starting to understand this technology value proposition what's being built here you see the direction that crypto is moving in you understand we're going to go from the current 2 to 300 million users to 2 to 3 billion users by the end of this decade and you're actually writing that thesis then you're gifted right now because guess what back when bitcoin was 69 000 oh the posts on social media everybody if only i had bought back then oh look at solana now if only i had bought back then look at avalanche if

only i bought back then guess what you're getting being given a second chance in the market right now that's what the bear market is if you stay here if you survive if you consistently invest into the top coins right chances are you're going to come out the other side of this bear market very well prepared for the next bull run and very well prepared to change your financial destiny so don't give up stay involved stay active in the space the people who quit back in 2018 and there were a lot of them they quit and walked away forever those people missed out on all the gains in the last bull run don't let that be you

i love it inspiring motivational to everyone uh hopefully everyone enjoyed this this conversation lurk uh if people want to follow you if people want to learn from you where can they go this is your chance to sort of shill yourself and and tell us where we can uh we can keep up on all things lark davis well definitely come over to uh thewealthmastery.io that's our website we post a lot of free content there if you want to sign up for the free newsletter you can but we also just post truckloads of free articles over there you can just go and read and have fun and like in-depth reviews and stuff tutorials all kinds of great stuff so youtube as well so just look for lark davis go find me amazing well thank you so much lark uh i appreciate you for for joining us here

today and and uh sharing your your insights on everything that's going on in the space uh it's a crazy crazy space and a crazy time right now but uh i think uh hearing from you and kind of hearing some insights from you know this this time around and the last cycle i think it just kind of makes things make a lot more sense and and hopefully kind of levels people out so again thank you so much for all the work you're doing lark uh and all the links to everything you just said are in the show notes below so you can just click there and you can get to all that stuff but again lark thank you so much and all the best down under in new zealand thank you appreciate it thank you for listening to web3 academy we hope this helps you along your web 3

journey if it does please share this episode and subscribe so you don't miss the next one by the way if you have yet to join the discord community you are missing out this is where all the magic happens this is where we learn where we ask questions where we network uh you want to be in there the link to join is in the description below and finally a quick disclaimer nothing in this podcast was financial advice crypto and web3 can be risky you can literally lose it all in fact if you invest on account of what we say you probably will lose it all so don't do that in all honesty the point of this podcast is to remove the noise of markets and price and focus on utility and implementation anyway so you should not take any of this as financial advice thank you friends and see you in

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