hey guys welcome back now is October going to be the month that crypto finally explodes higher well that is the topic of this video it's no secret that the last 6 months has been pretty brutal whether you're just in Bitcoin watching as it slowly Fades lower or in altcoins that have taken a much bigger hit well the good news is that this big correction May finally be coming to an end and it all has to do with one glorious word liquidity and so in this video we'll be covering what is going on with liquidity and
why everything could be breaking out as soon as next month then we'll look at the two fed mandates and make sure they have everything they need for rate cuts and liquidity injections and then we'll finish with why October could be the month that it all turns around okay so first St something very exciting has just happened with the global money supply and liquidity which may mean that this big correction is finally coming to an end and so as mentioned something very exciting has just happened and it's to do with the global M2 money supply and
shout out to real vision for the latest dat on what's going on with liquidity so this chart goes back to 2014 and it's pretty correlated to the crypto Market when Global M2 is increased crypto also increases when money gets drained from the system we do see crashes in crypto this was the last consolidation before the big breakout here and then we've now contracted the money supply and been going sideways for almost three years and finally as you can see global M2 has just broken out of this wedge pattern so is this the sign that things
are about to change and when we look at it from Total liquidity it's a very similar picture pretty much an identical chart it correlates to the crypto market for the last all almost 3 years liquidity's either been sucked out of the market with a nice downward Trend and Global liquidity too has just broken out and here we can see exactly how this correlates total liquidity to the Bitcoin price so this line here is the first breakout and this takes us back to 2015 and after the long consolidation as liquidity got sucked out of the market
crypto 2 Came Crashing Down consolidating and this is where it had broken out and then this is what happened to bitcoin and crypto kicking off a monster rally same here this was the last consolidation 2019 and this is where it broke out of the wedge here and if we take covid away as an anomaly then we would have seen a rise in prices directly as well in fact as it contracted here this is what actually correlated with what happened with covid but aside from that money printer go Burr and crypto went on its next monster
rally bringing us on to today this as discussed was the almost three years when money has been sucked out and gone down and we've just had this breakout so if history repeats then we're about to start the next big rally in crypto likely taking us past the key level of $100,000 now when it comes to the FED all eyes on the FED especially to day marking the First Rate cut their dual mandate is for stable prices so they have to have a low CPI inflation and then their other mandate is has to do with employment
making sure the vast majority of people are employed so they can't have unemployment getting out of control and as far as CPI goes we've had some really really good news firstly this let's say blue line is inflation data from the 1940s to the 1980s and it's taking a 5year average so what happens on average in bursts of inflation as you can see it's a nice bell curve and as it Peaks this is typically what happens and this chart is basically just saying we're pretty much following what typically happens with outbursts of inflation and disinflation this
time it broke just above 9% we've been getting pretty much lower readings most of the time and then this is predicting that the average will take us even lower and it's going sub 2% so that is really really good news because if it's sub 2% it means Jerome Powell and the FED can turn on the money printer as and when they like so sub 2% is what we all want if we want crypto to explode when we flip to True flation which is actually realtime inflation tracking we can see the last CPI reading was actually
in August it's always a month behind although the government reported one was 22% true infation was saying that it's closer to 1 and a half% but one of the key things I'm looking at is that what we should expect in September and if true flation is correct then we should also see another drop in inflation getting us even closer to this 2% Mark Maybe by next month's reading so inflation is definitely right now under control and that's a great sign to enable the Federal Reserve to use the money printer once again and then it other
mandate is making sure unemployment doesn't get out of control by keeping rates higher for longer you are making it very difficult for businesses to grow and if businesses are struggling that means they likely aren't employing a lot of people and maybe letting people go so by keeping rates up that's great for inflation and getting CPI down but the problem is is that it starts to create unemployment and this is what has most recently happened it's beginning to shoot up meaning they have to cut rates now now as a rough Benchmark they don't want unemployment going
much higher than 4% and right now it's just blasted by that Mark so this is a warning sign from the fed and why they must begin cutting rates all good news for crypto prices now anyone who's familiar with the work of R pal knows he's been talking a lot about the banana Zone and this is a nice chart showing what happened in the different Cycles he's talked a lot about we're being stuck in the boring Zone which is this nice consolidation before the final part of the fouryear cycle the most exciting part and what we've
gone through is almost a 30% haircut for Bitcoin and if we look back 30% it was pretty much about 30% here this is closer to 40% 20% so even though as annoying or painful as it was what we've just gone through over the past 3 to six months is something that crypto keeps doing again and again it's nothing new and if history repeats this will be the final big buying opportunity before prices Skyrocket higher and will never see Bitcoin as low as this ever again when it comes to Cycles this time they've started the data
from the last three harving so we had the Haring of 2016 the Haring of 2020 and the Haring of 2024 and what this basically shows is that right now measured from the Haring we are pretty much exactly where we should be it should be below the two previous Cycles the past two previous C Les this has always been a turbulent time following the harving it doesn't just explode here but we are entering the period right now where things are about to get tasty and then the other interesting thing I saw on this chart is that
the 2020 cycle is actually higher than the 2016 cycle and I think due to what happened in Co where the fed and liquidity got injected at the biggest Pace that we've ever seen the 20120 Run was just epic so I personally don't think we're going to be close to keeping Pace to what happened in 2020 however it doesn't really matter as crypto prices are destined to be going much much higher and finally the last two charts to wet your whistle this time Global M2 and how it relates to bitcoin but this time M2 with a
10 we lead and this is predicting that we are about to break out hence crypto about to explode and this basically says that it's September that should be the transitional month ending this horrible six months downward action and from October if this is correct we should see 3 to 6 months of a massive rally in prices so very exciting and this time Global liquidity with a 10-week lead essentially showing the same thing so this is where we're at right now about mid September but it is September where it should be bottoming out and from October
Maybe even from right now this is predicting Global liquidity will be breaking out and typically crypto prices follow suit so very exciting times but just know we do have to get by September 1st so not long to go now with today marking the first fed rake cup happy rate cut day is October going to be the month that it all turns around as we saw Global liquidity as with the global money supply has just broken out after going sideways for almost 3 years we've been getting great results from the CPI which has come down all
the way from 9% to now 2 and a half% and true flation predicts that it's going even lower unemployment is rising fast which is a warning sign from the fed and its dual mandate and finally seasonality and the most recent charts from R pal suggest October could be the month that it all begins to turn around as we go on the next big bull run in crypto so there you are guys hope you enjoyed now who else is feeling bullish for October let me know below however just remember to get rid of 100% of the
the comment spam and trading Bots that Plague YouTube comments we are trying out the new super thanks commenting system so to get your question or comment read and replied to or just to say thanks then use super thanks below and for now just to say if you did enjoy anything in the video then drop a like and a big thank you to everyone who does and I'll see you in the next video bye for now [Music]
