Inflation Returns, Rate Hike Confirmed?🚨A.I. Market Panic!

[00:00:00] Speaker 1: inflation returns rate hike disaster is in play today we'll break it down for you because there's a lot going on that could start to indicate two things one where do we head by the end of the year and then also the 2027 outlook today i think this will give you some insights to where that is heading do want to thank our sponsor and that is robin hood where you guys can trade all in one place if you use our link you're going to be able to get up to 200 bucks in a stock reward so check it out etfs crypto options futures and prediction markets all available over on robin hood if you have not used the most recent tool which is legend out there i would invite you to do that as well it is one of the better tools out there for trading of all types whether it's crypto stocks you guys of course use our link get a little bit of juice to get into the market and tell them we sent you let's start with this right here and that is the october cpi inflation rises 0.4 this is month over month this is above the expectations of the three that came in and of course i think this was a surprise it was so much of i feel like a rug pull almost and we're not getting the bls data so none of the jobs data coming in on year-over-year figures that is due in october uh because of the government shutdown i'm concerned about the job numbers i think the fed is also concerned about this you look at uh christopher waller one of the fed chairs comes back and says this right here if inflation is higher than forecast which it is he says a 50 basis point hike should be considered if you look at poly market right now you've got it pretty much locked in at 95.4 percent for a fed rate hike on december's fomc meeting that's not all if you look further into this and look at the amount of hikes you can see it right there i'll zoom in on it for you guys to understand where this is heading that's right you're going to a 50 basis point that increased 10 percent overnight just because of what we're seeing on the cpi readings remember that this along with other indicators around jobs are the two key factors that will force the hand of the fed and i think the jobs number is a concern here's peter schiff talking about this he says cpi likely rise five percent in 2026 and by more than seven in 2027 if either one of those hit that will be absolute catastrophe for the economy and this will put more strain on the american people i think even though we may be seeing some lightning on possibly what's happening in the middle east so this is just the beginning guys we are looking at a restructure on the market the real question is [00:02:41] Speaker 2: is the bottom in right now let's go to a clip um i think there were two encouraging data points today the first is we had a flurry of bad news over the weekend one involving nvidia and and some about texas going after elon musk companies and yet the markets are at those stocks are rallying today i think that's a good sign that markets are rallying on bad news but the second is the vix uh the vix term structure which is the four month fix versus the one month that inverted last week it's now normalized today that's usually a sign of a bottom so i i think that this is more proof that last week was the low [00:03:20] Speaker 1: i finally have to call it out with tom lee i think he's wrong here i think this is not necessarily the bottom you look at this right here he's talking about languishing over the eath price in 2026 there's a couple of things he thinks that the vast majority of eath itself has been in progress mode during this tokenization super cycle some of that has taken place but we haven't seen movement on eath in general and the crypto bull market has just started i don't know that that's necessarily the case as we're recording right now bitcoin is dipping down under 73 into the 72k range and i don't know that it stops there so key things right now are starting to line up is the economy been pushing so hard been pushed so hard because of energy and the cost of that because remember it takes a while for an economy to bounce back from especially supply chain issues and that is the challenge i think that we're dealing with which will affect what we're going to see in terms of cpi numbers coming towards the end of the year and eventually more pressure on jobs and more pressure on businesses with rate hikes you look at that right here eth shorts liquidation you had another 570 million eth long liquidation nearly 10x difference and this is a very rare occasion uh we in in this particular case we saw the exact opposite when with ethereum was at 2800 so it's down 26 percent since then so he's taking a bath right now a lot of this is tied to i believe what's going on with nvidia i'll read this tweet right here this is jensen wong's ties to an alleged chinese spy help facilitating at least seven and a half billion in ship sales to china and this is coming in from the information uh the relationship dates back to 2023 uh there's up to 7.5 billion in shipments covered through a network of companies that gets into a very unusual situation as though it was planned and nvidia even intervened in u.s commerce department probe looking into mega speed which is the company that the chinese spy was involved in diverting restricted ai keyword here restricted ai chips to china so right now all of this set up as allegations we'll find more on the november 18th hearing which will probably reveal hope hopefully not as bad of issues but it may reveal some things that the market may not like that of course will put a lot of pressure i think uh not only on what's going on with anthropic but i think it puts some pressure on dc and you look at this austin campbell corruption was a part of the campaign the key so far has been just a handful of companies then put out but i think senator warren has a bit of an axe to grind she may go a little bit further in terms of going into blasting investigations to a lot more companies if it doesn't happen then that could be a good thing for crypto because it could point a lot of the efforts of the dems over to what's going on in the ai side especially around data centers so few things that are going to be very critical in the future of where 2027 is heading and it all is going to come out in early january because that's when we'll have at least an idea of what these dems are going to be doing i want to go to a clip real quick because this is the roll up talking about maybe this is a pro crypto congress [00:06:37] Speaker 3: let's take a look take this to the bank the most pro crypto congress 50 newly elected pro crypto yeah um members of congress opposed across both chambers yeah and so you know ultimately i think a lot of what the democrats wanted right even leading up into clarity was just some guardrails around um the president's crypto activity and oversight around that oh and they're going for it now hard well they're going to go for now but i mean they're going hard you know some sinners in the hands of an angry god reaction against actual crypto builders so we had genius come in and you think about the next few years we'll have or year and a half we'll have the cftc and sec that we have yep right and if you think about how much work you can get done in that destroy this thing and so from that perspective i i'm i'm not very concerned i think a lot of the arrows are going to be thrown at ai all right so i will i'm not on [00:07:41] Speaker 1: going on a complete opposite position of this because you know we had a we had hunter biden on the show the other day and we were talking about the breakdown of these new senators coming in and i would agree when you look at the score cards most of these new senators along with a handful of senators that have already kind of played into crypto's hands we're really pushed up against the the ethics issue with what trump was pushing back on i don't know that that still is not in play here now granted trump could go in and just you know pardon his entire family and everybody else and then it wouldn't matter but i think the key here is going to be senator warren and if you don't win senator warren over i think that still puts a lot of pressure on crypto granted i think ai is equally cooked here because i think they are coming after data centers these states are coming after data centers and this is only going to slow down ai in general and it starts to push into something that is happening right now and that of course is the anthropic ipo this was something that broke this was in reference to a canadian bank that put out a recommendation their ipo prospectus and then they retracted it and either they were wrong or they weren't sure exactly where this was heading maybe because of some of the news that we're already seeing with nvidia is that impacting the market overall i'd love to get you guys's thought on this do you feel that this does not bother the ipo for anthropic just say you know ipo as usual down in the comments i'd love to get your take on that because i think it has a little bit more of an impact anthropic is going public the request shares before they hit the exchange at the ipo price right now many people have been pointing to like 1.5 trill this i still think is a process that they've got to go through which is happening right now timing wise in line with not only earnings with nvidia but you also have this hearing coming in with jensen wonk so i don't know if this is the perfect timing for it does it drop it is the real question if it does that starts to put more pressure on much of the ai trade overall here's reuters they're talking about what to make of this anthropic ipo take a look [00:09:51] Speaker 4: we expect the ipo at least we're being guided towards an ipo before thanksgiving but then we got that email out of the blue last night that was quickly retracted that talked about a share sale of something close to 69 billion worth of shares will be on offer at the ipo why that was retracted is not entirely clear there is a supposition that anthropic wanted to sell more shares than the spacex ipo which was 80 billion of shares so maybe there was something that did get lost in the communications but either way that's been taken back so we have to wait and see when they come out today what exactly the details will be but what has happened over the last six weeks in with regard to anthropic is that valuation has swung wildly at one point only six weeks ago we were looking at a valuation of close to two trillion it then dropped to 1.5 trillion and at this point people are now guiding saying it might be 1.1 1.2 trillion so that's a wild swing in valuation and it tells you everything about the nervousness within that sector how do you value these companies one thing you could [00:10:57] Speaker 1: compare this to is when the spacex ipo went public and when that occurred there was a shift in capital out of nvidia many people would say okay maybe not that much but there was a significant amount that started to move out of other assets in the market could that happen right now with what's happening with anthropic you look at the interest in anthropic versus spacex versus nvidia right now nvidia absolutely just exploding that's the concern right now i have is that nvidia's fire that's happening currently could cause some issues with this anthropic ipo so where is some of this cash going as we see the continuation of the market downturn well many people would say all right it's going into cash uh you could look at stablecoin supply right now which has been dynamic over the last several weeks cash position is holding and i think people are still watching for the next potential bottom which is right now if you look at bitcoin trading at 163 or excuse me at 73 after what is that almost seven weeks of down trends since its local high at around 86k just a few weeks ago so keep keep in mind one thing guys when you look at the market volatility as it is right now there are so many unknowns the unknowns of the economy the unknowns in the middle east the unknowns now with what the dems are going to do both from an ai front but also from a crypto front this i think makes the market a less less certain and it is causing i think you're going to see what's going to do in the middle of the market we're going to do is we're going to see what we're going to do in the middle of the market we're going to see a bottom and where we're heading finance now jumping into the game for more warnings saying that apple users there's an ios flaw this creates more problems immediately upgrade to your next 26.71 ios so this is a concern to me because i think a lot of users are now scared to use their iphone this is a problem because it starts with work trading and when you look at that and the amount of density that apple devices have globally that is a big deal heading into the market sentiment is absolutely horrible everyone is calling each other out coins are lower every day you've got hacks coming in nobody believes anyone anymore and this is the issue that we're facing right now and i think the real question is when does crypto get its light again what big what could you give me that is a major event that could occur that would cause money to roll into crypto only major event is if an ai bubble truly starts to retrace if that is the case maybe a risk on appetite comes into play that is when you start to see bitcoin move and with it all coins would come along but that is a long shot right now crypto fear and greed holding right now at 25 this is the weekly guys this is the com the fall that we have seen on both bitcoin price and what we've seen around crypto fear and greed sitting at 25 right now last week this thing was hovering around 42 on or excuse me two weeks ago on the 3rd of november so a big deal here in terms of sentiment in general not necessarily lining up with the rest of the market fear and greed in the stock market fear not extreme fear but definitely fear and i think it all leans in on what's happening with nvidia trump comes in and says hey we've got positive momentum going forward you see oil coming down and even with that even with that we are continuing to see a pullback that shows you how much of a stranglehold i think the ai products and companies have and when you look back this is really the first time that we have not seen the overall market for crypto go up and i'll go back to the oil chart the last time we see this kind of fall back and at the same time see crypto falling with it something else is at play here guys we're gonna get to the bottom of this hopefully you guys will continue to kind of keep a close eye on the market right now because this is going to get very interesting as we lead into the end and especially around the holiday because i think that could be we've always seen holiday activity both volatile and also positive so let me know where you guys stand down in the comments we'll see you soon if you like this video hit like and subscribe drop a comment down below and also join our free private member group the link is in the description