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Why Did Bitcoin Crash Below $80K? | Bitcoin Simply · Simply Bitcoin

0:00
What the heck is going on? Why is Bitcoin below 80 K after
0:03
a 40% drawdown, which is its biggest since 2022?
0:06
Why do some believe that it's going to get worse?
0:08
With prediction markets calling for 59 K Bitcoin this year,
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something big is happening under the surface.
0:14
We just saw the Bitcoin mining adjustment adjust down by more
0:17
than 3% and projected to go down by almost 15% in six days.
0:21
This means that someone in the Bitcoin mining world is even
0:24
blowing up. Is it because the market is
0:25
spooked by Kevin Wash, the new Fed chair, shrinking the Fed
0:29
balance sheet? Is it because of the fact that
0:31
Epstein emails show that Elise have been trying to suppress
0:33
Bitcoin since 2011 and maybe now they're able to do it?
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Is it because a $1 billion Bitcoin position was liquidated
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in 5 minutes? Or is it because we're living
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through the repricing of all assets in light of a global
0:45
monetary reset in less than 15 minutes?
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I'm going to highlight what Bitcoin is collapsing and play a
0:50
clip from an exclusive Simply Bitcoin interview with Jack
0:53
Mahlers, who shows us exactly what's happening right now and
0:56
why you need to pay attention. This is Dante Cook with Bitcoin.
0:59
Simply let's go. Bitcoiners are shocked right
1:06
now. On Friday they thought Kevin
1:07
Wash, the first Bitcoin Fed chair, was going to send Bitcoin
1:10
prices up. Kevin even owns 9 Bitcoin
1:12
himself. Instead of calls of
1:14
congratulations from the homies with the price ripping, you were
1:17
getting margin call and you thought your 10K margin call was
1:19
bad. Well what about the dude that
1:21
got liquidated for $1 billion on Friday which sent Bitcoin prices
1:25
off a Cliff? We even dipped below 78 K.
1:28
The Bitcoin market is in shame right now.
1:30
Bitcoiners are fighting for their lives like Leonardo
1:33
DiCaprio in The Revenant right now with bears mauling us to
1:37
oblivion. Bears like Peter Schiff who are
1:39
getting active right now. He's highlighting the decline in
1:41
Bitcoin, which is down 40% from all time highs.
1:44
But he's also neglecting the fact that silver was down by
1:46
over 30% on Friday, the largest drawdown in a single day in 75
1:51
years in gold. Oh yeah, it was down by 15%.
1:55
That's $4 trillion. Something bigger than just
1:58
normal market moves is happening right now.
2:00
So here's my first thought on why the market is imploding.
2:02
It's reacting to the news of Kevin Wash.
2:04
People are going back and playing old clips from him
2:06
talking about his stance on the Fed balance sheet being way too
2:09
big. And they're being spooked by it
2:11
because the market has been ran by central banks over the past
2:14
40 and 50 years. As they print money, asset
2:16
prices go up. But that's not the new regime
2:19
that he's signalling based on his past history and policy
2:21
thoughts. Listen to this clip and
2:23
understand exactly why the market was spooked.
2:25
It's. In the room, it hasn't been that
2:26
big of a deal. We know it when we go to the
2:28
grocery store. We also own financial assets.
2:31
Maybe we own some Bitcoin. 52% of our fellow Americans own no
2:36
financial assets. They don't have equity in their
2:38
house. They don't have an account at
2:40
Schwab. They don't have an account at
2:42
Coinbase. They're living off their W2
2:44
income. And this surge in prices have
2:48
destroyed them. It's the most regressive tax any
2:51
government could ever come up with.
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Imagine if we had a central bank that had been deadly focused on
2:56
that. I think we wouldn't have taken a
2:58
divided country, made it more divided.
3:00
When we have a big balance sheet, we're asking for the
3:04
inflation that came. And as a final point, my own
3:07
judgement is the story that I hear from many of my peers was
3:11
the inflation. Well, that's not really the
3:13
central bank's fault. That's because of Putin and the
3:15
pandemic. Nonsense.
3:18
A change in prices happens in a market economy because of shocks
3:22
in the world. Changes in prices happen every
3:24
day. That's not what inflation is.
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Inflation is when that change in prices become embedded.
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It's 2nd and 3rd order effects and that's what's been the
3:33
biggest harm to the country. My recommendation is a smaller
3:36
balance sheet takes the Fed back to a a, a more manageable size,
3:42
a more serious job. And interestingly, if you can
3:46
have a smaller balance sheet, you can have lower interest
3:49
rates back to you. How much smaller?
3:53
So when I joined the Fed, balance sheet was about $880
3:58
billion, included a bunch of foreign currencies.
4:02
We do need some balance sheet to take to do our underlying
4:06
business, to help run the Treasuries, to help be a good
4:10
counterparty to the rest of the central banks in the world.
4:14
The economy has obviously grown since then.
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I wouldn't want to put a precise number on it, but right now the
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Fed balance sheet is about $7 trillion.
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They are participating in almost every banking market almost
4:26
every day. The world has come to rely on
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the central bank's massive imprimatur.
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I would say it is trillions larger than it needs to be.
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We can't make this change overnight, but if markets knew
4:39
that our objective was to get to a balance sheet that was as
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riskless as possible and as small as possible, and we would
4:46
get there in due time and with a strategy, I think markets and
4:51
market participants could well adjust to it.
4:53
The central bank could then be a powerful central bank, but a
4:56
more limited 1 and I would argue wouldn't find its way in harm's
5:00
way politically or economically. Let me tell you why this is the
5:04
wrong take. People think that the Fed's
5:06
balance sheet getting smaller means the US is no longer pro
5:09
growth. They're going to cut interest
5:11
rates. That is a fact.
5:12
But what they're doing is they're shifting power from the
5:14
Fed to the Treasury. Scott Beson is going to have
5:17
more power than he's ever had, which is what it's been like in
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more parts of history. Think about Alexander Hamilton,
5:23
Lower interest rates are going to facilitate higher growth,
5:26
which is actually good for Bitcoin.
5:28
And analysts out there has actually predicted that bitcoins
5:30
price movement actually aligns with the economic and business
5:33
growth. As the PMI goes up or the
5:35
business cycle goes up, well, so does Bitcoin and this
5:38
administration is pro growth. This chart the correlation
5:40
between Bitcoin and M2 money supply growth has been the Bible
5:44
for bitcoiners and investors for the past decade, But I believe
5:47
that this is no longer the case because central banks are no
5:49
longer mainly the US central bank is no longer going to be
5:52
printing money the same way that it has in past decades.
5:55
The deficit has gotten out of order and inflation will rise if
5:59
we do that, making the affordability crisis in the
6:02
United States that much worse for everyone in the middle
6:04
class. And the United States is pulling
6:06
out of the global sugar daddy roll.
6:08
Treasuries will have to defend their own currencies on their
6:10
own, and that's why they're buying hard assets like gold and
6:13
silver. But here's the gangster move
6:15
that the US is doing that no one is still paying attention to.
6:18
They're building a new global banking reserve through the form
6:21
of Tether, and it's happening right in front of our eyes.
6:24
Tether just released our Q4 attestation, which showed that
6:26
they had over $10 billion in profits and they have over $141
6:31
billion in United States Treasuries.
6:33
They are the fastest growing central bank in the world that
6:36
is not a central bank. They there are the people
6:38
backing the United States Treasury apparatus, not other
6:42
global central banks anymore. They're shrinking the Fed's role
6:45
and increasing the Treasury's role.
6:46
And they are going to roll these assets into hard assets like
6:50
Bitcoin, which is just a 1 1/2 trillion dollar asset class.
6:53
And this is all part of a larger theme.
6:55
And I'm going to show you exactly what's going on.
6:57
And I think Jack Mahlers hits this on the head in an exclusive
7:00
interview between Nikko and Jack Mahlers at the Plan B conference
7:05
earlier this year. You have to understand where
7:07
Bitcoin is at in this monetary cycle and what's happening in
7:09
the larger picture. But before we get to that, let's
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One of the ways you can avoid this monetary collapse coming up
7:49
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7:51
The way that you can do that is you can become your own bank,
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Go to thebitcoinway.com/simply Bitcoin to have a meeting with
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an expert to walk you through what this means and how you can
8:18
do this properly. And here's the clip we've all
8:20
been waiting for. So, you know, call it for round
8:24
numbers. 100 years ago, we entered A monetary standard
8:29
built on top of the US dollar. So Bretton Woods, almost 100
8:33
years ago. And the idea was after the world
8:36
wars, the world is utterly and completely destroyed, right?
8:40
There's never been more human destruction and just general
8:44
destruction globally than the World wars.
8:47
And so the United States. And listen, history is written
8:51
by the victors. I'm 31, I have no fucking idea
8:56
what actually happened, but I can only recite what I was told.
8:59
OK, so that's my disclaimer. But Bretton Woods was the United
9:04
States saying, hey, we have the strongest economy, the strongest
9:09
manufacturing base. If there was a winner in the
9:12
global destruction of the World War, it was us.
9:16
And we want to help the world build back better.
9:18
So we have all the world's gold. We have all the world's
9:21
productivity and the strongest economy.
9:24
How can we export our strength to the rest of the world?
9:28
Japan, Europe, Eastern Asia, all destroyed.
9:33
And so they said, well, we will export the dollar, our currency.
9:37
That's the way of us exporting our strength, OK?
9:40
And the rest of the world can produce stuff for us.
9:43
And so we will stop producing so much domestically and locally.
9:47
And yes, it will harm our domestic production, our
9:50
economy. It surely will hollow out some
9:52
of the industrial base internally in the United States.
9:55
But it's in an effort to help everyone around the world get up
9:58
off their feet. And that was the new global
10:02
order at the time to help a post World War 2.
10:06
And it was a very simple agreement. the US would simply
10:09
print more dollars than they earn and ship them out all over
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the world and import stuff, food, electronics, production
10:18
materials, everything that we consume.
10:20
So I consume as an American. OK.
10:23
I would say that the world is now back on its feet.
10:27
And unfortunately, what comes with that agreement is the
10:29
United States has to run persistent deficits.
10:32
What comes with that is a tremendous amount of debt.
10:34
And eventually you run into a dead end where you have $38
10:38
trillion worth of debt. Nobody wants to own your
10:40
sovereign debt anymore. And So what we're seeing is a
10:43
new monetary reordering where the what we know as Fiat
10:48
currency is dying before our eyes.
10:51
Now you have to ask yourself very practical questions.
10:54
These sovereign debt markets, these nation state treasury
10:57
markets, they're 10s of trillions of dollars in size.
11:02
OK, Bitcoin is 1 1/2 trillion dollars in size.
11:06
To give you guys context, China's trade surplus last year
11:09
was over a trillion dollars. So if China simply just tried to
11:13
pour in their productivity from the calendar year 2025, they
11:17
would have ruined the Bitcoin market entirely.
11:20
They almost made more money in 2025 than Bitcoins entire market
11:25
cap. And So what is an asset?
11:28
A neutral asset that gives you relative property rights that
11:32
can absorb the size of sovereign debt as we transition.
11:38
And the answer is gold. Now, do I think gold is going to
11:42
solve the world's problems? In fact, I know gold's not going
11:45
to solve the world's problems because it already failed at
11:48
solving the world's problems. And we haven't made gold anymore
11:51
decentralized any faster, any lighter.
11:54
It hasn't gotten any smart contract capabilities.
11:57
I can't submit a pull request to the gold repository on GitHub.
12:02
So I already know gold is going to fail at this role.
12:05
But it's the only instrument that has the relative size to
12:08
help a Russia, a China. I mean, the United States is, is
12:12
very open right now that it is US.
12:15
First, globalism is dead. We don't care about you more
12:19
than us anymore. And we are willing to violate
12:22
your property rights in order to do what we think is important
12:25
for us. Oh, your country is Venezuela?
12:30
Not anymore. Oh, you have Greenland?
12:32
Not anymore. Oh, Russia, you have reserves
12:35
with us, Not anymore. And so countries need to find
12:38
something that can grow to $50 trillion in size in a, in a
12:43
reasonably painless way that, sorry, this is the long man.
12:47
That's what's happening with gold.
12:48
And as a Bitcoiner, I'm OK with that.
12:52
Listen, I wish this was happening when Bitcoin was
12:55
ready, but it's not Bitcoins the size of Tesla.
13:00
So I've consistently thought today where we are right now,
13:04
not where I think the world is going, not where I hope the
13:06
world is going today. Bitcoin is some combination of
13:10
technology plus Fiat liquidity. The Fiat liquidity piece makes
13:14
it debasement trade esque it is. It is very expressionist of
13:20
currency debasement. It tracks USD liquidity almost
13:24
to AT, which means when dollars get tight, it goes down.
13:27
When dollars get abundant, it goes up.
13:29
But there's also a technology piece to it.
13:30
It does trade like a tech stock. It's the size of big tech.
13:34
It trades like monetary big tech, like as if big tech
13:38
invented better money. And that's where we are right
13:41
now. And so I think gold front runs
13:44
liquidity. If you look at U.S. dollar
13:46
liquidity, it's actually going down right now.
13:49
It markets are getting tight, OK.
13:52
And so I think Bitcoin will respond to the inevitable
13:56
liquidity that's coming during this monetary regime change.
14:00
And gold is front running it because it's the only neutral
14:03
tool available for sovereign nations to reorganize themselves
14:08
at the scale required. Here's where we are in the
14:11
process. Here's what's happening on the
14:12
global scale and what's been happening the last 80 years.
14:16
Bitcoin is at the beginning of a new monetary revolution.
14:18
Bitcoin is the size of Tesla right now.
14:21
It trades like a tech stock, but it is going to be the future
14:24
absorber of global liquidity. And what's happening with gold
14:27
and silver is actually a good leading indicator that people
14:30
all over the world, it's not just us on podcasts and Twitter
14:33
and everywhere else, do not believe in Fiat currencies
14:36
moving forward. Otherwise, gold and silver would
14:39
not be ripping the way that they are.
14:40
Their $8 trillion asset class, $35 trillion asset class that is
14:44
doubled overnight, which means that Bitcoin can double in a
14:47
blink of an eye. The global flows that will move
14:50
when the system collapses on itself and trust is no longer
14:53
abetted in the digital economy is going to be massive.
14:57
You don't understand the moves that are going to happen in
14:58
Bitcoin. So it going from a $1 trillion
15:00
asset to a $10 trillion asset class is more likely than you
15:04
think. We are in the early stages of
15:06
the reset that's happening globally and Tether is a
15:09
signpost into the new digital world and the digital sovereign
15:13
central bank that we're moving into invested in Warsh, know
15:16
what's happening. They're going to let the old
15:18
system meltdown and they're building a new system behind
15:21
closed doors. The question is, do you have
15:23
this sort of resolve that's going to be able to allow you to
15:27
experience the gains that happen when this does, or are you going
15:29
to be a short term thinker? This is Dante Coke with Bitcoin
15:32
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15:36
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15:43
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15:45
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15:49
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15:52
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16:04
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16:07
today. Thanks for rocking with me
16:08
today. This is why Bitcoin is crashing
16:10
right now and you have to understand the larger picture.
16:13
This is not to coke a Bitcoin. Simply happy stacking.