Latest / Simply Bitcoin / Why Bitcoin Goes Parabolic EVERY TIME It Dies! | Beyond Bitcoin
Transcript
- 0:00You think losing 47% hurts? In 2011 Bitcoin crashed 94%.
- 0:07Everyone said it was dead. In 2013 it crashed 87%.
- 0:11Mount Gox took everybody's money and everyone said it was dead.
- 0:15In 2018 it dropped 84%. The SEC said it was coming for
- 0:19blood. Everybody said it was dead.
- 0:21In 2022, Luna blew up, FTX blew up, it dropped 77% and everybody
- 0:27thought it was dead. Every single time the Perma
- 0:29bears celebrated and every single time they were wrong
- 0:32emotions. This is beyond Bitcoin.
- 0:34Let me tell you about Crash 477. According to the Bitcoin
- 0:43Obituaries website, and yes this is a real website, Bitcoin has
- 0:47been declared dead 477 times since 2010. 477 separate
- 0:54articles, op eds and TV segments formally announcing that Bitcoin
- 0:58was over, dead, gone, never coming back. 477 times.
- 1:03The skeptics were confident enough to write the obituary 477
- 1:08times. They were wrong.
- 1:10And right now we're sitting at 47% off the all time high of
- 1:13126,000 and the cycle bears are back at their desks typing
- 1:17furiously. So let me give you some
- 1:19historical context because the history here is genuinely
- 1:22interesting. I mean, if you're interested in
- 1:24this kind of thing, first we're going to walk through the
- 1:27pattern, why every Bitcoin crash looks identical to the people
- 1:31living through it, and why the ending is always the same.
- 1:33Second, we're going through every major crash 1 by 1, 2011,
- 1:382013, 2018, 2022. What caused each one, what
- 1:42people said and what actually happened?
- 1:44Like a phoenix rising from the ashes.
- 1:46And 3rd, where we are right now. By every historical metric,
- 1:50we're sitting exactly where the prior 4 cycles all agreed on.
- 1:54And if you know what happened to the people who bought at this
- 1:56point in those cycles, this episode might change how you
- 1:58think about this dip. And if I knew, well, I probably
- 2:02wouldn't be making these episodes now would I?
- 2:04You ready? Let's go.
- 2:05Every Bitcoin crash follows the same script.
- 2:09Every single one. Step one Bitcoin runs up
- 2:11parabolic. The charts look vertical.
- 2:13Mainstream media writes about it.
- 2:15First time buyers pile in. Uber drivers are suddenly very
- 2:18talkative about it. Step 2.
- 2:19Something breaks. A hack, A regulatory
- 2:22announcement, A macro shock, an orgy in a penthouse.
- 2:25This causes a massive collapse. The specific trigger changes
- 2:28every cycle. The pattern doesn't.
- 2:30Step three. Bitcoin drops fast and ugly. 50
- 2:33sixty, 7080%. The same people calling for 500K
- 2:37Bitcoin are now calling for zero.
- 2:40Step 4, The obituaries. Forbes runs the piece.
- 2:43Bloomberg runs the piece. Your uncle texts you.
- 2:46The regulators Get serious. Peter Schiff goes on CNBC and
- 2:49says he was right all along. Step 5.
- 2:52Bitcoin still doesn't care. The network keeps running.
- 2:55Blocks keep getting mined, developers keep building.
- 2:58Well, probably mostly in clawed at this point.
- 3:00And the wallets that were quietly accumulating at the
- 3:02bottom, Those people come out generationally wealthy.
- 3:06Now the media, they live in step four.
- 3:07They are professionally incentivized to write about Step
- 3:104, which is the obituaries, because panic drives clicks.
- 3:13But what they never cover and what doesn't fit in their
- 3:15narrative is step five. Let me show you Step 5.
- 3:17Five times in a row in June 2011, Bitcoin had just run from
- 3:21under a dollar to 3150, its first big parabolic run.
- 3:25The Internet was starting to take notice.
- 3:27Then someone hacked Mount Gox, the exchange handling 70% of all
- 3:32the Bitcoin trades at the time, and dumped hundreds of thousands
- 3:35of coins. Price flash crashed to a penny,
- 3:38literally 1 cent, which, by the way, doesn't exist anymore.
- 3:42It recovered to $2.00. And then it kept falling.
- 3:45By November 2011, Bitcoin was at $2.01, down 94% from its peak.
- 3:50The Guardian called it a failed experiment.
- 3:52Forbes said it was imploding. The New York Times could decide
- 3:55whether they wanted to write an obituary or a retrospective, but
- 3:59they did both. So what happened next?
- 4:01Bitcoin ran from $2.00 to $11163 by November 2013.
- 4:07That's a 57,000% recovery from the bottom.
- 4:11And if you held through that 94% down, you made 570 times your
- 4:16money on the other side, 570 times.
- 4:20Does that sound familiar? Now the 2013 crash.
- 4:23And here's where it gets wild, because 2013 had two crashes.
- 4:27First, Bitcoin hit $265 in April of 2013.
- 4:31Mount Gox couldn't handle the volume ADDOS attack.
- 4:35And believe me, I had to look that up.
- 4:37Took the exchange down and they suspended trading.
- 4:40Bitcoin fell to $54, down 79%, but then it recovered.
- 4:45It ran all the way back up to $11163 by November 2013.
- 4:50Then China banned financial institutions from handling
- 4:53Bitcoin, and it came out that Mount Gox had been quietly
- 4:56insolvent for years. They had 850,000 Bitcoin that
- 5:00had been stolen and undetected from 2011 to 2013.
- 5:05When they finally filed for bankruptcy in February of 2014,
- 5:08the headline was everywhere. Take a look.
- 5:11What was once one of the world's biggest Bitcoin exchanges, Mount
- 5:14Gox, has filed for bankruptcy protection in Japan.
- 5:17The unregulated exchange admitted to losing 850,000
- 5:21bitcoins worth more than $450 million due to some weakness in
- 5:25the system, said chief executive Mark Carpellis. 750,000 of those
- 5:30lost bitcoins belong to customers, while 100,000 were
- 5:33the companies. The announcement of the hacking
- 5:35comes after a tumultuous few weeks from Mountain Gox, which
- 5:38has remained silent after halting trades of the digital
- 5:41currency. Carpalis bowed an apology during
- 5:44a news conference at the Tokyo District Court, but said the
- 5:46overall Bitcoin industry is healthy and will keep growing.
- 5:50The Times reports that Bitcoin prices on the Coin Dex Index
- 5:53we're down Friday morning. Mark Carpalis, the CEO of Mount
- 5:56Gox, which was the biggest Bitcoin exchange in the world at
- 5:59the time, told the world that he lost 850,000 Bitcoin.
- 6:04Bitcoin fell from $11163 to $152 like that, down 87%.
- 6:10The longest Bitcoin bear market in history. 48 months.
- 6:14Bitcoin fell from $11163 to $152, down 87%.
- 6:19That was the longest Bitcoin bear market in history.
- 6:22It was 48 months. That was a cold winter.
- 6:24What happened next? Bitcoin hit $20,000 in December
- 6:27of 2017 from $152. That's a 13,000% recovery,
- 6:3313,000% Now real quick, because we're talking about history
- 6:37repeating itself and usbeingpreparedforitourpartners@sat123.com
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- 6:58generators, and all the devices you need to stay
- 7:00connectedthatssat123.com promo code simply now. 2017 is what
- 7:06brought most people into Bitcoin, myself included.
- 7:09Everyone has a story from this cycle.
- 7:11Bitcoin ran from $900 in January to $20,000 by December.
- 7:15That's a 2100% increase in one calendar year.
- 7:19Icos were raising hundreds of millions of dollars for
- 7:23technical shit. Your neighbor was a crypto
- 7:25expert and CNBC was doing daily segments.
- 7:28Then 2018 happened. The SEC announced it was coming
- 7:31for Icos. Exchange hacks happened in
- 7:33north-south Korea and Japan, and the froth drained out fast.
- 7:38Bitcoin fell from $20,000 to $3200 over the course of the
- 7:42year, down 84%. South Korea's intelligence
- 7:46agency says it has evidence showing North Korea was behind 2
- 7:51hack attacks on the country's cryptocurrency exchanges earlier
- 7:54this year. The National Intelligence
- 7:57Service says North Korea is suspected of stealing the
- 8:00personal information of some 30,000 people registered with
- 8:05Bitsum in June and robbing virtual money from Coinys in
- 8:10September. It says malicious code used by
- 8:13the North Korean group behind the 2000, 1014 Sony Pictures
- 8:16hack was discovered in both cases.
- 8:19Respective economist Nouriel Roubini testified before the
- 8:22United States Senate that Bitcoin was the mother of all
- 8:25bubbles. Forbes.
- 8:26Bloomberg. The same headlines, the same
- 8:28certainty, the same track record of being wrong.
- 8:31What happened next? Three years later, Bitcoin hit
- 8:34$69,000 from 3200. That's a 2000% recovery. 2022.
- 8:40This one hurts because the causes were institutional.
- 8:42In May, Terra Luna USD lost its peg.
- 8:46The whole algorithmic stable coin system collapsed in 72
- 8:50hours, 45 billion in value gone. Luna went from $119 to
- 8:55effectively 0. Following a day in which
- 8:58teetering stable coin Terra USD bounced around $0.90, it resumed
- 9:03its freefall overnight to approach $0.30, before
- 9:05recovering partly to $0.43 this morning and $0.64 this
- 9:10afternoon. However, this performance could
- 9:12be considered downright bullish when compared to Luna, the token
- 9:16designed to maintain its $1.00 peg, which has now fallen below
- 9:19$2.00. Luna is down a staggering 98% in
- 9:23the past five days, which has seen its market capitalization
- 9:27lose $25 billion this week. A lot of people got wiped out in
- 9:30this time. The contagion spread like a
- 9:32virus. 3 Arrows Capital went bankrupt, then Celsius, then
- 9:35Voyager, and then in November, FTX, the second largest crypto
- 9:41exchange in the world, imploded. Sam Bankman Freed had been
- 9:45secretly using customer funds for trading $8 billion missing.
- 9:49So we got arrested. What do we know about how Sam
- 9:53Bankman Freed effed up in his words?
- 9:55Yeah, he did tell investors that and he would be extremely
- 9:58grateful. He asked investors if they would
- 10:00step in and help fill this hole. It's an $8 billion hole in FT XS
- 10:05balance sheet that is bigger than the size of Robin Hood's
- 10:08entire market value. And remember, last year alone,
- 10:11they raised $2 billion in six months from investors from a
- 10:16Sequoia who had marked down the value of of its entire stake and
- 10:19had doubled down on its bet. Skybridge was in many levels of
- 10:23series rounds here. The Paul Tudor Jones family was
- 10:27in other rounds as well. There's investors really around
- 10:31the globe that were exposed to this.
- 10:32And so listen, going back to investors is very difficult.
- 10:35He'll need about $4 billion, according to our reporting.
- 10:39And whether he can get that or not, he would likely have to
- 10:42file for bankruptcy protection if he can't get that money.
- 10:45There's a lot of question about the ramifications here for more
- 10:48FTX in the industry at large. I think Jim Bianco put it well
- 10:51in a call we had yesterday that there's a real risk here that
- 10:54dozens of firms will fail on the back of this, given that they
- 10:57had their accounts with FTX. So you have consumers both on
- 11:00the institutional side, potential miners, brokerages
- 11:03that may not be able to get their money back, as well as
- 11:06customers who have lost billions of dollars here.
- 11:08So unless the industry came in and bailed them out, again,
- 11:12remember, This is why JP Morgan thinks that there's going to be
- 11:14more risk here at play and more margin calls.
- 11:17There's a real risk here that there is nobody to save the day
- 11:20for FTX, meaning others will feel pressure from this.
- 11:24Bitcoin fell from $69,000 to $15,000, down 77%.
- 11:29This time the obituaries had actual ammunition, not just
- 11:33Bitcoin is volatile. Actual fraud, actual criminal
- 11:36charges, actual victims. The Bitcoin is dead count hit
- 11:40new records. What happened next After that,
- 11:43though, 16 months later, driven by the first spot Bitcoin ETF
- 11:47approvals, Bitcoin broke $69,000 and kept going.
- 11:50It hit $109,000 in early 2025, from $15,000 to $109,000.
- 11:57That's a 604% recovery in 16 months.
- 12:01Now let's pause here for a second, because if you're new to
- 12:03Bitcoin and this crash is freaking you out, I want you to
- 12:06hear this part. Every single crash that I just
- 12:08described, the people who got hurt the worst were the ones who
- 12:11left their Bitcoin on an exchange that they didn't
- 12:14control. Mount G, Ox, FTX, Voyager,
- 12:18etcetera, etcetera, etcetera. All of them were exchange
- 12:21failures, not Bitcoin failing exchanges failing.
- 12:24Our partners at the Bitcoin Way exist for this exact reason.
- 12:27They'll walk you through self custody simply, safely, wherever
- 12:31you're starting from. Go to thebitcoinway.com right
- 12:34now. You can book a free 30 minute
- 12:35consultation at the bitcoinway.com/beyond Bitcoin.
- 12:40There's no pitch, there's no pressure, just real people
- 12:43trying to help you out. They've been through this
- 12:45before. That's the bitcoinway.com/beyond
- 12:48Bitcoin. Here's what the bears keep
- 12:50saying this cycle, the four year cycle is broken.
- 12:52Institutional money changes the dynamics.
- 12:54It's too correlated to risk assets now.
- 12:58What's going on right now? Do you feel that this four year
- 13:00cycle is? Still, still resonant.
- 13:03I think we still have a four year cycle, but it's starting to
- 13:06become somewhat disjointed and it's reflective of the sheer
- 13:10amount of institutional flow that we've seen come in.
- 13:14So what that's done is it's created a natural liquidity pool
- 13:18and, and, and a base to stop, you know, what would have been
- 13:22traditional retail flow bringing Bitcoin down.
- 13:27And so, you know, yes, price has been volatile, but it's nowhere
- 13:31near as volatile as it was. OK, here's what hasn't changed.
- 13:35A 21 million hard cap. Nobody's printing more.
- 13:38No FED can change that. No tariff touches it.
- 13:41It's fixed. It's absolute.
- 13:43It's forever. The network is stronger than any
- 13:45previous cycle. More hash rate, more nodes, more
- 13:48wallets, more developers. Every bear market burns the weak
- 13:51projects and leaves bitcoins infrastructure cleaner.
- 13:54Institutional adoption is higher than any previous cycle.
- 13:57BlackRock is running a spot ETF. Fidelity Strategy holds 3.4% of
- 14:02all the Bitcoin that will ever exist.
- 14:04This infrastructure didn't exist at any previous bottom.
- 14:07The floor is higher. Here's Sailor this month.
- 14:10The critics are saying his thesis is breaking, but listen
- 14:12to what he says. Well, most people don't
- 14:14understand how the Internet works, but they obviously use it
- 14:17every day. They don't understand how their
- 14:18iPhone is put together, but they use it.
- 14:20And it is like that video you mentioned of you holding the
- 14:23iPhone saying everybody's going to want this.
- 14:25And Stretch seems to be that product that addresses the main
- 14:29market need of not wanting volatility but wanting a stable
- 14:32cash dividend. You have a 2 plus year runway
- 14:35for it with cash. MSTR is still trading at a
- 14:38premium. You guys still are buying
- 14:40Bitcoin, but yet every time I see you on these news programs,
- 14:43it seems like they're expecting Bitcoin to go to zero.
- 14:47And you've gone from hero to Oh my gosh, what's happening?
- 14:51Bitcoins dying. Do you ever feel like they're
- 14:54rooting for you to fail? And how do you deal with like
- 14:56that swing in in sentiment? The struggle is real.
- 15:03The struggle is real, but you know, to be more serious, when
- 15:07Bitcoin is hitting all times high, all time highs, there's a
- 15:10sense of exuberance and, and all of the media terms positive and
- 15:15it's glowing and people are doing high fives.
- 15:18And when it draws down, there's a gloominess to it.
- 15:22And then and then people over forecast to the negative.
- 15:27I think that that it's the volatility that drives the
- 15:31engagement and the interest and the speculation and, and there's
- 15:36something to talk about and they're talking about us.
- 15:41You know, what they're not talking about is they're not
- 15:44talking about, you know, real estate on the Upper East Side of
- 15:48Manhattan. They're not talking about timber
- 15:51rights. They're not, you know, like
- 15:54people people they, they talk about all these non volatile
- 15:57assets. Well, non volatile assets means
- 16:00there's no news. And if there's no news, there's
- 16:02no interest. He's been through this before,
- 16:05multiple times, and every single time the thesis was called
- 16:08broken, so he bought more. That's not stubbornness, that's
- 16:11a conviction built on 16 years of the same pattern.
- 16:15Here's a clip of Sailor back in 2012 clearly explaining the
- 16:18issue. There's not an 8 year old on the
- 16:20planet that doesn't want an iPhone 5, right?
- 16:23Who wants to wait 42 seconds to watch something download instead
- 16:27of 2 seconds? Nobody, right?
- 16:30You don't have to be a genius to run Apple Computer.
- 16:32You just have to, every year, make the product a bit lighter,
- 16:35a bit more elegant, make it a better radio, make it a better
- 16:38battery. And then I sat with, you know,
- 16:42one of the 10 richest guys in the world for dinner three
- 16:46nights ago, five nights ago, and we had dinner for four hours and
- 16:49he didn't have to talk, you know, I didn't have to talking
- 16:52and at once. And he's much more successful
- 16:54than I am. I understand that, by the way.
- 16:57As I said, it's like it's you don't sometimes you got to do
- 17:00other things than just have opinions to make money, right?
- 17:03There's a lot of execution involved the rest, but I have
- 17:05opinions. So so he said to me, you know,
- 17:11Apple computer, can these guys hold their prices?
- 17:14You know, aren't you know, aren't they going to follow the
- 17:16model of the PC industry? Aren't their prices are going to
- 17:18taper down their 40% margin become 30 and 35 and 20.
- 17:22And it's another example. People just know enough to hurt
- 17:24themselves, right. If you go to France and this is
- 17:27the benefit of seeing enough you go to France you see Bernardo no
- 17:30runs a company LVMH they're selling handbags for 4000
- 17:35dollars 3000 dollars, $2500 each.
- 17:38This is a device that women view as fashion and it's 10,000 years
- 17:42old and for 10,000 years no, the prices are not lower after
- 17:4610,000 years if you actually. Things that are genuinely
- 17:50valuable don't follow skeptics, predictions, great brands, hard
- 17:54assets, things with real properties that the market keeps
- 17:58rediscovering. Bitcoin's been around for 16
- 18:00years now, priced in any currency.
- 18:02It's not lower than when it started.
- 18:04It has died 477 times. The price is up roughly 10
- 18:07million percent from its first transaction.
- 18:10That's not luck. That's the pattern.
- 18:11So here are the recovery timelines.
- 18:13Crash by crash 2011. Crash 20 months to the new all
- 18:17time high 2013. Crash 48 months to the new all
- 18:20time high. That's the longest 2018.
- 18:22Crash 36 months to the new all time high 2022.
- 18:25Crash 16 months to the new all time high.
- 18:28The fastest yet. The recoveries are getting
- 18:30faster, not slower. And every cycle the
- 18:32institutional infrastructure gets deeper, the floor gets
- 18:35higher, the recovery accelerates.
- 18:37As I mentioned in my previous video, here's the fear and greed
- 18:39index right now. We hit extreme fear single
- 18:42digits earlier this cycle. That is where every prior
- 18:44recovery started. Every Bitcoin cycle has its
- 18:47moment, a point where, looking back, it was obvious where the
- 18:51fear was maximum. The headlines were screaming,
- 18:53and the person who didn't panic, or better, the person who
- 18:57bought, quietly changed the financial trajectory of their
- 19:01family. 2011 buyers made 570 X 2015 buyers made 130 X 2018
- 19:09buyers made 20 X 2022 buyers. They made 7X.
- 19:13We are here sitting at 47% off the $126,000 high.
- 19:18The obituary writers are actively firing up their chatty
- 19:21PTS, The four year cycle bears are loud running their AI agents
- 19:26and the Fear and Greed Index is reading extreme fear.
- 19:30But it's all a hallucination. Someone is about to be a 2026
- 19:34buyer. Is it you?
- 19:35Someone is going to tell their kids about this moment.
- 19:38You see where this is going right before we close, If you
- 19:41want to connect with people who have actually lived through
- 19:43every one of these crashes and kept holding, we're on the club
- 19:45orange.org app, formerly known as the Orange Pill app, Same
- 19:49community, new name. You can find me there.
- 19:52I'm at Oceans OSHINS, I'm on the app, Just my name.
- 19:56I read every message. So if this crash has got you a
- 19:59little rattled and if you want to hear from some people who are
- 20:02buying at $2.00 or $152 or $3200 or $15,000.
- 20:07Most people are right there. Club orange.org.
- 20:10My handle is Oceans. Again at oceans.
- 20:12So here's where we are right now.
- 20:14Bitcoin is down 47% from the all time high.
- 20:17That puts this draw down exactly in the middle of every previous
- 20:20crash. Smaller than 2011, smaller than
- 20:232013, comparable to 2022. The obituary account is at 477.
- 20:29This crash will probably add a few more.
- 20:30The network is still running. Blocks are still being mined.
- 20:33Sailor is still buying. Institutional infrastructure has
- 20:35never been deeper. This is crash 477, and I'm sure
- 20:38it won't be the last. So the question was never if
- 20:41Bitcoin recovers. Every single piece of historical
- 20:43evidence says it does. The question is whether you're
- 20:45positioned for it when it does. 477 times someone was confident
- 20:49enough to write that Bitcoin was dead, and 477 times they were
- 20:53wrong. Not because they were stupid,
- 20:55Well, maybe, but because they were looking at the short term.
- 20:58They were looking at the chart, at the thing that just broke.
- 21:00They were looking at the fear, not the fundamentals.
- 21:03Bitcoin doesn't care about the short term.
- 21:05It's a fixed supply monetary network built to outlast every
- 21:08crash, every government, every central bank, and every economic
- 21:12cycle. The people who understood that
- 21:14clearly enough to hold or buy when the obituaries were being
- 21:18written, those people are fine. But the people writing the
- 21:20obituaries, they'll be writing in the next one too, I'm sure.
- 21:24So make sure you get out there and you study Bitcoin.
- 21:27Anyway, thank you so much for watching this video.
- 21:29If you like what you see and you want to see more, make sure you
- 21:30hit that like button below. Or you can subscribe to the
- 21:33Simply Bitcoin channel for more content like this.
- 21:35We're coming out with it every single day of the week.
- 21:37Also, do not forget to hit that notification bell.
- 21:40You can also leave us a comment if you like.
- 21:42If you like it, you don't like it, whatever you want.
- 21:44If you want to reach out to me directly, I'm also on X at Run
- 21:47Dance Bitcoin. That's RUNDANCE Bitcoin because
- 21:52I used to run and dance and I like Bitcoin.
- 21:55Anyway, until next time.