Crypto markets experienced their biggest market crash ever on Friday, as over $200 million in leveraged liquidations happened in just 15 minutes, wiping out over $20 billion in capital in 24 hours. And Bitcoin saw its first 20k candle falling from $124k to $103k in just a few minutes.
Well, why did this happen? Well, on the surface, it looks like it was just Trump’s tweet about tariffs at $4.50 that happened on Friday afternoon, where he said the United States was going to be implementing a 100% tariff on China starting November 1st. Okay, that’s pretty fair, we’re gonna see some volatility and some drawback. We’re in the early stages of an economic war. We’ve talked about that on this channel. But that’s not actually what was strange about Friday.
This wasn’t just normal market behavior. This was an inside job. The crypto crash happened from manipulation. It’s confirmed that a mysterious insider opened $20 million of Bitcoin shorts up to one minute before Trump posted that post about tariffs. And this mysterious trader profited $180 million in less than an hour. Someone on the inside knew about this.
And we’re going to talk about the timeline of events, why this insider trading did us all a favor, and what this means for Bitcoin moving forward. Let’s get to the bottom of this. This is Dante Koch with Bitcoin Simply. Let’s go. Okay, you probably woke up on Saturday morning, yawning, breath stank, looked at your Bitcoin portfolio and saw it down 10% and wondered what the heck happened. Well, let’s walk through the timeline.
If you were watching this show, you already knew that we were in the early stages of an economic war with China. In fact, we already talked about that on Tuesday’s episode. Hence, why we created a strategic reserve of $20 billion worth of Argentinian pesos, and we’re confirming this relationship with Javier Malay coming to the White House on Tuesday.
Well, it’s probably because Argentina has a bunch of rare earth metals, and we’re trying to shore up our supply chain of these precious commodities and materials on this side of the world and not from China. But let’s go back to the event on Friday. At 1057, Donald Trump posted a post talking about weird activity coming from China, letters being sent out all over the world about China imposing tariffs on rare earths, and that the United States wasn’t just going to sit by and let this happen.
And you knew something was brewing under the surface as the broad market in general was selling off. We sold off about $1.7 trillion in value in the broad stock market. But given that the market is highly levered in Bitcoin and crypto, while you understand that when you see fireworks like this happening in the regular market, well, you could see a nuclear explosion happening in the broader crypto market.
And that exactly what happened yesterday A mysterious whale opened up accounts on Hyperliquid just 30 minutes before the announcement was done from President Trump They began shorting ETH and Bitcoin en masse and they placed million of shorts just one minute before the announcement was posted at Then the positions were liquidated almost immediately and the funds withdrawn to various sources and accounts. This caused a $20K candle in Bitcoin which wiped out $400 billion in market value.
And that was bad for Bitcoin as billions of dollars in capital was destroyed. There were some accounts that lost up to $60 million in almost a minute, with most going down 100%, meaning they had 100% leverage. Many of the top projects in DeFi tokens went down over 90%, reminding the world that there is no second best. You need to just stay humble and stack sats.
When days happen like this and you see that these made-up projects, which are supposed to be the backbone of the future of finance, can go to zero, you realize that there’s a difference between Bitcoin and everything else. And Bitcoiners have already seen these sorts of events. When Bitcoin is supposed to crash or be wiped out or go to zero, well, Bitcoiners just yawn, stack sats, and continue to move forward. We’ve already seen these sorts of days in the past.
We don’t sell, and we act like nothing has happened. Bitcoin dipped from $106K to $80K a year ago, and these were the words that Michael Saylor said. This is kind of historic entry point because all of the risk has been stripped off the asset. Like you pretty much know Wall Street’s going to embrace it. The U.S. government’s going to embrace it and banks and the U.S. going to embrace it, which means that all the other banks will embrace it. You already know all those things.
And yet the market is really skittish based upon concerns about tariffs, you know, the disposition of the U.S. economy, the interest rate forward graph. And so you see the interest rates have pulled in 30, 40, 50 basis points. And we’re in this macro risk off zone. When that flips, I think Bitcoin will rip forward with a vengeance. Bitcoin is simply unaffected by tariff news because you can’t tariff an asset in cyberspace.
And that will become more apparent as we move into this economic and geopolitical war. Gold will be tariffed. Rare earths will be tariffed. Other important commodities will be tariffed. But Bitcoin cannot be. On some of the other big news from today, a lot has certainly happened on this Friday. But one of those is what’s going on in the gold market right now. You have the Trump administration ruling that gold bars will be subject to tariffs as well, these reciprocal tariffs.
So imports of gold will be tariffed. and that really sending shockwaves through the gold ecosystem Gold and Bitcoin are often compared to one another Bitcoin called digital gold for example I wonder if you think this has any ripple effects positive or negative for Bitcoin. It does. Bitcoin is digital gold. It’s going to accelerate the migration of capital from physical gold to digital gold. Bitcoin lives in cyberspace, no tariffs in cyberspace. The big appeal of Bitcoin is it’s not physical.
It doesn’t have weight. You can settle anywhere with anybody in a few minutes. And so gold has always been too heavy, too slow, you know, and you can’t really ship it across an ocean. And if you do now, you’re getting tariffs. So I really think it just reminds everybody why the digital version of gold is better than actual physical gold. And I think it’s going to catalyze a new wave of institutional adoption of Bitcoin. All right. Crypto is stateless. It’s hard to tariff.
Michael, have to leave it there. Really enjoyed speaking with you, though. That is Strategy Executive Chairman Michael Saylor. And when Bitcoin crashes, quote unquote, and DGN marketplaces actually crash, Well, you can be sure that when you stack with Ledin that your account is safe. As a matter of fact, when all the liquidations happened yesterday, not a single loan on Ledin was liquidated. And that’s why they’ve been the leader in Bitcoin back loans since 2018.
They’re a source and a platform that you can trust. They’re Bitcoin only and your Ledin loans are not being rehypothecated or sent out to other places or used as leverage collateral for other places in the market. They’re just held in cold storage safely and securely away from other assets. and they have proof of reserves where you can actually look at the wallet address where your Bitcoin is. Loans don’t require a credit check and start at just 12.4%.
Go to learn.ledin.io slash simply to get started with your lead in loan today, knowing that it will be safe when markets crash, like what happened on Friday. One of the ways that you can also be sure that your Bitcoin is safe is by having it protected in your own custody. Well, it’s not easy to do that and learn how to do that from the very beginning. And so most people, when they learn something new or hard or challenging, they get a coach.
And that’s why we partnered with The Bitcoin Way, the leaders in Bitcoin coaching to help you protect your generational wealth privately, safely, securely, and confidently. Schedule a free 30-minute consultation with The Bitcoin Way by going to thebitcoinway.com slash simplybitcoin to get a coach to walk you through how to protect your Bitcoin.
The most important thing moving forward is that when we enter this sort of market, there’s going to be a bunch of winners and losers when it comes to AI, when it comes to new financial products in the crypto space, Bitcoin and otherwise you going to see the market have some drawdowns and you going to see the real winners emerge I thought that this clip from Goldman Sachs CEO David Solomon is a really good indicator of what will happen moving forward He talking about Amazon in this clip but I think he could also be talking about Bitcoin Bitcoin is going to be the real winner when all of this stuff shakes out.
I’m not going to bed every night worried about what will happen next, but markets run in cycles. And whenever we’ve historically had a significant acceleration and a new technology that creates a lot of capital formation and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential because they’re going to be winners and losers. They’re going to be winners and losers. If you go back and you think about the Internet, pick on Amazon.
Amazon was one of many companies that was prosecuting that kind of opportunity. Many of the companies went away. Amazon became an incredible company. You’re going to see a similar phenomenon here. I wouldn’t be surprised if in the next 12 to 24 months we see a drawdown with respect to equity markets. But that shouldn’t be surprising given the run we’ve had. But generally speaking, I think what’s super exciting is the technology is expanding. New companies are being formed.
And the potential of this technology deployed into the enterprise can be very, very powerful. And so it’s an exciting time. And the market looks forward. And yeah, this thing with rare earths in China is a big deal. Let’s not make any mistake about it. The majority of our defense applications are built upon these rare earths. And China controls the majority of the supply chain with these rare earth metals. Strategically, the US is in a vulnerable position.
I bet that we begin striking alliances with the Venezuelas, Brazils, and Argentinas of the world so that we can actually source these rare metals not from China but from a friendly ally. And really, this doesn’t really impact the long term implications for Bitcoin. It is an asset that you can’t tariff. It’s an asset that you can’t shut off access to because it’s in cyberspace.
It’s sovereign and it’s going to allow companies that understand this and countries that understand this to escape from the rat race of what’s going to happen in this next economic and geopolitical war. Are you safe and are you protected? Did you buy the dip? Did you stack sats? This is Dante Cokes with Bitcoin Simply. And if you haven’t already done so, subscribe to the channel.
And if you haven’t already bought your tickets down to Mining Disrupt, the largest Bitcoin mining expo in the world, happening in Dallas, Texas from November 11th through November 13th, well, use the promo code simplybitcoin for 20% off your tickets. This is Dante Cook with Bitcoin Simply. Happy stacking..
Table of Contents
1. Introduction to the Crypto Market Crash
2. Market Manipulation and its Effects
3. Comparison of Bitcoin and Gold
4. The Future of Bitcoin
5. Protecting Your Bitcoin and Staying Safe
Crypto markets experienced their biggest market crash ever on Friday, as over $200 million in leveraged liquidations happened in just 15 minutes, wiping out over $20 billion in capital in 24 hours. And Bitcoin saw its first 20k candle falling from $124k to $103k in just a few minutes.
This wasn’t just normal market behavior. This was an inside job. The crypto crash happened from manipulation. It’s confirmed that a mysterious insider opened $20 million of Bitcoin shorts up to one minute before Trump posted that post about tariffs. And this mysterious trader profited $180 million in less than an hour. Someone on the inside knew about this.
Gold will be tariffed. Rare earths will be tariffed. Other important commodities will be tariffed. But Bitcoin cannot be. On some of the other big news from today, a lot has certainly happened on this Friday. But one of those is what’s going on in the gold market right now. You have the Trump administration ruling that gold bars will be subject to tariffs as well, these reciprocal tariffs.
And that will become more apparent as we move into this economic and geopolitical war. Gold will be tariffed. Rare earths will be tariffed. Other important commodities will be tariffed. But Bitcoin cannot be. Bitcoin is digital gold. It’s going to accelerate the migration of capital from physical gold to digital gold.
And that’s why we partnered with The Bitcoin Way, the leaders in Bitcoin coaching to help you protect your generational wealth privately, safely, securely, and confidently. Schedule a free 30-minute consultation with The Bitcoin Way by going to thebitcoinway.com slash simplybitcoin to get a coach to walk you through how to protect your Bitcoin.
Key Takeaways
The crypto market experienced a significant crash due to market manipulation. Bitcoin is compared to gold, but it has the advantage of being digital and not subject to tariffs. The future of Bitcoin looks promising, with potential for institutional adoption and growth. It’s essential to protect your Bitcoin and stay safe in the market.
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