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