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CRYPTO 101
Crypto Rundown: Crypto Crash Breakdown of What Happened with Altcoins, and What is Next?!
00:38:13
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- [00:00]
Brendan
Foreign.
- [00:08]
Bryce
Everybody, welcome back to the Crypto 101 podcast presented by Gemini, your bridge to the future of money. And yes, if you're watching on YouTube, this is real life. We are in person together in wonderful downtown San Diego. The sun's a little bright, but behind us is the beautiful downtown San Diego skyline. We are together for a crypto 101 summit. The whole entire team is flying in today. And we said last week, listen, if any breaking news happens, we are going to try our best to make an episode. We started Friday off. We knew the Trump tweet was there. We kind of broke down what could.
- [00:42]
Brendan
Yeah.
- [00:43]
Bryce
But by God did we have no idea what was about to happen. Two hours after we left the podcast, Brendan. The largest liquidation vent in crypto history. Hot takes around. Guys, we're going to break it down for you the best we can. We are kind of in a situation where we're putting on a live event. There's going to be people moving in the background behind us, but we wanted to make sure we get an awesome piece of content. Brendan, amazing to be here with you in person.
- [01:06]
Brendan
Good to see you, brother.
- [01:08]
Bryce
We survived. We survived the largest liquidation event in crypto history. But hot take, how did you go over the weekend? Before we dive into the rundown here, what are your thoughts? What, what, what, what happened?
- [01:18]
Brendan
It was, it was funny because I was talking to some of the other team members, Brian was watching in and other. Other guys. And there was a quote from it on Friday where I said, there is no way that we see another 30% drawdown or anything like that outside of some crazy black swan event like the tariff crash. Boy, did I jinx us. Yeah, boy, did I jinx us.
- [01:42]
Bryce
Well, we're not going to, we're not going to blame it on you. We have a couple of people we might be able to blame, Brendan, but we're not going to. We're not going to put that on you. But again, we are. We are still bullish. And we even said that yesterday, Friday after the tweet, we're bullish. The playbook. We've seen this before. And then I think the number one reason why we didn't run to do something over the weekend besides us traveling here, was when that stuff happens, you got to digest.
- [02:03]
Brendan
You got to like, there was some.
- [02:04]
Bryce
Wild digestion there that needed to happen Saturday into Sunday. Obviously, internally we're putting out our market alerts. So if you want to get in tune to those market alerts, obviously check the description for all the links to Join our community. But I think we kind of nailed it because now that we're here Monday, the price action is evened out and then I think number one thing we're going to dive into is, my God, like the difference between bitcoin and the blue chips and some of the altcoin market. Yeah, it's kind of confusing. So that's why we're going to jump in here and start. But let's tee it up. Bring up the Trump tweet. I got to get up and make sure that our stream is safe and sound for everybody. But take it away. Let's start from the top. Just in case you didn't listen to Friday's episode, we kicked it off with the Trump tweet and then things escalated very quickly.
- [02:45]
Brendan
Yeah. So to pick up where we left off on Friday, we did have the, the Trump tweet. Right. And that basically came out and Trump was saying, hey, I'm not happy with what's happening with President Xi and China and he's just upset about the whole thing. And from there the markets responded and they were a little bit nervous about it. Right. They're a little bit scared about it. And so the markets were saying like, are we going to go through tariffs 2.0 all over again? And that's what we saw in the first half of the year where the market started at all time highs and then they fell off from there and we went into this multi month depression where like NASDAQ dropped 30%, Bitcoin dropped over 30%, altcoins got destroyed. And that's where we left off on Friday. And we're like, so long as this doesn't escalate to some black swan event, we'll be fine. Well, later that day a second tweet came out and that's right after we stopped and Trump came out and said there's going to be an additional 100% tariffs on China because he just again wasn't happy with what was going on. And so then we were like, oh no, like we're letting it digest and.
- [03:51]
Bryce
It'S escalating and China respond again. I don't know if she has X account like Trump does are, but his team did. Yeah, his team put out. They're like, oh, we, you know, we won't accept this. Yeah, we're willing to go to a trade war with the US So it was like this cascading of escalation all within like a four hour window. Really. Yes, it was, it was crazy. And then, and then.
- [04:14]
Brendan
Yeah, I mean and then this tweet that you all can see on the screen again, shout out to YouTube if you're listening from anywhere else. Spotify, Apple, Podcasts, I Heart Audible, you name it. All the visuals, all the charts, all the graphics are going to be on our YouTube channel, which is the crypto one on one podcast. So check us out over there. But on the screen right now we got a follow up tweet and this one came in yesterday and he was just saying, hey, don't worry, it's going to be fine. It's kind of a misunderstanding. No one really wants this. And that's, that's what it alluded to. And then we got more information coming out from the VP today and other members of the US and it seems like, you know, this is de escalating and this kind of thing happens and you called me up on Friday. It feels like we have been through this before, right? And you're spot on about it.
- [05:04]
Bryce
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- [07:11]
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- [08:26]
Brendan
We'Ve continued to see. So yeah, I mean just now keep going. Things happening everywhere.
- [08:32]
Bryce
We didn't have it in the sheet again. We're doing this live today folks, so bear with us while I change this out if it'll come up. But I wanted to go to our Twitter and basically I know we tweeted this out. I know I did a little victory lap there. Well, that's an old one. Why is that so old?
- [08:51]
Brendan
I don't know. It's. We're also working on a brand new computer. This thing just, just opened up.
- [08:56]
Bryce
We're all just okay, makes sense. Let me just go to my computer then. Because I brought it up earlier. It was basically, we've played this game before and while I know we were kind of Waiting for, you know, Trump to tweet. And you're going here. It was like the playbook was already set up. Trump's going to tweet stuff, he's going to get the market all round up, and then he's going to send out his cronies to do pick up the pieces, basically. So I know Scott Bessant, Marco Rubio, they've been doing all these different types of deals all over the world. And Scott Bessant went on and started hitting the, the financial channels and saying, oh, everything's fine. We have a great relationship with China. And so it's like, it's two different. It's two different angles of, you know, what's happening. It's Trump's Twitter versus what's actually happening and kind of like what we covered. And I know I went on a rant on this the other day and I called it. Hey, it's. I don't remember the last exact season number of the Apprentice, but this whole, this whole journey, like it or Love it is, is a reality show for him. That's what he knows. He's a reality show star and he just happens to now be the President of the United States. And you got to take it with a grain of salt. Again, whether you love him or hate him, that's not what we're here to talk about. What we're here to talk about is the markets. And again, we've seen this play before, so that's what I wanted to share up on the screen. That's why we got a little befuddled there, because I forgot to put this in the notes. Like, we've seen this before. And again, past results does not guarantee future results either. Right. Past performance doesn't guarantee future results. But, like, it is the same playbook. And it's not, it's not like we're. I get so passionate about this stuff because it's not, it's not like, oh, this happened six to eight, 10, 20 years ago, it might happen again. It's like, guys, this happened three months ago. It's not that long. And we've talked about how this is the most hated rally from the original tariff thing because people got left behind.
- [10:38]
Brendan
Yeah.
- [10:38]
Bryce
And so there's a huge difference between, I think, bitcoin, ethereum dropping, you know, the 5 to 15%. Some of these altcoins were down, you know, 70, 80%. A couple of them went to zero real quick, like insane numbers. So there's a disconnect there in the crypto markets, and that's why you're here. So I know we're going to get into that specifically, but just to take it off the top, whether it's the NASDAQ, the S& P, Bitcoin, Ethereum, like we've seen this playbook before.
- [11:02]
Brendan
Yeah, we have. And there still was a lot of questions that stemmed from the crash, like why was it so bad? Why was it the way that it was? And despite us being through this, you know, there were a few things that maybe you could have looked at differently. And so I mean, let's just go ahead and dive into that. I mean, we, I think we can move on from this one. Right?
- [11:22]
Bryce
Yeah, go to, go to the notes and then bring up whatever you want to bring up next.
- [11:27]
Brendan
Yeah, I mean, well, let's just talk about like what this Black Swan event was, right? So the response so far has been like, it looks like we're going into de escalation. And I think the next thing that we can look at is just how big this liquidation event was. And I think again, that's something that, that took a lot of people by surprise is just the sheer size of it. And so when we look at this here, I mean, let's just throw this up on the screen real fast. 19 + billion dollars in liquidations and this makes it larger than FTX, Luna and Covid and crashes combined, combined. And not just by like one or two, like all of them combined a couple of times over.
- [12:10]
Bryce
It's head scratching numbers. It is head scratching, head scratching numbers.
- [12:15]
Brendan
And the reason that this happened, like, let me just say I think that this was a very avoidable issue. But there's, there's two primary drivers to this crash. And I don't think you can blame it all on the tweet because I think that if the tweets would have played out normally without the second part, which we're going to talk about, we probably would have seen $1 billion liquidation event. Big, not insane, right? Not as big as ftx, not as big as Luna, not as big as Covid. It would have hurt, right? People would have been scared about fud, but we had so many trade headlines, it would not have been the end of the world. We would have had longs getting liquidated, but not $20 billion worth. And so what happened here in the second part was, was Binance and Binance really started to have some internal issues. So the first half was the fight, right? That's what was caused the initial reaction of people were fearful of another trade for they were uncertain about what could happen next. They were doubtful about the markets. Can they're already so high, can they go higher? And so that was the initial catalyst. The second part of this was just Binance having issues. And so part of the issues with Binance is that they were relying and they mostly do rely on an internal pricing model. They don't tend to bring in external Oracles or reference external pricing. They work all kind of internally. And the issue that they had is that some of their cryptos, and specifically some of their stable coins, like USD from Athena, is that when this started to happen and they started to de peg instead of looking elsewhere where everything was being rebalanced, fine, they're kind of, again, heavily internal focused systems were telling each other, oh, it's bad, oh, it's worse. Oh, it's getting worse. And instead of looking out to Coinbase and Kraken and Robinhood and Gemini and every other exchange, the, and saying, okay, everything else is fine everywhere, it's all being rebalanced, it's fine. They kept looking inwards and they got into an echoing chamber and their system essentially got into an echoing chamber of sorts where it kept telling itself, oh, it's getting depegged, it's getting worse and worse and it's falling. And this created an issue. And so the issue with having these models that are very internal focused in nature, especially when it relies to like Oracles and pricing, is. I mean, this affects more than just the prices. I mean it affects collateral and valuations and the liquidation process. And there was a moment in time where, where USD, a stablecoin was valued at around 65 cents on finance and it was in the 90 cents area for almost every other exchange. And when you go and you look at the crash, which I think everyone should, and you go and you look at, was wild to see how deep the candles were on Binance and how deep it was on Coinbase and Kraken and Gemini and a lot of the other leaders when it comes to crypto and the depths of the charts and how much these things fell were so much deeper on Binance. Again you can see, I mean it was just clear issues that were happening on Binance's end. Freaking out and not working properly to the point where like they've posted blogs about this and we were just looking at it before it.
- [15:36]
Bryce
Yeah. Pulled up the. It's the Binance link there.
- [15:38]
Brendan
Yeah, blog.
- [15:39]
Bryce
So it was basically Binance like had to come out and admit that there was, there was an error on their platform that, that hurt some of the trading and the liquidations, especially if you're getting liquidated at 65 cents on the dollar, not only are you losing a ton of money already, you've lost whatever you get to keep is halved with the 65 cents. Basically. Basically. So it was, it was a huge issue for Binance. I know a lot of their leadership was tweeting. The Binance account was tweeting. And then what we're showing you here is their actual official blog post. So if you're interested in looking that out, I mean you can just kind of Google click around and go to Binance's X and scroll down for their official link to this blog post. But basically trying to explain what happened and then also offering reimbursement for the issues that were caused.
- [16:27]
Brendan
And like one of the interesting things I saw them talking about. Adam, I don't know if you saw this. Adam on, I believe was on binance went to $0.01. Yeah, one to $0.01. A couple dollar coin, multi billion dollar project went to $0.01. I mean, let's just try to pull this up real fast and see if you all can see. But it was a crazy event and we're going to wrap all this together and make sure like we explain why this is significant and what happened and everything. But here's the chart over here. I'm going to try to do it on my end. They don't even show it going to $0.01, but it did and people were getting filled at $0.01 on Atom. So I mean, if you look at this thing, it shows a low of a dollar and fifty cents or something. And again, I'm winging this on the fly, but you can go to other exchanges and you don't see the same here. I mean, look at this. Essentially a $3 low on Coinbase, but a $50 low on Binance. It dropped. It saw another like, what was that? 50% to the downside, just between the exchanges and it was a crazy, crazy event and you sold us with just about everything.
- [17:25]
Bryce
It was a fire sale.
- [17:26]
Brendan
Yeah.
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Bryce
Roll through some other ones.
- [17:27]
Brendan
Yeah, I mean let's, yeah, let's look at, I don't know, let's go to like salon.
- [17:30]
Bryce
Let's end with Bitcoin and let's go. Usually we stop, we start with Bitcoin theorem, let's end with Bitcoin, let's start with some of these altcoins that just scared the crap out of everybody.
- [17:40]
Brendan
So I mean, yeah, I mean let's try to take a look at like xrp, right? Xrp. One People always like to talk to us about. It went down to, what is this, 79 cents. So if we go to XRP on another exchange, let's go to Coinbase. It went down to $1.79, literally a $1 difference from 1, 79 to $0.79. And I mean, the price differences in the arbitrage was ridiculous. And like, let's just go to another one. Let's go to Solana, for example, and we take a look at this and I hope that this is starting to paint the picture of like what happened over here. And so this one actually doesn't look as bad for Binance, but it was 170. 170 bucks. And if we go to Coinbase, it was a little higher, 173. So not a huge difference there.
- [18:28]
Bryce
Can you pull up? The one that I was eyeing up and trying to buy is Ondo. Yeah, at one point Ondo went down like 70%. And so I was trying to get orders filled like non stop. I finally got. I didn't catch the pure bottom. So I got in, I got in about, like in the 5.5.6, I got a fill. But like, I saw it down here, it was hammer and buys and I couldn't get, couldn't get them filled.
- [18:51]
Brendan
This is another 125 cent for Ondo on Binance. You know, let's go over to Coinbase again. Let's just look at them because they're, they're just at the top of the list here. And what did they go to over here? You know, $0.58. I mean, the difference is crazy.
- [19:06]
Bryce
And that's why, let's see, I'm getting 50 filled over different exchanges. I couldn't get the exact bottom. I'm seeing the charts, it's going crazy. But yeah, just, just a definitely. And again, all this was in. I mean, I was on the phone with you. Oh, this was in about like 15, 20 minutes.
- [19:20]
Brendan
Yes.
- [19:21]
Bryce
I saw this stuff fall off a cliff. Credit to us at crypto101 for monitoring this real time. But I called you, I'm like, yo, what are you seeing? You're like, I don't know. Look at this. It's waterfall. Waterfall. Waterfall is like freaky. But it didn't make sense.
- [19:36]
Brendan
It didn't make sense.
- [19:36]
Bryce
It didn't make sense. Which, again, once the tide went out, like, again, eventually I feel like we'll find some people aren't wearing bathing suits while they're swimming. Somebody had to get blown up in this at $19 billion liquidated. But like it really didn't make sense. Could you bring up the charts again though? Let's just finish on.
- [19:52]
Brendan
Yeah, yeah, yeah.
- [19:53]
Bryce
Because I think this is interesting for our audience. Like again, we always say, our audience, listen, leverage is very, can be very dangerous. And we always say, please educate yourself. If you're doing any type of perpetuals, futures, lever, anything with leverage, you got to be careful. We always emphasize this, but I also feel like the listenership at Crypto101, yeah, we have some degen, but I think we have a good mix of people and, and I really feel like the average person. So somebody like myself who a lot of people know that I'm in the space and we do the podcast, they if something big happens, people call and question and ask what's going on, what should I buy? Yada, yada, yada. I was waiting, waiting for the plethora of phone calls. And I did a lot of stuff this weekend in person with a lot of friends that I know. And you know, a couple of people said, hey, did something happen? This, what was going on with crypto? Did, did something happen? It was a question. And I thought I was going to get. See, crypto's a scam. Crypto's dead. Again, like that's what happened during FTX. Like if we're, if we're saying that this is 20 times more than RTX or 10 times more, when FTX happened, it was pandemonium. It was over.
- [20:59]
Brendan
But crypto was dead.
- [21:00]
Bryce
Crypto was truly dead. I had friends, my own mother asked if we saw the jobs. Like, hey, you're gonna still have a job after this. Whereas this happened and the average person, whether they have a little bit of bitcoin, ethereum or maybe none, they're not. I don't think they really felt this. Yeah, I don't, I really don't. I mean, we're gonna have to wait a little bit more maybe, but as you can see here on the charts, so talk us through the, the price action. But I think this might confirm what I'm kind of saying. Right? Paying the fear.
- [21:25]
Brendan
Yeah. And so just to tie together that final point, we had this two sided event. The tweet, which was the catalyst, should have been a sell off, not nearly the size of the one that we saw. The second side was centralized failure. And so I want to clarify this because I've seen a lot of people talk about it. There was not a failure of blockchain tech. There was not a failure of a project. There was not a failure of, of anything like that the failure was all a centralized issue that Binance did for essentially cutting corners in their system. It was a flawed thing on the centralized side of Binance's servers, or back end, whatever we want to call it. And so that was it. I saw a lot of people saying, oh, does this hurt blockchain tech's reputation? No, it wasn't a blockchain tech issue. And so that brings us up to speed, which is, you know, does that still end the cycle? Does it end altcoins? And I think the answer there is no. When you look at what happened here and you see that bitcoin had a $20 billion liquidation event, the largest one it's ever seen, worse than all these other ones combined and several times over, and then you go and you look at the bitcoin price on the chart, what do you see? Despite having that the crash nowhere near resembled all those other events that we talked about, you go and you look at it and bitcoin held. I mean, let's just look at this on the chart here. Bitcoin held above its prior all time highs. We can zoom out to this. It held above its prior all time highs. It held the higher low. It held the 200 day moving average. It held this consolidation range. It held the anchored V WAP from the tariff flows. It held all the significant support levels and bounced off of them and immediately jet packed back to the upside, 50% erased, half of it. So what I would say is, despite seeing the largest liquidation event in history and all these crazy things that could have happened, the crypto market immediately rebounded 50% and we held all of our critical support levels. And I think the one word to describe it is resilience. Right. Tom Lee's talked about this where he said people keep saying, oh, is it a dead cat bounce in this? And that he's going to say if there's all these different unique events, that something survives and it continues to chug higher, you wouldn't say that it's lucky, or you wouldn't say it's a dead cat bounce. You'd say that is a very resilient asset. And I think you have to say the same thing about here with bitcoin. I think you have to say that it's resilient by not breaking down to new lows off of news like that. And from top to bottom, the retracement was only about 12%, 12 and a half percent. And when we're looking at it now and the way that it is bouncing, I mean, if you look at the candle closes in here. They're all above 110,000 and they're all above this support line. They're all at a higher low than the previous candle. Closings here and here and over in here and it continues to close higher. And so I think Bitcoin here is showing us the greatest sense of resilience that I think we've ever seen. Having a liquidation event of that size and still closing higher, which is just a crazy thing. Had that kind of thing happened in the past, you know, we would have been destroyed. Could you imagine if the FTX and the Luna and the COVID crash were all 1 $2 billion liquidation events? Like it would have been flattening. And the ETFs are still buying retail, still buying. And the inside joke here is that this was the event for the institutional side to load up on their Altcoin ETFs before all the ETFs launch, which is expected to be within the next week or two.
- [24:57]
Bryce
If the government, I mean, it's, it's one of those things. I mean, just one last chart. Pull up bnb. It's like you'd think, oh, Binance caused this. You think Binance would be at a break. The lows? No.
- [25:08]
Brendan
New all time high.
- [25:08]
Bryce
New all time highs. So again, I think that there's a sad realization in the crypto sphere of like, I got screwed. You know, this was manipulated. And I think I saw a good tweet. I didn't, I didn't pin it, but it said something like this. It was like, listen, all markets are manipulated at some time.
- [25:30]
Brendan
Yeah.
- [25:30]
Bryce
It's just with the stock market, we can't see who, what, where and when.
- [25:34]
Brendan
Yeah.
- [25:34]
Bryce
And while we don't necessarily know the exact two, we have the wallet addresses. And then, yes, was, was somebody always knows. I mean, you, we all follow unusual whales and we'll see somebody loads up on Broadcom calls one week calls, and then the next day Broadcom announces, you know, OpenAI partnership. It goes up 20%. The guy made a million bucks or $100 million. So yeah, we saw that there was like some whale opened up a hyper liquid account and funded it and went short the market like an hour before Trump tweeted. So, yes, there is some manipulation here. The Binance thing is going on. You can, you know, I, I don't know, we, we don't necessarily have the facts, but if you want to wrap the old tinfoil like we do sometimes here, like, yeah, there was something, sadly, something fishy was going on. In the market. But again, everybody in our chat was kind of going like, oh, this is crazy. This is bad. This is.
- [26:29]
Brendan
This.
- [26:30]
Bryce
Is this the end of crypto? Blah, blah. It's like Bryce just kind of just guided us as always. He always does. He goes, guys, no crying in the casino. Yeah, no crying in the casino. Because at the end of the day, what we just showed you with bitcoin was the people that got hurt the most, and we don't want anybody to get hurt.
- [26:46]
Brendan
Yeah.
- [26:46]
Bryce
But again, it goes back to the. You need to understand what you're doing with leverage. And if you're overextending yourself with leverage and a Black Swan event happens, you're going to get cleaned out, your clock's going to get wiped, and then you can go and cry of why that happened. And I don't even think you'd be wrong if you're like, if you're done with crypto, but because you got over leverage and you got wiped out from a Trump tweet, maybe it's not the space for you. But if somebody like myself, who really doesn't play in the leverage market months much, and then was talking to my friends, I feel like I'm not. I didn't really. I feel it from a new sense, but like, I didn't get cleaned out because I don't overextend myself like that without proper risk management.
- [27:27]
Brendan
Yeah, it's. Yeah. I mean, it's hard, man. And I think with the rise of hype, with the rise of Aster. Right. All these big perps, markets popping up, becoming popular, people were using them. And with that, there. There's just a ton of growth and people liked it. The crypto market kept going up and up and up, and it felt like alt season was right around the corner. Bitcoin's about break, about to break the highs. Ethereum's about to break the highs. Everything's getting ready. And so people were getting levered up with it. And we saw another kind of pump fake. And unfortunately, it just led to a snowball effect.
- [28:01]
Bryce
It did. And again we. October. We were super excited about October. October kind of seemed to be. We got a rain on that parade a little bit, but we work right. That first week of October, October, we came out of the gates running. And that's why I think people again, goes to that offsides theory of like, okay, when's this going to happen? When's this going to happen? Now? Is it now? And everybody just got over leveraged. Plus this Black Swan event. So it kind of kind of all happening once. But again, if you zoom out on these major blue chip assets that we try to educate everybody on, the most I know, inside the community, we have the blue chip portfolio and all that stuff to kind of tell you where we think the best plays are. But once you start diving into this altcoin world and Bitcoin has leverage against the S and P, Ethereum has leverage against Bitcoin, I mean, how far down the rabbit hole do you want to go? And we've talked about this on the show of Coinbase starts to offer 20x 25x 50x.
- [28:55]
Brendan
Could we talk about the 50x tweet crisis?
- [28:58]
Ali Jackson
Yes.
- [28:59]
Brendan
Bring it up, bring it up.
- [29:01]
Bryce
I don't even know if I can find it. Who. Who tweeted it?
- [29:03]
Brendan
So I think it was Brian Armstrong. In the middle of Friday's event. I think it was in the middle of Friday's event, maybe Saturday. Brian Armstrong tweets out, hey, guys, we've just upped our leverage so that everyone can go from 25x to 50x. And this was in the middle of the largest liquidation event in history, caused by the very market that he's talking about, everyone can get even more levered up on. And it was like, dude, time and place. Dude, time and place. It's like a tragedy just happened. And you're coming in and you're cracking jokes, you know, 10 minutes later. And it was just.
- [29:38]
Bryce
I think, well, this suite, specifically the 50X, was from a month ago. Yeah. Up to 50X. But then I. That's what I did. I was like, oh, my God, how did this happen? Yeah, I tweeted. It's like. Well, it's because we got.
- [29:49]
Brendan
Okay.
- [29:50]
Bryce
Yeah, it wasn't. It wasn't. He didn't tweet that out in the moment. We love you, Brian Armstrong.
- [29:54]
Brendan
Oh, yeah. Yeah. So that makes me feel a little bit better.
- [29:56]
Bryce
But, but to your point, how did this happen? I know I'm not on the screen right now. How did this happen? It's. Okay, so a month ago, you see the. Brian Armstrong's promoting the new feature to get 20 to 50x leverage. Okay, so how did the event. How did an event like this happen? 19 billion compared to the 2 billion with FTX. This is how it happened. There's people that are going 50x their exposure, and then you're. I mean, you know, depending on how funded your account is, I mean, the, the, the margin of error is what, 10, 20%?
- [30:25]
Brendan
Yeah.
- [30:25]
Bryce
Tops.
- [30:26]
Brendan
Yeah.
- [30:26]
Bryce
So when something goes down 10, 15%, that, that cascading effect of just. Just slices through the market like butter. And that's. That's how this happens. So again, I don't think the average person out there is going and doing 20 to 50x leverage. I really hope not. If you are, you need to get educated on it if you are thinking about doing that. But again, there's a lot of degens out there. We like to degen when it's time.
- [30:50]
Brendan
Yes, but.
- [30:51]
Bryce
But responsible. You got to be. It's like gamma.
- [30:53]
Brendan
You just got.
- [30:53]
Bryce
You got to do this stuff responsibly, man. I mean, you're going to get absolutely wiped out. And I feel like a ton of people did. And there's some really, really sad stories out there in the crypto sphere. And just like, it's not worth putting yourself in a position where you're. You can't live with the results. You have to understand that there's no free ticket to 100x or a 50x. It's crazy. It's crazy. And that's what we try to do here, to stay educated and all that stuff. But again, if we, if we zoom out.
- [31:20]
Brendan
Yeah.
- [31:21]
Bryce
So what's going on? What are people doing after this? Largest liquidation ever. Well, I'll tell you what. Yeah, share that one.
- [31:26]
Brendan
Yeah.
- [31:27]
Bryce
Guys, Michael Saylor's buying. He didn't buy last week. Not. I don't think Michael Saylor knew by any means, but, you know, he starts his buying spree again. Let's see, pull it up. How many they buy?
- [31:39]
Brendan
Another 220 bitcoin for $27 million.
- [31:43]
Bryce
Yep. And then of course, our friend of the program, Tom Lee. Let's see. Can I share this one?
- [31:48]
Brendan
3 million. It's already on.
- [31:50]
Bryce
Oh, it is?
- [31:51]
Brendan
I believe so. Yeah.
- [31:53]
Bryce
Move this to the other window.
- [31:56]
Brendan
And yeah, I mean, you look at it, another 3 million Ethereum.
- [32:01]
Bryce
Congrats. Bit mine.
- [32:02]
Brendan
Crazy.
- [32:03]
Bryce
They're still doing it. And then here, I'll pull up another one. The. There were some reports coming out that Trump is like, you know, Trump's. It's probably like more like Trump family.
- [32:11]
Brendan
Yes.
- [32:12]
Bryce
Is. Is a. Now a top Forbes. So Forbes says President Donald Trump is now one of the largest bitcoin investors on the planet, owning an estimated 870 million in BTC. So I'm sure that funnels into his family world, Liberty, Fi, and all that stuff that the Trump family's doing. But again, like, this is happening. Yes, There's. Yes. I mean, I'll say this is my opinion. Just my opinion personally. Not a reflection anybody else on the show or program. But yes, there's insider trading going on. Like, yes, that's, that has been going on. We joke about the Nancy Pelosi tracker in the stock market. Yes, it's happening in the crypto market as well. Probably an equal amount.
- [32:49]
Brendan
Yeah. And I had someone earlier ask me and I did a trading session a little bit earlier and someone was saying, Brendan, like, do you think that this proves that there's issues with blockchain, the fact that people can insider trade? And I said, my guy, I said insider trading happens arguably more in the tradfi markets. We've all seen the politician cop copiers. And the thing is, is that it's not just one side and that's what I think this person was trying to get at is it's not a one sided thing. You see it happen on the left, you see it happen on the right, you see it happen in all the political parties. Like people from everywhere do it. And it happens in stocks. And guess what? I think you'd have to be ignorant to think that it doesn't also happen in crypto too. It happens on both sides of the political party. It happens in all the different markets. It's unfortunately just a thing. And it's not like, oh, because it's crypto. This can happen like this. And yeah, and I think it's something.
- [33:47]
Bryce
That we've been touting on the show now for less than a year, I guess since, no, about a year since President Trump got elected was kind of this sentiment of the top of the tweet. I tweet this out, I go, and you're selling like Donald Trump's family is one of the top bitcoin holders. People are selling and you're selling like again, it goes back to if you were listening to the show a year ago I gave the speech, it was like you could not like bitcoin or crypto at all. You could think it's totally garbage. But guess what? The President of the United States is for it.
- [34:15]
Brendan
Yeah.
- [34:15]
Bryce
So I would buy that asset. Not personal financial advice in any mean, but I would buy that asset any day if the person in the White House is all for it. And then pull up this clip because I literally say this multiple times every couple weeks. I feel like I go eventually with same thing. You could hate bitcoin, you could hate crypto. But what's going to happen here is as all these, the vanguards are going to, they're going to roll over and start offering stuff soon. We know that story. We know that you know, we saw Citigroups doing analyst calls now on crypto and bitcoin go down the list. J.P. morgan's building on the blockchain. Even though Jamie Dimon hates crypto. And I've said this before about blackrock, I go, you could hate bitcoin and crypto. But Larry Fink, again, he'll say this in the clip, what he used to say about bitcoin and crypto. What's going to happen is Larry Fink and his army are going to be selling. Not to us, to your friends and your family, your parents, your grandparents, who know nothing about crypto thought it was a scam. It's Larry Fink. And his salespeople are gonna be like, no, no, no. Now that it's blackrock, it's safe. It's a good idea. So roll the clip because it's 60 minutes, guys. 60 minutes is a nationally televised show on Sunday nights. Who watches that? Parents and a grandparents.
- [35:21]
Brendan
Yeah.
- [35:22]
Bryce
And so this is who Larry Fink and the salespeople are coming for. We've been telling you for a year now.
- [35:27]
Larry Fink
I did say bitcoin, cause we were talking about bitcoin then was the domain of money launderers and thieves. But you know, the markets teach you you have to always re look at your assumptions. There is a role for crypto in the same way there's a role for gold. That is, it's an alternative for those looking to diversify. This is not a bad asset, but I don't believe that it should be a large component of your, your portfolio.
- [35:57]
Brendan
People should have this in their portfolio. This is the largest asset manager on the planet. $10 trillion plus in assets under management. And they're coming out here, all the big players are, and they think that you should have it. I think on the other rundown we showed like, what's a proper allocation? And there's now allocation guidelines. And this is becoming the norm. And it's only a matter of time until we get to that point. And guess what? We're still not there. If you look at 1% of IRAs and retirement accounts and pensions and all this stuff, if 1% or 2% of that was in, was in bitcoin, it's a different world. You know, we're hundreds of thousands instead of 100,000. And again, we're slowly getting there. It's not going to be something that happens overnight.
- [36:37]
Bryce
But yeah, it goes, it goes to the fact that I feel kind of excited that the 60 minutes clip popped up because it's literally what I've said is for Larry Fink and his salesmen are going to be sitting down with your parents, your grandparents. And so. And they're on 60 Minutes. So who's watches 60 Minutes? Oh, my God. Look who's.
- [36:54]
Brendan
Look at these.
- [36:54]
Bryce
Look at this, guys, bring it in. Hold. What a What. What a treat.
- [36:58]
Brendan
Guys.
- [36:59]
Bryce
We. Brian McNut, Joe Choi. Look at this. In person. In person.
- [37:03]
Brendan
I'm near full house.
- [37:04]
Bryce
This off. Here we go. Just. Just like this. I got. I'm interviewing you. I'm interviewing you.
- [37:08]
Joe Choi
Awesome. Hey, I was tuning in. Loving it, loving it. Everything you're saying. What are we buying?
- [37:12]
Brendan
What's up, guys? Yeah, 10x leverage on everything.
- [37:15]
Bryce
No, no, no, no, Joe, no, that's not how. No, no. Guys, this is really exciting. This is not only is the first time that Brennan and I have done a live show, now we got the whole crew here, I guess everybody. This is going to get sent out so a lot of people see it. So this is exciting to have everybody here. Guys, how'd you survive a quick, quick hit show? Everybody got liquidated. What were your thoughts over the weekend?
- [37:36]
Brendan
I. I don't do leverage. What I. How I survived is nobody sausage didn't get the memo.
- [37:43]
Bryce
They were up 25 in the last.
- [37:45]
Brendan
Seven days while everything was just plummeting. So, okay, yeah, we caught that up for everyone.
- [37:49]
Bryce
Well, we talked about nobody's sausage on the show multiple times. And again, Joe, unprompted Joe walks in the room, guys, says, I don't do leverage. Even in the meme coin marches, when you're in the trenches we talked about, it's like, okay, bitcoins leverage. The S and P theorem is leveraged. The bitcoin altcoins are leveraged. Everything else, meme coins are higher leverage and alpha to everything else. It's like we pulled up the tweet by Brian Armstrong. It's like, okay, 20x50x. It's like, oh, how did this happen? How did this happen? It's because they're rolling out 5000X products and everybody's getting levered up to their neck. That's how it's happening. But, Brian, what did you see this weekend? Quick hits. How did you survive?
- [38:22]
Joe Choi
I do do leverage, but luckily I didn't have any open positions. And everything these guys are saying, you have to really know what you're getting yourself into when you're dealing with leverage. It is literally the gambling of the gambling that happens and the kind of the flavor of the recent market's been perps. Dex hearing everything about Aster and hype and it's catching everyone a little bit here. So luckily myself and a lot of people I know weren't. Didn't get too wrecked, but I'm sympathetic to anybody.
- [38:53]
Bryce
It did.
- [38:53]
Joe Choi
But I, I think this could be a little bit of a clearing house. I think this is bullish overall for the market. I mean, what, what was it? Ftx, Covid and. And Luna all together?
- [39:03]
Brendan
Yeah.
- [39:04]
Joe Choi
Didn't meet the amount of liquidations that we saw over the past couple days. So with, with that being said, that we kind of fired back up or ved right back up. We got Binance, what hitting all time highs as of today, even with, you know, a lot of connecting. Yeah.
- [39:19]
Bryce
They had to put out an apology and refund people for a dpeg and they're. They're at all time highs.
- [39:23]
Brendan
We got it on the screen.
- [39:25]
Bryce
Yeah.
- [39:25]
Joe Choi
So that just goes to show you, I think, I think everyone needs to be very careful with leverage. That's why Spot is a very interesting position. I'm a big spot trader and I think if you were watching this live, like a lot of us, we definitely started to buy some more Spot when we saw this big wipeout because there was a huge opportunity and I think it's still live.
- [39:46]
Bryce
Couldn't. Couldn't agree more. And I think it's just exciting that we kind of go through this together. It's kind of the big part of why you want to be a part of the community. Whether it's the podcast, the YouTube or if you're interested, we have tons of links below for both Brian Joe's community. Brendan's trading cohort is open this week, so I put that link down for everybody below. And overall, how exciting for the entire team to be here. Every time we get together, it's exciting. Last time it was all time highs. This time the biggest liquidation event in history. But the crypto 101 team is here just doing the research with everybody together. Brennan, I'm going to pass it off to you to sign off. I'm going to go over here and end it, but say goodbye to the good people. What's our schedule this week? Probably so we have some interviews. I'm going to be putting out with Bryce and Brendan. That's going to be awesome. Can't guarantee another rundown this week, but, you know, again we try our best to put out all the content we can for you guys.
- [40:35]
Brendan
Yeah. Well, hey, everyone, we appreciate all of you watching. It's awesome being able to be in person with the rest of the team, we have a lot of new content coming forward. We even have a new tutorial, I think, coming out. Is it out already? So, yeah, we have a brand new tutorial on Coinbase and their new Dex feature. So go check that out. Thank you all for watching. I see the chat box over there. Absolutely electric.
- [40:57]
Bryce
Sorry, I'm over here. We got East Coast Lobster Classic Josh Clark. What is that? Oh, TNO country boy. Never heard of him before. Welcome, brother. Josh Cole Clark, Michael Anthony, Brian McNut, Vlad D. Awesome. Awesome stuff for impromptu rundown. We really appreciate you guys.
- [41:16]
Brendan
Yeah, well, like TiVo said, thank you all for watching. We're going to be back here very soon with a lot more content and we'll talk to you all then.
- [41:35]
Ali Jackson
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