CRYPTO 101 – Crypto Rundown: Crypto Flash Crash BUT The Whales Continue to Buy

Hosts: Bryce Paul & Brendan Viehman
Date: September 22, 2025

Brief Overview

In this urgent edition of the Crypto Rundown, Bryce and Brendan dissect a sudden and severe market dip, dubbed the “crypto flash crash.” Despite massive volatility and over $1.5 billion in liquidations, the hosts highlight how major players ("whales") and institutional investors continue accumulating positions. The episode emphasizes separating emotion from strategy, reading institutional moves, and not being swayed by panic in turbulent markets. Key industry news, regulation updates, and surging altcoins are also explored for the retail audience.

Main Discussion Points & Insights

1. Market Landscape: Volatility and the Flash Crash

[00:10–03:41]

• The episode kicks off with a reflection on recent volatility: a week filled with catalysts like Federal Reserve rate cuts and ETF adoption.
• A significant market dip occurred late Sunday, with major liquidations and a red open to the week.
  • Brendan: “It is the largest leverage flush out that we’ve seen since March… over one and a half billion dollars worth of longs were liquidated just yesterday.” [03:41]
• Hosts stress the importance of vigilance when sentiment is universally bullish.
• Warning about over-exuberant market participants: when everyone’s “on the same side of the boat,” risk increases.

2. The Leverage Flush: What Happened?

[03:41–08:00]

• Over $1.5 billion in long positions liquidated within 24 hours, identified as a massive washout event.
  • “During these sell-off events, they can actually act as a bottoming catalyst… these tend to mark bottoms in the market.” – Brendan [08:08]
• Bitcoin dropped about 3%—relatively minor compared to previous crashes.
  • Emphasis on resilience: “Bitcoin actually held up… only fell 3% after a billion and a half dollars worth of liquidations.” – Brendan [13:23]
• Altcoins typically saw sharper drops (5-7%+), consistent with higher volatility versus Bitcoin.
• Ethereum broke key supports, sparking short-term concern for traders, but the hosts remain bullish long-term.

3. Sentiment Analysis and Strategic Psychology

[14:31–15:52]

• Fear & Greed Index shifting towards neutral/fear, indicating a cycle where contrarian thinking can be rewarding.
• Bryce: "When, you know, especially a fear, greed and nasty price action coincide together… you want to be kind of in the counter, the counter thought process." [14:44]

4. “Whales” Accumulating the Dip

[15:53–19:54]

• Several key entities are highlighted as buying heavily during the downturn:
  • Meta Planet buys $633 million in Bitcoin.
  • Michael Saylor’s MicroStrategy adds another $100 million in Bitcoin.
  • Vivek Ramaswamy’s Strive increases its Bitcoin treasury above 10,900 BTC.
  • Bit Mine amasses over 2.4 million Ethereum (2%+ of supply).
• Takeaway for retail: whales are viewing this dip as a buying opportunity, not a time to panic.
• “They’re not selling all their bags... They’re saying, man, thank goodness this is a buying opportunity.” – Brendan [15:55]

5. Regulatory Updates and Macro Tailswinds

[19:54–21:43]

• News: US and UK announce a task force to explore cooperation on crypto regulation; recent big deals brokered at high-level summits.
• Growing momentum for clearer regulation, with political figures like Vivek Ramaswamy deeply involved in both crypto and government.

6. Strategic Bitcoin Reserves: A New Phase?

[21:43–26:54]

• Discussion about the prospect of national and group-reserves of Bitcoin, as highlighted by Coinbase CEO Brian Armstrong:
  • “If the United States government is going to begin holding bitcoin, I think that’s going to be a massive driver of demand. And the rest of the G20 countries will probably follow suit.” – Brian Armstrong [22:55]
• Hosts anticipate a gradual normalization of Bitcoin and crypto holdings among sovereign treasuries.
  • Brendan: “How can you have something that is the eighth largest asset in the world and…not have at least a little bit of exposure to it?” [26:11]
• Conclusion: Expect slow but steady integration of crypto at sovereign and institutional levels.

7. Altcoin Standouts Amidst Broader Declines

[29:39–33:39]

• Despite broad dips, some altcoins exhibit surge in adoption and activity:
  • Avalanche (AVAX): daily transactions up over 800% in 6 months. Recent product launches (Black Hole DEX, Avax 9000 upgrade), meme and gaming resurgence drive adoption.
    • “I was not expecting to see this kind of huge increase from Avax. But I’m glad to see it.” – Brendan [31:52]
  • Other notable mentions: Hyper Liquid (perpetual trading dominance), Pump Fun (meme coin trend), Aerodrome (Base chain leader).
• Takeaway: Looking for on-chain growth and ecosystem catalysts is crucial for altcoin selection during dips.

8. Takeaways on Community, Mindset & Continued Growth

[26:55–29:39; closing]

• “Zoom out” is the mantra; crypto is inherently volatile, with relief and opportunity often following panic events.
  • “You’re gonna have these volatile days and weeks… but if you’re zooming out, we’re in a good spot.” – Bryce [26:56]
• Regulation and institutional adoption progress at an increasing pace in the US and globally.
• The podcast will continue to deliver in-depth, research-driven analysis to help the community navigate volatility.

Notable Quotes & Memorable Moments

| Quote | Speaker | Timestamp | |---|---|---| | “It is the largest leverage flush out that we’ve seen since March… over one and a half billion dollars worth of longs were liquidated just yesterday.” | Brendan | 03:41 | | “During these sell-off events, they can actually act as a bottoming catalyst… these tend to mark bottoms in the market.” | Brendan | 08:08 | | “Bitcoin actually held up… only fell 3% after a billion and a half dollars worth of liquidations.” | Brendan | 13:23 | | “When… fear, greed and nasty price action coincide together… you want to be kind of in the counter, the counter thought process.” | Bryce | 14:44 | | “They’re not selling all their bags... They’re saying, man, thank goodness this is a buying opportunity.” | Brendan | 15:55 | | “If the United States government is going to begin holding bitcoin, I think that’s going to be a massive driver of demand. And the rest of the G20 countries will probably follow suit." | Brian Armstrong | 22:55 | | “How can you have something that is the eighth largest asset in the world and it not… make sense to not have at least a little bit of exposure to it?” | Brendan | 26:11 | | “You’re gonna have these volatile days and weeks… but if you’re zooming out, we’re in a good spot.” | Bryce | 26:56 | | “I was not expecting to see this kind of huge increase from Avax. But I’m glad to see it.” | Brendan | 31:52 |

Timestamps for Important Segments

• Market Recap & Sentiment: 00:10–03:41
• Leverage Flush/Liquidations Analysis: 03:41–08:00, 08:00–15:52
• Whale Accumulation Moves: 15:53–19:54
• Regulatory Updates: 19:54–21:43
• Bitcoin as a Strategic Reserve / Brian Armstrong Segment: 21:43–26:54
• Altcoin Activity Focus (AVAX et al.): 29:39–33:39
• Mindset & Community Conclusion: 26:55–29:39, 33:39–34:23

Tone, Style, and Additional Notes

• The hosts maintain an encouraging, research-driven, and retail-friendly tone. There’s a recurring emphasis on “zooming out” and not panicking during periods of high volatility.
• Technical chart insights are referenced, but always connected to broader trends and institutional behavior.
• Episodes are positioned as must-listens for serious retail investors chasing both the macro view and actionable details.

Action Items & Upcoming Content

• Regular episode tomorrow, full meme coin update, and big “Prepare for October” live stream Friday.
• Listeners encouraged to subscribe, join live sessions, sign up for community/social features, and “parse through the noise.”

For retail investors and crypto enthusiasts, this episode provides both emotional reassurance and practical intelligence: institutional players are still bullish, opportunities exist in altcoin narratives, and the broader trends are positive even amid turbulence.