Emergency Pod: Is It All Over for Bitcoin?

Merryn Talks Money – February 6, 2026
Host: Merryn Somerset Webb
Guests: John Stepek (Money Distilled Newsletter), Charlie Morris (ByteTree)

Episode Overview

In this surprise “emergency” edition, host Merryn Somerset Webb convenes a quick panel to confront the dramatic crash in Bitcoin’s price. With John Stepek and crypto expert Charlie Morris, the episode explores why Bitcoin plummeted, its cyclical nature, quantum computing threats, whether it remains a long-term asset, and if diversification (e.g. with gold) makes sense. The trio balances analysis, skepticism, humor, and practical advice for rattled investors.

Key Discussion Points & Insights

1. Recap of the Bitcoin Crash and Market Context

• Bitcoin price action:
  • Down ~25% year-to-date (YTD), 40% in 6 months, nearly 50% off the previous high ($125,000).
  • Hit a low around $60,000 before bouncing back into the mid-60s during recording.
  • Compared with gold and silver surges & their subsequent corrections.
• Main Takeaway:
  • “One thing we can say for absolutely sure at this point, that bitcoin is not quite the same thing as gold.” — Merryn Somerset Webb [03:36]

2. What Drives Bitcoin’s Volatility?

• Charlie Morris:
  • Bitcoin is a “digital world asset” while gold is a “macro, real world asset.”
  • High correlation with tech stocks, especially social media and NASDAQ; tends to track internet activity and risk-on sentiment.
  • “…bitcoin really is the sort of next NASDAQ on steroids, a bit like what silver is to gold.” — Charlie Morris [05:56]
  • The recent tech/internet “top” last October may have foreshadowed Bitcoin’s drop.

3. Quantum Computing: Existential Threat or Red Herring?

• Fears discussed:
  • Quantum computers could (in theory) break crypto’s cryptography, threatening wallet security.
• Charlie’s reassurance:
  • Not imminent; more theoretical at present.
  • The Bitcoin network has already responded to threats with protocol upgrades ("Taproot," "SegWit"), and influential figures like Michael Saylor are leading efforts to harden security against quantum risks.
  • “The upgrades to the system will happen in the coming months, possibly a year or two, but it will happen ahead of any Quantum threat. …the Bitcoin network is not at risk of Quantum because they’ll do the right thing in the end, as they always have done in the past.” — Charlie Morris [09:13]

4. The Four-Year Cycle: Bitcoin as a Liquidity Barometer

• The thesis:
  • Bitcoin strongly reflects the classic four-year market cycles, mirroring macro liquidity patterns.
• Charlie’s historical tour:
  • Recaps major macro cycles (1974, 1982, 1990, 1998, 2002, etc.) and aligns previous Bitcoin bear markets with broader economic downturns (2014, 2018, 2022, now 2026).
  • “I’ll say it’s not bitcoin cycle, it’s the, you know, it’s the world cycle. And bitcoin is the expression of that cycle because… it’s an expression of liquidity.” — Charlie Morris [16:05]

5. Is Bitcoin a Canary in the Coal Mine for Further Declines?

• Tech and indices context:
  • Rotation away from US tech/indices into rest-of-world stocks, consumer staples, etc.
  • Tech declines have not yet hit the indices fully; more pain could follow.
  • “…US tech hasn’t really dived yet. It’s always last to go.” — Charlie Morris [16:40]

6. Has Anything Fundamentally Changed for Bitcoin’s Long-Term Case?

• Regulation & Stablecoin Competition:
  • Political/regulatory expectations under Trump’s second term have been disappointed; stablecoins are growing, but all remain in a connected crypto ecosystem.
• Charlie’s view:
  • Underlying case unchanged; volatility is expected.
  • “It’s the Internet. So the Internet stocks are going down. Bitcoin’s caught up in that. Is the Internet shrinking?” — Charlie Morris [19:34]
  • Current levels (~$65k-66k) match previous cycle highs—suggesting technical support is holding.

7. Practical Questions for Investors: Buy, Hold, or Diversify?

• Is now a buying opportunity?
  • John Stepek (skeptical, a “no-coiner”) jokes about buying at the bottom, fearing he’d jinx the market.
  • “John buying his first bitcoin would literally mean that the whole world would implode.” — Merryn Somerset Webb [22:15]
• Bitcoin vs. Gold (and BOLD ETF):
  • New products like BOLD ETF combine gold and Bitcoin (“two-thirds gold, one-third Bitcoin”) for risk-weighted exposure.
  • “The combination of the two assets is truly magical. They work against each other…low correlation and it’s a very powerful thing to own.” — Charlie Morris [25:04]
  • Gold remains the monetary hedge, but central banks don’t buy bitcoin or silver—reasons for up/down differ.

8. Listener Engagement & Final Thoughts

• No change in long-term rationale—holding Bitcoin remains valid, but mix with gold for stability if nervous.
• John Stepek invited to try BOLD rather than “destroying” markets by buying Bitcoin himself.
• Listener poll: Should John buy Bitcoin, switch to BOLD, or hold gold?
  • “If you want to hold it in a less volatile form, maybe mix it up with gold.” — Merryn Somerset Webb [27:58]

Notable Quotes & Memorable Moments

• Bitcoin ≠ Gold, but Correlations Still Matter:
  • “Bitcoin is not quite the same thing as gold. Am I right or am I absolutely right?” — Merryn Somerset Webb [03:36]
• On Bitcoin’s Place in the Cycle:
  • “Bitcoin really is the sort of next NASDAQ on steroids…” — Charlie Morris [05:56]
• On Quantum Fears:
  • “…when the price was 120,000, no one cared about Quantum… But now the price has crashed. Everyone’s like, oh dear, we better deal with Quantum.” — Charlie Morris [09:19]
• Long-Term Perspective:
  • “It’s an expression of liquidity. And so… the asset that gets hit the most is the one that’s in the firing line.” — Charlie Morris [16:26]
• Gold, Bitcoin, & Ponzi Jokes:
  • “If you think bitcoin’s going to zero because it’s a Ponzi scheme… well, it’s a 17 year old Ponzi scheme…” — Charlie Morris [24:08]
  • “Is there any Ponzi skiing with huge transparency and publicly open blockchain and a free market and all that?” — Charlie Morris [24:12]
• Constructive Diversification:
  • “The combination of the two assets is truly magical. They work against each other. They have consistent low correlation and it’s a very powerful thing to own.” — Charlie Morris [25:04]

Key Timestamps

• 02:32 – Episode & market recap, Bitcoin’s sharp drop
• 04:35 – Charlie Morris joins, intro to Bitcoin’s cycles
• 05:40 – Why Bitcoin crashed; difference from gold; tech sector tie
• 06:48 – Quantum computing threat explained, Bitcoin protocol upgrades
• 13:11 – Four-year market/Bitcoin cycle mapped out
• 16:26 – Is Bitcoin a warning signal for broader markets?
• 19:34 – Has the long-term investment case changed?
• 20:46 – Technical levels: cycle highs & recent support
• 22:15 – Should John buy Bitcoin? Comic interlude
• 24:08 – Bitcoin, gold, and “Ponzi” talk
• 25:04 – Case for BOLD ETF: risk-weighted gold + Bitcoin
• 27:38 – Final advice: holding, mixing, or diversifying Bitcoin exposure

In Summary

“Emergency Pod: Is It All Over for Bitcoin?” delivers an insightful, sometimes irreverent dive into crypto panic. The hosts and guest conclude:

• Bitcoin’s crash fits historic liquidity cycles—not a true death knell.
• Quantum threats exist but are being addressed and shouldn’t worry holders.
• The long-term case for Bitcoin is intact, but volatility is normal and mixing with gold (via products like BOLD) offers attractive risk management.
• Investors should expect further turbulence in tech and indexes, but global diversification opportunities remain.
• Listener engagement invited—should John finally buy some Bitcoin or not?

The tone is frank, lively, and practical, providing reassurance and perspective for those shaken by Bitcoin’s latest wild ride.