Bitcoin Collapses Crypto Market Crash

The market is continuing to fall today. We'll break it down for you. Let's get into it. This is a big one. I want to thank our sponsor today. That is BTCC. This is where you can start taking advantage of this volatility in the market. If you're a trader, want to get into some longs and some shorts or possibly some leverage, you can do that. And of course, get a 10% bonus on your first time deposit over there. Lots of activity in terms of perks that you can also get, extra bonuses, lower fees, and of course, some VIP perks all by using our link down below. Check it out. Let's get into it today. I do want to focus on where the market is heading because this is getting bloody. And of course, 6.7 billion in crypto liquidation in just six days. This continues to spin downward as Bitcoin, of course, is approaching 70K today as we record around 72K, a lot pushing in here. And of course, many people would look at this and say, is this a full bear market? And I think when you see some of the data today, you might agree, maybe it is. If you look at the fear and greed coming in right now, remember, this is just kind of a higher low as we push down to around 14. Remember right here, we hit a 10 and that was back in November. And of course, that was all through the issue of the Trump transition skyrocketing almost up to 50. And then of course, the plummet that we have seen over the past few months, which is definitely affecting the markets in general. Not only that, you have to also consider where and if we are in a bear market. If you look at what the poll is saying, you might say, all right, well, is the crypto bear market confirmed? Yes, no, yes for Bitcoin or not for ETH. I'm going to say, yes, it's confirmed. And that is what most of you are saying right now in comparison. I think this is the thing we've been watching for some time. And that has been, we hit all time highs. It will be sometime before we start to see some of this retrace. Now, a lot of this really boils down to where the market is heading and why those indicators are continuing to push. If you just look at our channel, this is the kind of red that has been within the channel for quite some time. It is a problem overall. And one thing I want to compare to when you look at not only the fact that we are in the red right now, but we are potentially seeing even more blood coming to the water. And I'll get into that. I want to go in and play a clip real quick because this will get into a little bit more detail from what has been a very bullish Mike Novogratz. Take a look. Listen, you never actually know where markets bottom, right? Crypto, when Bitcoin went through a hundred thousand, that was a major level it broke down on. And so Bitcoin was not supposed to act like this, right? You had gold prices higher, the NASDAQ higher, rates going lower. This was a, yeah, the Trump administration was very pro crypto. And so, you know, something went wrong. And I think what ended up happening was people finally started taking profits. After we crossed a hundred, it felt like the community had won. And it was a sigh of relief. Listen, there's a couple of things that could help, right? Market structure bill passing would be a big deal. All right. So one point to Mike's benefit there is he did hit it on the head. I think market structure is the one that will have some benefit to the market. Now, does this get crypto off the floor is the real question. If you look at what's happening with gold and silver, and then eventually I think we're going to see this around tokenized stocks, which will most likely be one of the bigger trends that we'll probably see in 2026. But Bitcoin now has crashed 53,000 in the last 120 days from its peak of one 26. It was in October of 2025. Bitcoin is now dropped to a new yearly low of 73 to actually that is now down below 73 K as we record. So if you look at the S and P 500 right now, S and P up a real down like a point and a half from all time high NASDAQ three and a half. And then of course the Russell 2004.2. So Bitcoin down 42 percent, ETH 56 percent from all time highs. This is the problem that you're going to continue to see, I think, in general. Now, many people would look at this and say, well, Paul, this is exactly what I've been waiting for because I haven't been invested in crypto. I'm waiting for this thing to fall through the floor and be able to catch this right when regulatory alignment gets put into play and global adoption starts to make its way through. Now, where would that come from? Well, many people would look at this right here. Bitcoin has always retested its 200 week EMA after losing the hundred week EMA. And I'll show you a chart here in a second because this is where it gets a little kind of sketchy overall. All right. So when you take a look at the 200 and the 300 EMA right here, if you go in and look at the bear market in 2022, this is where we saw Bitcoin come back down to 16 K, right? If you look at that, we actually consolidated in this area for a long period of time. And this was the 300 day moving average. And you compare that right now because many people have been pointing at this zone right here, which is around the 68 K saying that is the bottom. Now, it could be the case because of the way that Bitcoin has been trading. Maybe it never retouches the 300 or it repeats exactly what a last market did. And of course, that pushes us into right around 55 K. So let me know in the comments, do you think the 55 K is in the cards for Bitcoin as we start to cruise through this bear market? Other things I want you guys to take a look at is the Senate is now doing something which is closed door crypto market structure meetings. Now, this is what's happening right now. And there's not a lot of people talking about this. Eleanor is out there putting out data. But the point I think is this is trying to get an alignment around what's going to happen on the negotiation floor coming in from these lobbies that are now basically getting their talking points to their mouthpieces, meaning senators and Democrats and both Republicans and Democrats. This is what's happening right now, closed door meetings. So I don't know if we get something this week, but I would anticipate something very soon that start to give us a little bit more indication on where clarity is going to come. Here's Michael Burry saying, listen, if Bitcoin continues its ongoing decline, this could destroy a lot of value and we could see companies who are holding Bitcoin reserves start to exit. Now, do you think that we would see someone like Tesla or others that would simply say, hey, I am at the point of no return. Bitcoin is off the table. Or is it something that they worry about? Because I think a lot of people look at long term holding here. I know that's what Saylor and many of the Bitcoiners will tell you, don't look at next year, look in the next 10 years. Many people will say, I'm going to look at the next two years, three years, five years, wherever that might be. But if you are in a potential, some people might say, listen, if Bitcoin goes down below 60K, I'm buying more or I'm buying more if it hits 50K. Is that an opportunity that you would take advantage of in terms of how the market is still playing out right now? Look at Saylor's position right here, just to zoom in on that. His Bitcoin rules amid the price dip. Right now, he holds 713,000 plus Bitcoin bought at an average of 76K. We are below that now. He's got a little bit of a lease on life right now. But man, I would agree this guy has got some big cojones going forward right here. Master, not a great stock, not great management. People out there pushing hard against but the current price considering the Bitcoin holdings and the MNAV, which is what we'll talk about, is a good pick to go long and accumulate. If you want to go that direction, because this guy, of course, is talking about how Saylor could be in a good position around Master. And if you look at the market on MicroStrategy, let's go back from where they were here at the bottom before we started to see the run up. That's the kind of gain you're looking. That's all the way to that wick that occurred right there on the 13th of January in 2025. If you come right down to here, that was 441 on its high. And even again, I'll stay with that because the 441 is about the range. But that would be a very interesting scenario if we do see it continue to fall because it is now below some of these moving averages that kind of aligned. So Bitcoin continuing to fall, we could see Saylor and MicroStrategy pushing further. So where is Ethereum? Ethereum not looking right now. If you look at the DAT companies, Digital Asset Treasuries were out there, 6.81 million in ETH purchased. Right now, about 5.6% of the supply, all bought in the 3 to 4, 5K range, which would be big. So institutions, FOMO, I don't know. I'm not sure if this is going to be a good position for many of these guys. Are they going to get pressured by their stockholders to start jettisoning some of this ETH? I don't know. We'll see. Here, of course, is ETHZilla. That's one that is doing it. And they started moving out and moving into some other assets. I don't know if you would call jet engines assets, but that's what they're doing with it. And this, of course, is one of the, not necessarily one of the top, definitely not Tom Lee level with Bitmine, but definitely it is something to pay attention to as DAT start to reposition a little bit. Here, of course, is Tom Lee hitting on this. He buys another 40 million of ETH despite a $6.5 billion loss. We are going to see a $7 billion unrealized loss with Bitminer. That would be astonishing. All right. So I want to compare this to MicroStrategy. And if you look at MicroStrategy, top Bitcoin DAT. If you look at Bitmine, top ETH DAT. So how are they performing on their MNAV? If you look at the bear market all the way back here into 2022, that was the period in which MicroStrategy was dropping below its MNAV. And right there was its lowest, did not stay there long because what the market seems to do is reward a lot of these premium DATs by keeping it above, because that is the factor that you have to look at long-term of where that market is heading. And even now, it's only been about a month since strategy has started to drop below NAV again. So maybe that does play out for Bitmine overall. If you look at the stock right now on Bitmine, this is the zone we're in right around $20. Could it get back down to the zone of around $8 to $10? I don't know. You guys let me know what you think. Is this a play for maybe at least a hedge on Ethereum? Let me know how you guys are looking at that. Other things I want to hit on right here, I think it's going to be very hard for allocators to rationalize being long on ETH in 2026, is if this is the bear market, we're going to see ETH continue its down slide. And the point is, where does it stop? Where is it a point that you might add to your ETH bag and say, I'm going to buy that dip? Now, this is the issue that I think a lot of people are kind of compared to right now. And if you look at PolyMarket, we're starting to see a flipping of ETH, not a flipping of Bitcoin, but ETH possibly being flipped by another token here this year. And it's rising fast as ETH continues its downward trend. So there is a lot going on in the markets right now overall. On to some good news here, of course, with some news out of Solana. They partnered with Gusto. Gusto is a payment company. It's very similar to ADP. What this means, though, is that contractors can be paid same day with stable coins. Now, I don't know if it's immediate. I'm going to try to test this out, see if this is going to work. But the point is, is it does open up an opportunity for immediacy around payments, which has in the past taken a few days, if not next day. So that is a big factor, I think, that could maybe implicate on the economy. Does that start to put money in people's hands faster? Do we see that kind of jettison maybe start to transition? A lot of opportunities here, I think, around payroll. It is just getting started. Avalanche, if it has any time or any possibility of redemption, it needs to reverse right now. Otherwise, it's going to fall through the floor and deep into the sub-basement. If I go back and look at the history on Avalanche, the last time we saw the sub-basement, which was below five bucks, geez, this is all the way back into January of 2021. And we are at that zone right now of around $9 that has been defensible for Avalanche for a long time. This is as low as we have seen it in modern history for this token. So another big one. Are you holding Avalanche out there right now, guys? Let me know in the comments. Last up, I want to hit on, this is Scott Besson defending how the US is seizing and holding Bitcoin. Take a look. Within the context of asset diversification within banks, they could hold many assets. They can, and they're different. But do you have the authority to order banks to buy Bitcoin or to invest US tax dollars in Bitcoin or Trump coin? I am Secretary of the Treasury. I do not have the authority to do that. And as Chair of FSOC, I do not have that authority. So we're not going to see our tax dollars invested in crypto assets? Well, why would a private bank be your tax dollars, Congressman? Excuse me. I'm now asking about the money of our taxpayers, which you manage as Secretary of the Treasury. Is it going to be deployed into crypto assets? We are retaining seized Bitcoin. That's not exactly taxpayer money. You collect a lot of taxes this month. No, that is an asset of the US. It's an asset of the US. Are you going to invest? And I will point out. Mr. Secretary, reclaiming my time, are you going to invest? The asset seizure that 1 billion of Bitcoin was seized, 500 million was retained, and that 500 million has become over 15 billion. Gentleman's time has expired. All right, to his point, it is American taxpayer money, because anything the government owns, that's taxpayers. And if you look at what he's trying to get to is that it has gone up. And the whole idea of it is just a whole long term. If you're at a long term asset class, no matter what it might be, if you've got a five year window, a 10 year window, many people really are, I think, starting to understand that that's what matters most. This is going to be a big week. We'll continue to report right here.