CHINA JUST CRASHED CRYPTO! MASSIVE REVERSAL!

My Financial Friend

Market Update

The speaker discusses the recent market crash caused by China, which led to a significant drop in crypto prices. However, they believe this is bullish for Bitcoin in the long term.

Reasons for the Crash

  • Exchanges pushed down prices using market sell assets on order books to cause liquidations
  • Broader fear in the market due to the NASDAQ 100 being down 5% in pre-market and Video down 12%
  • The emergence of DeepSeek, an AI developed in China for $6 million, which has raised concerns about overspending on AI in the US

Bullish Case for Bitcoin

  • Bitcoin is scarce, and its value will increase as everything else becomes less expensive due to AI and robotics
  • Capital will look for a home, and Bitcoin is a scarce asset that will attract investment
  • The fact that compute is not as scarce as thought, with DeepSeek being developed for $6 million, will lead to more investment in Bitcoin

Response to Bearish Claims

  • The speaker disagrees with bearish claims made by Robert Kiyosaki and Jacob King, citing their poor track record and lack of understanding of the market
  • They point out that Bitcoin whales are not jumping ship, but instead buying more, and that short-term funding rates have gone negative, making it profitable to have long positions

Conclusion

  • The speaker is bullish on the market and believes that the current uncertainty is a decent opportunity for dollar-cost averaging
  • They expect the market to bounce back and are holding their spot crypto and adding to long positions.