Why Everything Is Selling Off (Starting With Bitcoin)

"if this pattern continues, we should reach the all-time low 364 days from our all-time high, which happened on October 6th of this year. That means we are on around October 5th, 2026 when Bitcoin could reach the all-time low of this cycle."

"And we broke below that price point for a few weeks in a row now, which is obviously not good. That price point is $13,000, which for a few weeks now, we have been below that point."

"And again, it just so happens that Bitcoin is the canary in the coal mine, as they say. It's the first thing to be affected."

"This new version that's being pushed says Bitcoin isn't just money, but data of all sorts, pictures, videos, whatever. It's an immutable data transfer protocol."

"It means for Bitcoin is early investors are cashing out. They're taking their profits because for the first time in history, they actually can. There's enough liquidity. There's enough money now to sell and get their money out."

"So, what we're seeing is a transfer of wealth from the few early investors to now the masses. This phase is what we're in right now. It's slow. It could take a whole year for us to reach the point of those people selling out of their investment, but this is what it looks like and it's a long journey down. Again, it could take us 364 days roughly."

"But now that's changed because Japan's interest rates are going up, which means no more borrowing free money. and a change of incentive. Meaning money right now could be leaving dollar denominated assets and going back to their homeland where interest rates are high enough to make sense keeping that money at home."

"The Fed announced that on December 1st they'll be ending QT or quantitative tightening. Now that is good, but it's also technically bad because when the Fed ends QT, it usually means they are seeing signs that something somewhere in the financial system is starting to break or at least is fragile."

"Which means if this pattern continues, we should reach the all-time low 364 days from our all-time high, which happened on October 6th of this year. That means we are on around October 5th, 2026 when Bitcoin could reach the all-time low of this cycle."

"And it could take us 364 days roughly."

"So, the question is why? And how does this affect everything else? So, in this video, I want to share with you all the super interesting theories about what's happening. And let me just start right here. I mentioned this one before, but I want to repeat it because in the world of economics, in the world of investing, there's two major forces that try to explain what's happening to the world."

"And we broke below that price point for a few weeks in a row now, which is obviously not good. That price point is $13,000, which for a few weeks now, we have been below that point."

"But the newest version of Bitcoin run by the core development team, which was allegedly funded by some sketchy people on that list, made an update that got rid of an old data restriction. It's called OP return. Now, this feature is what allows people to attach a piece of data to their Bitcoin transaction. Now, this was always possible with Bitcoin, but this update increased the size of how big that data could be."

"So, now this new version that's being pushed says Bitcoin isn't just money, but data of all sorts, pictures, videos, whatever. It's an immutable data transfer protocol."

"The problem with that though is if someone were to attach something illegal like the people who might have been funding this project for their own self-interest in 2015 allegedly that makes it potentially unusable from an ethical and illegal point of view. How? Because this opens the door for people to spam the blockchain with things like NFTTS and memes and other random files which over time not only increases the block size making it harder to run your own node and to be decentralized but also changes the meaning of what Bitcoin is supposed to be."

"So, what we're seeing is a transfer of wealth from the few early investors to now the masses. This phase is what we're in right now. It's slow. It could take a whole year for us to reach the point of those people selling out of their investment."

"And a change of incentive. Meaning money right now could be leaving dollar denominated assets and going back to their homeland where interest rates are high enough to make sense keeping that money at home."

"The Fed announced that on December 1st they'll be ending QT or quantitative tightening."