The Wolf Of All Streets - The REAL Reason Bitcoin COLLAPSED? (Not What You Think)

Episode Date: February 6, 2026

Bitcoin’s sudden collapse may have come from a hidden structural pressure, not panic or on chain weakness. In this video, we break down how Bitcoin ETFs, futures, and options now drive price discovery and how stress inside these markets can force selling that never appears as traditional liquidations. With record activity in Bitcoin ETFs, the move looks less like fear and more like a forced unwind of institutional positions, revealing how synthetic supply and derivatives can overpower spot demand and move Bitcoin fast.

Okay, Bitcoin drop below 60,000, leaving everybody to wonder what can possibly be the reason we're going to unpack some of the theories and tell you why the bottom maybe in, something like that. All right. Oh, no, it's fine. I just want to make sure, I like to make sure it aligns with the title for the Algo. Yeah. All right. Tell me when. Bitcoin dropped below 60,000 Americans.

American dollars taking us well back into prices from last cycle, leaving everyone to wonder, what's the catalyst, what's going on, why did this happen, and is the bottom possibly in? I'm going to go through a few of the theories and a few of my thoughts right now. It's a solo show on Fridays. Let's go. Good morning, everybody. I hope that you are feeling awesome, amazing, terrific, and stupendous today after one of the literal worst days we've ever seen in the crypto market. But before we dive into today's episodes, I've got to tell you about a massive opportunity that I'm running with figure markets.

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for you. It is official. Bitcoin just posted its first ever daily decline of over $10,000. Not even the record 19.5 billion liquidation on October 10th came close to today. It appears that someone big was liquidated. There you can see it, as I said, price dropped below 60,000, started the day trading, I believe, above 70. Absolutely savage price action. And what was notable to me was the velocity of it, right? We had the highest volume that we've seen all year, even since mid last year. We saw selling just continually pressing down, no wicks, no bounces, no numbers, no

nothing, just systematic selling. I dove into this yesterday with Gareth Salloway and Mike McClone on Market Mavericks. And before we dive in any further, I would just like to say that all of you assholes, oh, Mike McClone, a huge policy. Apology. I've been dealing with you people, I'm looking at you, with you people telling me to get rid of Mike McClone, make retard, as he called himself. Get rid of Mike McClone on Macro Monday. We need another Bitcoin bull. We don't want a bearish opinion to tell us the price could possibly go down. We don't want that. We need another person in the echo chamber. I would like to remind you that Macromanday exists because of Mike McLaugh. If we didn't have Mike Mcglown, none of you would watch that

because there would be nothing to debate, nothing to argue about, and no other opinion. If listening to someone be bearish, even if they're wrong or early, if literally listening to someone be bearish and present their case makes you feel emotionally triggered, then you need to look in the mirror and like pull a Taylor Swift. It's me. Hi. I'm the problem. It's me. Right? Because Mike McClone, whether he was early or whether he was wrong, he's been really, really right about a lot of things. I mean, he said silver was going to 50 bucks when it was at 120. It got into the 60s in less than two weeks. It's very important that you listen to the veterans who tell you whether it is working or is not working how it should be and how markets have been

in the past because eventually those people tend to be right. Well, he's definitely right about now. Do I think Bitcoin's going to 10,000? No. But did he also say, yeah, we were going to see a 50% retrace. There was going to be a lot of pain. Yes. So I think that it's very worthy of paying attention. But let's dig in right now to why people might be selling. We've had this narrative roughly forever. Well, let me, for some reason, this is not sharing correctly. Let me try that one more time. But we've had the narrative forever, obviously, about OG selling, right? The big whale selling. here you go. A friend of mine who was an OG Bitcoin maxi from the very beginning

messaged me a year ago to tell me he was out, dumped all his Bitcoin and was out of crypto forever. When I asked why, he said, because Bitcoin is dead. Financial markets will print fake Bitcoin and everything that gave it value is destroyed. He was right. There's a good explanation. I can't say whether he was right or wrong. This sounds pretty fudulent to me, but on-chain data don't lie, just like Shakira's hips. Those don't lie either. And when you take a look, we've seen tens of thousands of Bitcoin being sold every like five seconds by wallets that had never moved their coins since the very beginning, right? You see these massive moves on chain. They go to exchanges or they go to OTC-Dex DEC 10,000 at time. We saw another 50 or 60,000 of those OG wallet coins

being sold this week as price accelerated down. Those are people who could have sold above 100, but it seems that among the original libertarian community for Bitcoin, there's a sentiment that F this, this is not what I signed up for. I don't want to cheer. for the government or care about legislation. I certainly don't want to worry about the regulators. I don't want to cheer for Fed cut so that my precious Bitcoin can go up. This was a hedge against all that. I'm a libertarian. I'm a billionaire and I'm out onto my solar yacht in the middle of the ocean where nobody can mess with me. Right. I've heard it over and over and over and over and over again. And clearly that is part of what has been going on now. Has that reached a fever pitch now?

Are all those coins sold? It remains to be seen. But clearly some of those, those guys were still willing to sell this price down at $60,000. Now, taking a look, there's a very reasonable argument right now. I can't say that non-specific to the actual theory, but if you take a look at options volume, many people have said, listen, the introduction of massive options could be the top for Bitcoin or at least could be a problem. Now, we know that the, was it the 2017 high? One of the all-time highs was when futures 21 was when futures were introduced literally like to the day. And all of a sudden, Wall Street could short Bitcoin. Well, Ibit has futures on it. And the volume on Ibit has been absolutely insane.

Yesterday, it was over 10.7 billion. I mean, just absurd numbers when you're diving into this. And as you dig into it, there are a lot of funds that have basically created a segregated account that's just for Ibit options, which is very smart, actually, not cross-margin. So they don't blow up entirely. Because obviously, if good, Bitcoin goes down massively and there's risk. You don't want to blow up the rest of your portfolio. Well, it seems that a lot of these, based in Hong Kong, may have blown up badly tomorrow.

And that aligns yesterday. And that aligns very well with the systematic selling that I talked about. I mean, when you see it just pushing down and no price going up, that's kind of what we've been seeing, this strange selling action where it seems like a huge entity. We thought maybe it was someone from 1010. Well, maybe now price got below 74, which was like the last key level, probably,

where these liquidations just started to push. And speaking of liquidation, I mean, we're doing like a half a billion every few hours, right? I mean, 500 million here, 500 million there, five billion here, two billion here. Every day for the last few months, it seems, is an FTCS level event of liquidations. I don't understand how you guys have money left. I understand literally anyone has money left. I have some money left. I'm buying.

But who is using leverage right now? Like what jackass is like, you know what? we've gone from 126 down to 80. I'm going to get that 100x leverage for good on 1%. I'm toast. I mean, people who were getting liquidated before this on 1, 2, 3% moves in a tight range. Well, now at least there, I mean, it makes sense to get liquidated or you should be getting stopped out, not liquidated on a move that goes down over $10,000 of the day.

But it is very, very likely that we've seen some entities blow up. As we've said, even from 10-10, we haven't seen the bodies float to the surface yet. We don't know who did. But it's very clear that with price action like this, liquidations, this high. And the way that these options are structured, that's very likely that somebody has gone belly up. And when you go belly up, you're forced to sell everything that's left. Obviously, speaking of those liquidations, we also have massive Bitcoin ETF outflows. Bitcoin ETFs reported 434 million in outflows yesterday.

Ibit was 175 million of it. Year to date, net outflows, 2.2 billion. Ouch. And the total since collapses. around 8 billion. Still more than 90% of AUM hanging tough, forced to weather what feels like a cat 5 hurricane. I think that's a great description. It's been bruised and battered this market, and we've all just been kind of holding onto a tree and praying for the best like those idiots from the weather channel who go outside in the middle of hurricanes to show us how windy it is.

Never understood those people, to be honest. Like, I get it. It's windy. But either way, We know that we've had massive outflows. This is primarily probably retail selling. We haven't really had that much retail involvement in this market. But the clear answer here is that whether it's institutions, whether it's TTFs, whether it's liquidations, there's been a lot of forced sellers or people who have just given up and said, I am done with this crap. I'm getting the techs all the time. Friends who weren't really in it for the passion. But as an investment, this thing trades like shit. It's going down. It's going to zero. We're getting all those classic. bottom signals. And listen, I don't know if the bottom's in, but it feels like a bottom is in based on sentiment and the insanity of yesterday's price action. That felt like the same you would normally expect from a blow off top. It's felt like a capitulation bottom to me. But listen, it's very important to go back and give a post-mortem to all the bad ideas that we had. So this guy, James Bull, I don't know who he is, but he's got a sweet avatar. So this was all useless. Bull market peak indicators sell at the top, right? We went through these. Everyone was like,

there's 20 classic indicators that will tell you when the top is in every time. And we haven't seen any of them fire. Therefore, Bitcoin's going to $250,000. I still don't know what a pie cycle top indicator is. Or the pool multiple. I do know what the Bitcoin Rambo chart is. I've seen them. I don't know how they're calculated.

But it's important to remember that especially in a nascent market like Bitcoin, just because something has worked two or three times in previous cycle, is not statistically relevant. and doesn't mean that it's likely to happen again, and it's really not. Right? Every indication we had for that not being the top was wrong, right? I'm not, by the way, I'm not saying that was the complete top. I can make the argument that this is a bull market retrace,

but everything that was supposed to show us, the sentiment, the blowoff, price was supposed to go much higher, every single indicator, they all turned out to be completely useless so far. That said, I tweeted something about, this yesterday. People seem to forget that in the year that we probably view as the most bullish, one of the most bullish ever for most people who have been here a while, but not since the beginning, 2021, right? The micro strategy bought Bitcoin in 2020. We saw that as a catalyst and price started to rise. We had this insane alt season through the first half of 2021 that I'm sure you all remember.

Things were going, you know, 100 Xs, 50 Xs, throw a dart next thing, throw a dark next thing, which all ended on the China FUD and Tesla not taking Bitcoin anymore to buy a car. But what people don't seem to remember, we went from 65,000 down to 28,000 in a matter of weeks. That was like a 55% retrace. We got 52 here. Okay. So at that time, there was a lot of fear, uncertainty, and doubt. But when you look back, everyone goes, oh, yeah, that was just a, you know, big retrace in the middle of a bull market because price went back to 69.

and all coins continue to go crazy. We haven't even gotten an alt cycle this time. It's like we got completely scammed, right? But what if there's a $52,000 retrace just in the middle of a bull market as price continues massively up? I'm not saying that is the case, but we've literally seen this movie before.

So the size of this retrace doesn't mean that the ultimate top is in. Maybe there's still a blowoff top yet to come at a much higher price. But important to remember, we had all these indicators that hadn't fired. We had the huge price. predictions from everybody and once again almost everyone was wrong but I want to

bring up kind of an idea that I like to share a lot of times so people have been very very upset about price predictions as I said or saying that the bottom might be in but I would just like to remind you when talking about whether the bottom could be in when everyone is looking for price to bottom at a specific level one of these two things usually happens either price bounces above it with smart money front running the crowd or price nukes through the level the crowd rarely gets what they want Okay, so I've talked about it. I'm not going to show the charts. It doesn't matter. We know that the 200 MA on the weekly is at about $57,000. It's been visited every time the 50 MA on the weekly is broken and in every bare market and tends to be a good bottom area. The monthly 50 MA is right in the same area around 55. A lot of people think there was a ton of support right under 60. So if everyone's expecting 57, is it likely that price bounces right at 57? Does the crowd usually get what they want? Or do you get 50s? and a big bounce and that's the bottom and people can't believe it and you climb a wall of worry of

disbelief or you nuke down to like 50 and everyone who tries to buy that bottom that everyone's buying at the 50 MA or the 200 MA they get liquidated before price goes up. I'm just saying we got to 59,000 just above that level. That could be sufficient for those who are fishing for a bottom right around $57,000 or $58,000. And to put a little more, put a little more exclamation on that idea. Bitcoin last two cycle bottoms happened above electrical cost. Current electrical cost, 58,470. This is obviously like the price to mine a Bitcoin. We talk about minor capitulation, minor floor, all those terms. Basically, the idea here is that miners are big, big, big, big trouble and really start to blow up below this

and will likely defend this area. So there it is. 58,470. We got right down above that, as we've seen. And it's not all doom and gloom. There are actually people out there. Bitcoin crashed J.P. Morgan sees long turn and upside versus gold. First of all, J.P. Morgan doesn't see shit. He's dead. But J.P. Morgan, when we say J.P. Morgan, it's like one of the 100,000 people that work there, has an opinion and gets put on Yahoo Finance, syndicated here from B in crypto.

But there are people who say, listen, like, this is insane. This price moved down is probably mechanical. There's no reason that Bitcoin is down this bad, and it should eventually catch up to gold, which it has done in the past. Now, I've pushed back on the idea of a rotation, but I do think, obviously, that there's plenty of people out there who see this fear and insanity and this sell-off as irrational and are ready to go up. Holy crap, Mike McClone is right there staring at me. I had no idea that was going to happen. Look at him. What a chat. I think I'm going to remind you guys need to apologize to Mike McClone. Mike. Love that guy.

Love that guy. You've got to have people around who keep your insanity in check. So yeah, we obviously have people like J.B. Morgan and many others saying, listen, there's fundamental reasons for this to rise. You know, obviously there's a lot more institutions coming in. All the things I talked to with Mike about with Matt Hogan the other day. Important remember that none of those news stories that should be so big are moving price now. But when price starts to move, they're going to become very important once again.

Now, one of the biggest pieces of fun, obviously, is strategy, right? Michael Saylor famously down bad now. Obviously, I think it's 77,000-ish is his cost basis for Bitcoin, give or take a few thousand bucks. Saylor's crypto project. What a headline, Bloomberg. Sailor's little art project that he's doing, you know, his Sailor's Science Fair project failed to give the anticipated

result. Saylor's crypto project pounded after $12.4 billion loss. Yeah, that is pretty brutal. Obviously, couldn't have aligned worse with the earnings call being yesterday, so he had to go ahead and take that loss. But I also think that this is the capitulation type selling and insanity for strategy. Now, we do have, I'm going to show you this movie, what Fongle, this video, the CEO of Microstrategy, just had to say about the idea that. micro strategy is going to be insolvent or get liquidated. Check this out. Cook needs to go down to $8,000 a coin and sit there for five years up until 2032 before we really have a problem, being able to satisfy the convertible note. So thank you for pointing that.

I want to play that again because that's mind-blowing. Let's see. You know, Bitcoin needs to go down to $8,000. $8,000 and stay there for five years. even Mike McLean isn't that bearish. That's 20% below Mike McLeod's target. And look at this like crew of absolute gods right here. We got Lynn Alden, Larry Lepard, Michael Sailor, I mean, Fongle, Tom Lee in the house right there. Being told, $8,000. So remember last cycle, Bitcoin broke below 30.

It went ultimately down to 17 and people were like, Sailor's cost base is $27,000. It's being hunted by Wall Street. He's got commitments. And Price went like down 50% more. And he laughed and said, Bitcoin's got to go down to $3,000 and chill for a while for me to even start to think about having a problem. $8,000. Last I checked, we're in the 60s. Anybody think we're going down another 80, 90% from here? I don't. So stop talking shit about micro strategy. Now, one of my favorite, one of my favorite indicators, that we sometimes see in a bare market when we're actually about to turn around. And I wrote a newsletter about it. Maybe I'll show the newsletter first. Here's my newsletter. It's free for all of you who don't sign up. You're the worst. But pack your bags. You're going home.

Exchange or trench rent-trent might be the bear market tell that nobody tracks. Yes, we can look at it from last cycle. How many exchanges were forced to fire how many people, right? So this is obviously in reference to the news at the Winklevoss Twins, Gemini, Gemini, crypto exchange cut 25% of workforce as Bitcoin slump. So obviously volumes are down. Bitcoin's down bad. They start firing people. They're leaving the EU. I mean, they're leaving the UK, Europe and I think Australia, I don't want to quote it wrong. But I know that they're leaving, yeah, European Union, UK and Australia, they're leaving entirely right now because they just hate those places. I don't think they hate those places. Nobody really likes Europe or the UK right now, at least on our side of the pond, just being honest. But I don't think that was the reason

behind their business. It's just not making money over there, right? Those markets are pretty much dead for this. But yeah, 25% layoffs. But if you dig in last cycle, last cycle, we saw these Coinbase 2,000 employees, Cracked in 1100, Robin Hood, 1,000 employees, you know, like 30%, 36%, 40% of their workforce. And check out when they did that. This was where that happened. At the depths, the absolute depths of the bear market, the total bottom. This is, much like when you saw miners that were paying like $20,000 a machine when Bitcoin was $69,000 at the end of 21. And by the time they got them online, those machines were like $3,000 and price was $20,000. Right?

This is the opposite thing. They're forced to do this at the dead bottom. It's the same. And there's nothing against Gemini, by the way. It's a smart business move for their business. But I'm saying that this is the same kind of capitulation behavior that you see in markets, even with retail, who's just forced to sell at the bottom. They've got to bill to pay.

it finally, that's always, always, always, always the dead bottom. And listen, speaking of markets and bottoms, like, I really don't get what all the fuss is about. Okay, I mean, we've been talking about silver forever. Here you go. Bitcoin dropped 52% from the October peak to the current bottom. Silver dropped 47% from the recent top six days ago to the current bottom. Four months for six days. Bitcoin is clearly not too volatile. I get it. I get that like, you know, we have capitulation, and FUD and months and months and months of a downtrend. But like, silver went down just as much, and everyone's optimistic about silver that I can find, and nobody seems to think that silver is in a desperate bare market of death and winter

and it's all over and everybody's going to die, right? So it's worth remembering that there's a specific kind of hatred and fud about our market that is very different from other markets. And it's also important to remember that nothing can go parabolic without. taking the elevator down. Silver wasn't supposed to go up 5x in a matter of months. So of course it had this massive re-trace. Oh, and by the way, both myself and Mike McGlone, silver to 50 bucks. Where did silver get to? 60 something? I mean, absolute insanity. So listen, at the end of the day, there's a lot of reasons price could go down, but it doesn't really matter. Also, it's important

to remember that if you're actually here because you believe in Bitcoin long term, you'd rather be buying it 60,000, then 126,000, A, and B, the price action that gives us all this anxiety and stress and fear, it doesn't really matter. You should be just buying Bitcoin as your savings account, if that's what you believe it is, that's my approach, just buying it and remembering that for you, one Bitcoin is one Bitcoin. Now, if you have rent to pay and you're buying Bitcoin instead of doing that, then you might be McRotid. Right? You're, you're You're allowed to say that as long as you put Mick in front of it. You might be that, right?

Don't do that. But if this is the money that you were going to save and you believe that Bitcoin is a better savings account than cash, then you're not selling your savings tomorrow because of the price action. Can you imagine if every time you thought about the value of your house, you had to look at a chart, you would puk your house when the housing market got bad, even though you have to live in it, just because you couldn't take the fact that the value had gone down, even though that value on that day is irrelevant to you because you're going to live in that house for the next 10 or 15

years. Do you Bitcoin like your house? And if shit goes bad enough, honestly, I'm going to tell you, just move into your Bitcoin. Live there. Live in your Bitcoin. You don't need a house. You heard it here first. Guys, that is all we have for you today. Bitcoin, a very nice bounce. I could see how this could be the bottom or certainly a bottom for quite a while. I personally have been buying very, very aggressively. And if it goes lower, I will be doing the same because I deeply, deeply believe that Bitcoin will trade much higher in the not so distant future. I hope you guys have a wonderful weekend. Take a deep breath. Don't even check the price. It doesn't matter. And we will see you back with Mike McGlone on Macro Monday. Bye, guys.