Name: CRYPTO CRASH? Don’t panic, This Is the Once-in-a-Decade Opportunity
Uploaded: 2025-11-20T17:55:45.000Z
Duration: 12 min 26 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Bitcoin is down by at least 26% and it already lost $600 billion worth of market cap.

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Last time bitcoin dropped this much was back in April when Donald Trump announced universal tariffs on every single nation.

The market crashed and it took down with it the crypto market.

But this time, bitcoin, it is crashing for a completely different reason.

This time it is going to be way worse than it was back in April.

But on the other side, it is a great opportunity because it will come back to $100,000 and maybe more.

It will go down towards 50, 40 or even $30,000.

And if you think that I'm exaggerating, let me prove it to you.

The the value of bitcoin reflects the value of cash.

When we are in a period of an economic boom, when getting a job is easy, when companies are offering really great incomes, that's when the economy is growing tremendously.

Very high spending leads to high inflation.

High inflation reduces the value of cash.

They like to put it somewhere and invest it.

But because there is so much spending in the economy, the stock market is booming.

So if you have cash and the market is booming by 10%, you could invest it and make 10% on that investment.

Why would you hold cash when you can get actually 10% instantly?

When the economy falls into a recession, into a crisis, when jobs are going down, when it's difficult to find a job, when they report a jobs report and you're like, that doesn't seem like true.

So you're less likely to spend money on Amazon.

You're less likely to buy that iPhone because everybody is spending less.

The economy is not growing as fast, so the stock market isn't growing that fast.

So instead of 10%, it might be growing by 2%.

So suddenly the cost of holding cash have actually went down dramatically.

Inflation is slowing down, so holding cash suddenly becomes more valuable.

If we take all the assets in the market, we can divide them into two major categories.

A safe investment has a predictable return.

So if you buy this asset, you know that it is going to make X amount of money.

It is value is not going to go down dramatically because everybody knows that it is going to make that much money.

U.S. treasuries have, for example, a 5% yield.

When you buy that, you know that you will have your thousand dollars at the end of the tunnel and you know that you will make 5% on that.

The price of real estate often holds its value.

And if it's in a very attractive place that you can easily rent out, then it might have a return on investment of 5, 6, or maybe even 7%.

On the other side, you have risky investments.

Risky investments don't have an exact return.

We are speculating on how much this investment can possibly make.

It could make a lot of money, or it could make no money at all.

It is worth like half a trillion dollars, but it's making about a billion dollars or two.

But investors believe, or some investors believe, that Palantir could be making hundreds of billions of dollars sometime in the future.

It could make that much money or maybe it won't be making that much money.

And that's why it's a very speculative asset, and that's why it is considered a risky investment.

Speculative assets aren't always easy to sell.

If the market is booming and people are filled with cash, yes, you can easily sell your speculative Bitcoins and crypto and Palantir stocks.

But when there is a recession and there is a crisis, people have less jobs, less incomes, they're very less likely to spend that money.

So your speculative assets is suddenly very difficult to sell, so its price falls down.

On the other side, if you have cash, cash is more valuable because cash is tied in a recession and crypto is a very speculative asset.

And because our economy right now is headed into a recession, it is very normal and natural that crypto prices are falling down.

If you summarize it, high earnings leads to a very strong demand in the economy.

A lot of spending leads to very corporate high earnings.

If you spent your entire paycheck on Amazon, Amazon's next financial reports will show that Amazon made a lot of money.

It is going to increase its valuation and lead to a market rally.

Market rally means that everything is growing and people are more likely to speculate.

So speculative assets such as Palantir and crypto in general are going to rise.

But if people are making a lot less money, like right now, demand goes down, which means that less earnings for companies.

Next financial report shows that Apple sold less iPhones the market falls, especially speculative assets.

The first assets that people sell in the market when there is a crisis are the speculative assets, the assets they don't know for a fact if they are going to pay off in the future.

What makes crypto crash much worse is leverage.

Leverage is the ability to multiply your gains or multiply your losses.

Imagine you start trading with $1,000 and you buy $1,000 worth of Bitcoin.

And let's assume that it is going to grow by 10%.

10% on $1,000 is an extra hundred dollars.

But if you leverage your position 10 to 1, that means that you can multiply your profits by 10 times.

So instead of just making $100 on that investment or a trade, you will make $1,000.

If the market is growing, you're 10x ing your gains.

That pushes the price of Bitcoin to rise.

That attracts more buyers of bitcoin, which is going to lead to a fall self fulfilling prophecy and keeps pushing the price of Bitcoin to increase.

But what happens when the price of Bitcoin falls?

Ideally, if it was just 10%, you are losing $100 so you can exit your position with $900.

However, if you have leveraged your position 10 to 1, you are losing 10 times the amount.

So you're losing your entire thousand dollars.

That that's why when the market falls, that leverage position or an overleveraged market is going to reinforce losses and pushes the price to crash much bigger than it does usually.

And if the price keeps falling, more investors began to sell, which is going to lead to a much bigger crash.

Crypto is regulated in the United States, so you can leverage your position 10 to 1 or 50 to 1 or 100 to 1.

But most of the crypto exchanges are registered outside the United States and people trade crypto all across the globe.

So it's not just the demand from the United States, but

the demand from everywhere else around the globe.

And since there are places where you can leverage your position 50 to 1, a small drop in bitcoin price is going to force these people to sell their entire portfolios, which is going to lead to a huge supply of crypto in the market, but

very limited demand, which is going to lead to a huge crash.

Leverage positions 50 to 1, 30 to 1, or sometimes even 100 to 1 are normal in the crypto market.

That's why bitcoin could continue crashing.

But the real question is, will it crash to $0?

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CRYPTO CRASH? Don’t panic, This Is the Once-in-a-Decade Opportunity

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