Name: Trump Just Crashed Bitcoin - What You Need To know
Uploaded: 2026-02-11T18:21:41.000Z
Duration: 11 min
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

This is one of the biggest bitcoin crashes.

A lot of people lost millions of dollars, if not billions of dollars.

Just a few months ago they were telling us that bitcoin is about to cross a million dollars as soon as 2026.

Who exactly crashed the price of bitcoin?

Will bitcoin keep collapsing to as low as 50 or it will recover to over $100,000 by the end of this year?

We will answer all of these questions and many more.

So if you're ready, give this video a thumbs up and let's get right into it.

A lot of people don't have idea about how the price of bitcoin actually moves.

These people buy bitcoin with their own money because they believe in the future of bitcoin.

They believe that bitcoin is going to cross a million dollar mark or a billion dollar mark.

It might take five years, 10 years, or maybe even longer.

On the other side you have a lot of speculators, you're using derivatives.

Derivatives are when you are using leverage to amplify your returns.

One to 100 ratio leverages are very common in the crypto market.

And that means that if I have $1,000, I can secure a position worth $100,000.

And these people are not buying bitcoin because they believe in the future of bitcoin.

They, they are simply borrowing money to profit from the volatility of the market.

And because leverage ratios are so insanely huge, they have a lot more power in the crypto market than the long term investors.

Imagine if I am investing in Bitcoin with $1 million, that's a lot of money.

Let's assume that the price of bitcoin will rise by 1%.

1% out of a million dollars is just $10,000.

But what if the price of bitcoin falls by 1%?

But what if instead of just using my money to trade bitcoin, I'm going to use derivatives?

I'm going to leverage my position 1 to 100.

And now just like that, with a million dollars, I can secure a position where worth $100 million.

Now in this case, if the price of bitcoin is going to rise by 1%, I'm going to double my profits.

Because 1% on $100 million is $1 million.

And I secure this 100 million dollar position with as little as $1 million.

But on the other side, what if the price of Bitcoin actually falls by 1%?

Now 1% out of $100 million is $1 million.

Just because the price of bitcoin fell by 1%, I lost my entire investment of $1 million.

To secure a 100 million dollar position, I have to put a deposit.

My broker is not going to take the loss on behalf of me.

So the moment bitcoin price even falls down slightly, my broker instantly going to liquidate my position and will sell all the assets that I have in my portfolio.

And now the question is to you, who has more power over the price of bitcoin?

The people who are investing in bitcoin long term because they believe in the future of bitcoin, or the people who are borrowing 1 to 100, borrowing hundreds of millions of dollars to profit from the volatility of the market.

So even if the price of bitcoin rises by 2 or 3, leverage turns that 2 or 3% into a 20% gain or a 30% gain.

And the exact same thing happens when the price of Bitcoin falls.

Maybe some people are selling their bitcoins and the price should fall by 2 or 3%.

But because everybody has such a huge leverage position, that small drop in price instantly turns into a massive bitcoin price.

And because Wall street perfectly understand how this game works, these people make a lot of money on the volatility of the price, especially hedge funds.

These people monitor the market very closely and they know that this is a very over leveraged position and it's time to get out of the market before everything crashes.

And the average investors who don't understand what exactly is happening, they will see their portfolios crash by 20, 30 or even 50%.

And now let's take everything that I have just explained to you and, and

apply it to what has been happening to Bitcoin in the last year or so.

When Donald Trump was about to become the president at the end of 2025, everybody was excited because Trump made it clear that when I am gonna become the President, the United States will be the capital of crypto and bitcoin.

He replaced the head of SEC To a pro crypto person, the person who also believes in crypto and made it easier to do crypto in the U.S.

he also launched strategic bitcoin reserves.

The United States government, the most powerful government in history, will be buying bitcoins as reserves.

If the US Government is buying bitcoins, who are you not to trust the future of bitcoin?

Just imagine how much hype it created around bitcoin.

Donald Trump also made it clear that I want to see lower interest rates.

And he attacked the Fed chair multiple times to lower interest rates to throughout the entire 2025, lower interest rates makes it much more accessible for companies to borrow money.

So crypto companies can borrow a lot of money, invest in crypto and the price of crypto will keep rising.

And since most of the people buying cryptos are leveraging their position, the cost of leverage goes down.

Which means that it's a lot easier to borrow money to trade crypto.

Which is why the price of crypto exponentially rises.

All of that slightly increased the price of crypto, but

because market is insanely overleveraged, derivatives at that point amplified that gains.

Which is why the price of Bitcoin rose from less than $60,000 to as much as $123,000 by November 2025.

Now at that point, the three largest ETFs, BlackRock, Fidelity and Grayscale realized that it's almost the end of the year and we have to realize our profits.

It doesn't matter how much the price of these assets rise.

At the end of the day, the real profits that you make is after selling your assets.

Which is why closer to the end of the year, hedge fund financial institutions instantly start selling the best performing assets realize their gains.

Ideally that should not have crushed the market.

But because there are so much leverage in the crypto market, derivatives amplified the losses.

So Instead of seeing a 3 or 5% drop in the Bitcoin price, we saw a 20 or a 30% drop.

But at the end of January, Donald Trump announced that the next chairman of the Fed is going to be Kevin.

Everybody thought that Donald Trump is going to dominate a yes man who is going to listen to Donald Trump will lower interest rates and will start quantitative easing.

But Kevin has a very good reputation to be a good against quantitative easing.

Yes, he wants to see lower interest rates, but

nothing has more impact that drops the value of the dollar than quantitative easing is.

When the Federal Reserve massively buys US Treasuries.

After the 2008 financial crisis, the Federal Reserve dropped the interest rates to zero percent.

But that didn't lead to a massive growth of inflation.

Quantitative easing is when the Federal Reserve literally gives the government trillions of dollars.

And the US Government perfectly knows how to spend trillions of dollars.