WHAT IS BEHIND THE BITCOIN CRASH?!?

Stefan Molyneux

At the top of Friday Night Live, 10 October 2025, we explore Bitcoin's recent volatility, analyzing its high of $121,328 and subsequent drop to $116,000. I discuss how geopolitical tensions and trade policies, including Trump's remarks on China, impact market sentiment and create sell-offs. Using my stock trading background, I highlight the psychological dynamics at play and the interconnectedness of global economies. This discussion equips listeners with insights into navigating the unpredictable cryptocurrency landscape, whether you're a seasoned trader or a curious observer.  SUBSCRIBE TO ME ON X! https://x.com/StefanMolyneux  Follow me on Youtube! https://www.youtube.com/@freedomain1  GET MY NEW BOOK 'PEACEFUL PARENTING', THE INTERACTIVE PEACEFUL PARENTING AI, AND THE FULL AUDIOBOOK! https://peacefulparenting.com/  Join the PREMIUM philosophy community on the web for free!  Subscribers get 12 HOURS on the "Truth About the French Revolution," multiple interactive multi-lingual philosophy AIs trained on thousands of hours of my material - as well as AIs for Real-Time Relationships, Bitcoin, Peaceful Parenting, and Call-In Shows!  You also receive private livestreams, HUNDREDS of exclusive premium shows, early release podcasts, the 22 Part History of Philosophers series and much more!  See you soon! https://freedomain.locals.com/support/promo/UPB2025

Transcript

00:00All right, everybody. Good evening, good evening, good evening. Welcome to 10, 10, 25, the year, not quite year, but in fact, the micro millisecond in the history of currency of Bitcoin's guillotine-like bloodbath as it executes those paper hands that let things go.

00:20So we're going to do a little bit of Bitcoin at the beginning and then go whatever you want to talk about, but let's talk about this. I mean, I enjoy opening the Bitcoin price. It's exciting. Not as exciting as it used to be. Boy, did it used to be even more exciting. But right now, Bitcoin was at $121,328 at 10.55 a.m.

00:44Yeah, you heard that sound. October 10th. Now, on Truth Social, yeah, maybe buy an iPod Touch. Anyway, Truth made a fairly lengthy post on China. China. Sometimes I just miss the way he said China.

01:02The final sentences of that post are relevant to Bitcoin's weee that happened today. I never thought it would come to this, but perhaps as with all things, the time has come.

01:14Ultimately, though, potentially painful, it will be a very good thing in the end for the USA.

01:19One of the policies we are calculating at this moment is a massive increase of tariffs on Chinese products coming into the United States of America.

01:29There are many other countermeasures that are likewise under serious consideration.

01:34Thank you for your attention in this matter.

01:36Starting after this, all markets, including Bitcoin, took a tumble to around the $116,000 level.

01:49Now, why? Why?

01:51Well, A, I don't know.

01:54B, I also don't know.

01:57C, here's a ridiculous amateur theory.

01:59None of this is investment advice.

02:01Do your own research.

02:02Make your own decisions.

02:02But, based on my history coding for stock trading companies, I would say something along the lines of le following.

02:10Le following, le line, would be this.

02:13That if people have a bunch of assets and those assets tumble, they need to cover their losses.

02:20So, what do they do to cover their losses?

02:22They sell other assets.

02:25So, if you're long on a whole bunch of shares and then Trump nukes China-U.S. trade from orbit, then people are going to expect those shares to go down.

02:38And so, you've got to cover those losses.

02:40How do you cover those losses?

02:42Well, you have to sell other stuff.

02:43Now, what are you most likely to sell?

02:46If you have to sell something, what are you most likely to sell?

02:50Well, you're most likely to sell what you believe will go back up.

02:54Why?

02:55Well, for the obvious reason that if you sell something, you can buy it back at its lower point and then make your money back when it goes back up.

03:01So, I would imagine, I would imagine, that Bitcoin got hammered like a girlfriend of mine in high school got hammered.

03:09I didn't have to deliver her home in a shopping cart, but someone else I knew did.

03:15Hammered because they had to cover losses in other areas.

03:18It's not like Bitcoin is massively affected by China-U.S. trade, but a lot of other stuff is.

03:23They've got to cover their losses, and they sell that which is most likely to bounce back up.

03:26They can buy it at the low point and ride it back up.

03:30All right.

03:33At 4.50 p.m. Eastern, daylight time, Trump posted and hopped it.

03:44And he wrote,

03:47It has just been learned that China has taken an extraordinarily aggressive position on trade and sending an extremely hostile letter to the world,

03:55stating that they were going to, effective November 1, 2025, impose large-scale export controls on virtually every product they make, and some not even made by them.

04:06This affects all countries without exception and was obviously a plan devised by them years ago.

04:12It is absolutely unheard of in international trade and a moral disgrace in dealing with other nations, though probably nothing quite like Rosie O'Donnell.

04:21Based on the fact, says Trump, that China has taken this unprecedented position in speaking only for the USA and not for other nations,

04:29who were similarly threatened, starting November 1, 2025, or sooner, depending on any further actions or changes taken by China.

04:36The United States of America will impose a tariff of 100% on China over and above any tariff that they are currently paying.

04:44Also, on November 1, we will expose export controls on any and all critical software.

04:49Where?

04:50It is impossible to shove a Cadillac up your nose.

04:55It is impossible to believe that China would have taken such an action, but they have.

04:59The rest is history.

05:00Thank you for your attention in this matter, Donald G. Trump, etc., etc., etc.

05:05So, very shortly after that announcement, Bitcoin took a sharper dip at around 5.20 p.m. Eastern Daylight Time.

05:18The price dipped below $105,000, U.S., Canadian $147.1K.

05:24But remember, one Bitcoin always equals one Bitcoin.

05:29At the time of this writing, this was $645,000, because we're current, man.

05:33We're current like a raisin bun.

05:36The price of Bitcoin has recovered to just under $114,000, U.S., just under $160,000, Canadian.

05:42The price is a moving target, of course, but all in all, we're about where we were 30 days ago.

05:50Isn't that funny?

05:52It's so easy to get used to rising prices that when they return to a mere, in the 14-year history of Bitcoin, 15-year history of Bitcoin,

06:01it returns to a mere 30 days ago, and we are up $60,000 from a year ago.

06:13Sorry, we are up from $60,000 a year ago, up from $27,000 two years ago, and so on.

06:21The market closed at 5 p.m.

06:23Well, Bitcoin's always open, but not like my former girlfriend's likes.

06:29The Dow Jones Industrial Average fell 879 points, which is a very, very bad basketball game, or 1.9%.

06:36The S&P 500 dropped 2.71%, and the NASDAQ Composite, NerdStack Composite, slid 3.56% with tech stocks.

06:48It hit particularly hard due to supply chain concerns, and the aforementioned whatever they designate as critical software

06:53ain't going to be sold to China, which is a pretty big-ass market, though the fact, the ladies have small asses over there.

06:58So, that is the issue.

07:09Someone says, I used to be somewhat wealthy, back to ramen noodles for me.

07:12Ironic, because I think that ramen noodles, they're more Japanese than Chinese, is that right?

07:17The most volatile and the easiest one to get rid of.

07:20That's quite right, Jay.

07:21That's quite right.

07:23So, I can tell you the way that these things work is there are sales that trigger more sales.

07:30So, there's lots of programs kicking out there, sniffing around the price of Bitcoin.

07:34When the price of Bitcoin goes down 5%, sell!

07:37But then that causes it to go down 7%, and the people who have the 7% trigger say, sell!

07:44And then it goes to 9%, 15%, like, boom!

07:46Right?

07:46It just, it cascades.

07:47It's not real.

07:49A lot of it is algorithmic.

07:50It's not objective.

07:52It's not based on people's evaluation of future prices or anything like that.

07:57So, don't sweat it, baby!

08:02In my humble opinion, it's more bouncy than silicon in a beach volleyball competition.

08:11So, I will tell you that, my friends, and we shall see.

08:17But, I mean, I actually, I just find it interesting.

08:20I don't care.

08:21I don't care.

08:22I read it.

08:23I'm like, whoa!

08:23And then I'm like, dum-de-dum, squirrel!

08:26So, enjoy.

08:28Enjoy the ride.

08:30Life is an exciting blend of upside down, followed by an eternal dirt nap.

08:37Enjoy the ups and downs, because the only time when you get a down without an up is when you're

08:41being lowered by Jim Carrey into your permanent abode, and you become food for worms, and the

08:49cycle of life continues.

08:51So.

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