Last Friday, financial markets were in panic, and asset prices fell sharply. The sell-off started around noon, but accelerated further after President Trump announced on social media in the afternoon that he would impose new 100% tariffs on Chinese goods.
It was as if investors had forgotten the tariff scare in April, and people rushed to sell off all kinds of assets they held. The stock market had just closed at that time, so the main impact was reflected in after-hours trading.
But the Bitcoin and cryptocurrency markets never close. We witnessed these assets being sold off, and the speed and depth of the price drop were the most severe I can remember in the past ten years.
Bitcoin dropped from about $121,000 to about $108,000 in just a few minutes. This was one of Bitcoin's rare daily candles of over $10,000, but unfortunately, it went in the wrong direction.
Before I explain why the sell-off is bullish, you should know that this market pullback was not entirely unexpected. On Friday at 10 a.m. (ET), I sat down with my friend Jordi Visser to record our weekly conversation. In that talk, Jordi clearly pointed out the possibility of a short-term market pullback. He said he was optimistic about the medium and long-term markets but much more cautious about the short-term market.
A few hours later, the pullback began and accelerated throughout the day. To be honest, this was one of the most prescient views shared by someone on our podcast since we started broadcasting. Impressive, to say the least.
But the good news is that the bear market of October 2025 has officially ended. Why? Because President Trump assured on social media on Sunday night that "everything will be fine" and "America wants to help China, not hurt it!"
This assurance was exactly what the market needed. Last night we saw stock index futures open higher, and the price of Bitcoin also recovered to over $115,000 per coin.
So, what insights have I gained from this disaster over the past few days?
First, if you sell Bitcoin in the context of geopolitical uncertainty, you will never understand what you own. This decentralized digital currency is designed to provide people with a place to store their hard-earned economic value without relying on the support of any country. This is not only a powerful idea, but its value should also increase as geopolitical uncertainties continue to intensify in the coming years.
Second, if Bitcoin can drop $15,000 in a single day, then it means it could also rise $15,000 in a single day in the future. Look into reflexivity. It would take an extraordinary piece of news or development for this to happen, but the market is showing us the possibility.
Third, if you were bullish on Bitcoin and stocks three days ago, you should be even more bullish now. Nothing has fundamentally changed in the past 72 hours. We just experienced a healthy correction that eliminated excess leverage in the system. Now the market is ready to continue rising.
Fourth, imagine telling someone 10 years ago this statement: "The largest cryptocurrency liquidation in history of over $19 billion, causing the price of Bitcoin to fall to $108,000." We dream of days like these. As time goes on, the price of Bitcoin will go even higher.
So, no matter how you view the events of last Friday, I think investors won't care or remember it a week from now. This is how markets work now. They move at lightning speed. Investors are forgetful. Everything is focused on the future. President Trump caused the market to plummet on Friday and revived it on Sunday.
You might not like it, but that's the reality. And it will continue to happen. Geopolitical negotiations are happening on social media. Investors will continue to overreact in the short term. However, long-term investors have nothing to worry about. Avoid excessive leverage, understand your assets, and you can rest easy.
Bitcoin's rise is inevitable. They will never stop printing money, so Bitcoin will never stop rising. God bless Satoshi Nakamoto for inventing a solution to one of the world's toughest problems.
