Bitcoin Crash & Fed Pivot: Why the Thesis Still Holds

Bitcoin dropped to $106K after a sudden Friday sell-off, triggering panic across crypto markets—but Swan’s team remained calm, stressing the long-term thesis is unchanged.

John Haar and Isaiah noted that Bitcoin fell just 10% while altcoins crashed 50–90%, underscoring Bitcoin’s liquidity and resilience.

The team compared the pullback to past cycles, arguing this is not a cycle top but typical mid-bull market volatility.

Discussion on Fed Chair Powell signaling an end to QT and potential rate cuts—seen as a tailwind for Bitcoin as monetary easing returns.

John highlighted data showing Bitcoin rose 750% during the Fed’s tightening cycle, disproving the myth that Bitcoin only thrives under easy money.

A deep dive into the Fed’s balance sheet showed that long-dated Treasury holdings have never decreased since 2008, signaling systemic dependence on debt monetization.

Chamath Palihapitiya’s claim that quantum computing could break Bitcoin in 2–5 years was debunked—experts and developers agree it’s decades away and Bitcoin can adapt.

The team explored how AI could reshape the economy, potentially displacing workers and pushing governments toward UBI—but also creating new industries and efficiencies.

Brady and John debated whether UBI could be socially beneficial or harmful; both agreed Bitcoin offers protection in any fiat debasement scenario.

The show wrapped with reactions to Larry Fink’s 60 Minutes appearance comparing Bitcoin to gold and Elon Musk’s recent positive Bitcoin comments.