$89M STOLEN, MICHAEL SAYLOR SELLING! | DID BITCOIN JUST ENTER A DEATH SPIRAL? | Bitcoin Simply

**Donatek Hook** (0:00)
Bitcoin may be entering a death spiral that no one saw coming. Over 4,500 Bitcoin wallet addresses have been drained of 89 million Bitcoin in the Cold Card Hacks so far, and the devastation continues to spread. And the attack is exposing one of the most frightening weaknesses imaginable. Not an exchange, not a smart contract, but the keys themselves. And this is all happening at the same time as the largest corporate holder of Bitcoin just authorized plants to sell up to $5 billion worth of Bitcoin, 10% of their stack. With the Clarity Act about to pass, Washington now has the perfect angle to argue. Self-custody is dangerous. Every wallet must be monitored. Bitcoin needs to be brought under the control of the regulatory authorities. And if you thought this was bad, it gets worse. Japan and the United States just conducted the largest currency intervention of all time. America's borrowing costs are surging, and the national debt just crossed $40 trillion.
So what happens when a wallet crisis, a massive Bitcoin sale, a regulatory crackdown, and a sovereign debt crisis all hit at the same time? That's what's happening right now. Today I'm going to show you why this might be even worse than Mt. Gox, which poses the question, will this Bitcoin death spiral end before the financial system collapses? This is Donatek Hook with Bitcoin Simply.
Let's go.
Alright everybody, we're going to update everyone on this cold card hack, and it's so unfortunate. I'm so sorry for all of the people who've lost funds out there. If you've purchased a cold card device from 2021 forward, whether it's MK3, MK4, MK5, and even Q, I would highly suggest that you move your Bitcoin to a different wallet address, not generated through cold card. Because so far, there have been 4,500 Bitcoin wallet addresses drained. That's over 1,000 Bitcoin of people who stacked, saved, never put their Bitcoin online and took self-custody into their own hands, and at no fault of their own, from a fault of a manufacturer who didn't utilize enough entropy, who didn't take the necessary steps to secure your Bitcoin seed phrases, now these people are affected. And it appears that this is just the beginning. We've got a multitude of different hackers using Kimi3, AI tools and LLMs to try to brute force their way into unlocking the keys to your Bitcoin. And the crazy part is, we've got OG Bitcoiners who are now selling, who are now moving their Bitcoin to exchanges or getting out of Bitcoin altogether. And this is happening at the same exact time where Bitcoin's largest holder in MicroStrategy or Strategy has authorized a sale of up to $5 billion in Bitcoin. They want to use $1.25 billion to fund their reserves, $1.75 billion for buybacks and another $2 billion to refund their repurchasing programs. And people like Peter Schiff immediately jumped in to propose the prospect of a death spiral and that when they begin selling, they're gonna have to raise much more than $5 billion to cover the hole, implicating that this financial machine might be unraveling. Michael Saylor clapped back saying that this is old news, meaning by old news, it's a month old, and that they don't have to quote unquote sell their Bitcoin. It's not a goal to sell Bitcoin, but they would sell it or might sell it for their stated purposes. And this is where death spirals begin. Bitcoin crashes in price. Strategy has to unload more Bitcoin. People lose faith in Bitcoin. The sale pushes Bitcoin lower, and this requires people like Strategy and others to sell more to cover their collateral. This happens in every major sell off and every major panic. And regardless of whether this was old news or whether this was announced a month ago, I think I have to question Saylor's comments on the BIP 110 saga.
In the midst of people losing all of their Bitcoin, which again, he's a corporate actor.
He's a chairman of a multi-billion dollar company. He doesn't actually have to comment on the cold card stuff, but I do think the BIP 110 stuff for him being so active in Bitcoin is a bit tone deaf. And when he partnered with Blockstream and Block and BlackRock and all of these different firms, you have to question whether these things are coinciding. Whether the Bitcoin split that's upcoming in this cold card hack, which could have been found in 2021, and the Clarity Act all coming at one single event, you have to wonder if all of these things are truly random. And of course, whether it's random or not, Washington is going to use this opportunity to pounce. Here's where the panic becomes useful. You never let a crisis go to waste, especially when you need it as leverage to say that Bitcoin is bad. Crypto can be used by bad actors to steal innocent people's money, which is exactly what's happening right now. Listen to this clip from Senator Warren.