Is Trump’s $40T Debt Reset Plan a New Bitcoin-Gold Standard?! | Simply Originals

Nico Moran (0:00)

On this day, one year ago, 1010, a day that will live in infamy. 800 billion was wiped out from Bitcoin and the crypto market as a whole. Over 19 billion in leverage positions gone. 1.6 million traders got liquidated. And this week, Bitcoin flash crashed to 80K.

Yes, that's right, Bitcoin is dying again. After a plague, global bond markets imploding, and big banks crashing. Take a look at that. Even the KBW, Nasdaq Bank Index, which tracks the 24 publicly traded US banking stocks, is now down 14% from its August peak. Not to mention a hardware wallet supply chain attack that has drained roughly 203 BTC worth upwards of 90 million. This story is insane. We got a big show today. Bitcoin held up to all these macro forces amidst all this chaos. And that is telling us something. Something Bitwise's CIO, Matt Hougan, just revealed in an interview on Simply Bitcoin Live. And the director of Global Macro at Fidelity, well, he seems to be in agreement. Bitcoin's resilience isn't the only signal here. It's the treasury. And it's growing increasingly likely that a golden currency revaluation could be upon us. Smash the like, subscribe if you're new here, and strap in because Bitcoin just experienced one of the most insane weeks in its history. And it just dominated banks during an economic crisis. Yeah, we got a lot to get to.

Jurrien Timmer (1:40)

Send it.

But now that Bitcoin, in my view, has done a full winter, a mild winter, but even a year ago, when it broke that trend line, and it's interesting, Bitcoin, as chaotic as it looks, when you put both time and price on a log scale, it's like a beautiful harmonic picture based on the power law, and every wave up and down fits a harmonic pattern. And that peak in 2025, it was a little short of where it should have gone. It should have gone to 150 over 150 weeks, but it went to 126 over 140 weeks. 126,000 of Bitcoin is still the high. And so at that point, based on trend lines and knowing that every winter gets smaller, I'm like, you know, 60K is a level that I'm going to buy, and it went to 58, and not to toot my own horn, because I don't make- The Bitcoin winters are shrinking in length. Yeah, but so we hit 60- And depth.

Yes, it's a maturing asset, right? So it's going to moon less and it's going to swoon less, and that's what maturing assets do. But when it hit 60 earlier this year, I'm like, the price is right, but the time is wrong, because these winters last nine to 12 months. And then, as recently as maybe a month or two ago, it was still at 60 And I'm like, okay, now I'm really going to pay attention. And then it broke above 80, that confirmed the double bottom. And when you price Bitcoin in terms of gold, it's a really beautiful pattern. So I think Bitcoin is going to- I think they're both going to go up, and Bitcoin is going to go up more, even though we're still kind of looking for a narrative. And as you know, when things move without a narrative, you always have to pay attention, because that's- there's something going on. We just don't see it yet.

Nico Moran (3:23)

That was Jurrien Timmer, the head of Global Macro at Fidelity, preaching a little sound money gospel. I think he knows it's not Bitcoin in times of crisis you need to fear. It's bonds, stocks, telecom companies, and oh yeah, the big banks you need to be worrying about. That's what's so insane about Bitcoin holding the line this past week, because so many things are coming apart, totally unraveling. What is really interesting about both the bond market and the banks getting absolutely wrecked this week is this. The New York Fed has been examining loans to private credit firms at JP Morgan, Wells Fargo, Barclays, and Morgan Stanley, checking their exposure and the collateral backing it. Here's the danger. Companies replacing cheap debt with higher rate loans face bigger payments. If their cash flow can't cover it, their lenders take a hit. But those lenders borrowed from banks too. So now somebody else's bad loan can become the banks problem. If banks demand more collateral or pull financing, borrowers may have to sell assets fast, pushing prices down and putting even more borrowers under pressure. That's how losses can spread into a funding crisis. It doesn't mean a collapse is guaranteed, but calling it private credit doesn't keep the risk private. And if it blows up, remember who collected the fees before Washington starts explaining why you need to pay for it. Say it with me now.