The Bitcoin Short Squeeze Just CONFIRMED Wall Street Has LOST CONTROL of Bitcoin!!! | EP 1575

**Nico Moran** (0:01)
Yo, Bitcoin nearly touched $80,000 this morning. Are we back, baby? Up over 25% this week alone. And now everyone is wondering, how high will it run over the weekend? Well, the Bitcoin ETFs have bought 23,000 Bitcoin. That's 50 days of new Bitcoin supply ripped off the market by Wall Street alone. We have also seen around $2 billion of shorts destroyed as the bears continue to double down. And what's even more insane is that these bears have now built up a massive cell wall at $80,000. Before we talk more about the short squeeze and look at how high Bitcoin could potentially fly, I want to focus in on the ETFs because Larry Fink dropped a massive Bitcoin report on Monday that might have kickstarted this entire move while absolutely no one was paying attention to it. Let's check it out. So here's a report by BlackRock. It's named, Re-Underwriting Bitcoin, Still a Portfolio Diversifier After the Pullback. Now, I love to talk about incentives. I'm going to get to that in just a little bit, but let's take out the key takeaways of this report, shall we? So first, they said, Bitcoin has pulled back roughly 50% from its October 2025 highs. We sell this, they view the sell-off as largely driven by crypto native deleveraging and shifting investor flows rather than a fundamental change in Bitcoin's long-term investment case. Now, this isn't simply Bitcoin making that case. This is BlackRock. This is the largest asset manager in the world, $13.8 trillion under management. They're basically making the case that Bitcoin's long-term investment case has not changed. The second key takeaway was Bitcoin can exhibit a dual personality.
Interesting how they phrase that, right? Dual personality. And it continues to say, at times, trading alongside risk assets during periods of market deleveraging, while others serving as a potential hedge during geopolitical disruption. Now, that reminds me of how Larry Fink was describing Bitcoin as a non-sovereign alternative. So despite this bear market that I would consider as a Bitcoiner, one of the worst I've ever experienced, not from a volatility perspective, from like a vibes perspective, this is really the first time that I've seen so many OG Bitcoiners disillusioned with Bitcoin. Like thinking about like, you know, is this over or are we packing it up? This is the first time I've ever seen that. Well, BlackRock is doubling down. BlackRock is not changing their conviction, right? So if you're selling your Bitcoin right now, you're selling it to Larry Fink. That's the reality of it. They haven't changed opinion despite the 50% drawdown.
Speaking of despite, despite its volatility, Bitcoin has maintained distinctive portfolio characteristics over longer horizons, including low correlation to traditional risk assets and positively skewed returns. Its role as an emerging global monetary alternative may also offer investors a potential hedge against ongoing fiat debasement amid rising government debt and persistent fiscal deficits. That's not simply Bitcoin saying that, that's BlackRock saying that.
They continue on to say, Our updated 10-year historical analysis indicates that a modest 1% to 2% allocation to Bitcoin would have improved risk-adjusted returns in a traditional 6% to 40% portfolio. We believe a measured allocation can continue to serve as a potential strategic diversifier for long-term investors. Now, a couple key takeaways here. Obviously, the BlackRock ETF being the BlackRock Bitcoin ETF being the most successful BlackRock ETF launch in history. Obviously, they're pumping their own bags, but they're also telling traditional investors that might not necessarily be Bitcoiners that, hey, wait a second, the 60-40 portfolio idea, that doesn't work anymore. You actually need 1% to 2% of that portfolio. You need some exposure to Bitcoin. And let me tell you why that's massive. BlackRock manages roughly 3 out of every $10 invested in US ETFs. 15% of US households own ETFs. BlackRock manages, I apologize for the earlier, I misspoke, BlackRock manages $13.4 trillion.
So think about that for a second. 15% of US households own ETFs. You could be saying, wait, Nico, that's actually not that much. Well, it is, right? Because the lion's share of the US wealth is held only by a small percentage of people. It's not held by the majority of people. So you could surmise that and you say, okay, what percentage of people actually have exposure to the stock market itself, right? And now here's BlackRock again, putting a rubber stamp over Pro Bowl and basically saying, listen, the 60-40 portfolio is not enough.
Bitcoin is a hedge against governments printing money. Bitcoin is a hedge against the massive debt that governments are accumulating. I'm assuming they're putting the United States into that bucket, $40 trillion in debt. And they're basically saying, hey, you know, this Bitcoin thing, you should probably get at least 1% to 2% exposure. Now, again, they're pumping their own Bitcoin, they're pumping their own ETFs, that makes sense. But this is why I always talk about aligned incentives, right? Aligned incentives are beautiful. The whole network operates with aligned incentives.