Transcription
Today, we are going to expose one of the largest coordinated crypto crashes in the history of this asset class. Now we're going to be looking back at this month of February, and I'm calling it "The February Flush Out."
On February 3rd, we had the largest liquidation event in the history of cryptocurrency. President of Argentina, Malay rug pool, Mcoin, that was on February 14th—Happy Valentine's Day! And then, uh, last week we had the largest hack in the history of cryptocurrency. But that wasn't the end of it. See, to follow up with this hack was one of the most coordinated crashes in cryptocurrency history, and I'm going to show you why XRP was caught up in the middle of this. We're going to explain what just happened.
Now, if you're new here, make sure you guys have subscribed and hit that notification bell. We're going to keep you guys up to date on current events, the financial markets, and how we are taking advantage of the greatest transfer of wealth in world history. And we're going to show you how some of this wealth got transferred back into the hands of these centralized exchanges that needed to cover their butts. So, without further ado, let's get right on into it. I appreciate you guys for stopping by.
So here's Bitcoin, back down, bleeding out big time. Just two big daily red candles came in here, bringing us down to about 86,000 on the low here, bouncing back up right now at 87,000. We really wanted to hold that 90k level. The last line of resistance is here at about 87,000. If we break through this one, it's looking ugly, and I know some folks are already calling us for a back test of 74,000. If we do hold 87, um, you know, that would be fine. The reason why I think that this flush out is done is because they've already liquidated all of the longs, which is what this coordinated crash was about.
Now let me give you a quick look at the XRP price chart. And I'm going to show you later, too, that they hit the max pain point on XRP liquidations as well. So XRP dropping down this morning all the way to $2.6. I've continued to reiterate how $2 is a massive buy wall for XRP. Remember, we triple-tapped this level back here in December, and that was before we went up to $3.40. This was the largest liquidation event in the history of cryptocurrency right here on February 3rd, that took XRP back below 2 bucks for only 10 minutes. Remember how quickly we bought that one up? And so XRP already bouncing really well off of this big liquidation down here to 2.06, and right now it's at about 2.19. So we'll continue to watch that one. I do want to give you a little bit of a sneak peek here, zoomed out on where this thing goes next. I'm looking at a move here, 220%, taking us all the way up to about seven bucks, potentially moving up here all the way up to 10 and a half. And yeah, that's coming in the next couple of months. So, you know, zoom out on your chart, take a look at how, you know, the structure just remains intact. A lot of people getting shaken out right before we're about to make a massive move here for XRP. So please prepare yourself accordingly.
Now let's get into this: why did this happen? Well, it's very simple. Uh, this is on a Saturday space with Mario Nef, fall crypto town hall with the CEO of Bybit, explaining how they were going to have a liquidity crunch on stablecoins. So basically, they weren't worried about becoming whole on the Ethereum because they'd already gotten a bunch of Ethereum loans and they were able to fill that gap pretty easily. But he was talking about how they had their stablecoins on a platform called Safe, and apparently they didn't have access to it over the weekend, and he was worried about them having a liquidity crunch, a liquidity crisis for their stablecoins, actually. And so I tweeted this this morning: how did they solve the liquidity crunch? They nuked every single chart, scooping up all the Tether they needed from levered longs being liquidated. This was a month of coordinated chaos in crypto, orchestrated by the biggest market makers.
So why did they do this? They were short Tether. How do you get Tether? Well, on these platforms, when you go to trade futures, when you go to use leverage, you're primarily going to be using Tether or another stablecoin to do so, right? You're not actually betting. If you want to go long XRP, you don't bet with XRP, right? You don't deposit—you know, you could deposit XRP into their platform, but then you need to transfer over to Tether, and then you can play in their futures markets. This is how most platforms work. So when you get margin called, and when you get liquidated, and when your bet gets taken, and and you got taken to the cleaners, what happens is they take your Tether. They don't take XRP from you; they don't take Bitcoin from you. You bet Tether; they take Tether. So what they effectively were able to do by, you know, basically just doubling down on this crash—markets were already down, and they just made us bleed even more; they just squeezed us to the point of near death, basically—so that they could scoop up all this Tether because when the bets get liquidated, the Tether goes to the exchange, and that's exactly what they did. And you can see after Bybit wipes the floor of leveraged longs, they can now start paying back friends. This is Bitget this morning, confirmed that the 40,000 ETH loan to Bybit has been returned to Bitget, no interest, no collateral. This was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan.
So while the industry tries to, you know, act like this is great, we all stood together, we all came together—well, we came together to do a mass coordinated liquidation event so that we could scoop off Tether off of our books, off of their books, and put it into their pockets. That's what happened. So after we have—and I'll show you here—here's the data: Bybit begins repaying borrowed ETH from institutions right after $570 million in longs get liquidated. Slide on over here to Butcher, and he's showing $624 million in liquidations. After Bybit got hacked, they decided to make it all back by one trade: just go nuke the charts, go take all the Tether back. That's how this game gets played. And so, um, you know, is it a coincidence that after, you know, over half a billion in levered longs get, you know, cleaned out and taken on Bybit, now they start paying back their loans?
Let's see the other side of the story. Let's give the CEO, Ben Zhou, an opportunity to respond. He responds here to Marty Party, who's basically saying the same thing: Bybit official whips up a quick 423 million in profit in one day. Don't feel—don't feel sorry for them. Any comments from Ben, Bybit? He responds: First off, liquidation doesn't mean it's profit for the exchange. Number two, Bybit ranks number one in liquidation because we give full transparent data on liquidation. Now there's a very interesting couple of points that are made there. First off, as far as the transparency on leveraged—on on liquidations—transparency on liquidations, it's very… because at the beginning of the month we had the largest liquidation event in the history of cryptocurrency at 2 billion, but there were platforms like Bybit, Ben Zhou, and other people who came out and said that the real number was actually probably closer to 8 to 10 billion. So four to five times bigger than the original numbers that were being reported. Now we don't know. And that was when he started to hint at the lack of transparency in these liquidations. So, you know, I guess we can tell Bybit for being transparent in them cleaning the floor and sweeping everybody of their Tether and uh, taking their positions. I mean, we can we can give them a nod uh, on their transparency. That's great. But let's be clear here: liquidation doesn't mean it's profit for the exchange, of course, right? Topline revenue uh, in the form of liquidations to Bybit is not all profit. There is a little bit of expenses in there, you know, and and so yeah, they got to have some people running the servers; they got some infrastructure. There is a cost of doing business for these exchanges. But let's not kid ourselves, Ben. Come on, right? Of that 600, you know, 400, 500, 600 million in liquidations, how much of that is profit for the exchange? I would be willing to bet that the profit margin on that is pretty good. It it it's not it's not 5%; it's not 10%. I bet you it's well over 50%, if not more, right? This is how these exchanges make their money, and they're not your friend if that isn't clear by now.
Now Mr. Westes Clintwood responds here to uh, Ben, and he he elaborates: Liquidation means ending liabilities for the house to pay out those profits. And on the second point: Wintermute, Jump, DWF, and friends dumping markets with assets delivered by centralized exchanges enables these positions and liabilities to end. Not suspicious at all. There's a gray area between good trading performance and gaming market participants, your customers, not by your hand. And just good trading is a good defense until it's not. The question is: are you loaning customer assets to market makers for their maximum value extraction, as recently described by Wintermute, to benefit the house P&L? Looks like those hack loans are getting paid off right now. Thanks. Just do us all a favor and mass extract the value from the shorts next.
Now this is very, very important: understand this. They took these cryptos and liquidated all these to a point of max extraction, mass pain point, where basically all of the longs got liquidated. And what we have been tracking is the flow of funds from these centralized exchanges to the market makers like Wintermute and others that have been trading against us, that have been liquidating all these positions to elaborate. Lena Queen says: Thanks for blocking me, CZ, and proving me right. Binance is dumping SOL and ETH and other assets via Wintermute. Say something, and the head scammer CZ will instab you. Thanks, Marty Party, for fighting the proofs. Would be a shame if this goes viral. Now is CZ's gamer—I'm not going to get into that; that's not the point that I'm trying to make. What I'm showing you is that we do have confirmation of on-chain transactions of not just Bybit but Binance sending funds to these market makers who have just been bleeding out these positions on Ethereum, Solana, and others. And in my most recent update, I suggested that they were selling off XRP as well because X—XRP, you know, remains relatively stable and secure despite the price coming down; it's still very liquid. And so I believe that that's what was happening here, and I got further proof. But before I show you the proof, one final point that that that man, this Mr. Westes Clintwood made: He says, "Please do us all a favor and mass extract the value from the shorts next." And that's exactly what's going to happen. That's why we're about to go into a massive pump. They've liquidated all of the long positions, pushing the markets down, and now they're about to do the same thing going back up, and this is going to be a big, big run.
But here's the proof: Marty Party, XRP is fully capitulated to max pain by Binance, Brad Goinhouse. So you are aware of the players in the game. And what this is right here is the Binance liquidations, and what you see is that basically all of the liquidation levels go all the way down here to about $2.25, and where did they take us to this morning? $2.6. So literally every single long on the book got wiped out, and only fresh longs that people would have placed here between $2.6 and $2.20, where we're at right now, would be on the books. But basically, all longs on XRP were taken out, and they took these charts down to the max pain point where they could scoop up as much of those liquidations as possible, and that's just Tether that goes straight onto their books, Tether that goes straight into their accounts next. But while this is happening, they're priming us up for the pump and the reversal to the upside. And the whales continue to accumulate.
This is a very simple game, guys. 26,000 Bitcoin just moved into whale accumulation addresses, signaling potential OTC deals in long-term custody. The whales are scooping up Bitcoin; the whales are scooping up XRP. Whale orders showing roughly 293 million more in buys than sells in the past two days. This is not your average retail holder that's affecting the chart and making XRP's price go down. This is 100% coordinated chaos in the crypto markets. We'll look back and call this and refer to it as the February Flush Out before we went into just an epic 60-day bull run, alt season. I'm still preparing for my levels on XRP up to about seven to eight bucks. I'm looking at some of my other altcoin positions in the run that they're about to make, getting ready to take profit on these positions because we're about to reverse back to the upside. And do not let this coordinated chaos that they've brought about here shake you out of your positions or, you know, distract you from the fundamental value that these assets are heading to. This is an incredible setup, an opportunity to buy these assets on the low before we move up here higher over the next uh, 30 to 60 days. I'm going to be taking advantage of that, and I'll tell you right now, full disclosure, I'm looking at these cryptos right now, and a lot of these opportunities are not jumping out at me, but I continue to look at some of these XRP meme plays. These XRP meme plays, uh, not only are they fun, but they move so quickly, and we make more XRP in the game. So let me know in the comments down below what you guys are buying. Hopefully you survive the crypto chaos and uh, understand now how coordinated this was. This was not real; this was 100% manipulation. XRP structure remains intact, and we are going to be moving up higher. Please prepare yourself accordingly, and let me know what you are buying on this dip. God bless all of you guys. Everything's at zack.com. Thank you so much. Stay safe. I am your host, Zack Director. I really appreciate all of the love and support. If you want to support the channel, just remember that you can start by smashing that thumbs up for me, sharing this content far and wide, and everything else is at my website.